Home Buying

Applying for a Mortgage

Not much happens in the world until a lender says “Yes.” There’s no question, taking out a mortgage to buy a home is a big deal. Just like you probably shouldn’t buy the first house that you see, you might want to consider shopping around mortgages to get the best rate. What can seem like a small difference in interest rates can turn into thousands of dollars down the road. There’s more to a mortgage than the rate, too. Let’s look at “points” in a mortgage. Often times lenders will offer points — this is shorthand term meaning one percentage point of the total loan– to reduce the overall interest rate. With all of these different ins and outs of mortgages, it’s good to understand your options. Click here to learn the details.

 

Let’s look at some specific questions sent in by DearMonty readers from across the country. Read more Q&A articles about the “Negotiating” stage of the Home Buying process:

  1. Why didn't you interview real estate appraisers about AMC's?

    Reader Question: Your recent article about why consumers cannot pick their appraiser was excellent, but only reviewed the process from the lender point of view. Residential appraisers hold a more educated viewpoint on appraisal management companies (AMC’s) than the lender as we do the work. My question is why didn’t you interview real estate appraisers? […]

    January 4, 2016
  2. A low appraisal was adjusted higher without my knowledge. I could have negoitated for more had I known. What can I do now?

    Reader Question: I had a low appraisal. I recently closed on a home for $180,000. I just learned the appraiser along with the agent and lender adjusted the appraisal from $176,000 to $179,000. They never informed me of the original price. Had I been informed, I could have negotiated for the $4,000. What can I do […]

    November 16, 2015
  3. Timing your retirement home purchase

    Reader ​Question: Monty, our current home, valued at $700,000+ has no mortgage, and we plan to purchase a replacement home for $650,000 or less. Because we are retired and our income is only $72,000, we do not qualify for a mortgage. We have failed to find a source for a ‘bridge loan.’ We do have […]

    June 1, 2014
  4. Mortgage loan approvals can be confusing

    Reader Question: We sold a home in August. We received a pre-approval letter from the buyer’s lender in September. With the buyers pre-approval, we purchased a home and put a $5,000 deposit down. The “old” home sale did not close as agreed because the lender dragged their feet investigating their financial standing. The “new” home […]

    October 22, 2013
  5. What should I know about a mortgage?

    Find the money first Shopping at a price point over your maximum loan qualification is just one reason the importance of mortgage pre-approval is not taken for granted. Critical first step Even before you start looking for a home, have a mortgage loan officer pre-approve you. It is a critical first step. Here are the […]

    June 20, 2011