'Financing' Category

So you don’t have the down payment? Well there are mortgage programs available for you. Lenders today offer a variety of flexible mortgage programs. The most basic is the conventional mortgage, which has no security guarantees other than the value of the property. [...] Read More

Generally the down-payment requirements start at 3 percent of the purchase price and increase from there depending on the price of the home and your own ability to come up with the cash. There are also a number of first-time homebuyer programs that are designed to help buyers who have not purchased or owned a home within the last three years, that require no down payment as well as "gift" down-payment programs available from some organizations. When calculating your down-payment needs don't neglect to factor any out-of-pocket closing costs which can't be folded into your mortgage into your up-front expenses. [...] Read More

The importance of a good credit rating really can't be overstated during the mortgage lending process. While lenders have become more flexible with their loan programs, most still hold the credit rating as one of the key deciding factors in both lending money and determining interest rates. Credit ratings show your overall financial health. [...] Read More

Not everybody needs thirty years or more of predictability from a mortgage. With an adjustable-rate mortgage (ARM), your interest rate fluctuates from year to year or at even shorter intervals depending on the specifics of your loan. This increases your risk given that no one can predict if interest rates in the future will be higher or lower than they are now. [...] Read More

Credit ratings are very important to lenders because they show your overall financial health and package it neatly into a multipage report that reads something like your report card from grade school. Credit reports are really telling but they're also not always 100% accurate so be prepared to deal with any inaccuracies that may come up during the review process. Credit-reporting agencies prepare the reports. [...] Read More

Although analysts expect an improvement on the economy soon, the mortgage crisis is delaying our economic recovery as more homeowners lag behind their payments. But the large number of homeowners who are in default or in danger of foreclosure will have a lasting effect on the wider economy. Last Wednesday, the Mortgage Bankers Association said that more than 10 percent of homeowners with a mortgage failed to pay in the period of January to March. [...] Read More

There are some situations in which you might want to explore specialty mortgages. For instance, if you have plenty of stock or bond assets but would prefer to keep your investments intact and growing you might choose a pledged-asset mortgage. Or home buyers with limited cash for a down payment might choose a loan insured by the Federal Housing Authority (FHA). [...] Read More

During the home buying process, if you have any financial skeletons in your closet expect them to come out. Lenders typically look at the "four Cs" of credit when reviewing your application. The four Cs of credit are capacity, credit history, capital and collateral. [...] Read More

What is a loan application? A loan application is a detailed form that lenders use to evaluate whether or not they can give you a loan and if so, the amount of money they will be able to lend you. Lender applications vary by company but on the application you may be asked to provide you bank account balances and account numbers as well as the bank's branch address. [...] Read More