Are you planning to buy a home in 2022? This year’s housing market is shaping up to be another competitive seller’s market. However, with increasing mortgage rates, the 2022 housing market will hopefully have a larger inventory compared to 2021. This is good news for homebuyers, but the landscape will still be competitive, meaning you want to be as prepared as possible when you start the homebuying process.
When you contact a loan specialist and are pre-approved for a mortgage, the home purchase process begins. From that point on, your loan specialist works with you to get everything prepared for the closing process. A lot of documentation and information is necessary to get your loan application approved and clear to close, but what does the actual closing process look like?
The greatest barrier to purchasing a home for first-time homebuyers is the down payment. Many prospective first-time homebuyers qualify for a home loan but do not have the funds to set aside for a down payment. With inflation increasing in the last couple of years and the cost of living appreciating at rapid rates, saving for a down payment has only become more challenging.
There are many mortgage terms that can be confusing to anyone outside of the mortgage finance industry. If you are considering or in the process of purchasing a mortgage, here are the ten most misunderstood mortgage terms you need to know.
The mortgage interest rate on your home loan is what you are charged to borrow the money used to finance your loan. This is how the lender profits over the life of your loan. It is also how they financially mitigate the risk of lending you money. There are several key factors that contribute to determining your mortgage interest rate.