Required Documentation for a Mortgage Preapproval Getting pre-approved is one of the most critical steps in applying for a mortgage to purchase a property or refinance. However, the lender must examine and validate your credit and financial status information before you can receive preapproval. Preparing the necessary paperwork for a mortgage preapproval will facilitate a … Read more
How to get the best mortgage rate Key takeaways You can work to improve your credit score, reduce your debt, and save up a sizeable down payment to help you get the best mortgage rate. Throughout the loan, obtaining the best mortgage rate can help you save money on interest. Compare quotes from at least … Read more
Mortgage Prequalification: What is it, and how do you get it? Key Takeaways Pre-approval and prequalification for a mortgage are two different things. A pre-approval is a more detailed estimate based on reviewing your financial documentation, while a prequalification is a quicker estimate based on what you can afford to buy. It usually takes a … Read more
How to improve your finances before your first mortgage Key takeaways You increase your chances of receiving favorable terms on a mortgage by strengthening your financial situation before applying. Lenders consider several factors when determining your creditworthiness, including your credit score, income and other assets, debts, the ratio of your debt to income, and work … Read more
Student Loan Guidelines for Getting a Mortgage Key Takeaways It is still feasible to apply for a mortgage while repaying student loans. Your debt-to-income ratio is impacted if you have student loans. While some lenders may permit a DTI ratio as high as 50%, you should aim for a ratio of no more than 36%. … Read more
Secondary Mortgage Market: What it is and how it Works Key takeaways: Investors purchase and sell mortgage-backed securities, or bundled packages of numerous individual loans, on the secondary mortgage market, a financial marketplace. Although you, as the buyer, are not directly involved in it, the secondary market affects the cost and availability of mortgages. You … Read more
HomeReady Mortgage Guide Key Takeaways: A conventional HomeReady mortgage type only requires a 3% down payment. It can be used to refinance an existing mortgage or to purchase a house. To be eligible, your income must be at most 80% of the local median income. The 3% down payment requirement can be satisfied with grants, … Read more
What is the impact of the Federal Reserve on mortgages? Although it doesn’t directly set mortgage rates, the Federal Reserve’s actions influence how they change. At its most recent meeting on January 31, the Fed declared a prolonged pause following eleven rate hikes from early 2022 to mid-2023. Even if the Fed maintains its key … Read more
What is a Mortgage? A Definitive Guide for Aspiring Homeowners Key takeaways: A mortgage is a long-term loan from a bank that enables you to buy a house by using the house as collateral. Principal (the amount borrowed), interest, property taxes, and homeowners insurance are usually included in mortgage payments. They may also consist of … Read more