Photo credit: by MangoStar_Studio from Getty Images You’ve decided it’s time to purchase a home. It’s an exciting time, but the process requires preparation. When applying for a mortgage, you want to be in the best spot possible to ensure the process goes smoothly and you qualify for what you deserve.  However, a few financial and personal decisions can affect you for the worse if you make them prior to applying. If you are going to enter the market in the near future, avoid these actions at least 6 months prior. Although, the longer you can follow these rules before you apply, the bette ..read more

Ready to buy a house? Before you shop for a home, consider shopping around for mortgage loans, and getting details and terms from several lenders or mortgage brokers.   Your home is likely the largest purchase of your entire life, so it’s immensely important to take the time to shop for your best mortgage. To help you in this process, we’re going to cover some tactics and information to enable you to make the best decision regarding your mortgage and lender.   Preparing to Shop for a Mortgage Before you begin the loan evaluation and application process, it’s important to know your fi ..read more

You’ll hear the term closing thrown around when it comes to the last phase of buying a home, but what does it entail for you financially? Closing is when property title officially passes from the seller to you, or it is the final step of your refinance before you receive the funds. A closing agent will usually oversee this process, and it often takes place at an escrow office or title company. During closing, you will sign various legal documents and pay closing costs. We’ll delve into the particulars of these costs below.   Overview While many buyers are familiar with closing costs, they ..read more

Interest rates are changing all the time, even shifting by the hour. Once you find out your offered mortgage rate, you risk it changing from one day to the next. To keep your rate steady between your offer and closing, you can pay to utilize a rate lock or lock-in on your mortgage.   What’s a Rate Lock & What Does It Do? A rate lock operates as a kind of hold on the current interest rate of the mortgage your lender offers. With a rate lock, if you close within an agreed upon time and there are no changes to your application, your rate won’t change. Rate locks are usually available for ..read more

The last few years have seen some rapid changes in the housing market. Many hopeful buyers are still sitting on the sidelines evaluating if now is the time to start looking for their next home. If you’re in this category of hopeful yet hesitant buyers, here are a few pros and cons to consider in making your decisions of whether or not fall 2021 is a good time to buy.   Reasons to Buy a Home Now Low Interest Rates Loan Amount $480,000 $480,000 30-Year Fixed Rate1 3% 3.50% Monthly Mortgage Payment $2,223.70 $2,355.41 Total Interest Paid (30 Years) $248,531.77 $295,949.22 Inter ..read more

As you go through the process of researching mortgages, the phrase “debt to income ratio (DTI)” will frequently appear as part of what lenders consider when evaluating borrowers. To qualify for the best loan terms, you need to have an understanding of what your debt to income ratio is, why it’s important, and what you can do to improve it.   What Is Debt-to-Income (DTI)? Simply put, your DTI is how much debt you have versus how much you make each month. To calculate your DTI ratio, add up all the payments you make toward your debt over the month. This amount should include monthly credit ..read more

You’ve decided to begin your home buying journey and you’ve been told the first serious step is becoming pre-qualified or pre-approved by a lender. This process means your lender is going to be taking a serious look at your finances to decide whether you qualify for the loan amount you’re seeking. Not all loan applicants are approved, and not all loans are offered at the most competitive rate. You want to make sure you qualify for the best terms by understanding what factors make someone stand out. To ensure you have your best financial foot forward, here are a few ways you can make yourself t ..read more

A 20% down payment isn’t always possible for homebuyers, especially in markets where housing is more expensive than the national average. Mortgage insurance allows for borrowers to qualify for a loan even when they can’t put down a full 20%. This enables borrowers to become homeowners sooner and begin to build equity, even if they don’t have a large lump sum of cash.   How it Protects the Lender Mortgage insurance is meant to protect the lender against losses. It ensures the lender is still able to receive back some of the principle if the borrower stops making the mortgage payments. Howe ..read more

There are many perks VA loans offer that are unmatched by other home loan options. However, if you’ve been learning about VA loans from less experienced lenders, you may have heard some misconceptions about the benefits and limitations of these loans. We want to help you understand the versatility of a VA loan, so you don’t overlook it as an option in reaching your homeownership goals. If you’re considering using a VA loan, here are few things you should know.   1. VA Loans Can Be Used More Than Once VA loans are not a one and done benefit. This benefit can be used again and again based o ..read more

While people often use the terms interchangeably, there is a difference as to whether you’re pre-qualified or pre-approved for a mortgage loan. The short answer is: one is more official and means you are further along in the home buying process while the other can give you more clout when making offers. Almost every guide you read on how to compete in a seller’s market encourages buyers to be pre-qualified. Some real estate agents won’t even begin the home shopping process with you if you haven’t already completed this step. What is Mortgage Pre-Qualification? A pre-qualification is based on t ..read more