Saving for a down payment is often the largest hurdle first-time homebuyers face. Many assume they need 20 percent down (which isn’t true) or just don’t have enough for even the minimum down payment. Fortunately, many loan programs allow mortgage down payment gifts, but only if you follow the rules.
You found your dream home – congratulations! You’re in the middle of underwriting and can’t wait to hear the words ‘you’re clear to close.’ Even those words, though, mean nothing until the ink is on the paper and unfortunately, things can go wrong between underwriting and closing if you aren’t careful.
Avoid these common mistakes and you’ll close your loan just like you hoped.
Are you thinking about buying a home but wonder if you have a high enough down payment? Do you worry that your credit score isn’t high enough and that you’ll never get a loan?
Whether you’re a first-time home buyer or you’ve owned homes before, the FHA loan may be the perfect option for you, here’s why.
Your credit score tells lenders a lot about you. Before they ask you questions, they’ll have an opinion of your financial credibility. The three-digit number speaks volumes, so it’s important to know what lenders consider ‘bad’ credit.
When lenders approve you for a loan, they take a risk. They risk you not paying the mortgage back, which means the bank takes a loss. While foreclosure sales earn banks some money back, they still suffer financially for each foreclosure.
PMI or Private Mortgage Insurance helps banks offset the risk. Private insurance companies issue the insurance that protects lenders should you default. Conventional loan borrowers who put less than 20 percent down on a home pay PMI.
When you apply for a mortgage, you may hear the word mortgage points thrown around. Many people assume they are ‘bad’ and try to avoid them.
This guide breaks the stigma surrounding mortgage points, helping you understand the truth of how they work.
As mortgage rates continue declining, more buyers enter the real estate market. Unfortunately, there are lower housing inventories, making your home search more difficult than you expected. Does this mean buying a home during COVID-19 is impossible?
It doesn’t. It means making changes and expectations regarding the home buying process, though.
Here’s what to expect buying a home during the coronavirus pandemic.
Do you have equity in your home? Many homeowners don’t even know if they do or how much.
If you have equity in your home, you may use it to consolidate debt, make home improvements, or just keep on hand. Equity goes beyond the amount you invested when you bought your home. As you make your mortgage payments and/or your home appreciates, your equity increases.
Now, learn how to determine your home equity and how to use it.
Are you thinking of buying a house, but aren’t sure if you can afford it?
It’s time to budget.
Many people groan when they hear the word ‘budget’, but there’s power in knowing how much money you have and how much you can afford. Often we think we have more than we thought. Sometimes it’s the opposite, and we hold ourselves back, thinking we can’t afford it.
Before you apply for a mortgage, we urge you to create a budget so you can see what housing payment you can comfortably afford.
Use these simple steps and start your budget.
One thing most borrowers want is a lower interest rate. You see crazy low rates advertised everywhere, but when you apply for a mortgage, you don’t get those rates. Why the difference?
It’s likely due to your qualifying factors. Lenders reserve the ‘best’ interest rates for ‘great’ borrowers. What makes a great borrower and how can you be one?