Tagged : mortgages

Found 11 blog entries tagged as "mortgages".

When it comes to home financing, a diverse array of loan types awaits homeowners. Among them is the bridge loan, a distinctive option with its own set of advantages and drawbacks.

Let's discuss the nuances of bridge loans, find out how they work, their benefits and disadvantages, and some alternatives to bridge loans.

What is a Bridge Loan?

A bridge loan is a short-term solution, often used to bridge the financial gap between purchasing a new home and selling your current one. This type of loan comes into play when the need to buy arises before the sale of your old property is finalized. 

Navigating the Mechanics of Bridge Loans

Due to the higher risk involved, bridge loans come with more stringent requirements than other mortgage

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The happy path to securing a mortgage is, unfortunately, often accompanied by well-meaning advice that might not fit your situation. While the intentions behind such advice are good, it's essential to separate fact from fiction before making crucial decisions.

We're here to debunk some of the worst mortgage advice that often circulates.

Mortgage pre-approval is a waste of time

Why you might hear this: Early stages of home shopping might seem premature for a mortgage commitment.

Why it's poor advice: Although not an official guarantee, a pre-approval can save you from future headaches. Pre-approval not only prevents heartbreak over unaffordable homes but also provides an edge in competitive markets.

It's best to get a mortgage from

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The mortgage underwriting process is essential to verify income and ultimately determine whether the loan is approved or not. In addition to examining your income, the underwriter will also dive into significant events such as recently graduating from school, switching careers, or starting a new business.  

Because the amount of money being loaned is substantial, the verification process can be tedious and requires plenty of documentation to get it done.

This overview will give you an idea of what to expect during the underwriting process to better prepare for it. Have specific questions about underwriting? Contact Steadfast Mortgage!  

What are the income requirements when applying for a loan?

When applying for a loan, the question is

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Purchasing your first rental property is a big step in your real estate investor journey. Aside from choosing a potentially profitable property, you need to figure out how to finance your rental.

Before sharing how to apply for an investment loan, let’s look at how a primary home mortgage differs from a rental property mortgage.

The Difference Between a Mortgage for a Primary Home and a Rental

On the surface, a mortgage for a rental may look similar to a mortgage for a primary home since the application process is the same. However, there are different rules and guidelines lenders follow when you apply for a mortgage on a rental property.

Larger Down Payments

For a primary home, you can make as little as a 3% down payment in some

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Owning a home is still very much a part of the American dream. However, did you know that non-U.S. citizens can also enjoy this? While there are challenges to homeownership if you are not a citizen, know that lenders are open to extending credit to non-citizen homebuyers.

Let's look at how you can qualify for a home loan even when you are a foreigner residing in the U.S.

Residency Status

Permanent residents with green cards have a better chance of getting a loan since they represent less risk for lenders due to their immigration status, which indicates they are in the country for the long haul.

Nonpermanent residents may encounter more challenges getting approved since their ability to work in the U.S. is tied to their visa. However,

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A home purchase is one of the biggest investments you can make so adding a layer of protection against property ownership issues makes sense. That’s where title insurance comes in. As a quick refresher, a “title” serves as proof that you are the owner with rights to the property. Read along to find out how title insurance works and why it is vital in a home purchase.

Why do you need title insurance on your new home?

Title insurance is meant to protect home buyers and lenders from any damages or losses due to a “bad title”. A title can become “bad” due to code violations, back taxes, liens, and conflicting wills. Another common situation where after the sale of a property, it turns out that the seller does not have any legal claim to it or the

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When you’re preparing to purchase a home, you have a bevy of decisions to make. Even once you’ve decided on your budget, you’ll still have to decide on your ideal neighborhoods, whether you want to spend time renovating (or even flipping) a home, which school districts you prefer, and so much more.

Still, there’s yet another aspect many first-time homebuyers don’t consider much ahead of time: choosing the best home loan, and the best lender. We get it: home financing simply isn’t as instantly appealing as imagining one’s dream home. Ultimately, though, it’s at least as important as the number of bedrooms and bathrooms in your new abode.

With that in mind, let’s jump into today’s topic: Local vs. National Mortgage Companies, where we’ll compare

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Home renovations can be expensive, and saving up for extensive improvements could take years. Fortunately, you can fast-track your goals with a home improvement loan. 

Home improvement loans allow you to use the equity in your home to fund your home renovation. 

Benefits of a Home Renovation Project

1.) Increased Home Value

Prospective home buyers are willing to spend more if they see a kitchen or bathroom that has been updated or upgraded for convenience and functionality. 

2.) More Space

If your home feels cramped due to your growing family, extra bedrooms or living space can make living in your home comfortable once more. 

3.) Maintenance

Putting off home repairs can result in more considerable expenses down the road.

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An interest-only mortgage starts with payments that only pay down the mortgage interest. Generally, this makes your monthly payments lower than a typical mortgage payment. This option is attractive for those who cannot afford high mortgage payments. However, it has its drawbacks if you're not careful. Let's explore the benefits and disadvantages of interest-only mortgages. 

Benefits

  • Interest-only loans give you time to increase your income. Are you expecting an income increase in the next few years? Then an interest-only loan can be advantageous. For example, let's say you're in a lower management position right now but on track for a promotion in the next year or so. Once you move up, your earning power will also increase. An

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Debt is either "good debt" or "bad debt." --or so we've been told. "Good" debt is that money owed for things that may assist in building wealth, such as student loans or mortgages. "Bad" debt would be things like credit cards. This is an oversimplification as the differences between "good" and "bad" debt can be better defined, thereby giving us a clearer picture of debt and how to tell what is helpful. 

Here's the rundown on debt: the good, the bad, and the ugly.

Student Loans

Student loans are often necessary, as it's often the only way college education is possible for many Americans. But not all degree programs are equal when considering the debt one acquires and the income potential from that particular degree. A good rule of thumb is

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