Have a Lot of Mortgage-Related Questions? Let This Expert Answer Them All For You
While getting to own a home is a dream for many people, the actual process of buying a property can easily turn into a nightmare. After all, there are many considerations that one needs to pay attention to make the transaction go smoothly. Luckily, loan officer Gina Nolte is generous enough to provide answers to the most common queries homebuyers have about the mortgage process.
On Credit Scores
By now, people already know the importance of having a good credit score when it comes to borrowing. That said Nolte clarifies that lenders would usually consider an individual’s middle credit score, which is the middle number when a person’s score is pulled from three credit.
For loans below $484, 350, Nolte said that a credit score of 740 and above will be good to have. She also noted that a slightly lower middle score of 720 is still good with a 680 middle score being average. A score lower than this won’t automatically mean that one would be denied a mortgage though.
On Monthly Premiums
One concern that people have when applying for a mortgage is how much their monthly payment would end up being. According to Nolte, nailing this exact amount can be tough as it depends on a variety of factors such as a person’s down payment, interest rate, and the loan program they’re applying for.
She also points out the advantage of speaking with a loan officer and letting them run one’s credit to get a better estimate. In general, though, a loan officer would be able to give people a range.
On Down Payments
When it comes to determining how much money to put up for a down payment, borrowers are recommended to have a loan-to-value ratio of about 80%. This would allow an individual to not pay private mortgage insurance. In action, following this rule would mean making a down payment of $20,000 on a $100,000 home leaving one to borrow the remaining $80,000.
One way people can lower their interest rate or shorten the term of their mortgage is through refinancing. This said it’s important to know that one can start refinancing their home after six months and a day since they purchased a house. Doing this would not only lower one’s interest rate but also get rid of mortgage insurance.
On Having Multiple Mortgages
A person may end up having multiple mortgages when they decide to co-sign for other people such as a relative in their own house. This can be undone when the owner of the mortgage refinances their loan and one’s name gets taken off of it.
More in Loans & Credit
Tesla CEO Elon Musk Is Setting Out To Be The Real Estate King of Bel-Air– Check Out His Jaw-Dropping House Collection In The Ritzy Neighborhood
Billionaire Elon Musk is perhaps one of the most vocal businessmen around. In fact, some of his Twitter statements have actually...December 23, 2019
Chipotle CEO Brian Niccol Has Been Dreaming of Adding This Tasty Item on The Menu & It Might Finally Be Happening Soon
Being the CEO of a giant company is no easy job. One needs the ability to be able to make major...December 20, 2019
Knowing How Much These Record-Breaking Mansions Were Sold For Will Make Your Jaw Drop
According to sources, the average American home costs around $250,000. While this amount may be high to some, it’s but a...December 19, 2019
These Are The Important Things People in Their 20s Should Really Know About Work & Life Before They Settle Down
While people see their 30s as a time to settle down, get a serious job and start a family, the young...December 18, 2019
Owning a House in Your 20s May Be Impressive, But You May Want to Do These Things First
Whenever we watch TV shows that focus on the lives of people in their 20s up to their early 30s, we...December 16, 2019
Take a Look at Barack and Michelle Obama’s New Property in Martha’s Vineyard
It has been almost three years since the Obamas left the White House. Since then, their home is still in Washington,...December 13, 2019
You Won’t Believe What Millennial Homeowners are SO Worried About after Finally Buying a House
After leaving school, one of the immediate goals is to buy a house — this is the American dream, after all....December 12, 2019
The Rule of Shopping Around: Here’s the Secret Tip That Can Land You the Best Mortgage Deal!
Buying a house is far from being easy-peasy. However, if you do have enough money to shower on any property, then...December 11, 2019
You’ll Never Believe How Much Jeffree Star Spent for This Hidden Hills Mansion
If you are a makeup junkie or you just spend most of your time watching YouTube videos, then you may have...December 10, 2019