Fixed Rate Loans These loans are fixed for either a 10, 15, 20, 30 or now even 40 year period. They are amortized over the period of time you select, so the shorter the period the larger the monthly payment will be. Also, the shorter the time period you select the more significant the interest …
With an Interest-Only loan, home buyers are able to choose their monthly payment and can do one of a few things: They can qualify for a more home, keep more of their cash in reserve or to save for retirement, pay down high-interest debt, or make home improvements. Interest-Only loans offer you: Possibility for lower …
Can I Use All of My Income? There are very specific guidelines that must be followed in determining what income is allowable in qualifying for a home loan. For example there are a few situations that prevent you from utilizing your income. The first is if you have been self-employed for less than two years. …
There are two ratios that a lender will be interested in; 1) your housing ratio, also known as your “front end ratio,” and 2) your debt-to-income ratio, also known as your “back end ratio.” The housing ratio is your gross monthly income (your income before taxes are deducted) divided by your total housing payment. Your …
If you have relatively good credit, today’s automated underwriting systems provide a list of only the documentation that is necessary to satisfy the lender. The way it works is that once the lender has your application and has pulled your credit, the file is uploaded to one of three locations, Fannie Mae, Freddie Mac or …
Automated Underwriting and The Home Mortgage Process Read More »
If you believe that you need a good chunk of change to purchase a home, your not alone. The vast majority of first time home buyers have little money to work with and consequently do not believe they are in a position to buy a home. Either that, or credit issues prevent you from investigating …
Most people buy homes for very emotional reasons. But how do you know if it is time for you to purchase? Most people who rent can actually afford to buy their own home. So what is stopping them? A lot of people believe that owning a home in requires a big down payment, which is …
If you’re considering purchasing a home you most likely are leasing a home or apartment now. One of the first steps will be to review that lease. Determine how much time remains. If you’re within 3 months of the end of the term, then you should move forward and attempt to find a home and …
What about my existing lease when buying a new home? Read More »
Credit challenges often prevent folks from even considering home-ownership. This is a mistake. Even in the worst credit situations, you have to have a starting point. Once we have a loan application and pull a copy of your credit, we can make a quick determination if it’s possible to get you a loan and under …
This is probably the biggest misconception. While it used to be true that you needed a large down payment, this is no longer the case. In the mortgage industry, there’s always a great new product just around the corner that benefits the consumer. The latest of these to surface is the “zero down” mortgage. This …
