- Do 401(k) Loans Affect Mortgage Applications?
Applying for a mortgage loan means lenders will take a close look at your financial situation to gauge your creditworthiness. One thing lenders consider is your debt-to-income (DTI) ratio, or how much of your income goes to debt repayment each month. If you have a 401(k) loan, you might be wondering whether that counts as… read more…
- How Does Mortgage Hazard Insurance Work?
When it comes time to buy a house, you need to have certain types of insurance in order to secure a mortgage. As part of the lending process, your mortgage provider may ask for proof of those insurance policies, such… read more…
- What Is Freddie Mac?
Freddie Mac is a quasi-governmental organization that plays a key role in the mortgage industry. The full name is Federal Home Loan Mortgage Corporation, and it was created in 1970 as a private corporation chartered by the U.S. Congress. Freddie… read more…
- Understanding How Desktop Underwriting Works
When a mortgage lender evaluates a borrower’s application for a mortgage and the home that will be used as collateral and approves or rejects the loan request, the process is called underwriting. Desktop underwriting refers to automated tools that let loan officers quickly issue preliminary loan approvals and, after more information is added and verified… read more…
- How to Deduct Mortgage Points on Your Taxes
Purchasing mortgage points allows you to “buy down” the interest rate on a home loan. Doing so may result in a lower monthly mortgage payment and save you money on interest charges over the long term. The IRS also offers a tax break to eligible taxpayers who buy points on a mortgage. There are two… read more…
- What Is House Hacking?
Buying a home can be challenging, especially when it’s a seller’s market. Rising home values, paired with rising interest rates can influence how much home you can afford. If you’re ready to buy but are worried about finding a property that’s within your budget, you might try house hacking to save money. There are different… read more…
- Primary Mortgage Market Guide
The primary mortgage market connects mortgage lenders with borrowers who want to buy or borrow against owner-occupied homes, vacation homes and investment properties. Most homeowners need a mortgage to buy their homes, so it’s important to understand the process and… read more…
- Understanding All-In-One Mortgages
An all-in-one mortgage provides an opportunity for homebuyers to access the equity they’ve built in their property through a bank account. This relatively unique mortgage option could be the right fit for your finances if you’re looking for a mix between a traditional mortgage and a home equity loan. If you aren’t sure, then consider… read more…
- How Do Silent Second Mortgages Work?
When it comes to buying a home, a down payment is a major obstacle for most buyers. A silent second mortgage provides an opportunity to obtain the funds you need for a down payment but there’s a right way and an illegal way to handle this option. In general, you must notify the original lender about… read more…
- What Is a Mortgage Loan Originator?
A mortgage loan originator is an important member of the team of financial services professionals who assists individuals or legal entities in obtaining financing to buy real estate. Part of the mortgage loan originator’s job is to advise borrowers about… read more…
- What Are the Costs of a Reverse Mortgage?
Reverse mortgages are designed to help eligible homeowners turn their home equity into income for retirement. Unlike a home equity line or line of credit (HELOC), a reverse mortgage doesn’t require monthly payments as long as the homeowner is using the property as their primary residence. That doesn’t mean that reverse mortgages are free money,… read more…
- Loan Processor vs. Underwriter
There are many moving parts when it comes to applying for a loan. Each loan application consists of several stages, such as gathering required information and documents and assessing the applicant’s information for approval. Because of the many steps involved,… read more…
- Loan Originator vs. Processor
Financing the purchase of a home is often a complex and confusing task. Fortunately, there are professionals whose sole job is to help you through the lending process, such as loan originators and loan processors. Working with mortgage experts can ensure you don’t make any mistakes while finding the most suitable mortgage for your needs… read more…
- Can a Retired Person Qualify for a Mortgage?
It is entirely possible for a retired person to get a mortgage to buy a home and lenders are not allowed to use age to make credit decisions. A loan application from any borrower generally will be evaluated for the… read more…
- Understanding How Assignments of Mortgage Work
The bank or other mortgage lender that provides a borrower with the funds to purchase a home often later transfers or assigns its interest in the mortgage to another firm. When this happens, the borrower will start sending monthly mortgage… read more…
- What Does REO Foreclosure Mean?
Real estate owned (REO) properties offer the opportunity to purchase homes for attractive prices to home buyers who can navigate the specifics of how these properties come to market. REOs usually have been foreclosed on by lenders who are seeking to turn them into cash as quickly as possible. However, buying an REO requires navigating… read more…
- What Is a Mortgage Note?
A mortgage note is a legal document which, together with a promissory note, describes the terms of the loan agreement between lender and borrower. It is signed at the end of the closing process when purchasing a home or other… read more…
- Is a Reverse Mortgage a Good Idea?
A reverse mortgage can provide a stream of consistent income for retirement. This type of financial arrangement allows eligible homeowners to convert their equity into income. Unlike a home equity loan or home equity line of credit (HELOC), no repayment… read more…
- What Does a Loan Processor Do?
A loan processor prepares a mortgage loan application for consideration by the loan underwriter. The loan processor requests credit reports and gathers documents from the applicant as part of getting the application ready to pass on for underwriting. Loan processors… read more…
- What Is a Mortgage Lender?
When you’re in the market to buy a home, there is a good chance you’ll need to finance your purchase with a home mortgage loan. From start to finish, you’ll likely speak to many people before finally closing on your… read more…
- What Is a Mortgage Contingency?
Whether you’re buying or selling a home, getting the home under contract is just the start of the process. Since most Americans don’t buy their homes with cash, they need a mortgage to complete the transaction. However, it isn’t guaranteed… read more…
- What Is an Appraisal Contingency?
If you are buying a home, there are two things you should never, under any conditions, waive. The first is home inspection, along with your right to unilaterally withdraw your offer based on the results of that inspection. The second is… read more…
- Understanding How Correspondent Lending Works
When you get a mortgage, you may go through your bank or your credit union. These organizations are direct lenders that approve your mortgage in-house and fund it from their own pool of funds. Your bank or credit union may hold your mortgage loan for its life in their portfolio of loans. However, it is… read more…
- What Does a Mortgage Banker Do?
Mortgage bankers originate, underwrite and fund mortgage loans. They also may package and sell the loans to investors, although some keep the loans they originate and service them by accepting borrowers’ monthly mortgage payments and handling taxes, insurance and recordkeeping. Are you thinking of getting a mortgage and considering getting some help with the process?… read more…
- Hard Money Loans: Definition and Pros & Cons
Hard money loans are a type of short-term mortgage loan that’s secured by a property. They can also be referred to as bridge loans. You might consider a hard money loan if you’re interested in financing an investment property. Before you apply for one of these loans, it’s important to understand how they work. A… read more…