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Loan Terminology

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Term	Main definition
Clear Title	A title that is free of liens and any claims against the property.
Closing Costs	Fees and expenses paid by you and the seller for the purchase, sale, or financing of the property.
Closing Disclosure	A document required by the Regulating Governing Bodies that itemizes all charges relating to loan. It also shows the annual percentage rate and finance charges with other important facts about your loan.
Conforming Loan	A type of conventional loan that meets the loan limits and underwriting guidelines established by Fannie Mae and Freddie Mac. These tend to have lower interest rates but more stringent approval guidelines.
Contingency Addendum	A legally binding clause added to a purchase agreement that states specific conditions must be met within a set amount of time. These conditions if unmet can void the contract.
Conventional Loan	Any mortgage that is not government insured or guaranteed. These loans have more favorable terms but also carry more stringent requirements (such as higher FICO requirements)

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With mortgage rates still falling to nearly historic lows, many people are buying homes, driving up demand.If you're satisfied with your current home, but want to take advantage of these incredibly low rates, you can refinance your mortgage. If you want to save even more money, you can buy points. Here's what you need to know.

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Pre-Approval for a Home Loan: What You Should Do

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Everything You Need to Know About Closing Costs When Buying a House

If you’re a first time home buyer, you’ve probably heard the term closing costs, but you may have no idea what it actually means. For many homebuyers, closing costs is a vague term muddled among dozens of new legal details learned during the process.

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Should You Get an FHA Loan or Conventional Loan?

When you are buying your first home, financing can be overwhelming. One point of confusion is whether you should get an FHA loan or a conventional loan. Understanding the differences can help you make an educated choice as to which will work best for your budget and situation.

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7 Tips to Improve Your Credit Score This Year

One of the best ways to do this is to improve your credit score. Start by pulling up a copy of all three of your credit reports. You can get 1 free credit report per year by going to www.annualcreditreport.com Look over each report and if there are errors, write dispute letters to the bureaus concerning them. Also, pull up your credit score. Here are additional ways to improve your credit score in 2020.

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DID YOU KNOW:

Only close family and relatives, such as aunts and uncles can “gift” you money for a down payment.
DID YOU KNOW:

The failure rate for a home purchase is 20% on average.
DID YOU KNOW:

Many lenders have NO PMI loans, even if you have a down payment of less than 20%.
DID YOU KNOW:

Veterans may qualify for a home purchase with no down payment using a VA Loan for purchase.
DID YOU KNOW:

Many condominiums are not FHA approved and therefore you will not be able to purchase the condo with an FHA Loan.
DID YOU KNOW:

FHA Loans give you greater flexibility with your debt to income ratio. In short, you can qualify for more loan with less income.
DID YOU KNOW:

Student loans can throw your debt to income ratio out of whack and disqualify you from approval due to excessive debt.
DID YOU KNOW:

Bankruptcy does not disqualify you from getting an FHA Loan as long as it has been 2 years since the recorded discharge date, or 4 years for a Conventional Loan.
DID YOU KNOW:

Many lenders will not accept documents, such as bank statements, that have any portion that has been blacked out or tampered with.
PRO TIP:

Be sure to understand exactly how much loan you can be approved for before you fall in love with a home and get into a contract!
PRO TIP:

Don’t move around assets during the processing of your home purchase loan, as it will trigger the underwriters to ask repeatedly for updated bank statements.
PRO TIP:

Not every Realtor can produce the same results, so be sure to check their credentials and experience.
PRO TIP:

Don’t just trust a pre-qualification from a licensed lending officer. Get pre-approved by an actual underwriter before you get into a home purchase contract.

Speak with a loan agent now!