Mortgage 101: The Real Estate Agent or the Mortgage Banker? Which Comes First When Buying a Home?
The first steps of homebuying often bring about questions regarding who homebuyers should consult with first: a mortgage lender or a real estate agent. This chicken vs. egg-like debate can lead to frustration and common mistakes for first-time homebuyers, which is why meeting with a mortgage lender should be all homebuyers’ first action when considering a home […]
5 Home Loan Options for First-Time Homebuyers
From student loan debt, saving for a down payment and building mortgage-ready credit, it’s clear first-time homebuyers face different hurdles when it comes to buying a home. Here are some of the best options for home financing when preparing to buy your first home. FHA The FHA is the largest insurer on mortgages in the […]
Determining Home Affordability: How to Use Our Mortgage Calculators
First-time and repeat homebuyers often share a common question when it comes to purchasing a home: how much can I afford?
Mortgage 101: What’s a Lender Credit?
With average closing costs ranging from 2 to 5 percent of a home’s purchase price, gathering the funds to close can be a major hurdle for first-time homebuyers. This is where lender credits come into play. Image courtesy of Stuart Miles at FreeDigitalPhotos.net If a borrower doesn’t have enough cash for closing costs, a lender […]
Mortgage Goals: How Much Equity Will You Gain from Owning a Home?
As it relates to your home, equity can be defined as the difference between what you owe on your mortgage and the fair market value of your home. The possibility of growth in equity—and the accompanying growth in your own personal wealth—is one of the enormous benefits of becoming a homeowner. You gain equity simply […]
Mortgage 101: Five Ways to Minimize Your Closing Costs
When you purchase a home using a mortgage, you are not only incurring the costs of the home itself but costs related to the actual purchase of the home, known as closing costs. These fees charged by your lender and third parties related to your home purchase typically range from 2 to 5 percent of […]
Mortgage 101: How Are Mortgage Rates Determined?
A big part of when you decide to buy and which lender you choose to finance with will likely depend on how mortgage rates are doing. Your mortgage rate not only affects the amount of interest you will pay over the life of your mortgage, but it can also influence the amount you are approved […]
Mortgage 101: How Is a Home Appraisal Calculated?
You’ve been pre-approved for home financing, found your dream home, and made an accepted offer of $220,000; now what? Whether you are buying a home, refinancing your mortgage, settling a legal issue, or appealing property taxes, the value of the property in question needs to be determined through a home appraisal.
Mortgage 101: What Credit Score Is Needed to Buy a House?
Credit scores are a critical part of the preapproval process. They not only determine your eligibility for home financing, but they can also influence the interest rate for which you will qualify. This is because your credit score establishes how much of a risk is involved in lending money to you. Lenders use the […]
Mortgage 101: Five Benefits of USDA Loans
Did you know you can buy a house without putting a single dollar down on the closing table? Though it sounds too good to be true, the United States Department of Agriculture Guaranteed Rural Development Loan, also known as a UDSA or rural development loan, helps potential homebuyers become homeowners with several perks unheard of […]