I’m sure that everyone has heard of a mortgage. But how many people really know what a mortgage really is and what consists of? Well, here is some information that will be very helpful for those thinking about buying a home. A mortgage is made up of 4 parts: Principal, Interest, Taxes, and Insurance (or PITI for short). Let’s look at each of these factors. First, there is the principal. The principal is the actual […]
The difference between your current monthly payment and the new payment Shock Value is the difference between what you are currently paying for rent or housing and the new principal, interests, taxes, and insurance (PITI) payment. For example, if you are currently paying $1.000 a month for housing and your new payment is $1,400, your shock value is $400. Would you be able to handle the difference? The goal is to assure the lender that […]
In 2018, an MLO (Mortgage Loan Officer) was up for a promotion to become a sales manager of a team. As this officer was only working to help pay for his schooling, this promotion would mean that he would have to stop pursuing his education to meet the demands of the new role. For him, money was never a huge motivator. It was simply a great way to pay for college. Due to the time […]
Normally, and in most circumstances, to buy a home you need a mortgage, not unless you are buying cash, which most people don’t. Still, homebuying using a mortgage is one of the most emotionally complicated processes ever, and in reality, there are so many requirements that most homebuyers do not realize. To purchase a decent affordable home, you need to have a good credit score and at least, your employment status must be impeccable with […]
The process of buying your first home seems like a straightforward journey- look at the available listings, tour one or two homes, apply for a mortgage, get the mortgage, sign on the papers, and Voila… you are a homeowner- finally! Then you start making payments to service your mortgage, probably for the next 15 or 30 years and that is it! But, is it that easy though? Well it is not, buying your first home […]
