Homeownership: Closing Day & Beyond – Part 4 of 4

Budgeting for Home Maintenance When you own a home, there are other costs you will have to consider besides your monthly PITI payment of Principal, Interest, Taxes, Insurance. House maintenance costs will vary greatly on the type of house you buy. Size – the more square footage the house, the chances are the more you will […]

Homeownership: Closing Day & Beyond – Part 3 of 4

Beyond the Mortgage Payment When you close on your property, you may have all of your property taxes and home insurance included with the payment and interest for your PITI or mortgage payment. In the next two sections we are going to look at property taxes and insurance as separate items in case you are […]

Homeownership: Closing Day & Beyond – Part 2 of 4

Important Documents On closing day, there will be a lot of documents to sign, so it is important to understand what information is contained in each document. Closing Disclosure Throughout the underwriting process, your lender is required to keep you updated on the loan estimate. The estimate may change slightly through the underwriting process until […]

Homeownership: Closing Day & Beyond – Part 1 of 4

The Closing Process Nothing should be a surprise to you on closing day. Your lender and settlement provider (a law office or a title company) will send you the important final financial information for you to review before closing day. A law office or a title company facilitates the actual real estate transaction. They are […]

Purchasing a Home with a Mortgage – Part 4 of 4

A Real-world Scenario Let’s take all the information we presented in the previous section and connect it to a real-world scenario to see how someone gets prepared to take on a mortgage for a house. Meet Johnny Smith. He is 25 years old, single, and his S.M.A.R.T. goal is to: Buy a 3 Bedroom 1 Bath […]

Purchasing a Home with a Mortgage – Part 3 of 4

How a Mortgage is Calculated So, you’ve been pre-approved for a mortgage, and the next step is to calculate monthly payments for a new house. Your lender will use several factors to calculate your mortgage. In this section, we will describe each piece of information and how it applies to the mortgage calculation process. Down […]

Purchasing a Home with a Mortgage – Part 2 of 4

Prepare for Pre-Approval The lender will take an initial look at your personal financial situation to determine if you are pre-approved for a loan. The core items the lender will collect and evaluate are: income, debt, and credit score. Let’s take a look at each of these in more detail. Income is based on what you […]

Purchasing a Home with a Mortgage – Part 1 of 4

What Lenders Look For So, you’ve created a S.M.A.R.T. goal for the type of house you want to buy, now you need a plan for how you’re going to acquire that property. You want to balance the house features you’re looking for with the housing expenses that fit your budget. Think through the lens of […]

Visioning Homeownership – Part 4 of 4

Cost Related to Buying a House There are several costs that are incurred when it comes to buying a house, including underwriting costs with the lender, transfer taxes, and title charges. Many of these costs are included in the mortgage as closing costs. Properties are most commonly purchased with a down payment and mortgage, but […]

Visioning Homeownership – Part 3 of 4

Homeownership Goals What personal finance goals have you set for yourself in regards to buying a home? Reaching your goals is possible when they are S.M.A.R.T. – Specific, Measurable, Achievable, Relevant, and Time-bound.   For example, just saying that you want to buy a house is not specific, measurable or time-bound. Let’s take a look at each component of S.M.A.R.T. […]