Tagged : home loan tips

Found 12 blog entries tagged as "home loan tips".

Once you've submitted your mortgage application, it's crucial to tread carefully in the financial landscape to ensure a smooth approval process. Here are 10 things you should avoid after applying for a mortgage:

1.) Steer Clear of Significant Purchases

Resist the temptation to make large purchases, whether it's a new car or extravagant furniture, in the period following your mortgage application. Lenders analyze your debt-to-income ratio, and substantial new debts can raise concerns about your financial stability.

2.) Maintain Job Stability

Lenders appreciate stability, and changing jobs during the mortgage application process might send red flags. Try to stay in your current job until the mortgage is approved, as it reflects

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In the world of real estate financing, a myriad of options awaits those seeking to purchase their dream homes. One such option often arises when dealing with high-priced properties is the jumbo loan. But what exactly is a jumbo loan, and when should you consider it?

A jumbo loan is a mortgage specifically designed to finance properties that exceed the limits of a conventional conforming loan. These loans are a practical solution if you're eyeing properties that come with a hefty price tag, going beyond the thresholds set by the Federal Housing Finance Agency (FHFA) for conforming loans.

As of 2023, the maximum limit for a conforming loan is $726,200 in most counties. Properties that surpass this figure are the ones that necessitate a jumbo

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Did you know securing a home loan isn't a done deal until the final closing? It's true! Any financial changes between your application submission and the final signing can impact loan approval. To help you navigate this critical stage successfully, here's a friendly reminder of what to avoid after applying for your home loan.

Steer Clear of Depositing Large Sums of Cash 

The lenders assessing your loan application need to track the source of your money. Depositing large amounts of cash can be challenging to trace. To ensure transparency, talk with your mortgage professional to understand how to document such transactions.

Be Cautious with Big Purchases

It's not just home-related purchases that impact your loan eligibility. Any

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Debt-to-income (DTI) ratio determines what mortgage you’re eligible for. So before getting pre-approved, your mortgage advisor will review your income and debts to help you understand where you currently stand. 

In this article, we’re going to look at what a debt-to-income ratio is and what to expect when you apply for a mortgage so that you’ll be prepared when you start househunting.

What is Debt-To-Income Ratio?

The debt-to-income ratio compares a borrower’s monthly debt payments to their monthly gross income. When someone applies for a home loan, lenders use the ratio to help determine their ability to repay monthly payments and accumulate additional debt. 

When you apply for a home loan, you’re required to meet maximum DTI

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Are you a single parent who dreams of owning a home but nervous that you’ll encounter too many challenges? We’ve got good news for you!  There are home buying assistance programs that can help you purchase a home.

If you’re a single mom or dad who wants to buy a house, we’re here to list some loan programs that might work best for you.

Best Loan Programs for Single Moms and Dads

Single parenthood often means having a tighter budget, so a loan program with looser eligibility requirements is typically your best bet. 

Fortunately, various loan programs are designed for lower-income homebuyers –many of which offer low down-payment options.

Here are some of the best loans programs to help fund single parents’ home-buying journey:

FHA

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Purchasing your first rental property is a big step in your real estate investor journey. Aside from choosing a potentially profitable property, you need to figure out how to finance your rental.

Before sharing how to apply for an investment loan, let’s look at how a primary home mortgage differs from a rental property mortgage.

The Difference Between a Mortgage for a Primary Home and a Rental

On the surface, a mortgage for a rental may look similar to a mortgage for a primary home since the application process is the same. However, there are different rules and guidelines lenders follow when you apply for a mortgage on a rental property.

Larger Down Payments

For a primary home, you can make as little as a 3% down payment in some

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Dreaming about your first home purchase but still be undecided on whether to choose an FHA loan or conventional loan? While both are popular choices for those looking for a low down payment, some differences may make one loan a better option than the other. 

This article will give you an idea of how they differ and give you insight as to which loan may work best in your situation.

What is an FHA loan?

An FHA loan is insured by the Federal Housing Administration. Lenient qualifications make it a good choice for those with lower credit scores and those with limited funds for the down payment. 

What is a Conventional loan?

On the other hand, conventional loans are not insured by a government agency and have qualifying terms set by

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Home renovations can be expensive, and saving up for extensive improvements could take years. Fortunately, you can fast-track your goals with a home improvement loan. 

Home improvement loans allow you to use the equity in your home to fund your home renovation. 

Benefits of a Home Renovation Project

1.) Increased Home Value

Prospective home buyers are willing to spend more if they see a kitchen or bathroom that has been updated or upgraded for convenience and functionality. 

2.) More Space

If your home feels cramped due to your growing family, extra bedrooms or living space can make living in your home comfortable once more. 

3.) Maintenance

Putting off home repairs can result in more considerable expenses down the road.

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A condo refi is similar to refinancing any other home. The lender will look at your income, assets, and credit to ascertain your qualification. Plus, the condo will also be appraised to determine the property value.

However, since there are more variables when refinancing a condo, such as shared amenities, lenders usually conduct a condo review. 

It's worth noting that not every condo will require a review. A conventional loan refi of a detached condo typically won't need one since they're considered a single-family residence. The same goes for condo projects with four units or less.

Otherwise, it's safe to assume that you will need a review to refi your condo. Here's what that might look like. 

Condo Review For Government-Backed Loans

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Are you considering a 30-year fixed-rate mortgage? We're not surprised. Thanks to an extended repayment period and fixed-rate, homeowners can count on a predictable low monthly payment. Here's what you need to know about a 30-year fixed-rate loan and it’s alternatives!

What is a 30-Year Fixed-Rate Home Loan?

A 30-year home loan is a mortgage that would be paid off entirely in 30 years if you make every payment as scheduled. 30-year mortgages typically have a fixed rate, meaning that the interest rate stays the same throughout the loan's life.

Benefits of a 30-Year Fixed-Rate Mortgage

  • Lower payment: A 30-year term stretches out the loan's repayment, which often translates to a more comfortable monthly payment. 

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