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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Your credit score is far more than just a number; it is the cornerstone of your financial profile and a critical factor in the mortgage application pr...
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The arrival of a notice in the mail announcing that your mortgage servicing rights have been transferred to a new company can be an unsettling experie...
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The down payment stands as one of the most significant initial hurdles in the journey to homeownership. While the allure of a 20% down payment is ofte...
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When you apply for a mortgage, lenders are fundamentally trying to answer one question: How likely are you to repay this large loan? While your credit...
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Choosing a mortgage lender is one of the most significant financial decisions a person will make. While interest rates and loan terms are crucial quan...
Read MoreClosing Delays: The home buying process is time-sensitive. Starting over can add 2-4 weeks, potentially causing you to miss your closing date and breach the contract. Losing Your Earnest Money Deposit: If the delay causes you to fail to close on time, the seller could be entitled to keep your deposit. Additional Costs: You will likely have to pay for a new appraisal and may lose application fees paid to the first lender. Straining Seller Relations: The seller may become anxious and less willing to negotiate if issues arise.
Yes, it is possible to obtain a jumbo loan for a second home or an investment property. However, the requirements are often even more stringent, with higher down payment requirements (sometimes 20-30%), higher credit score thresholds, and more cash reserves needed.
For a first-time homebuyer who may need more guidance and is often more cost-sensitive, a credit union is frequently the better choice. The combination of potentially lower rates, lower fees, and more personalized, educational support can make the complex process of getting a first mortgage much smoother and more affordable.
An escrow surplus occurs when there is more money in the account than is needed to cover the projected bills. If the surplus is over a certain threshold (usually $50), the lender is required by law to send you a refund check. If the surplus is smaller, the amount may be credited back to your escrow account, potentially lowering your future monthly payments.
There’s no definitive answer, as it depends on the institution. Online lenders often have lower overhead, which can mean lower base rates and fees. Credit unions are member-owned and may be more flexible. Large banks might have more room to negotiate to meet quotas. The key is to get offers from all types to create competition.
