When purchasing a home, particularly a condominium, townhouse, or a property in a planned community, prospective buyers must account for more than jus...
Read More
The journey to homeownership is paved with important documents, and one of the most critical early milestones is receiving the Loan Estimate from your...
Read More
The pursuit of homeownership and financial leverage often leads borrowers through a series of loans, starting with a primary mortgage and potentially ...
Read More
A mortgage is often the largest financial commitment a person will make, and the initial interest rate you secure is not necessarily the one you must ...
Read More
The choice between a 15-year and a 30-year mortgage is one of the most significant financial decisions a homebuyer or refinancer will make. This decis...
Read More
In the ever-evolving landscape of real estate financing, an often-overlooked option presents a unique opportunity for both buyers and sellers: the ass...
Read MoreA lender with a large number of reviews provides a more reliable and statistically significant picture of their performance. A lender with very few reviews can be harder to vet. In this case, you should rely more heavily on personal recommendations, your own interactions with their staff, and their professional credentials.
A good rule of thumb is to save between 2% and 5% of your home’s purchase price. For example, on a $300,000 home, you should budget between $6,000 and $15,000 for closing costs.
The most common mistake is underestimating the total cost of ownership. This includes not just the mortgage, but also the “hidden” and variable costs like maintenance, repairs, and higher utilities. This can lead to being “house poor,“ where a large portion of your income goes solely to housing, leaving little for other expenses, savings, or discretionary spending.
You can check your credit reports for free at AnnualCreditReport.com. To improve your score: pay all bills on time, keep credit card balances low (below 30% of your limit), avoid opening new credit accounts before applying, and dispute any errors on your reports.
Credit score requirements vary by loan type:
FHA 203(k) Loan: Often requires a minimum score of 580-620, depending on the lender.
HomeStyle Renovation Loan: Typically requires a score of 620-680 or higher.
VA Renovation Loan: While the VA doesn’t set a minimum, most lenders look for a score of 620+.
A higher score will always help you secure a better interest rate.
