Getting a mortgage can be a breeze or a slog, depending on what you know about the process. To get organized and set your expectations properly, let’s debunk some common mortgage myths. 1. Lenders use your best credit scores If you’re applying for a mortgage jointly with a co-borrower, logic suggests that your lender would use
Home equity is the percentage of your home’s value that you own, and it’s key to building wealth through homeownership. Let’s take a closer look at how to build home equity without blowing your budget – and how to access it when you need it. How much equity do you have? Equity is easy to calculate
Ready to buy that ski cabin or lake house? Renting it out while you’re not using it is a great way to make it happen – but not so fast. Lender rules may not allow it, so here’s what you need to know. Loan types and their rules The first step to financing your vacation home is understanding
All-cash buyers are active in many markets, and they can strike fear in new home buyers. The cash buyer can perform and close quickly and provide sellers with a sense of comfort. But, does this mean a solid buyer putting down 20 percent or more shouldn’t attempt to compete with the cash buyer? Absolutely not.
Trained to spot financial mismanagement, mortgage lenders take careful time to review your finances before approving or denying you for a home loan. The role of the lender in approving a loan is to make sure you have enough money for a down payment and closing costs, and to assess whether you’re able to regularly
Whether you’re a seasoned or first-time home buyer, be prepared to know your FICO score and have a firm understanding of your credit history. And if you’re buying with another person, their credit history can affect your joint home purchase. What is a FICO score? First things first – what’s a FICO score and why
When couples start a new journey as homeowners, questions can linger as to whose name (or names) should be listed on the mortgage and title. Many couples want a 50/50 split, indicating equal ownership to the asset, but sometimes that isn’t the best financial decision. Plus, with more than one person on the loan, the
A home is often the biggest financial investment you’ll make in your lifetime. In fact, a recent Zillow analysis reports that the typical American homeowner has 40 percent of their wealth tied up in their home. Several years ago, I wrote a complete guide to financial planning on one index card, which went viral and
Thinking of buying a home this year? We compiled five New Year’s resolutions that can help you keep your financial resume in tiptop shape. 1. Avoid job hopping Employment history and income are two of the biggest factors lenders look at when evaluating a mortgage application. A new job may be a good career move, but
Navigating the purchase of a home can be overwhelming for first-time buyers. Lenders require documentation of seemingly every detail of your life before granting a loan. And of course, they will require a credit check. A question many buyers have is whether a lender pulls your credit more than once during the purchase process. The