Title insurance provides protection to both property owners and lenders against potential title defects or claims. Two types of policies are commonly involved: owner's title insurance and lender's title insurance. While they serve different purposes, understanding the distinction between the two is important when you are buying a home: Owner's Title Policy: An owner's
Title Insurance: Protecting Your Property Investment When purchasing a property, it's not always required but highly recommended you buy title insurance. Title insurance is a policy that provides protection to both homebuyers and mortgage lenders against potential losses due to defects in the property's title. It offers peace of mind by safeguarding your investment
Understanding Your Loan Estimate: What's Included and How to Read It When financing the purchase of a new home, an important document you will receive is the Loan Estimate. This document outlines the key terms and costs associated with your mortgage loan, helping you compare offers from different lenders and make an informed decision.
Understanding your mortgage payment - PMI and MIP explained: When obtaining a mortgage, homebuyers often come across various fees associated with their monthly payments. Two common fees are Private Mortgage Insurance (PMI) and Mortgage Insurance Premium (MIP). Although they serve a similar purpose, it's essential to understand the differences between these fees and when
When you are financing a home purchase, there are certain services you can shop for to potentially save yourself some money. Here are the services you can shop for: Mortgage Lenders The first service you'll need when financing a home purchase is a mortgage lender. Lenders offer different types of mortgage loans, including conventional,
Buying a home? Chances are you are financing the purchase, in which case you'll need to apply for a mortgage. It helps to know about the different options you have for financing: Conventional Mortgages A conventional mortgage is a loan not backed by a government agency such as FHA, USDA, or VA. These loans
If you are financing the purchase of your home, you will likely hear the term LTV from your lender. It stands for loan-to-value ratio, and it refers to the amount of the loan compared to the value of the property securing the loan. The LTV is an essential factor in a mortgage transaction because
If you are purchasing a home using financing, you will likely hear the term DTI from your lender. DTI stands for Debt-to-Income ratio, and it's one of the main factors lenders consider when evaluating a borrower's ability to repay a mortgage. Essentially, the DTI ratio measures the percentage of a borrower's monthly gross income
When you purchase a new home and use financing, the lender will require an appraisal, or valuation of the home, to be performed. An appraiser is a professional who provides an objective and unbiased estimate of a property's value. Here's how an appraiser determines the value of the home you are looking to purchase:
When you buy a home, it is highly recommended that you get a home inspection done before you decide to proceed with the purchase A home inspector is a professional who examines the condition of a property and provides a detailed report of their findings. The report will include any defects or issues that