Get a basic overview of mortgage terms
Mortgage Application Checklist: Applying for a mortgage can be overwhelming. To simplify the process, a checklist is provided to help you gather, complete, and consider all necessary information before applying.
Credit History and Score: Your credit history is a record of your past and current credit activities, which is used to calculate your credit score. Understanding credit, how it works, and how to improve your score is crucial when applying for a mortgage.
Private Mortgage Insurance (PMI): PMI is insurance that protects the lender when a borrower puts down less than 20% on a home. It is essential to understand how PMI works and its costs.
Appraisals: An appraisal is an unbiased assessment of a property's value, typically conducted by a professional appraiser. It is a crucial part of the mortgage process, ensuring the home's worth aligns with the loan amount requested.
Closing Costs: These are fees required to finalize a home loan, separate from the down payment. Understanding the purpose and payment of closing costs is important for homebuyers.
Refinancing: Refinancing is the process of replacing your current mortgage with a new one to lower monthly payments, interest rates, and your debt-to-income (DTI) ratio. It can offer various financial benefits.
Foreclosure: Foreclosure occurs when a lender takes possession of a property due to a borrower's failure to comply with the mortgage contract terms. Knowing about foreclosure and ways to avoid it is critical for homeowners.
