Embarking on the path to homeownership is an exciting venture, but the mortgage application process can feel like a daunting mountain to climb. The ke...
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Before you embark on the journey of applying for a mortgage, there is one crucial number you must know: your debt-to-income ratio, or DTI. This single...
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The journey from mortgage application to closing table is rarely a straight line. For many borrowers, a crucial and often misunderstood part of this p...
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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 often symbolized by the quest for the perfect mortgage rate, but the financial responsibility extends far beyond that ...
Read MoreFrom the point of formal application to closing, the process typically takes 30 to 45 days. However, this timeline can vary based on the complexity of your financial situation, the type of loan, the lender’s workload, and how quickly you provide requested documentation.
Recasting: You make a large lump-sum payment toward the principal, and the lender re-amortizes your loan based on the new, lower balance. Your interest rate and term stay the same, but your monthly payment is reduced. There is usually a small fee.
Refinancing: You replace your existing mortgage with a completely new loan, often to secure a lower interest rate or change the loan term. This involves closing costs and a full credit check.
Once your offer on a home is accepted, you will provide the signed purchase agreement to your lender. They will then move the process into underwriting, which includes ordering a home appraisal and verifying all conditions are met to convert your pre-approval into a final, clear-to-close loan.
Lenders are generally prohibited from charging you a fee to receive a Loan Estimate. The only exception is a reasonable credit report fee, which can be charged before providing the estimate. You should be wary of any lender that demands an upfront payment for other services to issue a Loan Estimate.
Divide the total cost of the points by the amount of monthly payment savings. For example, if points cost $4,000 and save you $80 per month, your break-even point is 50 months ($4,000 / $80 = 50). If you plan to own the home longer than 50 months (about 4 years and 2 months), buying points could be beneficial.
