What Are the Least Expensive States to Get a Home Loan?

When it comes to getting a mortgage, some states are simply more expensive than others. And, while you might not want to move to a completely different state simply to get a better interest rate, if you’re considering making a big move (and buying a home in your new home state), it doesn’t hurt to know which states are more affordable than others.

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Will Buying a Home in Foreclosure Reduce Neighborhood Home Values?

One of the best ways to find a home selling for well under its market price is to try to buy a home that’s in foreclosure. While buying a home in foreclosure may be able to get you a fantastic deal, it can also come with some serious risks and considerations. One of the most important things to consider is how homes in foreclosure may reduce neighborhood home values.

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Which States Use Judicial Foreclosure? Which Use Power of Sale?

When it comes to home foreclosures, some states allow lenders to sell a home without going through the court system using a provision in a mortgage called “power of sale.” States which don’t allow power of sale force lenders to attempt a judicial foreclosure in order to repossess and eventually sell the property.

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How Does a Loan Modification Work?

If you’ve fallen behind on your mortgage payments -- or you think you’re about to, you could be in a sticky situation. You want to keep your home and avoid defaulting (or contributing to default) on your mortgage, but you’re not sure what to do. One potential solution may be a loan modification program, in which your lender amends the terms of your home loan in order to make it easier for you to pay them back.

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How Does Rent-To-Own Work?

Rent-to-own is a rental agreement in which a property is leased, yet part of the money paid weekly or monthly goes to owning the property after a certain amount of equity has been accumulated. Rent-to-own is different from a regular lease agreement, in that the renter can buy the property at any time during the agreement (in a traditional lease agreement the renter has no such right).

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When Should You Refinance a Home?

When you refinance a home, you replace your mortgage with a new home loan with different terms. Many people decide to refinance to get better terms -- and, while there are a variety of refinancing options, if you like your mortgage, you probably don’t need to refinance.

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How do I check my VA loan eligibility?

Loans from the Department of Veterans Affairs, commonly known as VA loans, are some of the most attractive home loans out there -- offering the potential for zero down payments and qualification with credit scores as low as 620. If you served in any branch of the U.S. military and separated under any condition that is not dishonorable, you might qualify for a VA loan.

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What Is the Underwriting Process of a Mortgage?

Mortgage underwriting is a process in which a lender examines a potential borrower’s eligibility for a loan. To do this, lenders typically look at three major factors: credit, capacity, and collateral. Now that you know these factors, let’s take a deeper dive into each.

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How do you qualify for a jumbo loan?

If you want to buy a particularly expensive home -- one above the conforming loan limits in the state and county where you’re buying -- you’ll likely need a jumbo loan. While jumbo loans can often allow you to purchase a bigger and better home, they can also be more difficult to qualify for. Here are the basics of qualification for a jumbo loan.

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How Do You Buy a Home In Foreclosure?

Buying a home in foreclosure can often be a way to get an incredible deal -- but the process can be complex. Often, purchasing a home in foreclosure takes research, effort, and time. Before you consider attempting to buy a foreclosed home, it pays to know what you’re getting into.

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FHA 5/1 ARM: FHA 5/1 Adjustable Rate Mortgage in Home Loans

A FHA 5/1 ARM is a kind of hybrid mortgage in which interest rates remain fixed for a 5-year period, but can then increase after that due to changes in market interest rates. Unlike regular ARMs, an FHA 5/1 ARM is insured by the government, which can give you some serious benefits.

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Can You Get an FHA Loan to Build a House?

If you can’t find your dream home on the market, you might just want to build it yourself! But traditional construction loans can often be complex and expensive-- so what if you could turn to the trusty FHA to get a home construction loan that won’t completely empty your bank account? Well, it turns out you can.

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Savings Comparison: 15-Year Fixed-rate vs. 30-Year Fixed Rate Mortgage?

While a 30-year fixed-rate mortgage is currently the most popular home loan product in the United States, another type of home loan, the 15-year fixed-rate mortgage, is growing in popularity. A 15-year FRM allows borrowers to save thousands in interest, while having their home paid off significantly faster. Of course, borrowers will have to fork over more each month in payments, but that can be well worth it due to the long-term benefits of this kind of loan product.

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Can Student Loan Debt Prevent You from Getting a Mortgage?

Today, more than 44 million Americans have student loan debt, with an average balance upwards of $37,000. If you’re one of them, you may wonder if that student loan debt can prevent you from getting a home loan. The answer: it depends. While you might not think that your student loan payment affects your ability to pay a potential mortgage payment, your lender might -- and that could spell trouble if you’re trying to buy a home.

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What is the Home Affordable Modification Program (HAMP)?

The Home Affordable Modification Program, or HAMP, was a U.S. government program designed to help homeowners avoid foreclosure by reducing their monthly mortgage payments. The program, which began in 2009 and expired on December 31st, 2016, was specifically implemented after the 2008 subprime mortgage crisis, in order to help struggling homeowners keep their homes.

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HELOCs and Credit Scores: What You Need to Know

A home equity line of credit, otherwise known as a HELOC, is a revolving line of credit that’s secured by the equity in your home. While you might know that HELOCs can be a good way to pay off recurring expenses without taking on high-interest credit card debt, you might not know that they can also affect your credit score. Here’s what you need to know about HELOCs and credit scores.

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What Is Underwriting for a Home Loan?

Loan origination for mortgages is a slightly more complex process that involves a step known as underwriting. Mortgage underwriting is a process in which the lender determines the risk of offering a home loan to a borrower, based on certain parameters. It is up to an underwriter to make the final decision on whether or not to approve a mortgage.

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