Some costs are paid in advance. These are costs that you must pay at closing that are prepaying things in advance. For example, the first year of homeowner’s insurance must be paid one year in advance. Many of these items are put into an escrow account that cover the initial costs of expenses, such as […]

It is a smart idea when going through the mortgage process to shop around for the best interest rates and fees. Did you know that you can shop around for many services associated with buying a house? Of course, you can shop around for the loan, such as comparing interest rates and fees, but you […]

You must understand the loan programs your loan officer is suggesting to you. Otherwise, you may be ill advised and go with the wrong program. One thing to take note of is what type of loan that your loan officer is suggesting. Specifically, is it an FHA loan or a Fannie Mae loan? It is […]

A pre-qualification or pre-approval letter is usually asked for prior to shopping for houses. This means that you have applied for a mortgage and have passed the initial requirements to be considered pre-qualified. Both letters refer to a lender that specifies how much the lender is willing to lend to you. The information that is […]

This is the percentage that compares the loan to the value (LTV) of the property. For example, if you are putting down 20% on a property, the LTV is 80%. A LTV ratio is a term used by lenders to express the ratio of a loan to the value of an asset purchased. The LTV […]

When shopping for a mortgage, it is always a smart idea to make sure that you ask for the estimates in writing. All you must do is ask your loan officer for an estimate, in writing, of all the costs that he or she is quoting you. Typically, you can avoid paying lender fees, such […]

This term refers to whether your interest rate is locked in. If your interest rate is not locked in, your rate can go up or down and that is called “Floating” the interest rate. A lock is a period that the banks or financial institutions are not allowed to change the interest rate on your […]

For the average homebuyer, you may not have much knowledge when it comes to mortgages and the loan process. Mortgage rates — how they work and where they come from—may be confusing at times. Luckily, we can make your lives a little bit easier. To understand how mortgage rates are determined, we must first understand […]

When gathering the documents that are necessary for a buying a home, it is critical to be organized. By doing so you will decrease the chance of leaving out certain documents, losing documents, and any other errors. You will typically need these items as a starting point. To begin with, you will should have ready […]