Few people can purchase a piece of property outright. They will need a mortgage loan in order to complete their real estate transactions. Before signing any paperwork, Louisiana residents may want to better understand what they are getting into.
A mortgage loan is often more than just a commitment from a lender to provide a buyer with the funds needed to purchase the property. Most people know they are expected to pay interest, but other costs usually accompany the loan itself, and other expenses are involved with the the process that buyers may not know about or understand. Buying a piece of property rarely only involves the cost of the home.
For instance, in addition to a down payment, most lenders will require appraisals, inspections, title policies and more before they will approve a loan. They want to know that the collateral, the property itself, is worth the risk. Lenders want to know that if they fund the purchase, they have something they can turn around and sell should the buyer default on the loan. In addition to these costs, there will most likely be discount points and loan origination fees for the buyer to pay.
Working with a mortgage loan lender is not always a smooth process. Between working with lenders and others involved in real estate transactions, Louisiana residents can become overwhelmed, stressed and frustrated quickly. Even though realtors often do their jobs well, they cannot appropriately advise people regarding their rights and the legal issues involved, including those surrounding mortgage loans. It would likely be worthwhile to consult with an attorney throughout the process.