What Is a Mortgage?

For most people, one of the first steps to buying a home means securing financing through a loan, known as a mortgage. While many home purchases require down payments, there are also some mortgages that can be secured with little or no down payment.
 
Mortgage loans are considered secure loans, which are backed by assets or collateral. Usually the collateral for a mortgage is the property that is being purchased.
 
There are several different types of lenders that offer mortgage loans. Traditionally, borrowers can seek loans via a credit union or a traditional bank. If you are considering applying for a mortgage through United Heritage Credit Union reach out to one of UHCU’s Loan Specialists and we can help with some of your initial questions.
 
The specifics of a mortgage loan, such as the length of the loan and the interest rate are called the loan’s terms. The terms of a loan can depend on several factors such as your credit score, the type of property you want to buy, the property’s location and the amount you want to borrow.  When applying for a mortgage, the application may ask you what terms you are interested in, so consider what your long term goals may be when filling out your application.
 
It’s very important when you are applying for a loan to have good communication with your lender. For most borrowers, a mortgage may be the biggest financial decision you make, so being confident and comfortable with your lender will make the mortgage process easier. UHCU’s Loan Specialists are ready to assist you on every step of your journey - contact us at 512.435.4444 or submit an application to get started today.