7 minute lesson Lesson Summary FHA mortgage insurance, also known as MIP (mortgage insurance premium), is different from homeowner's insurance. It is an insurance policy that covers the lender in case the borrower defaults on the loan. FHA loans…
6Â minute lesson Lesson Summary Mortgage rate locks are an important aspect of the home buying process. Interest rates fluctuate daily, similar to the stock market. When you lock in your interest rate, you are securing it for a specific…
5 minute lesson Lesson Summary FHA appraisals are an important part of the homebuying process for those using an FHA loan. The appraiser's opinion determines the value of the property. The appraiser looks at comparable properties in the area…
6 minute lesson Lesson Summary LLPA stands for Loan Level Price Adjustments. LLPA is a risk factor that determines the interest rate for a homebuyer. Lower risk factors result in better interest rates. Factors that affect LLPA include down payment…
4 minute lesson Lesson Summary Introduction to Key Terms: Clarifying the often-confused terms in home buying - "prequalification" and "preapproval". Understanding the Difference: Exploring the true distinction between prequalification and preapproval in mortgage processes. Prequalification Explained: An initial assessment…
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…