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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In the ever-evolving landscape of real estate financing, an often-overlooked option presents a unique opportunity for both buyers and sellers: the ass...
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A balloon mortgage can appear as an attractive, low-cost entry into homeownership, but it carries a unique set of financial risks that borrowers must ...
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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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When embarking on the significant journey of securing a mortgage, one of the first and most crucial decisions is choosing where to obtain your loan. T...
Read MoreThe first step is to thoroughly review your finances. Create a detailed budget to understand your income, expenses, and current savings. Then, subtract the funds you need to keep for closing costs, emergencies, and moving to see what remains for a comfortable and affordable down payment.
A good rule of thumb is to save 1% to 3% of your home’s purchase price annually for maintenance and repairs. For example, on a $400,000 home, you should budget between $4,000 and $12,000 per year, or about $333 to $1,000 per month. Set this money aside in a dedicated savings account to avoid being caught off guard.
Title insurance protects both you and the lender from future claims or legal challenges to the property’s ownership. These could arise from undiscovered heirs, past forgery, or unpaid liens from previous owners. It is a one-time premium paid at closing.
The mortgage lender orders the appraisal to ensure an unbiased, third-party opinion. However, the borrower almost always pays for the appraisal fee as part of the closing costs. You are paying for the service, but the appraiser’s client and responsibility is to the lender.
Closing costs typically range from 2% to 5% of the home’s purchase price. This question helps you understand all the associated fees, such as origination fees, appraisal fees, title insurance, and prepaid items like property taxes and homeowners insurance.
