What is an escrow account? An escrow account refers to money, funds, and other assets that are held by a third party on behalf of two other parties. Read Full Article Share FacebookTwitterLinkedIn
What are mortgage points? You can buy points to lower — or “buy down” — the interest rate of a loan in exchange for an amount due at closing (usually a percentage of the principle of the loan.) This can be helpful to make… Read Full Article Share FacebookTwitterLinkedIn
What is private mortgage insurance? Private mortgage insurance, also known as PMI, is usually required if your down payment is less than 20% of the purchase price. Fees can vary greatly, but the average premium is 2.5% of the mortgage with a portion of the… Read Full Article Share FacebookTwitterLinkedIn
What is a loan approval letter? Once your application is approved, you’ll receive a loan approval letter from the lender, which will likely include some conditions such as: · Supplementary documentation: If you aren’t able to provide credit history, some loan programs may ask you to… Read Full Article Share FacebookTwitterLinkedIn
If I’m purchasing a property on a private road that is not maintained by the local municipality, do I need a Private Road Maintenance Agreement with my neighbors in order in order to qualify for a mortgage? This question comes up most often when the property in question is located in a rural area. Believe it or not, it’s not rare for the lack of a Private Road Maintenance Agreement to halt or hinder a borrower from… Read Full Article Share FacebookTwitterLinkedIn
What does the actual loan application involve? When you submit an application, the mortgage broker will work with their lenders to determine certain things about you, including: · Income · Stability of employment · Amount of other debts you currently have · Affordability of your new mortgage… Read Full Article Share FacebookTwitterLinkedIn