When does mortgage underwriting take place, within the broader context of the mortgage lending process? This is a common question among first-time home buyers and mortgage applicants. The short answer is that it takes place somewhere in the middle of the process. It happens after the loan application has been completed, and before the final […]
Home Inspection Contingency Clauses for Buyers
This article is part of a series that explains the different kinds of contingencies that can be included within a real estate purchase agreement. Today, we will take an in-depth look at the home inspection contingency in particular. Home inspection clauses are a common element in purchase contracts. So it’s important to understand how they […]
How Mortgage Financing Contingencies Work (With Example Clauses)
The mortgage financing contingency is one of the most common contingencies included within real estate purchase agreements or contracts. Essentially, these clauses give home buyers a way to back out of the deal if they are unable to secure a mortgage loan to complete the purchase. Here’s an overview of how mortgage financing contingencies work, […]
Qualifying for a Home Loan as First-Time Buyer: 5 Common Requirements
First-time home buyers tend to have a lot of questions about the mortgage approval process. One of the most common questions we get from our readers is: What are the steps in qualifying for a home loan as a first-time buyer? And what are the minimum qualification requirements for getting a first mortgage loan? Here’s […]
What Things Are Needed to Buy a Home in 2018?
Over the last few weeks, one of the most common questions we receive from our readers has been: What things are needed to buy a house in 2018? The answer to this question has changed over the last couple of years, partly because the mortgage industry has eased. So we thought it was high time […]
Do Jumbo Loans Have Higher Interest Rates? Not Always!
This is part of an ongoing blog series where we answer common questions among home buyers. Today’s question deals with jumbo loan mortgage rates in relation to smaller mortgage products. Do jumbo loans have higher interest rates than their smaller conforming counterparts? The answer might surprise you. Over the last few years, jumbo loans have […]
How the Down Payment Affects Private Mortgage Insurance
This is part of an ongoing series that addresses common questions from home buyers. Today we have a two-part question: How does the down payment affect private mortgage insurance or PMI, and how much do I have to put down to avoid paying PMI? The short answer: If you make a down payment below 20% when […]
How Do Down Payment Assistance Programs Work?
This is part of an ongoing series that answers frequently asked questions from home buyers. Today’s question is: How do mortgage down payment assistance programs work? Before we get to the logistical details, let’s start with a basic definition. What is a down payment assistance program, exactly? What Is a Down Payment Assistance Program? These […]
Top 10 Things First-Time Home Buyers Should Know in 2018
A lot has changed in the mortgage industry and real estate market over the last couple of years. So we thought it was time to create an updated guide for first-time buyers pursuing the goal of homeownership in 2018. Here are 10 things a first-time home buyer should know in 2018. Top 10 Things First-Time […]
Maximum FHA Debt-to-Income Ratio Requirements in 2017
The debt-to-income (DTI) ratio limit for an FHA loan in 2017 is 43%, for most borrowers. In some cases, home buyers using the FHA loan program can have up to 50% debt-to-income, at a maximum. A higher level of debt might be allowed if there are certain “compensating factors,” such as a minimum increase in […]