Author: buyorsellyourhome

You hear all the time that you need a 20 percent down payment or you pay PMI (Private Mortgage Insurance). But, that’s not always the case. There are a few ‘sneaky’ ways around it, helping you save money monthly and over the life of the loan.

If you’re thinking of buying a house in the next 6 – 12 months, it’s time to prepare your finances. Getting a mortgage is easy when you have your finances in order. The more you prepare now, the easier it will be and the better terms you’ll get because you’ll have exactly what lenders need.

You’ve found a home and executed a contract – congratulations; you’ve done the hardest part! Now that you’re in the underwriting process, it’s time to know what to expect on the closing day. The process goes faster than you think, so the more you prepare now, the better off you’ll be when you get to the closing.

With millions of Americans still unemployed or furloughed, lenders deal with job loss and income changes daily. If you’re in the middle of the mortgage process and you lose your job, lose hours, or get furloughed, you may think you’ve lost your approval.

Fortunately, this isn’t always the case. It depends on your situation, though. We’ve covered the most common situations below.

Thinking about buying your first home is exciting and overwhelming at the same time. It’s a whole new world when compared to renting. You own your home, can do what you want to it (within reason), and are responsible for all expenses including maintenance, repairs, taxes, and insurance, along with the mortgage payment.

How do you know when you’re ready to take the leap? Here’s what we think.

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.