Down payment is the money that you put towards buying the home which the lender likes to see as your collateral in the home purchase. The higher amount you put in, the more confident the lender will be in approving and providing you with the mortgage loan. Having a good Read more
One of the biggest hurdles of buying a home is making the down payment. Besides cutting back on daily expenses and downsizing on living arrangements to save for a year or two, there are other options to consider. Secure a gift from family or friends. Loan officers prefer to see Read more
Mortgage lenders will use a standard mortgage application form developed by Fannie Mae that standardizes the loan application process. https://www.fanniemae.com/singlefamily/uniform-residential-loan-application As a borrower, you will generally get the Form 1003 (Uniform Residential Loan Application) pre-filled with the mortgage information of the loan product that you have selected. Then it may take Read more
A promissory note is the main document to lay out all the terms, conditions, and payment information for the borrower to sign. It is a legally binding promise made by the borrower that they will repay the loan under the said conditions of the promissory note. Parts of the promissory Read more
Budgeting is one of the fastest ways to get to home ownership. Make a budget each month based on how much you earn, how much you can spend, and how much you will save towards buying the home you want. Without a clear monthly budget, you may not be saving Read more
Sometimes coming up with the down payment or getting a loan is not easy. If you have a lot of credibility with your friends and family, then you can work something out with them. For example, it is possible to buy a house with a relative who can help you Read more
An annual percentage rate (APR) is the total cost of taking out the loan. By law, lenders are required to publish the APR. It is similar to the unit price (per pound/ per quart/ per 100 sheets) vs the retail price that allows borrowers to compare apples to apples. Sometimes Read more
Before you start home shopping with an agent, it is recommended to get a preapproval letter from a bank or lender. The preapproval letter indicates that the bank is willing to lend you a certain amount (usually an amount greater than you are likely to spend). This will involve paying Read more
Your credit score is the culmination of years of managing your credit cards, spending history, and different accounts. A high credit score is usually assigned to someone who is always on top of their credit card balances. Once you start missing monthly payments, your credit score will take a hit. Read more