Can I Correct A Mistake On My Credit Report?
Simple mistakes are easily corrected by writing to the reporting company, pointing out the error, and providing proof of the mistake. You can also request to have your own comments added to explain problems. For example, if you made a payment late due to illness, explain that for the record. Lenders are usually understanding about legitimate problems.
How Can I Build Credit?
How Do I Better My FICO Score?
How Do I Get A Copy Of My Credit Report?
How Do I Get My Credit History Information?
What Are The Factors Of A FICO Score?
What Credit Score Do I Need To Buy A Home?
Housing counselors will typically advise a score of 620 or higher.
What If I Don't Pay Off Old Debt On My Credit Report?
What Is A Vantage Score?
Why Do FICO Scores Decrease?
Down Payment Resources
Are There Special Mortgages For First Time Buyers?
Lenders may now be able to help borrowers who don't have a lot of money saved for the down payment and closing costs, have no or a poor credit history, have quite a bit of long-term debt, or have experienced income irregularities.
Can I Borrow An Earnest Money Deposit?
How Do I Find Down Payment Assistance?
Ask around. Ask Realtors, lenders and friends. Many counties and cities have 1st time homebuyer programs. An online resource is http://downpaymentresource.com/.
How does the FHA help buyers purchase homes?
The FHA also makes loans more accessible by requiring smaller down payments than conventional loans. In fact, an FHA down payment could be as little as a few months rent. And your monthly payments may not be much more than rent.
How much down payment money is required when buying a home?
The mortgage menu is very diverse, and exploring the loan options takes time. What is good for one borrower, is not the best for another. Housing counselors are a good source of information.
I am going to buy my first home, is there downpayment assistance available?
What are seller concessions when buying a home?
When you purchase a home, make sure to talk to your lender and Realtor about the possibility of seller's concessions. Simply put, these concessions are a set dollar amount or percentage of the purchase price that a seller agrees to contribute to you, the buyer, towards your closing costs which will lower the amount you need to close on the property.
What is the size of down payment for FHA loans?
You must have a down payment of at least 3% of the purchase price of the home. Most affordable loan programs offered by private lenders require between a 3%-5% down payment, with a minimum of 3% coming directly from the borrower's own funds.
Who qualifies for FHA loans?
Anyone who meets the credit requirements, can afford the mortgage payments and cash investment, and who plans to use the mortgaged property as a primary residence may apply for an FHA-insured loan.
Can I buy a home again after bankruptcy?
Yes, you can purchase a home 7 years after bankruptcy according to most lenders, but it's always best to call a few lenders to confirm as lending programs are always changing.
How long does the eviction process take?
It varies but it can take as little as a week to longer than six months. Real estate laws are dictated by states.
Is 100% financing available?
No Money Down options exist for non-military borrowers, too. The U.S. Department of Agriculture offers a 100% mortgage. The USDA Rural Housing Loan is not just a rural loan. It is available to buyers in suburban neighborhoods also. The USDA's goal is to reach low-to-moderate income homebuyers, wherever they may be with 100% financial.
And given certtain locations, other programs could be available. Ask your lender for more information.
My employer has announced layoffs in the coming months, what can I do now?
What does "Short Payoff" mean?
What is the difference between a short sale and a deed-in-lieu?
What is the foreclosure process and how long does it take?
What should I do if I miss mortgage payments?
Don’t abandon your home, as you may not qualify for assistance if you do.
Contact a HUD-approved housing counseling agency and speak with a counselor.
Purchasing a Home
Are you a HUD approved agency?
Can I pay my mortgage off early?
Do people with good credit scores need guidance in the homebuying process?
Absolutely. A real estate transaction is complex, and education is helpful to getting the best deal. Many of the services earn their living off of commissions so it's critical to know as much as you can.
How do I compare loans between lenders?
First, devise a checklist for the information from each lending institution. You should include the company's name and basic information, the type of mortgage, minimum down payment required, interest rate and points, closing costs, loan processing time, and whether prepayment is allowed.
Speak with companies by phone or in person. Be sure to call every lender on the list the same day, as interest rates can fluctuate daily. In addition to doing your own research, your real estate agent may have access to a database of lender and mortgage options. Though your agent may primarily be affiliated with a particular lending institution, he or she may also be able to suggest a variety of different lender options to you.
How do I select a lender?
A lender that has the authority to approve and process your loan locally is preferable , since it will be easier for you to monitor the status of your application and ask questions. Plus, it's beneficial when the lender knows home values and conditions in the local area. Do research and ask family, friends, and your real estate agent for recommendations.
How large of a down payment do I need?
But the larger the down payment, the less you have to borrow, and the more equity you'll have. Mortgages with less than a 20% down payment generally require a mortgage insurance policy to secure the loan. When considering the size of your down payment, consider that you'll also need money for closing costs, moving expenses, and - possibly -repairs and decorating.
How long do property title insurance policies last?
How long does it take to get a loan?
As a rule of thumb, most lenders ask for 30 to 45 days to receive approval from an underwriter for a loan.
How much money will I have to come up with to buy a home?
In general, you need to come up with enough money to cover three costs: earnest money - the deposit you make on the home when you submit your offer, to prove to the seller that you are serious about wanting to buy the house; the down payment, a percentage of the cost of the home that you must pay when you go to settlement; and closing costs, the costs associated with processing the paperwork to buy a house.
Should I have a home inspection?
Should I use a real estate broker? How do I find one?
A real estate broker will be well-acquainted with all the important things you'll want to know about a neighborhood you may be considering...the quality of schools, the number of children in the area, the safety of the neighborhood, traffic volume, and more.
With immediate access to homes as soon as they're put on the market, the broker can save you hours of wasted driving-around time. When it's time to make an offer on a home, the broker can point out ways to structure your deal to save you money.
He or she will explain the advantages and disadvantages of different types of mortgages, guide you through the paperwork, and be there to hold your hand and answer last-minute questions when you sign the final papers at closing. And you don't have to pay the broker anything! The payment comes from the home seller - not from the buyer.
What are closing costs?
There may be closing cost customary or unique to a certain locality, but closing cost are usually made up of the following:
Attorney's or escrow fees (Yours and your lender's if applicable)
Property taxes (to cover tax period to date)
Interest (paid from date of closing to 30 days before first monthly payment)
Loan Origination fee (covers lenders administrative cost)
First premium of mortgage Insurance (if applicable)
Title Insurance (yours and lender's)
Loan discount points
First payment to escrow account for future real estate taxes and insurance
Paid receipt for homeowner's insurance policy (and fire and flood insurance if applicable)
Any documentation preparation fees
What are discount points?
When shopping for loans, ask lenders for an interest rate with 0 points and then see how much the rate decreases with each point paid. Discount points are smart if you plan to stay in a home for some time since they can lower the monthly loan payment. Points are tax deductible when you purchase a home and you may be able to negotiate for the seller to pay for some of them.
What does a mortgage payment cover?
Principal: the repayment of the amount you actually borrowed
Interest: payment to the lender for the money you've borrowed
Homeowners insurance: a monthly amount to insure the property against loss from fire, smoke, theft, and other hazards required by most lenders
Property taxes: the annual city/county taxes assessed on your property, divided by the number of mortgage payments you make in a year.
What information do I need to apply for a mortgage?
What is a (203k) loan?
A portion of the loan is used to pay off the seller's existing mortgage and the remainder is placed in an escrow account and released as rehabilitation is completed. Basic guidelines for 203(k) loans are as follows:
- The home must be at least one year old.
- The cost of rehabilitation must be at least $5,000, but the total property value - including the cost of repairs - must fall within the FHA maximum mortgage limit.
- The 203(k) loan must follow many of the 203(b) eligibility requirements.
- Talk to your lender about specific improvement, energy efficiency, and structural guidelines.
What is a Good Faith Estimate?
The lender must supply it within three days of your application so that you can make accurate judgments when shopping for a loan.
What is earnest money?
It must be substantial enough to demonstrate good faith and is usually between 1-5% of the purchase price (though the amount can vary with local customs and conditions). If your offer is accepted, the earnest money becomes part of your down payment or closing costs. If the offer is rejected, your money is returned to you. If you back out of a deal, you may forfeit the entire amount.
What is mortgage insurance?
Mortgage insurance is a policy that protects lenders against some or most of the losses that result from defaults on home mortgages. It's required primarily for borrowers making a down payment of less than 20%.
What is PMI?
They offer both standard and special affordable programs for borrowers. These companies provide guidelines to lenders that detail the types of loans they will insure. Lenders use these guidelines to determine borrower eligibility. PMI's usually have stricter qualifying ratios and larger down payment requirements than the FHA, but their premiums are often lower and they insure loans that exceed the FHA limit.
What is the difference between a prequalification and a preapproval?
They are quite different. Pre-qualification is an informal way to see how much you maybe able to borrow. You can be 'pre-qualified' over the phone with no paperwork by telling a lender your income, your long-term debts, and how large a down payment you can afford. Without any obligation, this helps you arrive at a ballpark figure of the amount you may have available to spend on a house.
Pre-approval is a lender's actual commitment to lend to you. It involves assembling the financial records mentioned in Question 47 (Without the property description and sales contract) and going through a preliminary approval process. Pre-approval gives you a definite idea of what you can afford and shows sellers that you are serious about buying.
What is title insurance?
Title insurance is for your and your lender's protection. The policy insures against any defect in the title, old liens, unpaid property taxes, easements or claims on the title.
What's the difference between being prequalified and preapproved?
Prequalification is an unverified estimate of what the lender thinks you can qualify for, many times after they have run a quick credit report. Preapproval is a result of submitted documentation from the client such as, paystubs, bank statements and tax returns in addition to reviewing the credit report.
When does an ARM make sense?
An adjustable rate mortgage may make sense If you are confident that your income will increase steadily over the years or if you anticipate a move in the near future and aren't concerned about potential increases in interest rates.
Why should I buy, instead of rent?
But when you own your home, you can deduct the cost of your mortgage loan interest from your federal income taxes, and usually from your state taxes. This will save you a lot each year, because the interest you pay will make up most of your monthly payment for most of the years of your mortgage. You can also deduct the property taxes you pay as a homeowner. In addition, the value of your home may go up over the years. Finally, you'll enjoy having something that's all yours - a home where your own personal style will tell the world who you are.