Ultimate Guide to Home Financing

When Is a Good Time to Refinance My Existing Mortgage?

Stuff happens! That’s why the mortgage you signed up for a number of years ago may not be the optimal mortgage for you today. Have interest rates dropped or is your adjustable rate about to convert? Has your borrowing clout improved? Are you looking to pull some cash out to consolidate other debt, do that remodel, or maybe send a kid or two to college? A good time to refinance is different for everyone. Take a look at the articles below to help guide the way.

What is involved in getting a home appraisal and when do I need one?

Your home is priceless to you but a lender needs to know what it is worth to them. An appraisal is a written estimate of a property’s market value completed by an appraiser. The value is based upon a market analysis of recent sales prices for similar properties in the area and the property’s physical condition.

The appraisal is performed by an appraiser, an objective third party whose job is to give their professional opinion of the market value of a home. An appraisal is the appraiser’s opinion of the property’s value based on their knowledge and evaluation of the property.

Help me understand my credit score and how it will affect my financing options.

Your credit score helps current and prospective creditors evaluate your past performance as a borrower and is a key factor in their decision to lend to you and at what terms. As such, it is important to know where you stand and what you can do to put yourself in a powerful borrowing position.

How much of a down payment should I make and from where can I draw those funds?

You’ve decided that now is the time buy….awesome! But how much cash will you need to make that offer stick? Regardless of how you plan to come up with the down payment, it’s important to know how much you are going to need and where it is OK (or not!) to source the funds.

What is an FHA loan and is one right for me?

An FHA loan is a mortgage that’s insured by the Federal Housing Administration (FHA). FHA loans require a smaller a down payment and lower closing costs and allow relaxed lending standards to help homeowners who may not qualify for a conventional mortgage. Borrowers with FHA loans pay for mortgage insurance, which protects the lender from a loss if the borrower defaults on the loan. Check out these articles for more info.

What are the different types of insurance I will need to understand as I finance my property?

You probably know that homeowner’s insurance is a must as you make the leap from rent to own but how do you find the coverage that is right for you? Also, are there other types of insurance you may want, need, or are required to carry as a borrower? Your lender will tell you what types of insurance are required based on your individual property and/or loan program but read below to get a head start.

What different loan programs are available to me and how do I choose?

Most people finance their properties but aren’t properly counselled about the many borrowing options available to them. What’s most important to you? Is it a low monthly payment or a shorter term loan? How long do you plan on keeping this home? Does your credit score limit your borrowing options or are lenders clamoring to welcome you on board? An excellent mortgage banker will ask you these questions and more as they tailor a program to suit your needs. Check out the articles below for some information that will help you prepare for a productive conversation with your prospective lender.

Is relocation a viable option for me and my family?

Buying a new home is an exciting time but can be an anxious one too. Add a potential relocation to the mix and you are sure to have added questions and concerns. The articles below might answer some questions or may point out some new things to consider.

What is a second mortgage and do I need or want one?

Just when you thought one mortgage was enough, here are some articles that will help you learn why you may want another! In a nutshell, a second mortgage is just that. It is a separate mortgage on the same property, secured by the equity you have in your home, that is subordinate, or in second position, behind your first mortgage. Homeowners take out second mortgages for many reasons but most often they do to free up cash for consolidating debts, financing home improvements, or covering a portion of the down payment on the first mortgage to avoid property mortgage insurance (PMI). Here is some more detailed information on second mortgages.

How does a bankruptcy affect my ability to finance my home?

Having a bankruptcy on the books is more common than you might think. Take a look at the articles below to learn more about bankruptcy and how it may affect your borrowing power.

What is VA loan and is it right for me?

VA loans are loan programs established by the United States Department of Veterans Affairs to help military veterans and active military members obtain home financing. VA loans are made through private lenders, but The Department of Veterans Affairs establishes the rules for qualifying, dictates the terms of the mortgages offered, and insures VA loans against default. Check out the information below to see if a VA loan is right for you.