What Does it Mean to Mortgage Your House?
You’re going to hear several terms when you decide that it’s time to purchase your first home. There are also some phrases that you’ll hear. It’s a good idea to understand the basic terms so you can follow along when the loan specialists give you updates on your application.
One phrase you might hear is mortgage your house. To mortgage a house means to purchase the property with financing. A home costs between $300,000 to $700,000 on average in Australia. Most Australians don’t have that much put away, so they turn to a lender for a mortgage. A mortgage is also known as a home loan.
Lenders, such as Mortgage House, are willing to finance these significant investments because the property serves as collateral. If something goes wrong and you’re no longer able to make your monthly repayments, the house is used to pay off the debt. In most cases, a lender works with you to figure out if there’s an alternative solution.
The mortgage application process is long. You’ll be asked to provide financial information and supporting documentation. Lenders are assessing your risk level. If you don’t have a lengthy credit history, employment history, or down payment, you may be asked to provide a guarantor or to consider a less expensive property.
Mortgage Your House Conclusion
If you’re ready to mortgage your house, give our Mortgage House loan specialists a call. Our team is ready to help you finance a home purchase. We’ll walk you through the application details and progress. You can also take a look at our mortgage calculator.