For many people, especially first-time homebuyers, it can be quite challenging to come up with a 20 percent down payment to purchase a home. Luckily, when it comes to Conventional loans, there is a solution: private mortgage insurance, or PMI. When putting down less than 20 percent of the appraised home value or sale price, … Continue reading What is PMI?
As you’re going through the process of purchasing a home, you will undoubtedly come across the terms “mortgage pre-qualification” or “mortgage pre-approval” or maybe even both. What does it mean to be pre-qualified or pre-approved, and what’s the difference between them? Similarities Between Pre-Qualification and Pre-Approval According to the Consumer Finance Protection Bureau, pre-qualification and … Continue reading Pre-Qualification vs. Pre-Approval
Having multiple jobs is common these days, but lenders have some rules when it comes to income that qualifies to be used for a mortgage. Lenders accept most income sources that people typically have, but how they calculate it, and what documentation they will need varies based on the source, length, and amount of income. … Continue reading Claiming Multiple Incomes When Applying for a Mortgage Loan
When thinking about buying a home, you should take the time to examine your finances closer than you ever have – because the mortgage underwriter will be looking at them even more closely. It’s their job to evaluate your income, credit score, and assets to make sure you’re a good candidate for a loan. For … Continue reading Things to Avoid While Applying for a Mortgage
With your house-hunting efforts finally behind you and your preferred lender found, you can start making your way down the final stretch to home-ownership – settlement day, also referred to as the ”Closing.” At least 3 business days prior to your closing, the title company (or your lender) will have sent you a copy of … Continue reading What is Included in Closing Costs?
Looking for a way to make purchasing your first home a little bit easier? The Florida Bond Program allows first time homebuyers to acquire a variety of different loans (FHA, USDA, VA, or Conventional) ranging from 95% to 100% loan-to-value ratio. This means that many homebuyers will be able to secure low interest financing through … Continue reading The Florida Bond Program
A healthy credit score is a prized possession to many, but if your score needs some help, it likely won’t happen overnight. This is largely because your credit score takes into account information from the past several years, not just your present actions. That doesn’t mean that your credit score is a lost cause though. … Continue reading 5 Ways to Improve Your Credit Score
A simple way to explain an escrow account is to think of it like a holding tank for your money. During a real estate transaction, an escrow officer who is typically a lawyer or representative from the title company, holds all important documents and deposits in an account while final details of the transaction are … Continue reading How Does an Escrow Account Work?
Put simply, home equity is the part of your home’s value that you own outright. When you have a mortgage, you don’t own the entire home until the mortgage is completely satisfied. Until then, your mortgage lender has an interest in your home as well. As you pay off your mortgage, your equity grows and … Continue reading Understanding Home Equity
Many first time homebuyers have a difficult time coming up with the large down payment necessary for a conventional mortgage, or lack the strong credit history required to secure financing. Luckily, a mortgage insured by the Federal Housing Authority (FHA) is a great alternative, as they do not have the same strict requirements. The basic … Continue reading The Advantages of FHA Mortgages