First-Time Buyer & Owner Guide: 3 Reliable Ways to Find Out What a Home Is Worth Whether you’re buying, selling, refinancing, or just curious—knowing your home’s value is a powerful piece of the puzzle.But not all estimates are created equal. Here are three ways to get a solid sense of your property’s worth—plus when to […]
1. An Assumable Mortgage Allows You to Take Over the Seller’s Loan With an assumable mortgage, instead of applying for a new mortgage, you can take over the seller’s existing mortgage—including the interest rate and remaining balance. This means you’ll pick up where the seller left off, keeping their favorable loan terms. If the seller has a lower interest rate
1. What Is a Deed-in-Lieu of Foreclosure A deed-in-lieu of foreclosure is an agreement between a homeowner and their lender where the homeowner voluntarily transfers the property’s title to the lender to avoid foreclosure. 🏠 Key points about this process: The homeowner surrenders ownership of the home to the lender. This option can help prevent
1. A Title Commitment Outlines the Conditions for Title Insurance A title commitment is a document issued by a title company that details the conditions under which they will provide title insurance. It serves as a preview of the title insurance policy you’ll receive after closing. This insurance protects you in case there are any title disputes after you purchase the home. The
1. A Jumbo Loan Exceeds Conforming Loan Limits for High-Priced Homes A jumbo loan is a mortgage that exceeds the conforming loan limits set by Fannie Mae and Freddie Mac. Conforming loans are those that meet the guidelines for government-backed financing. If you’re buying a property in an area where home prices are high, you might need a jumbo loan to cover the cost. Jumbo loans
1. A Home Warranty Covers Major Home Systems and Appliances A home warranty is a service contract that helps cover the repair or replacement of major systems and appliances in your home, such as: HVAC systems Kitchen appliances (dishwasher, oven, fridge) Plumbing and electrical systemsIf one of these systems breaks down due to normal wear and tear, the warranty can help cover the
1. A Co-Signer Is Someone Who Agrees to Take Responsibility for Your Loan A co-signer is someone who signs the loan agreement along with you and agrees to take responsibility for the mortgage if you’re unable to make the payments. Most often, a co-signer is a family member or close friend The co-signer’s credit score and income are considered by the lender in
1. The Closing Disclosure Lists All the Final Terms of Your Loan The closing disclosure (CD) is a detailed summary that includes all the final terms of your mortgage, such as: Monthly payments: What you’ll pay each month Interest rate: The rate that will apply to your loan Closing costs: Any fees due at closing, including lender fees, title insurance, and
1. A Licensed Appraiser Assesses the Property’s Market Value Once you’re under contract, your lender will order an appraisal from a licensed, independent appraiser. During the visit, they’ll evaluate: The home’s location The size, layout, and features The condition of the home and any upgrades Recent comparable sales (aka “comps”) in the areaThe goal? To estimate fair market value based on data—not emotion. 2. The Appraisal Report Helps
1. Property Taxes Are Often Paid Through an Escrow Account If your mortgage includes an escrow account, part of your monthly mortgage payment will go toward paying your property taxes. Your lender will collect these payments from you each month and then pay the property tax bill on your behalf when it’s due This means you don’t have to worry about paying
1. A Mortgage Lender Is the Direct Source of Your Loan A mortgage lender is a financial institution, such as a bank, credit union, or online lender, that provides the loan directly to the borrower. Key points about mortgage lenders: They fund the loan and handle the approval and underwriting process. You work directly with the lender to secure your mortgage. Mortgage lenders typically