Financing New Construction vs. Existing Homes: Pros and Cons

Believe it or not there are some differences between financing new construction and financing an existing property. Yes, they’re certainly both financing options for a residential mortgage but there are some key differences and you might be surprised at the available options. Popular Loan Options for Financing an Existing Property Let’s first look at the […]

Impound Accounts Explained

Impound accounts, sometimes referred to as Escrow accounts in other parts of the country, are funds set aside to take care of property taxes and insurance when due. Some loans require impound accounts while others leave them as an option. Let’s take a further look at these accounts and what they accomplish. Impound Accounts Explained […]

Short Term Loan vs. Long Term Loan? Why Your Choice Matters

Deciding on which home loan to take is usually a matter of choosing an interest rate. But for those who have never financed a home before, there are many more things to decide on besides the rate. You might be surprised at the array of loan choices available to you, including short-term loans and long-term […]

The Dangers of Trying to Prequalify Yourself

Sometimes the term ‘prequalify’ is used incorrectly in the mortgage world. It can be a bit disconcerting, especially with multiple non-lender sites that ‘prequalify’ someone without even speaking with an experienced loan officer. Trying to fly solo in this area can mean someone who in fact can qualify for a home loan could be told […]

Mortgage Insurance: How It Helps Homebuyers

Mortgage insurance might sound like it is something that it isn’t. Yes, it is indeed an insurance policy but it’s not a policy that pays the borrowers’ mortgage payments should they begin to default. Instead, it’s an insurance policy with the financial benefit payable to the lender issuing the mortgage. But it’s also a benefit […]

What is a Wholesale Lender and Why Are They Important?

It might surprise some to learn that there are two primary types of lenders. There are direct lenders such as your bank and mortgage bankers. Banks provide mortgage services to their banking customers. With a bank, someone might appreciate the convenience of getting a home loan at the same place they got their auto loan […]

Meet the Behind-the-Scenes People At Your Mortgage Company

When you and I first speak together, it’s generally a Q&A sort of thing. You have questions, I have answers. The first is probably to check out mortgage rates to make sure we’re competitive and to get a general fix on the mortgage market. The next is to talk about getting prequalified, get a loan […]

How to Craft the Perfect Explanation Letter

In the mortgage industry, it’s referred to as an Explanation Letter. After someone submits a loan application to a lender, the lender might want some further explanation regarding an item that appears on a credit report or some other piece of documentation in the file. While a bit unsettling, such a request is fairly common […]

Answers to the Most Common Lender Questions About Your Application

Often when a mortgage lender reaches out to an applicant after the loan has been submitted, the applicant’s first response is often, ‘Oh no, what do they need?’ After all, along with the initial application there was an additional amount of documentation the lender needed in order to process the loan. But in most instances […]

What Counts in Your Debt Ratios

Debt ratios are utilized by lenders during the loan approval process. It’s an important piece, just one of several. Other factors such as credit, employment and assets are also pieces of the approval puzzle. Debt ratios on the other hand are the primary tool to determine affordability. Today, most loan programs set the guidelines for […]