Tammie VanDeusen

  For many people, owning a home is the ultimate fulfillment of the American Dream.  Buying a home  is a major life decision, but is it the right time for you to buy? Even if you think you are ready to achieve the American Dream, consider the current market, your financial circumstances, and your plans for the future when deciding whether to rent or buy your home. Which is better for you right now, buying a home or renting a home? Let’s take a closer look to determine which one is right for you. Is Renting or Buying Better? What are the Advantages of Buying a Home? When you own a home, you could have a fixed monthly payment that doesn’t change. When you rent, your monthly payment could increase every year. Every mortgage payment that you make brings you closer to owning your home. When you pay rent, that money doesn’t go toward homeownership. You’re not building equity or potentially increasing your personal wealth as you do when making payments on your mortgage. You can ...

The mortgage process can be confusing and overwhelming sometimes. We get it. Luckily, there are plenty of resources and tools available to make the process easier and less stressful for everyone who did not attend the University of Mortgage. One of the most important resources available to you is a document called a “Loan Estimate.” This document, which you will receive at the early stages of the mortgage process, is an invaluable tool that helps you understand the terms of your mortgage. A Loan Estimate is a document prepared by a lender based on your personal information and tailored to your unique situation. Want to know more? Let’s dive into what a Loan Estimate is and how to read one. What is a Loan Estimate? In 2015, a federal government agency called the Consumer Financial Protection Bureau (CFPB) began requiring mortgage lenders to provide you with two new forms, the Loan Estimate and the Closing Disclosure. According to the  CFPB , the Loan Estimate is provided by the lend...

  What are Government-Insured Mortgages? The mortgage process may sometimes seem like a maze of terms, acronyms and abbreviations that make your head spin, but armed with a little information, you can figure out which mortgage is the right one for you. If you’ve been researching buying a home or refinancing your existing mortgage, you may have come across one of those potentially confusing terms: government-insured mortgage. What is a Government-Insured Mortgage? A government-insured mortgage is just what it sounds like: a mortgage loan that is insured by the government. Government-insured mortgages are sometimes referred to as government-backed mortgages, but the definition is the same. It means that the mortgage is backed by the government. The government doesn’t issue the mortgage or lend the money directly to borrowers. The loan is originated (or funded) by a mortgage company. The loan is then insured (or guaranteed) by the government. The purpose of the government backing loan...

When it comes to getting a mortgage, there are a few numbers that are important to the process. Chief among those is your   credit score , which is a numerical value that signifies how good you are at meeting your financial obligations. Another of those important numbers is your debt-to-income (DTI) ratio. DTI ratio is a figure that represents how much of your monthly gross income (your income before taxes) goes to paying your monthly debt and other accounts. Along with your credit score and other information, lenders consider your DTI ratio when determining whether you’re capable of taking on a loan. If you’re interested in  buying a house  or  refinancing  your current mortgage, continue reading to discover what exactly a DTI ratio is and what the ideal DTI ratio would be for a mortgage. What is DTI ratio? Your DTI ratio is determined by adding all your monthly debt payments together and dividing that by your monthly income before taxes. There are two types of...