Unless you have the cash to buy a house outright, you’ll probably need to shop for a mortgage. But what’s the best way to go about doing that? While the overall process can seem daunting at first, we’ve broken it down into seven straightforward steps. We’ve also included some tips at the end of the
Mortgages
If you’re trying to buy a house in a competitive market, you’d be wise to look for any advantage you can find to set your offer apart from the competition. A verified approval letter could be that competitive edge. We’ll explain what they are, how they can benefit you, why they’re appealing to sellers and
Most people don’t have the cash to purchase a home outright. They need to take out a loan to do it. That’s where mortgages come in. Mortgages, also known as home loans, are different from other loan types because of the risk involved. These loans are typically worth hundreds of thousands of dollars, so lenders
Traditionally, most mortgages are either 15-year or 30-year loans. And because purchasing a home can get expensive, many aspiring home buyers wonder if it’s possible to get a longer mortgage. Typically, the longer a loan’s repayment term, the lower your monthly payments. Enter the 40-year mortgage. Before applying for this type of loan, it’s important
Buying a home can be overwhelming, especially for first-time buyers. That’s where we come in. We’ve broken down the process into five straightforward steps, including resources to help you complete each one. As the adage goes, “How do you climb Mt. Everest? One step at a time.” 1. Organize Your Finances Your first order of
The U.S. Department of Veterans Affairs (VA) reported that in 2022, nearly 750,000 VA home loans were issued, and the average loan amount was $343,895.[1] For veterans and service members (and their families), a VA loan remains one of the most viable paths to homeownership. Those interested in the program typically have questions about the
Saving enough money to buy a house is a challenge. But there’s strength in numbers, and if you’ve found yourself wondering if you can buy a house with a friend, you certainly aren’t alone. The short answer is yes, you can buy a house with a friend. In fact, more and more Americans are doing
With perks like no required down payment and free mortgage loan counseling, it’s no wonder U.S. Department of Veterans Affairs (VA) loans are a popular option for the military community. The catch is you must meet minimum service requirements to apply for a VA loan. However, with joint VA loans, non-military borrowers also have an
Purchasing a home can be an intense process, and one of the biggest hurdles comes at the end: closing on the home. From title searches to inspections and appraisals, a lot needs to happen before you get the keys. But who pays for closing costs, the buyer or seller? The short answer is it’s negotiable,
Not every homeowner starts with their dream home. Many Americans begin building equity with fixer-uppers. Other times, savvy investors might see the potential in a property after upgrades are made. If you’re interested in financing upgrades to a property, a Fannie Mae HomeStyle® loan might be right for you. We’ll explain how the program works,
Founded by Congress in 1970, Freddie Mac exists to provide liquidity and stability to the U.S. mortgage market.[1]Their core mission is to ensure a reliable and affordable supply of mortgage funds. In theory, this helps keep interest rates lower and makes mortgages affordable for more Americans. Designed to help very low- to low-income borrowers become
Whether you’re worried about your carbon footprint or trying to save on utility bills, there are many benefits to considering an energy-efficient mortgage (EEM). EEMs, also known as green mortgages, are loans that can be used to finance energy-efficient improvements to an existing home or purchase a home that’s already energy efficient. We’ll cover EEM
Fewer than 10% of new U.S. home purchases are paid for in cash.[1] The vast majority of Americans pay for their homes through a mortgage. This means that in addition to the overall cost of the home, you’ll also need to consider how much you can afford in a monthly mortgage payment. Your income is
If you’re considering applying for a mortgage, there are several factors you’ll need to keep in mind. In addition to your mortgage term, closing costs, and other variables, you’ll also need to be mindful of your prospective mortgage rate. Naturally, this leads future homeowners to ask a lot of questions, such as: When I applied
Even with fluctuations in the housing market, homes remain expensive – especially new construction. In November of 2022, the median sales price for new construction was $471,200.[1] Alternative housing, in the form of mobile and manufactured homes, offers Americans a significantly cheaper path to homeownership. The average sales price of new manufactured homes was $86,500
With the rising cost of homeownership, it can seem impossible to save enough money for a down payment. Luckily, there are a few programs that provide legitimate down payment assistance. With the overall goal of making mortgages more affordable, Freddie Mac’s BorrowSmart℠ program offers credit toward qualifying home purchases for very low- to low-income home
Given today’s home prices, buying a home on a teacher’s salary ain’t easy. If you’re a teacher and aspiring home buyer, you should know that many home loans are specifically designed for educators to help them purchase real estate. And you can also take advantage of mortgage assistance programs to help make buying a home
If you qualify for an FHA loan, but you can’t find or don’t want a traditional house, you could opt for a condominium. Like houses, condos need to be approved by the Federal Housing Administration (FHA) before they’re added to the official list of FHA-approved properties. This means you’ll need to pick from available FHA-approved
Unless you have the resources to buy a home with cash, applying for a mortgage is the usual way most aspiring buyers purchase homes that would otherwise be out of reach. For most home buyers, taking out a mortgage is a clear path to homeownership. But what may not be so clear is the type
Did you finance your home with a Federal Housing Administration (FHA) loan? FHA loans are attractive to borrowers with less-than-ideal credit scores or lower amounts saved for down payments, unlocking the door to homeownership for many aspiring first-time home buyers. But your circumstances can change – and they can change for the better. If your
If you own your home, there’s a good chance you bought it using a 30-year fixed-rate loan. But after a few years, your situation may have changed and you may have new financial goals – like paying off your mortgage sooner or saving on interest charges. Refinancing to a 15-year mortgage can help you build
Are you stuck with a mortgage that no longer works for you? Maybe your interest rate is too high, or you’re struggling to make your monthly mortgage payments. Maybe interest rates are falling or your credit score is rising, and you want a better deal. No matter the reason, refinancing your mortgage could be the
When you’re searching for your next home, a fully renovated property can be pretty appealing. But if you want to use a Federal Housing Administration (FHA) loan to purchase a recently renovated property, you might run into some trouble getting your financing approved. Even if you have excellent credit and enough cash for a sizable
Plunging into homeownership is a big deal. You want to make sure you’re getting the best deal possible, and that starts with researching your loan options. Federal Housing Administration (FHA) and Veterans Affairs (VA) loans are two of the most common government-backed mortgage programs – but they offer very different benefits for borrowers. So which
The Fannie Mae HomePath® program is a great way to buy a home at a more affordable price than you might find on the open market. Getting a mortgage through HomePath® could save you thousands of dollars on your down payment and closing costs. In this guide, you’ll learn everything you need to know about
Between our roller coaster job market and saving for a down payment while battling inflation, buying a house can feel unattainable for many of us. Add to that our anxiety over good or bad credit scores, and it may feel like you’ll never own a home. But contrary to popular belief: You don’t need a
Mortgages come in a variety of proverbial flavors. There are short-term mortgages, long-term mortgages, mortgages with variable rates and mortgages with fixed rates. The varieties are endless – and as anyone who has spent time in an ice cream shop knows – it can be challenging to decide on the flavor you want. If you’re
A Department of Veterans Affairs (VA) loan is one of the best ways active or veteran military service members can secure a mortgage. With a VA loan, veterans can get the money they need and not have to make a down payment. And your VA loan is a benefit you can reuse. You can use
Buying a home comes with a lot of decisions, from the property you choose to the type of financing you use. In addition to selecting the kind of mortgage you want to take out, you might also find yourself weighing your options for the length of your loan term. While most loan terms are 30
Are you ready to purchase a home but worry you may not qualify for a mortgage? Have you considered the FHA’s adjustable-rate mortgage (ARM)? The FHA ARM (which is insured by the Federal Housing Administration) may be the loan that makes your home buying dreams a reality. The credit score and down payment requirements for
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