The decision between a 15-year and a 30-year mortgage is one of the most significant financial choices a homebuyer can make, setting the trajectory fo...
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The choice between a 15-year and a 30-year mortgage is one of the most significant financial decisions a homebuyer or refinancer will make. This decis...
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The journey to homeownership is paved with significant financial decisions, and among the most critical is the choice of mortgage term. While the 30-y...
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When embarking on the journey of homeownership, one of the most critical decisions a borrower faces is the selection of a mortgage term. While the fun...
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When navigating the complex landscape of home financing, prospective buyers and refinancers often encounter a fundamental choice: the term length of t...
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When you start looking at home loans, you will see two common options: the 15-year mortgage and the 30-year mortgage. These two terms change everythin...
Read More1. Pre-approval: Determine your budget and get pre-approved. 2. Find a Property & Contractor: Get a signed contract with a licensed contractor and detailed cost estimates. 3. Submit Full Application: Provide all required documentation, including the contract and project plans. 4. “As-Completed” Appraisal: The appraiser determines the future value of the home. 5. Underwriting & Approval: The lender reviews and approves the full loan package. 6. Closing: You sign the final loan documents. 7. Renovation Begins: Work starts, and funds are disbursed to the contractor in stages after inspections. 8. Project Completion: A final inspection is done, and any remaining funds in the contingency reserve are applied to the loan principal.
Yes, there are several other options, though 15 and 30 years are the most standard.
10-Year & 20-Year Fixed: Less common, but offered by some lenders. A 20-year term can be a good middle ground.
Adjustable-Rate Mortgages (ARMs): These often have initial fixed-rate periods like 5, 7, or 10 years (e.g., a 5/1 ARM). After the initial period, the rate adjusts annually. These usually start with a lower rate than a 30-year fixed, making them attractive for those who don’t plan to stay in the home long-term.
As a homeowner, you are responsible for all utilities, which may include some you didn’t pay before.
Common utilities: Electricity, gas, water, sewer, trash/recycling.
Potential new costs: Lawn care, snow removal, pest control, and higher heating/cooling costs for a larger space.
The underwriter is the key decision-maker for your loan. They are not your loan officer; their role is to be an objective, third-party analyst. They verify all the information in your application, ensure it meets the lender’s guidelines and investor requirements, and make the final approval decision.
You are likely a good candidate if:
You want to buy a fixer-upper you couldn’t otherwise afford upfront.
You own a home that needs major updates (like a new roof, kitchen, or addition) but lack the cash to pay for it.
You don’t want to deal with the hassle and higher costs of a separate personal loan, HELOC, or credit card to fund renovations.
You have a solid credit score and a manageable debt-to-income (DTI) ratio.
