A good mortgage broker helps to make the closing of a mortgage loan as seamless as possible. Friends, who are homeowners, and your buyer rebate agent will be able to recommend mortgage brokers who they have worked with locally. Interview a few mortgage brokers before choosing to work with one Read more
Upon 3 days of receiving your loan application, the lender will issue a loan estimate letter to you. It will include every feature of the loan to help you understand the scheduled repayment amounts that you are responsible for. The 3 page form is standardized by the federal government. Take Read more
Adjustable rate mortgages (ARM) often come with low initial interest rates, then the rate increases to a higher market rate set against some type of Fed index after the initial teaser period expires. An ARM may be right for you if you plan on paying off the full loan in Read more
Your mortgage application requires an appraisal from an independent third party. The lender only wants to be in a position to be able to recover the amount of money loaned to you if they are forced to sell the home as collateral when the loan is in default. The appraisal Read more
The borrower can save thousands of dollars by eliminating the loan application fees and bank processing fees. Working directly with friends and family, the buyer no longer pays for the professional services that lenders employ throughout the lending process. No private mortgage insurance (PMI) required. Even if you borrow 100% Read more
Escrow accounts are set up for home owners to manage their budgets because large property tax bills are due infrequently. The escrow accounts builds a reserve to pay these bills by collecting from the homeowner on a monthly basis. These escrow accounts are managed by lenders. Mortgage lenders will sometimes Read more
Home buyers often get financial help from family and relatives in the form of gift money. The gift amount without being taxed is $15,000 for 2018. Gift money are not loans, and the receiver does not have to pay it back. Banks and mortgage lenders want to make sure all Read more
Military service comes with perks in the form of VA loans. No down payment No private mortgage insurance No prepayment penalty 1.5% to 3.3% of the total borrowed as VA one-time funding fee If your salary can support home ownership without saving up for a down payment, then a VA Read more
Tax deductions are not as straight forward as single family houses or condos. Your best bet is to get guidance from the co-op management company on how to much maintenance you can deduct. Generally the portion that covers the building’s real estate taxes are deductible. Flip tax is guided by Read more
A mortgage is a commitment for you, and a risk for the lender. If you stop making payments on your mortgage after the home value drops from the original purchase price, the lender can sell the house in a foreclosure sale. If the foreclosure sale does not cover the remainder Read more