24
Jan
By Adrian Willanger
Home Mortgage Tips, ,

How Do Mortgage Lenders Decide How Much You Can Borrow?

When you visit your lender to get a mortgage for your home, they will tell you the maximum amount that you are allowed to borrow. But how do they reach this total and what factors do they take into consideration? How do they determine that one borrower can take on a bigger mortgage than the next? This decision is made by mortgage companies by considering a wide range of factors, including your credit information, your salary, and much more. Here Are Some Of The Common Ways That Lenders Determine How Much You Can Borrow: 1. Percentage Of Gross Monthly Income Many…
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18
Jan
By Adrian Willanger
Home Mortgage Tips, ,

The Advantages And Disadvantages Of Using Online Mortgage Lenders

Using online mortgage lenders can offer several advantages and disadvantages compared to traditional brick-and-mortar lenders. It's important to weigh these factors based on your individual preferences, needs, and financial situation. Here's a breakdown of the pros and cons: Advantages of Online Mortgage Lenders: Convenience: Pros: Online lenders offer the convenience of applying for a mortgage from the comfort of your home at any time. The entire process, from approval application, can be done online, reducing the need for in-person visits. Faster Approval Process: Pros: Online lenders often have streamlined processes, leveraging technology to speed up the approval process. This can…
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20
Dec
By Adrian Willanger
Home Mortgage Tips, ,

You Ask, We Answer: What Are the Pros and Cons of Private Mortgage Insurance?

It's easy to get Private Mortgage Insurance (PMI) confused with homeowners' insurance, but PMI is an entirely different thing that may or may not be necessary when it comes to your home purchase. If you're going to be investing in a home in the near future and are wondering what PMI may mean for you, here are some things to consider regarding this type of insurance. Your Down Payment Amount If you've been perusing the housing market for a while, you've probably heard that 20% is the ideal amount to put down when investing in a home; however, you might…
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01
Dec
By Adrian Willanger
Home Mortgage Tips, ,

The LTV Ratio: How ‘Loan-to-Value’ Works and Why You Need to Understand This Ratio

Are you in the market for a new home? If you plan on using mortgage financing to buy your next home you've likely heard the phrase "loan-to-value" or the acronym "LTV" before. Let's take a quick look at the loan-to-value ratio including why it's important, how to calculate it, and how it can affect your mortgage. What is the Loan-to-Value or LTV Ratio? In short, the LTV ratio is a number that compares how much money you owe against your home with its resale value in the marketplace. A low LTV ratio indicates that you have far more equity in…
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06
Oct
By Jim Hasek
Home Mortgage Tips, ,

Setting Your Budget: How to Analyze Your Finances to Determine How Much Mortgage You Can Afford

Whether you're buying a home for the first time or you've decided it's about time that you upgraded to a larger, more expansive house, if you're making a real estate purchase you'll need to be aware of how much you can reasonably afford to borrow in a mortgage. In today's post we'll take a look at a few ways that you can analyze your financial situation to help decide how much mortgage you can truly afford. Prepare An Honest Monthly Budget The first step in understanding how much of a monthly payment you can afford is to create an honest…
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