Lighter Side of Real Estate

SEPTEMBER 12, 2023

If you’ve been searching for a house for any amount of time, you’re probably well aware of how important it is to get a mortgage pre-approval before you even start looking at houses, or at least as early on in the process as possible. When Should You Update Your Pre-approval? Pre-approvals aren’t good forever.

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Housing Wire

AUGUST 23, 2023

Following a merger with special purpose acquisition company (SPAC) Aurora Acquisition Corp , Better Home & Financing Co. Flávia Nunes: Better took nearly two years to go public, with Aurora’s shareholders’ merger approval extended three times. This interview has been condensed and edited for clarity.

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Realty Biz

FEBRUARY 22, 2024

Glossy online listings behind your computer screen might fuel your dream home fantasy, but the home-buying process truly begins in earnest when a lender is contacted to be pre-approved for a mortgage. Once this process is complete, the lender will provide you with a pre-approval letter. Calculate the Debt-to-Income Ratio.

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Pre-approval Debt-to-income ratio Loans Banks 80

Lighter Side of Real Estate

SEPTEMBER 23, 2021

Increasing the balances on your credit cards can impact your debt-to-income ratio, which plays a major role in determining whether you’re approved for a mortgage—and, if so, how much. Shopping for homes before getting pre-approved for a mortgage. wait until after you’ve successfully purchased your home.

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Debt-to-income ratio Pre-approval Mortgages Finance 125

Realtor.com

NOVEMBER 11, 2022

Here are more step-by-step home-buying details, including information about down payments, closing costs, mortgage rates, pre-approved mortgages, and more. Step 1: Why financing is the key to buying a new home. Step 1: Why financing is the key to buying a new home. Step 2: Qualify for a home loan or loan pre-approval.

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Realtor.com

NOVEMBER 2, 2020

Since COVID-19 started tearing through the country in March, we’ve heard reports of freelancers having an even harder time getting approved for mortgages. Getting a mortgage as a freelancer (pre-coronavirus). But the main difference is that as a freelancer, you just had to document the income.”. The final word. Yes and no.

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Debt-to-income ratio Pre-approval Mortgages Banks 144

Realtor.com

JANUARY 7, 2021

Although this is a major milestone on the march toward closing, there are many points where this deal can go off the rails—like if you find out your home buyer wasn’t approved for a mortgage. Why home buyers aren’t always approved for a mortgage. Still, pre-approval is not a guarantee that a buyer will get a loan.

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Loans Purchase and sale agreement Pre-approval Debt-to-income ratio 133

Realtor.com

FEBRUARY 3, 2022

The answer to this question is all the more critical in today’s red-hot, warp-speed market, where you won’t stand a chance without a clear picture of your finances. What is debt-to-income ratio? Your overall debts, compared with your income, define your debt-to-income, or DTI, ratio.

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Debt-to-income ratio Pre-approval Marketing Finance 105

Windemere Buying

JUNE 7, 2021

Getting pre-approved is a great first step for buyers, but there can be a number of hurdles in the process. Pre-approval is broken down into two steps: pre-qualification and pre-approval. There are certain mistakes that can throw buyers off course, and in some cases, lead to a denial of financing.

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BAM Media

JULY 2, 2024

I’m not a big fan of asking, “ Hey, are you pre-approved ? Instead, ask, “What money do you have allotted to put towards the home purchase?” Then the next question is— “Have you spoken to anybody about the financing?” Not “Are you pre-approved?” Don’t ask: “Are you preapproved?” Would you like one?”

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Pre-approval Debt-to-income ratio Pre-qualification Purchase and sale agreement 52

Lighter Side of Real Estate

AUGUST 5, 2020

Ask an agent to go see houses before getting pre-approved. If you haven’t actually qualified for financing, you should hold off on going to look at houses with a real estate agent (or even going to open houses), since there’s no guarantee that a mortgage company can lend you the money. Try to mislead the mortgage company.

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Pre-approval Debt-to-income ratio Title search Finance 145

RIS Media

APRIL 8, 2022

Finances falling through. Since most homes are financed, and financing isn’t guaranteed until a buyer has signed the dotted line, failure to secure funds can put a home back up for sale. While financing may be pre-approved, the process is complex. Other factors can also put a home back on the market.

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Debt-to-income ratio Title search Backup offer Home sale contingency 144

Realty Biz

SEPTEMBER 30, 2023

Let's delve deeper into these topics to guide you towards an affordable home financing solution. They can help you navigate the mortgage process and identify suitable options based on your financial situation and provide you with a pre-approval. For example, you can get approved for an FHA loan with very low credit scores.

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Finance Debt-to-income ratio FHA loan Mortgages 96

Realty Biz

SEPTEMBER 5, 2023

One crucial aspect of this process is ensuring that your finances secure a mortgage and make the dream of homeownership a reality. We will delve into essential strategies to improve your finances, focusing on utilizing tools like Credit Karma or Credit Sesame to prepare yourself for purchasing a house.

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HomeLight

OCTOBER 22, 2021

It’s tough to say without a mortgage approval, but it always helps to start with a home affordability calculator. You may be wondering how affordability calculators work if you’re ready to get some numbers down on paper before showing up for a pre-qualification meeting with a lender. So, how much home can you afford?

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HomeLight

FEBRUARY 12, 2021

As a seller, you’re usually not taking on additional risk by accepting an offer from a buyer pre-approved for an FHA loan than you would with a buyer pre-approved for a conventional loan. Defective paint surfaces in homes constructed pre-1978. of all mortgage originations. down payment. A leaking or worn out roof.

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FHA loan Loans Pre-approval Pre-qualification 111

HomeLight

AUGUST 31, 2020

USDA Rural Development loans also allow for 100% financing (or 0% down). You may have a preapproval, but a preapproval does not guarantee formal loan approval. For example, pre-pandemic, an FHA loan could be secured with 3.5% It might also be a good idea to go through a pre-underwriting with a lender.

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Debt-to-income ratio FHA loan Pre-qualification VA loan 93

Marco Santarelli

MARCH 20, 2025

Debt-to-Income Ratio (DTI): Lenders assess your DTI to determine your ability to manage your debt obligations. A lower DTI , indicating that you have a comfortable amount of income relative to your debts, is viewed favorably and can help you qualify for a more attractive interest rate.

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Mortgages Debt-to-income ratio Principal VA loan 52

Realty Biz

JANUARY 19, 2024

Let's start with some detailed information and actionable tips on financing. From preparing your finances and exploring mortgage options to calculating your budget, these steps set you on the right path toward finding your dream home. This documentation will be necessary when applying for a mortgage pre-approval.

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Debt-to-income ratio Pre-approval Purchase and sale agreement Inspection 100

Realty Biz

DECEMBER 12, 2022

There is quite a bit to know about financing the purchase of a home. Mortgage Pre-Approval and Pre-Qualification Are Not The Same. Securing conditional approval for a mortgage is the optimal method for determining the amount of borrowing capacity. Obtaining preapproval does not guarantee approval of a mortgage.

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Debt-to-income ratio Mortgages Pre-approval Pre-qualification 87

Redfin

MARCH 5, 2025

Review your savings for your down payment , monthly income, and potential loan options to set a realistic price range. Maintaining a low debt-to-income ratio and a strong credit score can also enhance your eligibility for favorable mortgage terms. The 28/36 rule is a common mortgage budgeting guideline.

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HomeLight

OCTOBER 27, 2020

It’s a mortgage that follows rules set out by the Consumer Finance Protection Bureau (CFPB) under the Dodd-Frank Act of 2011. Not only does paying off your debt increase your credit score, but lenders will also want to see that you have a low debt-to-income ratio. Step 6: Get pre-approved for a loan.

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Debt-to-income ratio Pre-approval Pre-qualification Loans 105

HomeLight

NOVEMBER 16, 2021

Through the Home Partners program, prospective rent-to-own homebuyers start by filling out a pre-qualification application. If approved, they move to submit a full application. This step includes a credit and background check, income verification documents, and requires an application fee.

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Purchase and sale agreement Pre-approval Debt-to-income ratio Pre-qualification 104

HomeLight

AUGUST 31, 2021

If so, then the 203k loan may offer a way to finance your plans, but first, you’ll need to know both what this loan is and how to get a 203k loan. . The Section 203(k) Loan Program is a Federal Housing Administration (FHA) program that lets you finance both the purchase price of a home and the cost of repairs to the home with a single loan.

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Loans FHA loan Pre-approval Finance 104

Marco Santarelli

DECEMBER 22, 2024

Debt-to-Income Ratio: Lenders prefer lower debt-to-income (DTI) ratios. This ratio compares your monthly debt payments to your gross monthly income. Choosing the Right Lender When looking for a mortgage lender, its advisable to apply for pre-approval with multiple companies.

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Mortgages VA loan Fixed-rate mortgage Debt-to-income ratio 52

Redfin

MARCH 25, 2021

Get pre-approved for a home loan. It’s always wise to seek a mortgage pre-approval before you start searching for a house. When you’re buying in a seller’s market, that pre-approval is essential. Ways you can improve your credit score can include: Paying down debt to improve your debt-to-income ratio.

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Pre-approval Debt-to-income ratio Marketing Mortgages 71

HomeLight

DECEMBER 8, 2023

The temporary debt juggling act: A key factor in the bridge loan process is your debt-to-income ratio (DTI). Your lender will determine this ratio through an equation that involves the payments on your existing mortgage, the payments for the new house, and any interest-only payments on your bridge loan.

Equity 111

Equity Loans Debt-to-income ratio Home sale contingency 111

Redfin

MAY 11, 2022

With a plan for regular on-time payments on your debts, you will improve your credit history and score with every payment. . Pay down your overall debt to increase your debt-to-income ratio: Your available credit is also significant in your credit score. Get pre-approved for a mortgage.

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Pre-approval Debt-to-income ratio VA loan FHA loan 66

Redfin

MARCH 4, 2025

A 401(k) is a type of retirement savings account, where you elect a certain portion of your income to go into the account. The difference between these two accounts is that traditional 401(k) contributions are pre-tax, so youll be taxed once taking them out. How does withdrawing from a 401(k) affect mortgage approval?

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Debt-to-income ratio Loans Pre-approval Closing costs 31

HomeLight

SEPTEMBER 30, 2020

That’s because your lender is looking at what you pay in debts each month relative to your income. In 2019, the typical buyer financed 88% of their home price , putting down 12% of the home’s price as a down payment. Each of those things impacts the amount of money a lender is willing to fork over to a buyer.

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FHA loan Pre-approval Debt-to-income ratio Inspection 88

Marco Santarelli

MARCH 3, 2025

The rate you actually receive will depend on several factors, including your credit score, down payment, debt-to-income ratio, and the specific lender you choose. Get Pre-Approved: Getting pre-approved for a mortgage gives you a better idea of how much you can borrow and strengthens your offer when buying a home.

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Mortgages Fixed-rate mortgage Debt-to-income ratio Pre-approval 102

Redfin

MARCH 5, 2025

Review your savings for your down payment , monthly income, and potential loan options to set a realistic price range. Maintaining a low debt-to-income ratio and a strong credit score can also enhance your eligibility for favorable mortgage terms. The 28/36 rule is a common mortgage budgeting guideline.

Debt-to-income ratio 35

Debt-to-income ratio Backup offer Finance Pre-approval 35

Marco Santarelli

SEPTEMBER 30, 2023

However, it is important to note that interest rates can vary depending on a number of factors, including the loan amount, loan term, and the borrower's debt-to-income ratio. Get pre-approved for a mortgage before you start shopping for a home. can qualify for an FHA loan. Make a larger down payment.

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FHA loan Mortgages Debt-to-income ratio Loans 105

Redfin

FEBRUARY 10, 2021

Have a Healthy Debt-to-Income Ratio (DTI). Another key component banks consider when issuing loans, is your debt-to-income ratio. The debt-to-income ratio is a lender’s way of comparing your monthly housing expenses and other debts with how much you earn. Get Pre-approved.

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Debt-to-income ratio Pre-approval Inspection Purchase and sale agreement 76

Redfin

AUGUST 29, 2024

Debt-to-income ratio (DTI) Another major factor that a lender will consider when approving your mortgage loan is your debt-to-income ratio (DTI). DTI is calculated by dividing total monthly debts by gross monthly income. The number is then multiplied by 100 to get the final percentage.

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Earnest money deposit Purchase and sale agreement Pre-approval Debt-to-income ratio 63

Realtor.com

JUNE 12, 2017

The entire mortgage process has several parts, including getting pre-approved, getting the home appraised, and getting the actual loan. Many sellers will require that buyers get pre-approved for a mortgage before they will accept an offer. “All of these moving parts can cause a delay in processing if an issue arises.”.

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HomeLight

OCTOBER 2, 2020

Buyers with lower credit scores and higher debt-to-income ratios are more likely to face overlays, especially when shopping at the very top of their price range. Overlays are lender-specific, so switching lenders may make sense if you’re worried about your loan not being approved. You could lose your earnest money.

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Closing Mortgages Loans Closing costs 97