DTI Measures How Much of Your Income Goes to Debt Your debt-to-income ratio is the percentage of your gross monthly income (before taxes) that goes toward paying your debts. That includes: So if you earn $5,000 a month and $2,000 goes to debt, your DTI is 40%. The lower your DTI, the stronger your financial […]
1. Pre-Qualification Is Just an Estimate Getting pre-qualified is like a financial snapshot. You tell the lender about your income, debt, and basic financial situation, and they give you a ballpark number for how much home you could afford. It’s quick, easy, and useful for planning — but it’s not based on verified information, so
First-Time Buyer Guide: Understanding FHA vs. Conventional Loans and Which One Is Right for You 💡 When you’re choosing a mortgage, understanding the difference between FHA loans and conventional loans can have a significant impact on your home-buying experience. As a first-time homebuyer, it’s crucial to understand the advantages and potential drawbacks of the mortgage
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
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