Financing a Home Archive


Is it true some lenders grant loans based on very little documentation?

Thursday, December 6th, 2007
Yes. They offer what are called "easy/no-doc" loans, mortgages that require little or no documentation to verify the borrower's income and assets - that is as long as the borrower makes a big enough down payment, generally 25 percent or more. ...
more


Should I lock in the mortgage rate?

Thursday, December 6th, 2007
Because the interest rate market fluctuates constantly and is subject to quick movements without notice, locking in a mortgage rate with a lender certainly protects you from the time your lock is confirmed to the day it expires. ...
more


What are conventional loan limits?

Tuesday, December 4th, 2007
These are limits imposed by Fannie Mae and Freddie Mac on the amount of money you can borrow to finance a home purchase. The loan limit generally increases each year and applies to single-family homes in the 48 contiguous states, with higher limits in Alaska, Hawaii, Guam and the Virgin ...
more


What about the difference between a conventional and non-conventional loan?

Tuesday, December 4th, 2007
They are the same as conforming and non-conforming loans. A conventional, or conforming, loan is one not insured by the Federal Housing Administration (FHA) or guaranteed by the Veterans Administration (VA), two federal government agencies that make homeownership possible and generally more affordable for a large segment of the population. ...
more


What is the difference between a conforming and non-conforming loan?

Tuesday, December 4th, 2007
Conforming loans have terms and conditions that adhere to guidelines established by Fannie Mae and Freddie Mac, the two, big quasi-government corporations that purchase mortgage loans from lenders then packages them into securities that are sold to investors. ...
more


Can I make an all-cash purchase instead of getting a mortgage?

Tuesday, December 4th, 2007
That certainly is an option, although not one most people can afford. The national median home price is well above $170,000 and much more than that in many areas of the country. Unless you're independently wealthy or have hit the jackpot, it may be difficult to make a "no-mortgage" investment. ...
more


Should I put more or less down, if I can afford it?

Tuesday, December 4th, 2007
Putting down as little as possible lets you take full advantage of the tax benefits of homeownership. Mortgage interest and property taxes are both fully deductible from state and federal income taxes. Also, making a small down payment frees up cash that you can use to meet unexpected home improvements. ...
more


Is it possible to get a no-down payment loan?

Monday, December 3rd, 2007
Builders will typically offer no-down-payment loans to sell properties in a slow-moving development or a depressed market. Desperate sellers also may commit to finance the down payment for the buyer to move a hard-to-sell home or to make a quick sale. And veterans may buy a home with nothing down ...
more


What things do lenders view positively and negatively during the application process?

Monday, December 3rd, 2007
When you apply for a loan, long, steady employment is always seen as a plus, as is a large down payment, a good credit rating, a history of regular savings, and property located in a "good" neighborhood. ...
more


What does a mortgage broker do?

Monday, December 3rd, 2007
Much like a stockbroker helps you buy stocks, a mortgage broker can help you purchase a home loan. Because the broker has access to many lenders, you will be able to select from a wide variety of loan types and terms that fit your specific needs. ...
more


© RISMedia 2009. All Rights Reserved