When you begin the journey of purchasing a home, you quickly learn that your credit score is more than just a number—it is the financial passport th...
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When navigating the path to homeownership, few steps are as pivotal and misunderstood as the property appraisal and valuation. This critical procedure...
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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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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 journey from mortgage application to closing table is rarely a straight line. For many borrowers, a crucial and often misunderstood part of this p...
Read MoreThe cost can be substantial. On a $300,000, 30-year fixed-rate mortgage, a borrower with a “Fair” score might get a rate of 7.5%, while a borrower with an “Excellent” score might get 6.25%. The borrower with the lower score would pay over $100,000 more in interest over the 30-year term. This highlights the immense financial value of a good credit score.
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.
A mortgage rate lock is a lender’s guarantee that your agreed-upon interest rate and points will be honored for a specified period, typically between 30 and 60 days, protecting you from market fluctuations while your loan is being processed. Be sure to ask about the lock’s expiration date and if it can be extended.
You’ll typically need: recent pay stubs (last 30 days), W-2 forms from the past two years, federal tax returns from the past two years, bank and investment account statements (last 2-3 months), proof of any additional income, and a government-issued photo ID.
Closing costs for an assumption are similar to a traditional purchase and can include:
Lender assumption fee (often $500 - $1,500)
Appraisal fee
Title insurance and search fees
Escrow fees
Prepaid property taxes and homeowners insurance
