Shopping for a home also means shopping for a mortgage. If this is all new to you, the multitude of mortgage types might be confusing. Here’s what you need to know. Fixed-rate mortgage. The fixed-rate mortgage is the most traditional way to finance a home. Typically available in fifteen- and thirty-year terms, the loan’s interest… Read more »
It seemed like the ink was barely dry on your closing papers when you received notice that your mortgage had been sold to another company. While startling, it won’t change the terms of your loan. Here’s what you need to know. Why do mortgage companies sell mortgages? Mortgage companies lend money to thousands of borrowers…. Read more »
Buyers who put less than 20 percent down on a home might find themselves with a higher-than-expected monthly payment. The extra money, which often takes first-time homebuyers by surprise, is for private mortgage insurance. What is PMI and why does the lender require it? Lender’s risk. When a borrower puts down less than 20 percent… Read more »
Mortgage lending is yet another industry that has undergone massive change by the internet. Online lenders advertise fast and easy transactions while traditional lenders offer more personal service. Regardless of which option you choose, it’s important to understand the difference between a mortgage broker and a mortgage lender. A lender is a direct supplier of… Read more »
The financial world hangs on the mere hint of a possible interest rate increase by the Federal Reserve. But what about rank-and-file consumers? What does the Federal Reserve do, and how does it affect what you pay for your mortgage? What is the Federal Reserve? Despite its name, the Federal Reserve is not an agency… Read more »
When searching out home-financing opportunities, it’s worthwhile to see if you qualify for government programs that offer attractive terms. The loans are usually administered through a private mortgage lender, but are insured by the federal government against loss due to borrower default. Here’s a quick primer on the possibilities. Federal Housing Administration (FHA) loans. Approved… Read more »
Homebuyers must make two large payments when purchasing a house. One is the earnest money paid upon execution of the sales contract. The second is the down payment to the lender at closing. What are the differences between the two? It’s all about commitment. In both cases, these payments represent a commitment to the purchase…. Read more »
How much is a home worth? That’s the crucial question asked by home buyers and their lenders in a sales transaction. It’s up to a professional real estate appraiser to analyze the property and market data to come up with the market value, which can dramatically change the outcome of a deal. What exactly does an… Read more »
When buying a home and applying for a mortgage, a good credit score is critical. A home can be purchased with less than stellar credit, but often at interest rates and terms that aren’t to your advantage. Improving a damaged credit score is something that takes time, patience and must be addressed long before making… Read more »
The mortgage approval process is rigorous. Since the housing bubble burst in 2008, federal regulators have ratcheted up their standards. Here’s a list of the do’s and don’ts to be approved. Do this. Brace yourself to comply with the documentation process, which is extensive. Always be truthful on your mortgage application. If a mortgage lender… Read more »
Despite the mortgage-lending reforms that followed the 2008 economic crash, it’s your job as a consumer to be on guard against questionable lenders — especially if you have damaged credit and shaky finances. Here’s how to protect yourself. Know what you can afford. The first step toward protecting yourself is to be armed with knowledge… Read more »
What exactly is a lease-purchase option and how does it work? It’s a different breed of real estate transaction with pros and cons for both buyers and sellers. How a lease-purchase option works. Lease-purchase or “rent to own” deals are more prevalent in a soft real estate market or so-called buyer’s’ market, meaning sellers outnumber… Read more »
It’s important to shop for the perfect place to call home, but don’t forget to shop around for the best financing, too. The quality of the terms of your mortgage can mean a difference of tens of thousands of dollars over the life of the loan. Here are a few tips on finding the best… Read more »
You’ve sacrificed, scrimped and saved for the down payment on your first home. But have you saved for the whole new world of expenses that comes with home ownership? If not, you could get blindsided by: Closing costs. Do your homework before making an offer because the down payment is just part of the cost… Read more »
One of the most important steps in the home-shopping process is for buyers to have an initial assessment of their ability to get a mortgage. As a buyer, already having a mortgage preapproval letter from a lender in hand means you can move quickly when you find the home you want. As a seller, having… Read more »
