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Navigating the Mortgage Process in Five Simple Steps Get pre-qualified. Before you go house hunting, it's important to get a strong sense of what you can afford. ... Submit your loan application. ... Lock in an interest rate. ... Get your loan approved. ... Close the deal.
Where there are two or more mortgages secured on a property, the order in which the lenders are entitled to be repaid when the property has to be sold. The priority is a concern where there are insufficient funds to repay all of the lenders in full.
First mortgages are almost always recorded before any other liens are, and are high on the lien-priority ladder. Second and third mortgages: More than one mortgage can be taken out on a property. Second and third mortgages will have a lower priority than the first mortgage.
A second mortgage or junior-lien is a loan you take out using your house as collateral while you still have another loan secured by your house. Home equity loans and home equity lines of credit (HELOCs) are common examples of second mortgages.
A priority amount is the maximum amount the bank has priority over any subsequent mortgage. Priority amount will be referred to in a loan, and this amount will exceed the actual amount of the loan borrowed from the bank. In general, the priority amount is usually around 1.5 times of the value of a property.
You'll need to take into account a number of factors when it comes to choosing a mortgage, but the most important is to have an accurate idea of your monthly costs. This will include not just paying back the ?principal? loan, but also interest payments.