In this module, I will provide you with some basic information about mortgage loans and discuss some downpayment options. There are also some special low downpayment loans that will be discussed later in the LOW DOWNPAYMENT OPTIONS module.
In my module on LOAN OPTIONS I explained that you have to put 20% down on the purchase of a home in order not to incur mortgage insurance, which is an annual surcharge of around 0.75% to 1.75% of the loan amount. Mortgage insurance provides compensation for lenders if the borrower defaults on a loan.
Whenever I do a loan for a first time homebuyer, almost invariably they say that they would like to hear an overview of the loan process. I often get the same request from people who have purchased property before. Following is a general overview of the home buying process.
You will need to have homeowner’s insurance on your new home. You need to have insurance in place before the lender will approve your loan, so this is something that you need to get going on soon after you get into contract.
In this module I will go over some credit report basics, and I will be covering the following topics:
1. What is a credit score?
2. What does a credit score mean?
3. How do I raise my credit score?