Category: Pre-Qualifying for a Mortgage

  • Homebuyers devastated – Lender pulls plug just before closing.

    Reader Question: Our friends are homebuyers devastated. Their lender pulled the plug just before closing. We are in the process of closing on our first home purchase. We are excited but at the same time very edgy. Our friends were a week ahead of us on their home purchase. They didn’t offer details, but how…

  • Is a renovation mortgage right for you?

    Reader Question: We are looking to buy our first home. We have seen a house we like, but it needs renovation. The house has been neglected but has a solid structure. We have a down-payment and good credit. Twenty-percent down at our price point, but not enough cash to make the down payment and do…

  • Five tips to buying and sharing a personal residence

    Reader Question: My friend and I are thinking about buying and sharing a personal residence. We each have saved enough to pay twenty percent down on a $150,000 home, but by pooling our down payment, we could buy a $300,000 house. We may even invite a third person to join us. We live in a…

  • Should we have a fifteen-year loan versus a 30-year term?

    Reader Question:¬†Choosing a fifteen-year loan versus a 30-year term is advice we often see from financial experts or mortgage lenders. We also find information about a home buyer saving until they can make a twenty percent down payment when they buy a home. The experts that proffer this advice confuse us, as we are not…

  • Bully real estate agent and RESPA

    Reader Question: My offer was accepted, and I was thrilled. Before making the offer, my agent had instructed me to obtain a pre-approval letter and recommended I use a particular loan officer. I went ahead and did so after confirming with the loan officer that doing so wouldn’t lock me into using his services. I…

  • 7 reasons loan pre-approval is smart strategy

    Reader Question: I want to start looking for a home, but several people suggested agents won’t take me seriously without a pre-approval letter. I understand the pre-approval must be updated every 30 days, and a credit check hurts my credit score. How do I avoid being punished for planning ahead and beginning my search far…

  • Beware of loan modification scams

    Reader Question: What do you know about a company called “name omitted”? Can they really help? Are they a legitimate company? Monty’s Answer: Hello Ely, and thanks for the question. I do not recommend or rate businesses, but some comments and suggestions may be helpful. Background is important. Companies like the one being questioned specialize…

  • Mortgage loan pre-approval

    A mortgage loan pre-approval from a lender has gained more importance in real estate transactions than ever before. Mortgage lending has been affected the past several years with a heightened level of regulation in an attempt to prevent the types of abuses they believe created the real estate meltdown that began around 2008. Appraisal restrictions,…