Get the seller to pay part of your mortgage payment for the first two years. That’s a 2–1 buy down. Basically the seller gives you a credit to cover the difference in payment between the note rate and 2% less in rate for the first year, moving to 1% less…

A seller’s concession (a/k/a seller’s assist or seller’s credit) is a credit to the buyer to cover the cost of the transaction. It can only be used for closing costs. Unfortunately, the credit cannot be used for down payment. It will save you money buying a home. And in a…

Yes — all loans or lease payments change your debt to income ratio. Let’s talk about how it works. If your house payment is $1800 including property taxes and insurance. Your car payment is $300, your student loan payments are $200 and your credit card payments are $100, your total…

The Closing Protection Letter protects the lender and/or the buyer — the insured party — if there is misconduct by the closing agent. It’s a contract between a title insurance company and a lender. The protection is for the actual loss of funds incurred due to the closing agent’s misconduct. …

Per diem interest is the dollar amount you pay in interest on your mortgage per day. This is how it is calculated. One way is to take your interest rate, divide it by 365 and multiply it by the principal balance of your mortgage. An example: 3% interest rate for…

While it may not be the answer borrowers want to hear, repairing your credit is the best thing to do before you submit a mortgage application. A higher credit score could save you thousands in interest payments, and give you more loan options. Sure, these rules work as a guide…

Buying a home is on everyone’s bucket list. Whether you want to buy a home because you finally want to settle down, or you are tired of paying rent and ready to invest in an appreciating asset, buying a house can be overwhelming. Starting the home buying process with bad…

“Please reach out to the appraiser and tell them I’ll be late meeting them at the house” Every Mortgage Loan Originator (MLO) hears this. First comes that sinking feeling. MLOs pride themselves on being the solution. In this case we’re stuck. We cannot reach out out to the appraiser directly. …

A financing contingency (aka mortgage contingency) is a clause in the contract of sale that gives buyers time to apply for and obtain financing. This clause can be used when a buyer needs to wait for approval from their lender before they can close on the purchase. This clause in…