If you’re thinking of refinancing your mortgage, auto loan or your student loans, you may be wondering if it will affect your credit. The short answer is yes. But the good news is that the impact won’t be major or last too long. Want to refinance and keep your credit in good shape? Read on
Mortgages
Imagine this: Your search for a home is over, and you’re ready to embark on your home buying adventure. You’re preapproved (or approved) for a mortgage loan, and you’ve got a purchase agreement in your eager hands. You put the contract down long enough to calculate the final cost of buying the home – and
A second mortgage is a loan you take out on your home if you’ve already got an existing mortgage. And if you are a homeowner in need of extra cash, there are two options you can consider. The first is to refinance your home using the equity you’ve built since you got your first mortgage.
You’re settled in your job, you’ve saved for a down payment and you’re ready to kiss paying rent goodbye. But before you start your search for the perfect pad, you’re told that it would be in your best interest to get a mortgage preapproval. To start the process of a mortgage preapproval, a lender will
So you’re finally ready to purchase a home. You’ve been saving up and looking at listings, and you know what you want in a property. Now you’re ready to move on to the next steps and make your home buying dream a reality. You’re ready for the loan origination process. Unless you’re buying a home
One thing’s for sure, buying a home is an involved undertaking. And if you’re getting a mortgage or deed of trust to purchase a new home, it gets even more involved. There are all kinds of legal aspects to be aware of, including the due-on-sale clause that most mortgages contain. A due-on-sale clause is a
When you got your mortgage, you might have applied with a spouse or other co-borrower to get better mortgage terms, split the financial responsibilities or because you wanted to live together. But life happens and things change. Maybe you’re getting a divorce or you’ve decided you want to live on your own. Now you’re probably
Property taxes are payments you make to help fund your local, city and state governments so that they can provide you with public services. And that’s important. Ask yourself where you would be without vital community services like fire, police, schools, sanitation and, of course, local parks and recreation facilities. You may be wondering how
Getting a mortgage and being a homeowner is a big deal. And depending on where you want to live and the state of the housing market (if it’s a seller’s market or not), it can be an uphill battle to find and purchase a home in your price range. A loan alternative – like a
Let’s say you recently sold your home and want to buy a new home. Or maybe you’ve decided to refinance your mortgage with a new lender. In either case, your new lender is going to want to know more about your history with your previous mortgage lender. To get that information, they may request a
You’ve persisted through long weeks of negotiations, tons of paperwork and hours of scrolling through home furnishing websites as you mentally decorated your new pad. But dreamtime is over. Now it’s time to collect those keys and rest your weary feet in your new home. It also happens to be a time for checklists and
You’ve saved the money, and you’ve found a house. And now it’s finally happening for you. As part of the exciting process of buying your first home, you apply to the bank for mortgage preapproval. In evaluating your request, the lender tells you they need to figure out if you can afford the monthly costs
You’ve decided you’re ready to buy your first home, and you’ve started the mortgage loan application process. Everything has gone smoothly, but now your lender mentions that they want to grant you conditional approval. This may leave you wondering: What is conditional loan approval? And what does it mean for you? Conditional approval on a
If you’re an aspiring homeowner, it’s a good idea to know your debt-to-income (DTI) ratio (aka your debt ratio or income ratio) because it can play a big role in determining whether you’ll qualify for a mortgage. There’s a lot to learn about your DTI, but here’s a quick overview of the basics: You figure
When you apply for a loan to buy a home, lenders use mortgage underwriting to decide if they want to do business with you. During this process, your personal and financial information is evaluated to determine whether you can afford the loan. It’s the last step in the application process. Ideally, it ends with a
Down payments don’t grow on trees ???. Between high rents, deepening student loan debt, and the cost of living going up – it can take a long time to save the traditional 20% down payment. Even buyers with good credit scores can still face challenges when it comes to buying a home. They may not
You’re ready to buy a home. You’ve put in an offer and the seller has accepted it. Congrats! Now, you’ll be expected to pay a small sum of money upfront to: Show the seller that you’re serious about buying their home Make it worthwhile for the seller to take their home off the market Provide
Buying a home can seem easy enough, right? You find the home you want, you make an offer, get a mortgage. And voilà! The house is yours. If only it were that simple. There are way more steps involved in the home buying process – and some of those steps can feel challenging. Once you
A home purchase is a big investment, and it’s an investment many people are eager to make. That’s probably because they’re aware of the many benefits that come with homeownership, like building equity, tax advantages and improving their credit history. However, for some of us, a good credit score is the thing that’s holding many
Home loan refinancing is all the rage nowadays. In 2020, mortgage refinances (aka refis) were so popular that 1 out of every 10 refinances was done on a mortgage loan that had ALREADY been refinanced at least once in the previous 12 months.[1] That’s a lot of refinancing! Historically low interest rates have made refinancing
The 30-year fixed-rate mortgage has been one of the most popular ways that homeowners in America have financed new home purchases. What is this mortgage mainstay’s secret of success? Is it the right option for you when you buy? What if you want to refinance? Read on to find out more. How Does a 30-Year
Just when you thought you learned everything you needed to learn about buying a home, you come face-to-face with one of the last pieces of the process: closing costs. In a 2020 survey of REALTORS®, the National Association of REALTORS® reported that 25% of people ready to buy weren’t fully educated on closing costs.[1] Handing
Buying a home and navigating the mortgage process can be difficult, especially if you can’t come up with a down payment or your credit score isn’t perfect. But, while the process isn’t easy, it’s not impossible, especially with the help of government home loans. Government-backed loans can give people who have a hard time acquiring
If you’ve been through bankruptcy, you may feel more cautious than ever about taking out new loans – especially on your home. But if you’re careful and well informed, refinancing can help you save money and unlock the equity in your home at a low-interest rate. What Are the Reasons To Refinance After Bankruptcy? There
House hunting can be both exhilarating and exhausting – you’re all swept up looking at other people’s interpretation of a dream home. While there might be that one property that could tick all your boxes, it’s not a guarantee. So, what if you had the opportunity to build your own dream house? A construction loan
But when it comes to getting a conventional mortgage, new isn’t always better. That is, when it comes to starting a new job during the process. In fact, it can potentially complicate the process. When you apply for a mortgage, the lender wants to see your recent job history because it lets them assess your
We talk about land loans a lot less than home loans. And that’s not surprising. According to the National Association of REALTORS®, 87% of home buyers buy existing, previously owned homes.[1] But some life goals may need a piece of land as their launchpad. And there are lots of reasons why someone might buy land,
Traditionally, a lot of home buyers have seen building a brand new home as the ultimate homeowner experience to aspire to. That’s still true, but nowadays, older homes are gaining a lot more interest (just ask the producers over at HGTV). And despite the renewed interest in historic homes and remodels, building a house from
Do you qualify for an FHA loan based on your credit score and credit history? And even if you do, is an FHA loan the right choice for you? If your credit score is under 620, you may not qualify for a conventional mortgage, but a Federal Housing Administration (FHA) loan could be the answer
Feeling cooped up in your metro area? You’re not alone. According to recent Census data, 86% of U.S. residents live in metro areas. That leaves 14% of the population spread out in the rural areas of the country – which spans 72% of the nation’s land area.[1] So, if you’re looking for more space, there