The path to homeownership is paved with paperwork, and how you manage that mountain of documents can significantly impact your mortgage experience. Or...
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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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Embarking on the path to homeownership is an exciting venture, but the mortgage application process can feel like a daunting mountain to climb. The ke...
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Submitting a formal loan application is the pivotal moment in the homebuying journey where hopeful pre-qualification transforms into a concrete financ...
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Securing a mortgage is one of the most significant financial journeys a person can undertake, and the relationship with your lender sits at the heart ...
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The journey to homeownership is paved with a mountain of paperwork, but few documents carry the weight and finality of the Closing Disclosure. This cr...
Read MoreThe most common types of assumable mortgages are government-backed loans. These include: FHA Loans: Fully assumable after a credit qualification process. VA Loans: Assumable by any qualified buyer, but if the assumptor is not a veteran, the selling veteran may not be able to restore their VA entitlement until the loan is paid off. USDA Loans: Assumable with prior approval from the USDA. Conventional loans (Fannie Mae/Freddie Mac) are rarely assumable and typically only under very specific circumstances.
Front-End DTI: This ratio only includes housing-related expenses. It’s your projected total monthly mortgage payment (principal, interest, taxes, insurance, and any HOA fees) divided by your gross monthly income.
Back-End DTI: This is the more commonly used ratio. It includes all your monthly debt obligations—such as your future mortgage payment, auto loans, student loans, credit card payments, and child support—divided by your gross monthly income.
Be prepared to provide additional documentation. For a job change, an employment contract or offer letter may suffice. For credit issues, you may need to provide a written letter of explanation and documentation showing the issue has been resolved (e.g., a paid collection account receipt).
You should actively pursue removing PMI when your loan-to-value (LTV) ratio reaches 80% (meaning you have 20% equity) based on your original purchase price and payments. You can often request its cancellation at this point. By law, for most loans, the servicer must automatically terminate PMI once you reach 22% equity based on the original amortization schedule. If your home’s value has increased, you may be able to remove it sooner with a new appraisal.
Gross Domestic Product (GDP) is the broadest measure of a country’s economic activity. Strong GDP growth suggests a robust economy, which can lead to higher confidence, wage growth, and housing demand. However, overly strong growth can also reignite inflation fears, putting upward pressure on mortgage rates. Conversely, weak GDP growth or a recession can lead to lower rates as the Fed acts to stimulate the economy.
