Home Loan Learning Center

How Do IRA Accounts Work? How To Use Them for Buying A Home

For this blog update, we’ll discuss the other types of IRAs, SEP IRAs and Simple IRAs. We’ll also go into detail what your mortgage lender will require from you if you choose to use these IRA accounts to help get into your home! SEP IRA Accounts SEP IRA Accounts, also known as Simplified-Employee-Pension IRA Accounts, is a retirement plan that an employer or self-employed person can open. SEP IRA retirement plans are mostly used by

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How To Withdraw Money From 401k Before Retirement

Asset documentation is one of the most stressful parts of the mortgage loan process. Having to supply the most recent 2 months of bank statements, and also having to keep providing additional statements every time a new one comes out can be stressful. But the most stress-inducing part is if you have any large deposits that need to be sourced. However, one of the good things about all of the loan programs in general, is

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Can You Buy A House With Bad Credit And Get The Loan?

We live in an age now where it can be easy to think that you cannot do anything without a credit history. From buying cars, buying homes, to having a friend lend you a pencil, you need proof that you are credit-worthy. And most of the time, it seems like people won’t even lend you a pencil without references. Fortunately, buying a home is not one of those items. You can actually get a home

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Buying A New Construction Home: Step-by-step Process

When it comes to buying a new home, there are plenty of options for borrowers. Buying an existing home is the most common practice currently. However, it newly built home may offer a more cost effective approach to home ownership. Buying a newly constructed condo or home can ensure that you get the features and amenities you want in that home. However, buying a brand new home also means that you need to research more

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6 Reasons Why You Should Never Buy A Townhouse

During the home buying process, you have to decide whether or not what is best for your family in the short and long term. And with all of the options available between buying a single family home, condos and townhouses, this can be very fairly difficult to do. The fabled townhouse is a choice that has been rising in popularity for the past couple years. But is it right for you? Townhouse Is A Jack

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4 Benefits Of A Townhouse: Living In a Townhome Community

In our current age, we’ve become accustomed to having options. When there’s a need or a desire for a specific thing, people strive to bring a solution to that need. The townhouse is a perfect example of solving a problem. A townhouse is the perfect solution for a person who wants the best of both condo and single family home living when buying a home. In this blog update, we will define what a townhouse

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Condo vs Home: Which Should You Buy?

Choosing between purchasing a condo or a single family home can be a very tough decision. Especially if you are a first time home buyer.  Are you someone who enjoys being in arms reach of neighbors and living in a very low maintenance lifestyle? Or are you someone who enjoys having more space and finds thrill in the upkeep of a yard or garden? You should be able to make an good decision after comparing

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USDA Appraisal Requirements (2024): Why Do You Need One?

For the USDA Home Loan program, we’ve covered most of the income and asset documents that the average borrower will need for the mortgage-lending process. In this blog post, we’ll be talking a bit about the “dreadful” Appraisal to make things a bit more easy to understand. What is an Appraisal? An appraisal is a report that determines the value and condition of a home. An appraisal report is similar to a home inspection but

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USDA Asset and Income Documentation, and Verification Process

You have decided to apply for a USDA Home Loan. You’ve found the home of your dreams, and it resides within the eligibility criteria set forth by the USDA. What should you expect to have to make the approval process as easy and seamless as possible? Are you worried about the documents you’ll need to submit or how many pay stubs do you need for a mortgage?  USDA Loan Income Requirement Explained The main question

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USDA Renovation Loan: Home Improvement Loan Requirements

USDA Renovation Loans If you’re thinking about purchasing a new home through the USDA Loan Program, you may have other options! While you can easily just buy a home that is not in need of any repairs, the USDA Renovation Loan Program allows you to add a few more possibilities for purchasing homes, as long as they are in an eligible rural location. Unlike other loan programs, the USDA Loan Program has an eligibility criteria

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Renting VS Buying A Home: Should You Rent Or Buy A House

Should you buy or rent? As much as I wish I had a straightforward answer for you, I don’t. Instead, I hope to guide your analysis in order to make things just a bit more clear for you. Let’s run down the major benefits of each. Renting Most often, those that choose to rent want or need flexibility based on one or more of the following factors: Shorter-Term Commitment If you’re the type of person

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Can I Get A Mortgage If I Just Started A New Job? W-2 or 1099?

Considering changing jobs, but curious how that might affect the mortgage approval you’re hoping for? Or, maybe you already have a new job and are wondering what your odds are. The general rule of thumb is that you should have a two-year history at your current job, but this is far from necessary in all cases. However obvious it may seem, the main question you need to ask yourself is: Can I prove that I

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First-Time Home Buyer Tax Credit: How Much Money Do You Get Back

Introduction to Tax Returns For this blog update, we will be discussing the first time home buyer’s need to provide Tax Returns for the home loan. There are many different reasons why a first time home buyer will need to provide tax returns. These reasons can range from sourcing large deposits on a bank statement to comparing income from self-employment income. Reasons Why A Tax Return May Be Requested One of the primary reasons why

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What Is A Profit And Loss Statement? What About Balance Sheets?

An Introduction to Profit and Loss Statements and Balance Sheets For this blog update, we’ll be going into detail about Profit and Loss Statements, Balance Sheets, the differences between them, and when the first time home buyer will  be needing them for the home buying process. Profit and Loss Statements as well as Balance Sheets are only a part of the mortgage lending process if the borrower has a business that they own. Profit And

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Living Rent Free Letter for Mortgage: Needed Documentation

For the third and final part of this blog, we’ll be discussing some more documents as well as giving additional tips that may help the first time home buyer speed up the mortgage-lending process. In the last blog update, we talked a bit about some additional income documentation that will be needed if the first time home buyer has pay stubs and W-2 forms, as well as sources from third parties like Social Security Administration

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What Is Escrow On A Mortgage And How Does It Work?

For this blog update, we will be discussing the mortgage term “escrow,” and what it means for the first time home buyer’s mortgage lending process. Escrow in the mortgage lending process is essentially an account that is created during the lending process that holds items such as the Earnest Money Deposit and Due Diligence checks. This account is created by a third party, such as an agent, attorney, closing escrow officer, or title company escrow

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FHA Loan Homeowners Insurance Requirements (2024)

This latest blog update will be about the Homeowner’s Insurance policies for the remaining loan programs. USDA Loan Programs will not be covered in this blog update, as it is the only one with specific requirements. Homeowner’s Insurance requirements for the FHA and Conventional Loan programs and additional policies like Flood Insurance that may be required by the lender for the loan. For every loan program, a Homeowner’s Insurance policy may be mandatory for closing,

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First Time Home Buyer Guide: An Introduction to Homeowner’s Insurance: USDA Loans

This latest blog update will be about the Homeowner’s Insurance policies, Homeowner’s Insurance requirements for the USDA Loan programs, and additional policies like Flood Insurance that may be needed for the loan. For every loan program, a Homeowner’s Insurance policy may be mandatory for closing, especially if a home is being financed through a mortgage. However, a Homeowner’s Insurance policy does not always need to be active and is up to the sole discretion of

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Fannie Mae Homepath Properties (REO) Real Estate Owned

Fannie Mae’s HomePath REO homes are foreclosed homes purchased by Fannie Mae. Fannie Mae’s HomePath REO Program: An Introduction For this blog post, we will be talking about the Fannie Mae’s HomePath REO program in the eyes of the First Time Home Buyer.  Fannie Mae’s HomePath program is essentially for the selling of newly foreclosed properties that are purchased by Fannie Mae. Fannie Mae can obtain ownership of a foreclosed property, or a property that

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The What, When and Why’s of a Foundation Inspection Certification

Foundation Inspection Certifications: A Brief Introduction In the process of obtaining a mortgage, your lender may request a Foundation Inspection or a Foundation Certification. A Foundation Inspection Certification may be requested for several reasons, such as being requested by the appraiser due to his or her inspection, or the home being manufactured and needing to be certified for HUD/FHA purchasing. Foundation Inspection Certifications For Appraisals Foundation Inspection Certifications are documents that certify that a foundation

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