What To Look For In A Lender

Four simple questions your lender should be able to answer. If they can't, run, don't walk, to one who knows. Odds are you are dealing with an "order taker" who knows nothing about the business. 1. What are mortgage interest rates baised on? The only correct answer is Mortgage Backed Securities or the Bond Market. [...]

How much house can I afford?

The amount of a loan for which you qualify is based on two different calculations. Using what are known as qualification ratios, lenders evaluate your income and long-term debts to determine a "safe" amount for your mortgage payments. A fairly standard ratio is 28/33. Certain mortgage plans sometimes use more liberal ratios-for example, the Fair [...]

FHA Eligibility with Bankruptcy and Foreclosure

In the event of a foreclosure, the borrower has three years from the date the the home was resold by the lender until you are eligible for another FHA loan, unless the foreclosure was the result of extenuating circumstances beyond the borrower's control and the borrower has since established good credit. Chapter 7 bankruptcy requires [...]

What are closing costs?

On the day you actually buy your new home, in addition to your down payment, the prepaid property tax and homeowners insurance premiums, you'll need cash for various fees associated with the purchase. These expenses are known as closing costs and are paid by both buyers and sellers.Some closing costs you pay up-front when you [...]

Fixed or Adjustable rate?

Interest rates are usually expressed as an annual percentage of the amount borrowed. You can choose a mortgage with an interest rate that is fixed for the entire term of the loan or one that changes throughout. A fixed-rate loan gives you the security of knowing that your interest rate will never change during the [...]