Home Loan Learning Center

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Asset Documentation For First-Time Home Buyers

One of the biggest sources of anxiety for the first time home buyer is the asset documentation needed for submission and for the final approval. First time home buyers can easily feel overwhelmed with the amount of documentation that is needed, especially when it comes to sending in their bank statements, large deposit sources, and other asset documentation. This blog post will aim to help the fist time home buyer prepare for this part of

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Mortgage Tips When Buying First Home: First-Time Buyer Advice

Understanding Your Budget For the first-time home-buyer, choosing the first home can be a daunting, intimidating process. There seems to be a lot of rules and regulations, many different loan programs to choose from, and a lot of fancy mortgage jargon that can leave a first-time home-buyer intimidated and fearful they will not qualify. In this blog post, we’ll go over several tips we recommend when starting the process of buying a home. The hardest

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What Is A 1004d Appraisal Form? The Completion Report

For the first time home-buyer, a completion report may bring confusion, anxiety and uncertainty. However, I’m here to tell you that these completion reports should bring ease and comfort to the first time home-buyer. These reports are requested by lenders when the original home appraisal report has a label of “Subject To,” and has recommended inspections and repairs. For the first-time home buyer, this might spark anxiety, but usually the seller has to pay for

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Who Are Fannie Mae And Freddie Mac? What’s The Difference?

The Skinny on Fannie Mae and Freddie Mac You may have heard the Names “Fannie Mae and Freddie Mac” while dabbing into the mortgage world and have asked yourself, “Who are they?” In short, Fannie-Mae and Freddie-Mac are not people, but entities. Fannie Mae and Freddie Mac are called government-sponsored enterprises, or GSE’s, and they play a significant role in the mortgage industry. These roles include buying mortgages from lenders and selling them as securities

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Mortgage Closing Process: What To Expect?

When your loan processor submits all of the documents required by the conditional approval and your file passes through all of the last checks with the underwriters, you will be ready for closing. This stage is usually called “Clear to close.” Clear to Close and Significance of Closing The closing process is the last step to receiving the keys to your home. The Closing Process can also be called the “Settlement,” in which you and

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What is the Debt to Income Ratio and How To Calculate It?

How Does My Annual Income Affect My Rate? Your annual income will not affect the rate of your loan, but it will affect the amount the lender will be comfortable giving you. A mortgage lender will be more apprehensive lending out a loan that they determined would be difficult for the borrower to repay, when including their other debts and required monthly payments. A calculation that is used by lenders to determine income eligibility is

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What Is Credit Worthiness? What If You Don’t Have Credit?

Credit-worthiness One of the biggest mistakes people make before applying for a mortgage loan is not checking their credit score. Applying for a mortgage loan without checking your credit first can be a costly mistake, either literally because your rate was increased resulting in a higher monthly payment, or figuratively when a lender denies your application. By checking your credit before your application, you will not be surprised about that bill that went into collections

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Why Use A Mortgage Broker? 2 Best Reasons

There are two reasons why hiring an independent mortgage lender is better than seeking financing through a bank. The employees at a borrowing firm know more about all of the different kinds of loans than do bank laborers. Most of them encourage you to seek traditional mortgage options as they are the safest choices for the bank.  An independent lending firm will not be biased towards any particular plan. The workers at lending firms have

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How Long Do You Have To Live In A USDA Home Before Renting?

Some individuals wonder why it is important to buy rather than rent a home. You might believe it is cheaper to pay back a landlord instead of a bank. There are distinct advantages to buying an abode with USDA Loans and rural development loans. Many people find that their mortgage bills are lower than their rent ones were. This is especially true if the home you buy is smaller or older than the structure that

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Why It Is Important For Apartment Dwellers To Work With An Independent Mortgage Broker

What does a mortgage broker do? A mortgage broker is a licensed professional who acts as an intermediary between borrowers and lenders during the mortgage application process. They work with multiple lenders to help borrowers find the most suitable mortgage product for their needs. How Mortgage Brokers Work Mortgage brokers work by assessing the financial situation and borrowing needs of their clients. They then shop around and compare loan offers from various lenders to find

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What To Do To Get A Government Home Loan By Your Wedding Day

Lots of couples plan a marriage and look for an abode at the same time. When you are looking to start a life in the country, you might wonder if you can afford the place of your dreams. To qualify for USDA loans and Rural Development loans, you must figure out what your combined credit score will be. You must also create a steady form of income. Many couples plan their ceremony and hunt for

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Why Are Mortgages 30 Years Long in the United States?

It is important to understand why you can only get a thirty year mortgage from the government. You might have read about interest only and ARM plans. USDA loans and Rural Development loans are only offered in classic, thirty year formats. Many people are interested in obtaining funding for a new home. You might have read about different kinds of contracts on the Internet. Those options could seem suitable for your situation. You may wonder

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How To Get A USDA Loan With Student Loans? (Guidelines)

The average college freshman wonders where he will live when he studies. If you will have a steady job and an excellent credit score, you might be able to apply for a Rural Development loan. You may be able to get a home in the same town where your university is located. Many college scholars work full time and go to school. If your family cannot afford to pay for your education, you might find

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Grants To Help Disabled Persons Buy A Home: USDA Loans

If you have aquired a new disability due to an illness or injury, you do not need to depend on a friend or family member to house you. People who have steady incomes can apply for Rural Development Loans to pay for new structures. Your new place in a small town will need to be guaranteed to meet your requirements. Many people who have new limitations on their skill sets often live with friends or

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USDA vs. FHA Loans: What’s the Difference Between The Mortgages

USDA and FHA loans offer borrowing terms for people who might find it hard to qualify for a conventional mortgage to buy a home. FHA and USDA loans are geared toward people with low incomes and less-than-stellar credit scores who might not be able to access the property ladder with a conventional loan.  USDA and FHA loans also offer lower mortgage rates and lower down payments to make it even easier for people who struggle

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Relocation Loans for Moving  – What Is It And How To Get It

What is a moving or relocation loan? A relocation loan, also known as a moving loan, is a type of personal loan designed to provide financial security during a move. Whether you’re relocating for personal reasons or for business purposes, a relocation loan can help cover expenses such as packing, transportation, temporary housing, and other related costs. These loans can be particularly helpful for consolidating moving expenses into one manageable account. Pros and cons of

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Mortgage Process Steps In The Application

Home buying is the biggest investment most people will make. It’s also the most enjoyable one because you are buying a home where you will live and enjoy life.  Unless you have a sizeable amount of cash to buy a house, you will need to apply for a mortgage to finance your new home. Most banks and creditors will require you to supply part of the cost with your own funds and the mortgage will

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What Is Community Property State?

  When you purchase a home in a community property state (Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington and Wisconsin) and are married, you need to take into account your spouse’s debts in relation to yours, even if one person is going on the loan due to credit or income reasons. For example Mr. and Mrs. Smith just got married and Mrs. Smith has a $500 a month car payment and a $25 minimum credit

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USDA Underwriting Guidelines

When trying to obtain a USDA home loan an underwriter has many guidelines that they look at when qualifying a borrower.  On top of having a middle credit score of 640 or higher the underwriter’s want the applicants to have open and active trade lines that have a 12 month or greater payment history.  This is required to demonstrate to the lender that you are able to properly manage your budget and pay your bills

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What Is A Trade Line On A Mortgage And How They Affect Credit Scores

What Is a Trade Line? A trade line is like a snapshot of your financial history found in your credit report. It includes all the accounts you have, such as credit cards, loans, or any other credit you’ve used. Each trade line shows how you’ve managed these accounts over time. Lenders use this information to decide if you’re a good candidate for borrowing money. So, whether it’s a credit card balance, a car loan, or

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Mortgage Loan Denied – What To Do?

Common Reasons for Loan Denials in Underwriting Understanding common reasons for mortgage denials is crucial. There are six main factors contribute to loan denials:+. High Debt-to-Income (DTI) Ratio Lenders assess your total debt relative to your pre-tax income. Even cosigned debts or recent payoffs affecting your credit report can affect your DTI ratio, exceeding lenders’ preferred 43% limit. Credit Issues Your credit history or score may become unacceptable if there are errors regarding bankruptcy or

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