6 minute lesson Lesson Summary When buying a house, there are many rules to consider, such as employment, credit score, debt to income ratio, and down payment. Fannie Mae and Freddie Mac create rules to mitigate risk and ensure…
7 minute lesson Lesson Summary Key Documents: Provide: 2 Paystubs, 2 Months Bank Statements, 2 years W-2, 2 Years Tax Returns, 2 Years of address history, 2 years of job history. Significance: These documents offer a transparent and consistent…
6 minute lesson Lesson Summary Understanding the difference between manufactured and modular homes is crucial when buying a home. Sometimes, the county assessor or MLS may incorrectly label a home as manufactured when it is actually modular. Modular homes…
6 minute lesson Lesson Summary Townhomes can be either stick-built homes or part of a condominium complex. Stick-built townhomes are priced better than townhomes in a condominium complex. When pricing a loan, it is important to consider whether the…
6 minute lesson Lesson Summary Debt to Income Ratio (DTI) Crucial for loan approval. Includes front-end (housing costs/income) and back-end (all debts/income) ratios. Gross Income Calculation Pre-tax earnings determine loan amount and affordability. Impact of Debts on DTI Higher…
6 minute lesson Lesson Summary 30-Year Mortgages Lower monthly payments, longer repayment. Early payments focus more on interest. Long-Term Interest Costs More interest paid over time with longer terms. Prepayment Flexibility Options for additional or lump-sum payments. 15-Year Loans…
6Â minute lesson Lesson Summary Mortgage Trigger Leads: When you apply for a mortgage, your credit inquiry can trigger lenders and other financial institutions to receive a notification. This makes you a "trigger lead." Purpose: These leads are used by…
6 minute lesson Lesson Summary Loan servicing is a common concern for homebuyers, as loans are often sold to different companies. The primary reason for loan sales is to free up capital for lenders to provide more loans. Even…
6Â minute lesson Lesson Summary Escrow Account Purpose: Holds funds for property taxes and homeowners insurance, ensuring these bills are paid on time. How It Works: Part of your monthly mortgage payment goes into the escrow account. The lender uses…
6 minute lesson Lesson Summary Average Costs: Expect to pay around $3,850, covering key expenses for home ownership transfer. What They Include: Fees for finalizing home purchases, like title insurance, appraisals, local taxes. Earnest money may reduce these costs at…