The journey to homeownership is often symbolized by the quest for the perfect mortgage rate, but the financial responsibility extends far beyond that ...
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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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The journey to homeownership culminates in two critical final steps: the final walkthrough and the review of the Closing Disclosure. While they occur ...
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Navigating the world of home financing begins with a fundamental understanding of mortgage types and terms. A mortgage is more than just a loan; it is...
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Private Mortgage Insurance, commonly referred to as PMI, is a crucial financial product that enables millions of Americans to achieve the dream of hom...
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For most homeowners, their monthly mortgage payment encompasses more than just the principal and interest on their loan. A significant portion often g...
Read MoreA USDA loan is a mortgage backed by the U.S. Department of Agriculture. Purpose: To promote homeownership in designated rural and suburban areas. Eligibility Requirements: Location: The property must be in a USDA-eligible area. Income: Borrower’s household income cannot exceed certain limits for the area. Occupancy: The home must be the borrower’s primary residence.
Yes. Any large, non-payroll deposit (typically any deposit that is more than 50% of your total qualifying monthly income) will need to be sourced and explained. You may need to provide a gift letter, a copy of a bonus check, or documentation of the sale of an asset to prove the funds are acceptable for mortgage purposes.
Older homes generally require a higher maintenance budget. While they have charm, their major systems (roof, plumbing, electrical, HVAC) are closer to the end of their useful life. A newer home might allow you to save slightly less initially, but no home is maintenance-free, and you should still follow the saving guidelines.
Yes, lenders require you to have homeowner’s insurance to protect their investment.
It typically covers damage to the structure of your home and your personal belongings from events like fire, theft, or storms.
It also provides liability coverage if someone is injured on your property.
Remember, standard policies do not cover floods or earthquakes; you’ll need separate policies for those.
The loan-to-value (LTV) ratio is a key metric lenders use to assess risk. It’s calculated by dividing your loan amount by the appraised value of the home. A lower LTV (meaning a larger down payment) generally means you’ll qualify for a better interest rate and avoid paying for private mortgage insurance (PMI).
