Understanding the Mortgage Underwriting Process Key Points When you apply for a mortgage, lenders use a process called underwriting to determine whether to approve or deny your loan. Underwriters consider factors such as your credit history, financial profile, and home appraisal when deciding on your loan. The subscription process involves several steps, which may take … Read more
What is an assumable mortgage, and how does it work? Key Points A mortgage assumption means that the existing borrower co-signs the loan balance to you, and you are responsible for the remaining payments. Most conventional mortgages are not negotiable, but many government-backed loans (FHA, VA, USDA) are. The lender must approve you to take … Read more
Income Requirements to Qualify for a Mortgage Key Points There are no specific income requirements to qualify for a mortgage. To determine if you qualify for a loan, lenders use your debt-to-income (DTI) ratio to compare your Income to your total mortgage debt. Your credit score and down payment amount also greatly influence whether you … Read more
5 Types of Mortgage Loans for Home Buyers Key Points The main types of mortgages are conventional loans, government-backed loans, jumbo loans, fixed-rate loans, and adjustable-rate loans. Other types of mortgages exist for different purposes, such as building or renovating a home or investing in property. The right mortgage for you depends on the strength … Read more
Required Documentation for a Mortgage Preapproval Getting pre-approved is one of the most critical steps in applying for a mortgage to purchase a property or refinance. However, the lender must examine and validate your credit and financial status information before you can receive preapproval. Preparing the necessary paperwork for a mortgage preapproval will facilitate a … Read more
How to get the best mortgage rate Key takeaways You can work to improve your credit score, reduce your debt, and save up a sizeable down payment to help you get the best mortgage rate. Throughout the loan, obtaining the best mortgage rate can help you save money on interest. Compare quotes from at least … Read more
Mortgage Prequalification: What is it, and how do you get it? Key Takeaways Pre-approval and prequalification for a mortgage are two different things. A pre-approval is a more detailed estimate based on reviewing your financial documentation, while a prequalification is a quicker estimate based on what you can afford to buy. It usually takes a … Read more
How to improve your finances before your first mortgage Key takeaways You increase your chances of receiving favorable terms on a mortgage by strengthening your financial situation before applying. Lenders consider several factors when determining your creditworthiness, including your credit score, income and other assets, debts, the ratio of your debt to income, and work … Read more
Student Loan Guidelines for Getting a Mortgage Key Takeaways It is still feasible to apply for a mortgage while repaying student loans. Your debt-to-income ratio is impacted if you have student loans. While some lenders may permit a DTI ratio as high as 50%, you should aim for a ratio of no more than 36%. … Read more
Secondary Mortgage Market: What it is and how it Works Key takeaways: Investors purchase and sell mortgage-backed securities, or bundled packages of numerous individual loans, on the secondary mortgage market, a financial marketplace. Although you, as the buyer, are not directly involved in it, the secondary market affects the cost and availability of mortgages. You … Read more