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…
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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…
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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…
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25
Sep
By Todd Grey
Home Buyer Tips, ,

Why a Condo’s Finances Can Matter Almost as Much as Yours When Getting a Mortgage

When applying for a mortgage, buyers expect their income, credit, debts, assets, and employment to receive plenty of attention. Condo buyers can encounter another layer that sometimes comes as a surprise. Depending on the financing being used, the financial and operational condition of the condominium project itself may also matter. You Are Buying More Than the UnitA condominium purchase usually includes ownership of an individual unit along with an interest in shared areas and responsibilities. Those shared responsibilities are typically managed by a condominium or homeowners association. The association may collect dues, maintain common areas, purchase certain insurance coverage, fund…
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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…
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