Next to your credit score, your debt to income ratio plays a major role in your ability to secure a loan. Each loan program has a specific debt ratio they require. This doesn’t mean every lender abides by that rule. Some enforce stricter rules to help prevent default. Knowing how lenders calculate your ratio can help you best prepare for your loan approval. Figure Out Your … [Read more...] about How to Calculate Debt-to-Income Ratio?
A loan can take anywhere from 4 to 6 weeks from start to finish. What if you need to close faster? There are ways to make it happen. Some of it lies on your shoulders. Other factors lie on third parties, including the seller, if you are buying a home. The seller controls when the appraisal is completed and the appraiser controls how long the report takes. Title work may also … [Read more...] about How to Ensure you Close Faster on your Home Loan
If there was one aspect of a mortgage that you considered important, what would it be? Many borrowers say the interest rate. They want the lowest rate possible. It makes sense. Why pay more for a mortgage than necessary? If you have room for negotiation, you should take it. Sometimes, though, the better rate doesn’t come free. You have to pay for it. Here we look at the … [Read more...] about Can You Pay for a Lower Mortgage Rate?
If you opt for government-backed financing, such as the FHA loan, you are going to pay mortgage insurance. It’s not the same insurance you pay on a conventional loan, though. The mortgage insurance you pay on an FHA loan is for the life of the loan. Compare Offers from Several Mortgage Lenders. Luckily, there are a couple of ways around paying it for life. We show you … [Read more...] about How Long Does PMI Last on FHA loans?
Getting pre-approved before you shop for a home is the best thing you can do to boost your chances of winning the bid. Would a conditional approval be better, though? They sound the same, but are they? Compare Offers from Several Mortgage Lenders. Realistically, a conditional approval and a pre-approval are different. They have the same basis, but the conditional approval is … [Read more...] about How is Conditional Approval Different From Pre-approval?