Conforming Loans Explained When speaking of mortgages the terms “conventional” and “conforming” are often used interchangeably. A conforming loan simply means that the loan guideline standards established by the conforming loan limit and all Freddie Mac (the Federal Home Loan Mortgage Corporation) funding criteria and Fannie Mae (the Federal National Mortgage … [Read more...] about What is a Conforming Loan?
Archives for April 2019
Mortgage Points and Prime Rate Explained Mortgage rates are a key factor in deciding which home loan you will choose since the rate is what decides your monthly payment and the overall amount you will spend repaying the loan over the years. Here are a couple terms to be familiar with before deciding on a home loan: What are mortgage points? … [Read more...] about Prime Rate and Mortgage Points Explained
What is a New Construction Loan? This type of loan is short-term so that a construction project can be completed. Construction loan terms are only between 6 months and a year, and when the construction is done the end financing is used to pay off this temporary loan. How does it work? Usually these loans aren’t given as … [Read more...] about New Construction Loans Explained
By law it is required for lenders to send you disclosures listing any and all fees and costs throughout the mortgage transaction process. Even though it might seem like a lot of paperwork at the time, these exist to prevent confusion and were introduced by a regulation written in 1968 called the Truth In Lending Act (or TILA). TILA Explained … [Read more...] about What Is the Truth In Lending Act?
When you have decided to make an offer on a home, you have to prove to the seller that you are serious about buying the home from the start. This can usually be done via an initial deposit, also known as an earnest money deposit. Earnest Money Deposits: Explained When you make an offer on a home you use what is called a Home Purchase Contract which proves … [Read more...] about What You Need to Know About Earnest Money Deposits