Seasonal timing for better mortgage deals
Frequently Asked Questions
Straight answers to the questions we hear most.
It’s crucial to know that APR often excludes:
Appraisal and home inspection fees
Title insurance and escrow fees
Prepaid items like property taxes and homeowner’s insurance
Credit report fees
Appraisal and home inspection fees
Title insurance and escrow fees
Prepaid items like property taxes and homeowner’s insurance
Credit report fees
A mortgage significantly increases your total debt-to-income ratio (DTI) because it is typically a large, long-term debt. Lenders calculate your DTI by dividing your total monthly debt payments (including your new proposed mortgage) by your gross monthly income. A higher DTI can affect your ability to qualify for other loans.
The best time is after you have received a formal Loan Estimate from a lender but before you have locked your rate. This is when you have the most leverage. You can also try to negotiate after a rate lock if market rates have improved significantly, but lenders are not obligated to adjust a locked rate.
A standard mortgage pre-approval letter is typically valid for 60 to 90 days. This is because your financial situation and credit can change. You can usually get an extension if needed, provided you reconfirm your financial details.
An extra principal payment is any amount you pay towards your mortgage that exceeds the required monthly principal and interest payment, which is applied directly to your loan’s principal balance.
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