Real Estate Finance, Mortgages, and Settlement
The mortgage
Maine is a lien theory state: the borrower keeps title while the lender holds a lien. The note is the promise to pay; the mortgage pledges the property as security. Payment is typically PITI - principal, interest, taxes, insurance - often collected through escrow/impound accounts. Lenders evaluate LTV, DTI, credit, and reserves; PMI usually applies above 80% LTV.
Loan programs and licensing
Conventional, FHA, VA, and USDA loans differ in down payment, insurance, and property standards. MaineHousing offers first-time and low-to-moderate-income buyer programs. Mortgage loan originators are licensed through Maine's Bureau of Consumer Credit Protection under the SAFE Act; a real estate licensee may discuss financing generally but may not take applications or negotiate loan terms for compensation without an MLO license.
Settlement and foreclosure
Federal disclosure rules require the Loan Estimate within three business days of application and the Closing Disclosure at least three business days before consummation. Maine foreclosures are judicial, with a statutory redemption period (generally 90 days after judgment) - there is no non-judicial shortcut.
Traps: confusing prequalification with preapproval; assuming closing costs are only lender fees; assuming a seller can deed the property back to avoid foreclosure.
Rule of thumb: the mortgage travels with the property; the note travels with the borrower.