Mortgage basics from a newbie

Ok so I’ve learned something new today! I learned that no one can almost afford to purchase in full the price of real estate in cash. Instead what buyers pay with a combination of two components:(1) a minimum amount of cash, called the down payment, and (2) a loan, called a mortgage or also referred to as pret immobilier. The maximum price that anyone can personally pay for a home is controlled by the amount of cash they cna raise (the maximum down payment) and the amount they can borrow from lenders (the maximum mortgage amount).

To help determine what anyone can afford, begin by calculating your maximum down payment. Remember this is important fact: to reduce the risk on abandoning the home, most mortgage lenders will require the down payment to be the owners own money. Simulation pret or similarly known as mortgage simulation can be done with the down payment coming in from personal bank accounts, retirement funds, or evne gifts. The catch is that it must never be borrowed. Not simple I guess for everyone.