The path to homeownership is paved with paperwork, and how you manage that mountain of documents can significantly impact your mortgage experience. Or...
Read More
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...
Read More
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...
Read More
Submitting a formal loan application is the pivotal moment in the homebuying journey where hopeful pre-qualification transforms into a concrete financ...
Read More
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 ...
Read More
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...
Read MoreFunds are not given directly to the borrower. They are placed in an escrow account and released to the contractor in “draws” as pre-determined stages of the work are completed and verified by a third-party inspector. This protects both you and the lender, ensuring the work is done correctly and the funds are used appropriately.
Obtaining Loan Estimates from at least three different lenders is your most powerful negotiating tool. When you have a competing offer with a lower rate or fewer fees, you can present it to your preferred lender and ask if they can match or beat it. Lenders are often willing to adjust their terms to win your business.
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.
Lenders typically require several documents to verify your income, assets, and debts. Commonly requested items include:
Proof of Income: Recent pay stubs, W-2 forms from the last two years, and tax returns.
Proof of Assets: Bank statements (checking, savings, and investment accounts) from the last 2-3 months.
Identification: A government-issued photo ID, such as a driver’s license or passport.
Employment Verification: Lender may contact your employer directly.
Yes, it is possible, but your options will be different. Government-backed loans like FHA loans are available to borrowers with credit scores as low as 580 (and sometimes 500 with a larger down payment). However, you will likely pay a significantly higher interest rate and may be required to pay additional fees, such as FHA Mortgage Insurance, for the life of the loan.
