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Mortgage Prepaids vs. Closing Costs: What Are You Paying?
Prepaid items pay certain costs ahead of time or cover a defined period around closing. They are different from the lender’s fee for making the loan. Read the dates and amounts so you understand what each item covers, and distinguish an insurance premium from money collected into escrow for future bills.
Read the answerMortgage Prequalification vs. Preapproval: What Is Checked?
The label alone does not tell you how thoroughly a lender reviewed your situation. Ask what documents were checked, whether credit was reviewed, whether underwriting has been involved and what conditions remain. Neither a prequalification nor a preapproval should be treated as a guarantee that a particular purchase will close.
Read the answerRent vs. Buy: Compare Housing Costs and Building Equity
Compare the full cost of each choice over a realistic time period. Buying can build equity, but ownership also brings interest, taxes, insurance and transaction costs. Renting can preserve flexibility and allow investing elsewhere. Neither path wins automatically. Your timeline, starting cash and ability to save can change the result.
Read the answerSelf Employed Mortgage: How Lenders Review Your Income
Being self-employed does not rule out a mortgage, but business revenue is not automatically qualifying personal income. The lender needs to understand the business, expenses, income history and ability to continue. Ask what documentation the proposed program requires before assuming a bank deposit or strong sales month supports the loan.
Read the answerSeller Credit vs. Price Reduction: Which Helps You More?
A permitted seller credit can reduce certain closing costs, while a lower price changes the purchase amount and may reduce borrowing. They solve different cash problems. Compare both using the same down payment approach, and confirm credit limits and allowable uses before assuming every dollar of credit can be used.
Read the answerShould I add a co-borrower to my mortgage?
A co-borrower can affect the loan review, but also takes on a real repayment obligation. Adding someone is not simply a way to borrow more. Discuss income, debts, ownership, payment responsibility and an exit plan before applying together. Program requirements and legal consequences depend on the actual arrangement.
Read the answerShould I choose a 15 year or 30 year mortgage?
A shorter term usually requires faster repayment and a larger principal and interest payment for the same balance and rate. A longer term can provide more monthly flexibility but may cost more interest over time. Compare actual offers and keep taxes, insurance, cash reserves and other goals in the picture.
Read the answerWhat credit score do I need to buy a home?
There is no single credit score that guarantees a mortgage. Loan programs and lenders set different requirements, and credit is only one part of the review. Your income, debts, available cash and property also matter. Start by checking your reports and asking which score and loan rules apply to you.
Read the answerWhat happens if the appraisal is lower than the purchase price?
A lower appraisal can change the financing calculation and the cash you need. It does not automatically tell you which choice to make. Review the report, loan terms and contract options with the lender and your real estate professional or attorney. Do not assume you must bring the entire difference in cash.
Read the answerWhat happens to my earnest money deposit?
Earnest money is a deposit connected to your purchase contract. At closing it is generally credited toward the money you owe, rather than becoming an extra charge. Whether you can recover it if the deal ends depends on the contract and applicable law. Review those terms with your real estate professional or attorney.
Read the answerWhat if my credit report has an error before I buy?
Address a possible error early and tell your lender before assuming it will disappear. Gather the records that show what is wrong and use the credit reporting company’s and information provider’s dispute processes. The correction timeline and effect on a mortgage review vary. Do not build a closing plan around an unconfirmed correction.
Read the answerWhat makes a mortgage a jumbo loan?
A jumbo loan generally exceeds the applicable conforming loan limit for its location and property size. Those limits can change, and lender requirements vary. Check the current limit for the actual transaction, then compare documentation, reserves, pricing and cash needed. A larger loan is not automatically a better or worse choice.
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