Graduating college is exciting, yet if you are unable to purchase a house because you have not yet started your job, it can put a damper on things. New grads that do not want to move back in with mom and dad, yet have a job lined up that does not begin for a few months have options today. One option is to get an Offer Letter Loan. These loans were a thing of the past after the mortgage crisis. Banks tightened up their requirements and refused to provide loans to anyone that did not have concrete proof of receipt…
Author: Tech Admin
A jumbo loan is a great way to purchase a more expensive home, but be prepared to go through a rigorous qualification process in order to get it. Lenders do not just hand out these types of loans to anyone because they are significantly riskier than a standard size loan. Jumbo loans are any loans that exceed the conforming loan amount in your area. Unless you live in a high-cost area, that amount is $417,000. Some areas, like San Francisco have higher limits, but those areas are few and far between. Here is what you need to know about jumbo…
It seems with the latest mortgage guidelines that prepayment penalties would be a thing of the past, but in reality, they are still around. Granted, banks have to jump through several different hoops before being able to place a prepayment penalty on your loan, but it is still a possibility. In order to ensure that your loan does or does not have a penalty, you need to read your closing documents very closely. Typically there are several disclosures included in the packet that will demonstrate that you have a penalty. Make sure to ask as many questions as necessary before…
Lender paid mortgage insurance is getting more attention these days. It did not use to be a common scenario because rates used to be so much higher than they are today. With the lower rates we are able to obtain, we can afford for it to be bumped up a quarter percentage or even a half of a percentage point in order for the lender to pay for the insurance. This is true even for borrowers that were planning to put down 20 percent on the purchase of their home in order to avoid paying PMI at all. Why should…
If you put less than 20 percent down on the purchase of a home, you are going to have to pay Private Mortgage Insurance, but it is not as simple as you might think. You have options when it comes down to how you pay the insurance. There is no getting around having it in one form or another, but you do have options on how you pay for it. The most common way is to pay on a monthly basis, but you can also have the lender pay it up front for you, eliminating those monthly charges. The Difference…