Category: Financing

When you’re ready to buy a home, finding the perfect property is only part of the process. Having the right mortgage approval in place is just as important. Most homebuyers are familiar with pre-qualification and pre-approval, but there’s a third level of mortgage approval that can make your offer even stronger: becoming a Certified Buyer. Understanding how these three options compare can help you shop with confidence, strengthen your offer, and make the homebuying process smoother from start to finish. 1. Pre-Qualification: The Starting Point Think of mortgage pre-qualification as an informal first look at your finances. How it works:...

For many Northern Virginia homeowners, the idea of moving into a larger home, a different neighborhood, or a property that better fits their lifestyle is exciting. Figuring out whether to sell your current home before buying your next one can be a little more complicated. You may have significant equity in your current home but need those proceeds for your next down payment. You may also have a low mortgage rate that makes selling harder to consider. And, understandably, you probably want to avoid carrying two mortgage payments any longer than necessary. So, should you sell first and then buy,...

If you’ve owned your home for several years, there’s a good chance you’ve built up a meaningful amount of home equity along the way. Home equity is the difference between your home’s current market value and the amount you still owe on your mortgage. For many homeowners, that equity represents one of their largest financial assets. And depending on your goals, there may be ways to put it to work without selling your home. Wondering how to use home equity wisely? Here are three options worth considering. 1. Invest in Home Improvements One of the most common ways to use...

Do not let outdated information keep you from becoming a homeowner. Buying a home is one of the biggest financial decisions most people will make. Unfortunately, many prospective buyers enter the process relying on advice they have heard from friends, family members, or social media that may be incomplete or outdated. As a mortgage professional, I often speak with buyers who assume they need more savings, better credit, or the perfect interest rate before they can even consider purchasing a home. In many cases, they are surprised to discover that they may have more options than they realized. Here are...

When you’re shopping for a mortgage, your lender may ask whether you’d like to “buy discount points.” It’s a common option, but many homebuyers aren’t exactly sure what it means — or whether it’s worth the extra upfront cost. The answer depends on your financial goals, your available cash, and how long you expect to keep the mortgage. What Are Mortgage Discount Points? Mortgage discount points are upfront fees paid at closing in exchange for a lower interest rate on your loan. Typically, one discount point costs 1% of the loan amount. For example, on a $400,000 mortgage, one point...

When buyers begin shopping for a home, one of the first questions they ask is, “What will my monthly payment be?” While that seems like a simple question, many buyers are surprised to learn that a mortgage payment is made up of several different components – not just the amount borrowed for the home. Understanding what makes up a mortgage payment can help you budget more accurately, compare homes more effectively, and avoid surprises during the home buying process. Most mortgage payments include four main components, commonly referred to as PITI: Principal The principal is the portion of your payment...