The Difference Between Being Pre-Qualified and Pre-Approved

loan

Pre-Approval and Pre-Qualification - Information for First Time Home Buyers Is pre-approval a general endorsement by a bank? No, when you are pre-approved, it is for a specific loan program from a specific lender. Not all lenders offer all loan programs. You may need to get approved with a different lender or for a different loan program with the same lender, depending on your financing options at the time you buy a house. Check with the agent or broker who helped you gain loan pre-approval before you write an offer. If you think you will … [Read more...]

10 Home Buying Tips For First Time Home Buyers

first time home buyer

First-time home buyers often approach buying with trepidation. Questions can be answered and concerns addressed with just a little research and help from a qualified Realtor and a knowledgeable mortgage representative. Options are available that can help buyers with limited funds to enjoy the benefits of home ownership. I'll let you in on a little secret. I generally know which home a buyer is going to choose, and I suspect most other agents operate the same way. It's an intuition. But I make it a practice not to steer buyers, and I … [Read more...]

First Time Home Buyers Tips – How Much Home You Can Afford

Pending Home Sales

First-time buyers are often unsure about the financial aspects of buying a home, and you may have many questions swirling in your head. How much can I afford? Do I need a large down payment? Your home price range will be determined by your income, credit history, the cash you have for a down payment and closing costs, and your debt. How much you earn compared to how much you owe will likely determine how much the bank allows you to borrow. The financial rule of thumb is: your total monthly debt service, which will include your monthly … [Read more...]

20 Reasons Why All Real Estate Titles Should Be Insured

insurance

20 reasons to get title insurance: A fire destroys only the house and improvements. The ground is left. A defective title may take away not only the house but the land on which it stands. Title insurance protects you against such loss. A deed or a mortgage on the chain of title may be a forgery. A deed or a mortgage may have been signed by a person under age. A deed or a mortgage may have been made by an insane person or one otherwise not competent. A deed or a mortgage may have been made under a power of attorney after the death of … [Read more...]

It Pays To Explore The Ins & Outs Of Title Insurance

insurance

When you bought or refinanced your home, did your mortgage lender require a lender’s title insurance policy? Since virtually all mortgage lenders require title insurance, except perhaps a few who are unaware of their high risk, the answer is almost surely “yes.” Today, more than 50 percent of home loan originations are refinances. Although home sellers sometimes pay for title insurance, when a home mortgage is refinanced, it’s the homeowner’s responsibility to buy the lender’s title insurance policy. Most homeowners feel title … [Read more...]

The Different Types of Home Loans

loan

With tighter restrictions and lending guidelines, many of these loan programs are no longer available, or more difficult to obtain. Talk with a lender to find the right loan for you. Adjustable Rate Adjustable rate mortgages have an interest rate that is adjusted at certain intervals based on a specific index during the life of the loan. Balloon Payment Loan A fixed rate loan this is amortized over 30 years but becomes due and payable at the end of a certain term. May be extended or may roll-over into another type of … [Read more...]

What Happens To Your Transaction After Funding?

escrow

In the traditional real estate transaction, be it a sale or refinance of the subject property, it is the Escrow, the repository for all documents, agreements and funds, that should direct the transaction, pursuant to instructions from the parties to the transaction, buyer, seller, lender, etc. The Title Company takes their instruction from the Escrow Company at all times. The Escrow Company opens the initial title order, receives the Preliminary Report and advises the Title Company as to what items on the report are acceptable and which the … [Read more...]

Understanding the Loan Process

home loans

Finding Out How Much You Can Borrow Your maximum loan amount depends on many factors, including: How much you can afford for monthly payments. The appraised value of the property. The amount of equity in your home, if you're refinancing. How much money you have available for closing costs and a down payment (if you're purchasing). Your credit history. Choose a loan that's right for you Countrywide Home Loans’ Full Spectrum® Lending Division offers many home loan  options. We have instant information and friendly tools … [Read more...]

Five Reasons To Check Your Credit Report Regularly

credit

In much the same way that a resume displays your work experience to a prospective employer, a credit report provides prospective creditors (and in some cases employers and insurers too) with a detailed picture of your credit history. And like a resume, your credit report can influence whether you will receive what you are applying for. Ideally, your credit report is an accurate, up-to-date reflection of your credit history. However, since we don’t live in an ideal world, there are many reasons that your credit report could contain … [Read more...]

First Time Home Buyers – The Importance of Pre-approval

pre-approval

Pre-approval can be a very valuable step towards purchasing a home. Many home buyers get pre-qualified for a home loan early on, and then become pre-approved before beginning a serious home search. By completing your mortgage application prior to choosing a home, you can get a pre-approval letter stating how much home you can afford. Your pre-approval letter lets you know exactly how much you can spend, and it shows home sellers and real estate agents that you're serious about buying a home. This may give you leverage in the negotiation … [Read more...]