What Is a Mortgage?
A mortgage loan, in simple terms, is money provided by a lender, typically banks or mortgage companies, to help you purchase property or other real estate. The process requires a commitment to repay the loan amount over a specific period, usually 15 to 30 years.
During this time, the mortgage lender holds the property itself as collateral, ensuring the loan is repaid as agreed upon. Generally, mortgage loans come with lower interest rates than standard loans, since the lender can take your property if you fail to make payments on your loan.
Should You Apply for a Mortgage Loan Online or In Person?
This all depends on individual preference. Many of the best mortgage companies offer mortgage websites to provide users a faster loan approval process and quicker communication – and sometimes lower rates since they don't have to maintain physical branch locations.
What’s more, choosing where to get a mortgage loan can be a difficult decision. Mortgage websites make finding the best mortgage lender easier than ever without the hassle of visiting a bank. You can compare mortgage prices from numerous lenders with just a few clicks.
How To Get a Mortgage Quote
Before you can view a mortgage lender’s rates, many companies will require you to request a mortgage quote. This process is typically 100% free, should not affect your credit score, and takes less than a minute.
Getting a mortgage quote is a great way to begin your search. This is often the first step in understanding what you can afford, which can significantly simplify your home-buying process.
Apply for a Mortgage Loan
Looking to apply for a mortgage loan? Shop for homes within your budget confidently and discover which mortgage lender gives the most competitive prices.
- Check Licensing
- A mortgage loan application requires you to share personal data – always make sure you're comparing legitimate mortgage websites before you submit any mortgage applications.
- To verify a lender's license status, check their National Mortgage Licensing System (NMLS) ID at the official NMLS Consumer Access website (available under each mortgage company's logo.)
- Compare Multiple Lenders
- Once you’ve compiled a list with a few of the best mortgage companies that catch your eye, don’t be afraid to fill out more than one mortgage loan application. This can give you a better idea of good mortgage prices and help you find the best mortgage loans for your budget.
- Choose a Loan that Works for Now
- Ideally, you should apply for a mortgage loan that is tailored to your current financial situation and not your future plans.
- Review Terms Carefully
- Regulation of private mortgage lenders varies, so it's important to review your loan terms in detail to be sure you're not missing any important information.
Everything You Need for a Mortgage Loan Application
Once you’ve think you’ve found the best place to get a mortgage, be sure to get the following information ready to apply for mortgage a loan with ease:
Personal information (Social Security number) • employment history • proof of income (W-2, tax returns) • any debt information (credit cards, student loans) • and mortgage property details (if applicable).
Common Mortgage Loan Terms
| Conventional Mortgage | A conventional mortgage is a house mortgage, typically offered by banks, credit unions, and other financial institutions that follow guidelines set by US government-sponsored enterprises. |
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Private Mortgage Loans | For more flexible terms, consider prequalifying for a home loan with private lenders, especially if traditional financing doesn't suit your needs. |
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FRMs | Fixed-rate mortgage loan rates must remain constant throughout the loan's term, which means stable monthly payments. |
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ARMs | Adjustable-rate mortgage loan rates are fixed for an initial period, typically at a lower rate, then rise and fall with market changes. |
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FHA Loans | Federal Housing Administration mortgage loans are available to individuals with low credit, often requiring higher upfront fees. |
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VA Loans | VA mortgage loans, available to eligible veterans and service members, offer competitive interest rates and zero down payment. |
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Tips for Long-Term Mortgage Loan Success
Through consistent, on-time payments, mortgages help build equity, provide potential tax benefits, offer stable housing costs, and help you build wealth and financial stability. Follow these tips to help you stay on track:
Budget Wisely – Create a budget that includes your mortgage payment, property taxes, insurance, and maintenance costs, and stick to it.
Build Equity with HELOCs – As you pay off mortgages, you build home equity lines of credit (HELOCs) that can be used for all kinds of expenses, like home improvements, funding education, and debt consolidation.
Review Your Mortgage Periodically – Keep an eye on how changing interest rates affect mortgage prices. Refinancing your mortgage when market rates are low can lead to significant savings over time.
Plan for Emergencies – Establish an emergency fund to cover unexpected expenses, ensuring you can continue making mortgage loan payments even during challenging times.
What Kind of Mortgage Loan Do You Need?
Taking time to compare more than one mortgage lender can help you find the best mortgage company for your needs, but it’s important you’re looking for the right kind of mortgage.
» Need a first-time mortgage loan?
You’re in the right spot.
» Need help with existing mortgage loan payments?
Visit our Top 10 Mortgage Lenders for Refinancing.
» Need home loans but not financing a property?
Visit our Top 10 Mortgage Lenders for home loans.
Additional Mortgage Resources
Whether you're a first-time buyer or looking to refinance, you can confidently apply for mortgage a loan from our list of the Top Mortgage Lenders 2024.
» Still want to shop around or learn more?
Explore our guide for first-time homeowners and our reviews to get a sense of popular mortgage loans before you submit any mortgage applications.
» Our Selections – Best Mortgage Lenders
Our analysts searched for the best place to get a mortgage loan and compiled their findings here. Check out the ‘How We Rank’ section at the top of this page to learn more about the findmortgages.com ranking process and methodologies, as well as how we share information about our best mortgage companies with you.
