Reader question: “We have been asked to write a letter of explanation for our mortgage lender’s underwriter, regarding a bank overdraft fee. They were unable to provide a sample or template for a mortgage letter of explanation, but they did say to keep it simple. Why do mortgage lenders ask for letters of explanation, and […]
How Mortgage Lenders and Underwriters Verify Income
Reader question: “I was told that mortgage lenders and underwriters will verify my income as part of the loan approval process. How do mortgage companies verify a borrower’s income? And what is the primary reason for doing so?” Whether or not you get approved for a home loan will largely depend on your ability to […]
The percentage down payment needed for first-time buyers
Reader question: “We are planning to buy our first home in the fall of 2017. We don’t have that much saved up for a down payment yet. What percentage down payment is needed for first-time home buyers in 2017?” The minimum down payment may vary depending on what type of home loan you are using, […]
Buying a First Home With High Student Loan Debt: 2017 Update
First-time home buyers with a relatively high level of student loan debt sometimes have a harder time qualifying for mortgage loans. That’s because lenders view them as a potentially bigger risk, compared to a borrower with less overall debt. Statistically speaking, a first-time buyer with high student loan debt is more likely to default on […]
Getting Down Payment Help from Parents or Family Members
Reader question: “My husband and I are planning to buy a house later in 2017. We don’t have enough money saved up for a down payment. Can we get down payment help from my parents, or from other family members? Is that allowed for conventional loans or just FHA?” Yes, depending on the type of […]
Is Underwriting the Last Step in the Mortgage Process?
Reader question: “We were informed that our loan is in the underwriting stage right now, but I’m not sure how that relates to the overall approval process. Does that mean we’re at the finish line, so to speak? Is underwriting the last step in the mortgage approval process?” Let’s start with the short answer and […]
Mortgage Loan Approval Process Explained: The 6 Steps to Closing
First-time home buyers tend to find the mortgage approval process confusing. We know, because we get their questions via email on a regular basis! So we’ve created this guide to walk you through the different steps in a typical mortgage approval process. Note: The lending process can vary from one borrower to the next, due […]
Are Self-Employed Mortgage Loans Easier to Obtain in 2017?
Is it harder to buy a home using a mortgage loan when you are self-employed? Are there any additional mortgage requirements or hurdles for self-employed borrowers in 2017? These are two of the most common questions we’ve received from our readers over the years, where self-employment is concerned. And there appears to be some good […]
Minimum Down-Payment Requirements for a 30-Year Mortgage Loan
The 30-year fixed-rate mortgage loan is by far the most popular of all the home loan options. So lately, we’ve been publishing a series of tutorials on this particular product. Today we’ll answer the question: What are the down-payment requirements for a 30-year mortgage loan? The short answer is that it depends on the type […]
Advantages & Disadvantages of the 30-Year Fixed-Rate Mortgage Loan
At a glance: The primary advantage of a 30-year fixed-rate mortgage is payment stability and predictability, since the interest rate stays the same. The primary disadvantage is that you’ll probably end up with a higher mortgage rate, so you might pay more interest over the long term. Did you know that the 30-year fixed-rate mortgage […]