01
Oct
By Todd Grey
Mortgage Tips, ,

Why the Money in Your Bank Account May Need a Paper Trail Before Closing

Having enough money in the bank is an important part of buying a home, but during the mortgage process, the amount in your account may not be the only consideration. In certain situations, lenders may also need to understand where funds came from. That can surprise buyers who assume that once money reaches their account, its history no longer matters. Mortgage Funds May Need to Be DocumentedDuring the mortgage process, buyers may provide bank or asset statements showing money available for the transaction.If an account contains certain recent deposits that are not easily explained by the documentation already provided, additional…
Read More
30
Sep
By Todd Grey
Mortgage Tips, ,

Why Changing Jobs for More Money Can Still Complicate a Home Purchase

Getting a new job with a higher salary sounds like good financial news, especially when you are preparing to buy a home. But if the change happens while you are applying for a mortgage, the timing can create additional questions. Mortgage qualification is not based solely on how much you earn. Lenders also evaluate the stability, history, and documentation of the income being used to qualify.Higher Income Does Not Automatically Mean Easier ApprovalA substantial raise can strengthen a buyer's finances, but a new employment situation may need to be reviewed before that additional income can be used.The type of compensation…
Read More
29
Sep
By Todd Grey
Mortgage Tips, ,

How a Seller Credit Can Change the Cash You Need Without Changing the Home’s Price

When buyers negotiate the purchase of a home, price often gets most of the attention. But the final sales price is not the only number that can affect how much money a buyer needs at closing. In some transactions, a seller credit can help with certain eligible closing expenses without requiring the seller to reduce the home's purchase price. What Is a Seller Credit?A seller credit, sometimes called a seller concession, is an amount the seller agrees to contribute toward certain buyer costs associated with the transaction. Depending on the mortgage program and transaction, eligible costs may include items such…
Read More
23
Sep
By Todd Grey
Mortgage Tips, ,

Could Paying Off a Debt Before Applying for a Mortgage Actually Be the Wrong Move?

Paying off debt sounds like an obvious way to prepare for a mortgage. After all, fewer monthly obligations can improve cash flow and potentially help with mortgage qualification. But using a large portion of your savings to eliminate a debt immediately before buying a home is not automatically the best strategy. Sometimes the money in the bank can be just as important as the debt you want to eliminate. Not Every Debt Has the Same ImpactMortgage qualification considers monthly debt obligations, but paying off every balance does not necessarily produce the same benefit. The amount owed, required monthly payment, type…
Read More
22
Sep
By Todd Grey
Mortgage Tips, ,

Why Your First Mortgage Payment Might Be Farther Away Than You Expect

After closing on a home, buyers may be surprised to discover that their first regular mortgage payment is not necessarily due a few weeks later. Depending on the closing date, there can be a noticeable gap between receiving the keys and making that first payment. Understanding why can help new homeowners plan their finances during an already expensive transition.Mortgage Interest Works Differently Than RentRent is generally paid in advance. A payment made at the beginning of the month typically covers the right to live in the property during that month. Mortgage interest generally works differently because it is paid in…
Read More