The journey to homeownership is often symbolized by the quest for the perfect mortgage rate, but the financial responsibility extends far beyond that ...
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The moment you receive the keys to your new home is a monumental achievement, but it also marks the beginning of a new financial chapter. The transiti...
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When you embark on the journey of securing a mortgage, you are entering into a significant financial partnership with a lender. This institution is in...
Read MoreNo, you cannot independently shop for monthly PMI. Your lender selects the private mortgage insurer. However, you can effectively “shop” for PMI by comparing loan estimates from different lenders, as their chosen insurer will affect your overall loan cost.
Credit score requirements are generally more flexible for conforming loans:
Conforming Loans: The minimum credit score can be as low as 620, though a score of 740 or higher will typically secure the best rates.
Non-Conforming Loans: Requirements vary by the loan’s purpose. Jumbo loans require excellent credit (often 700+), while some non-conforming loans for borrowers with past credit issues may accept lower scores but with higher costs.
The most common strategies include:
Round Up Your Payments: Rounding up your payment to the nearest $100 or $500 adds extra principal each month.
Make One Extra Payment Per Year: This is a simple and highly effective method.
Use Windfalls: Apply tax refunds, work bonuses, or inheritance money directly to your principal.
Bi-Weekly Payment Plan: This automatically results in an extra payment each year.
Before doing this, ensure your lender doesn’t charge prepayment penalties and that all extra payments are applied to the principal, not future interest.
Yes, it is possible. While a higher credit score helps you secure a better interest rate, there are loan programs (like FHA loans) designed for borrowers with lower credit scores. A pre-approval will identify what programs you qualify for.
Yes, changing jobs during the mortgage process can complicate your application. Lenders prefer to see a stable, two-year employment history. If you must change jobs, try to stay in the same field and avoid gaps in employment. A transition to a higher salary in the same industry is viewed most favorably.
