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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Embarking on the journey to purchase a home is an exciting venture, yet it is accompanied by a financial landscape filled with specific terms and subs...
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Navigating the complex world of home financing can feel like a daunting expedition. When the time comes to secure a mortgage, the most apparent path f...
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For prospective buyers and even current residents in managed communities, the terms “HOA fee” and “condo fee” are often used interchangeably, ...
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When embarking on the significant journey of securing a mortgage, the Loan Estimate form stands as one of the most crucial documents you will encounte...
Read MoreLenders use two key metrics to determine your borrowing capacity: your Debt-to-Income ratio (DTI) and your Loan-to-Value ratio (LTV). Your DTI compares your total monthly debt payments to your gross monthly income, and most lenders prefer a DTI below 43%. The LTV ratio compares the loan amount to the appraised value of the home.
When the balloon payment comes due, you generally have three options:
1. Pay the balance in full with your own funds.
2. Sell the property and use the proceeds to pay off the loan.
3. Refinance the balloon mortgage into a new, long-term mortgage, subject to qualifying for the new loan.
Your credit will be pulled again, which will cause a small, temporary dip in your score. However, credit scoring models typically treat multiple mortgage inquiries within a 14-45 day window as a single inquiry for rate-shopping purposes, minimizing the overall impact.
It is very difficult, but not always impossible. If market rates have fallen substantially after your lock, you can ask your lender for a “float-down” option. However, this is typically a feature that must be agreed upon and sometimes paid for at the time of the initial rate lock. Don’t count on being able to negotiate a locked rate after the fact.
We strive to respond to all emails and phone calls within one business day. For urgent matters, we will make every effort to respond within a few hours. If your Loan Officer is unavailable, a dedicated team member will be able to assist you to ensure your questions are answered promptly.
