Prepayment Versus Recast

October 15th, 2018
Mortgage prepayment versus recast

When you divvy up your monthly budget pie, housing is very likely the biggest slice, especially after you add in utilities, maintenance and of course, your mortgage.  

So wouldn’t it be great if you could lower your mortgage payments without refinancing your loan? Or better yet, pay off your mortgage ahead of schedule? Read the rest of this entry »

Bookmark and Share

How Being an Authorized User on a Credit Card can Help or Hurt You

October 1st, 2018
How being an authorized user can help or hurt you

For most people, your ability to get approved for a mortgage, and the terms you’re offered, depends on your credit report and your history of managing debt responsibly.

Under some circumstances, your credit score can be affected by loans you’re not even responsible for paying.  Read the rest of this entry »

Bookmark and Share

Automated Underwriting Versus Human Underwriting

August 5th, 2018
approve or reject

When you’re ready to buy a new home, one of the first things you have to do is take steps to get your financing in place. Mortgage approval is based in part on an automated underwriting process. Unless you plan to pay in cash, you need to secure a mortgage loan. It is beneficial to get a pre-approval letter from a mortgage lender before you even make an offer. Having your loan pre-approved can show a seller you are a serious buyer with adequate funds. You can also reduce the risk of the contract falling through.

Lenders typically use one of two underwriting processes for mortgage loans: automated and manual. Understanding the basics of how these types of loan approval work can give you confidence when applying for your mortgage.  Read the rest of this entry »

Bookmark and Share

How Much Documentation Needs To Go Into a Pre-Approval Letter?

July 15th, 2018
paperwork stack

Today’s real estate market can be competitive for everyone, no matter what price point you’re shopping at. That’s why it’s important to understand the ins and outs of the home buying process before you hit the market. Let’s talk about what getting a mortgage pre-approval letter involves, how you can do so, and why it’s a good idea for anyone heading into the market for a new home. Read the rest of this entry »

Bookmark and Share

Why Do Sellers and Realtors Want Me To Be Pre-Approved?

June 24th, 2018
pre approval approved

Homeownership is a major component of the American dream as it provides you with your own piece of property to put down roots and live your life. You might think the process starts when you first go out hunting for houses or condominiums, but it often begins long before the initial meeting with a realtor when you contact a lender for pre-approval. Homes are major purchases, and it’s understandable that you have to meet certain qualifications before the transaction goes through. Here are a few reasons why the seller and realtor might want you to get pre-approved, as well as an overview of the entire process. Read the rest of this entry »

Bookmark and Share

Pre-Approval Letter Versus Pre-Qualification Letter: What Is the Difference?

June 3rd, 2018
qualification

When you’re beginning the home-buying process, figuring out what you need to get your mortgage loan can seem complicated. You may even be tempted to find your dream home first before you apply for a mortgage. However, going through the pre-qualification and pre-approval processes at the start of your search can make the entire experience go more smoothly.

 

Before you meet with a lender or mortgage broker, you should have a good understanding of how the loan process works and what you’ll need to provide in your application. This guide covers the basics of loan application, qualification, and approval. Read the rest of this entry »

Bookmark and Share

Owner’s vs. Lender’s Title Insurance: What You Need To Know

May 21st, 2018
Title insurance

Shopping for a home means coming to understand a world of legalities designed to help protect the process of property transactions in the United States. That means learning about the various stages of investigation needed to transfer ownership with confidence. Home inspections, appraisals, title searches, and other steps inform buyers and sellers of possible complications with the sale. When it comes to navigating these requirements, homeowners need to understand their obligations and the mechanisms built to protect them, such as owner’s title insurance. Read the rest of this entry »

Bookmark and Share

Interest Rates And Your Monthly Mortgage Payment

April 21st, 2018

Interest Rates And Your Monthly Mortgage Payment Is Impacted

 

Many people are very focused on interest rates these days and are wondering where they are headed next and how it may affect their mortgage payment. Interest rates have been historically low for a very long time, and people are starting to fear that they may increase and have an outsized impact on the cost of purchasing a home.

 

You can see a chart of the long-term history of interest-rates by clicking here.  This chart shows that we are definitely near the bottom of where interest-rates have been over a long period of time. On the other hand, if interest-rates start to go up does it have as much of an impact as people think? Read the rest of this entry »

Bookmark and Share