Are you ready to make the leap from renter to homeowner? First, you want to be sure you’re prepared to take stock of your financial situation and determine if you’re ready for the responsibility. For many, the top concern is affordability—including having enough cash saved up to fund a down payment and a credit score good enough to qualify for
When purchasing a home with a mortgage, your lender likely will require you to buy title insurance to guard against the possibility that someone else might have a claim on your property. In essence, it ensures that a homeowner and their lender will be alright in case the seller or previous owners didn’t have the absolute ownership of the house.
Getting pre-approved for a mortgage is a key part of the process when it comes to shopping for a home. Many sellers even will require you to include a pre-approval letter with any offer to ensure that you’re a serious, well-qualified buyer. Getting approved also helps you determine how much you’ll be able to spend. Just because you get a
Mortgage closings can be delayed at a time when home loan volume is high, such as it is during the continuing pandemic. So, you might want to plan for that possibility in advance. For example, you may need to secure backup housing in the event of a delay or pay more money to extend your rate lock. Ultimately, the more
Mortgage principal is the amount you borrow from your lender to purchase your home. If your lender gives you $250,000, for example, your mortgage principal is $250,000. You’ll pay this amount off in monthly installments for a predetermined amount of time, maybe 15 or 30 years. You also might have heard the term outstanding mortgage principal before. This refers to
Mortgage interest rates are dynamic and unpredictable and can fluctuate many times between when you file a loan application and your closing. So, if you want to avoid uncertainty and preserve the rate in your mortgage loan offer, you might want to consider getting a mortgage interest rate lock. Interest rate locks can offer peace of mind to borrowers, but
You know exactly what you want in your first home—a four-bedroom property in a prime neighborhood with a top-notch school district. But before you can get a mortgage to buy that ideal house, you likely will need to improve your credit score. If you’re borrowing money to purchase a home, your lender wants to know that you’ll be able to
While there are many types of mortgages, many borrowers choose a 30-year fixed-rate mortgage that provides fixed monthly payments for the life of the loan. But another option is an adjustable-rate mortgage (ARM), which typically begins with an interest rate that is fixed for a period of time—usually three to 10 years—and then adjusts based on an index (a benchmark
Although the best way for first-time homebuyers to come up with a down payment for a home is to save for one, sometimes you’re in a hurry. Maybe your dream house just popped up on the market or you no longer are satisfied with being a renter. Whatever the reason, you’re ready to buy a house now. But while your
Record-low mortgage rates have seen more people choosing to refinance their existing home loans to save money of late. A precautionary measure taken by the Federal Reserve to mitigate the effects of the coronavirus pandemic, the rock-bottom rates could potentially help homeowners save thousands of dollars. But what if you’re retired and still owe money on your home? You might
