Category: Homeownership Tips

Unlocking the Power of Community Home Investment Programs (CHIPs)

Chips, chips, chips. You keep hearing that term all over our website. But what does it mean? Are we talking about potato chips? Microchips? Neither!

National Homeownership Month: What It Means, Why It Matters, and How You Can Join In

Every June, Americans celebrate National Homeownership Month, a time to recognize the value of owning a home and to support those pursuing the dream of homeownership, which is still a core part of the American Dream.

What are Closing Costs?

Are you surprised that closing costs are also included in a mortgage and the down payment? What are these? How much are they? Can you reduce them?

Closing costs are the fees you refund a lender for processing the closing of your mortgage loan. As financial companies pay many entities to assess the property and your finances. They may sum up to 2% to 6% of the home’s sale price. And yes, there are ways to reduce them.

What are Reserves?

Did you have to save for reserves when applying for a mortgage loan? Why do you think lenders need it?

Reserves in a mortgage are your emergency funds to cover a period of payments. Many factors affect if a lender will ask for it and for how many months.

What is a Down Payment?

If you have finally considered applying for a mortgage loan, you may have heard of the word down payment. What does it mean? How much do you have to pay?

A down payment is a percentage of a home’s sale price you need to pay upfront. Mortgage lenders need this before they lend you the remaining cost of a house to buy it.

Let’s say, you are looking at a house worth $200,000 in cash. A mortgage lender pays whatever’s left after you settle the down payment of up to $40,000 so you can buy the house.

Unfortunately, $40,000 is a lot of money for many people. That is why down payment assistance (DPA) programs exist to help homebuyers afford it.

What is a Mortgage? : Ultimate Guide

Can you imagine buying a $200,000 house by paying only $10,000 upfront? With a mortgage, you can make your homeownership dreams come true.

A mortgage is a type of loan that finances homes and lands. It starts with applying to a mortgage lender. If this company approves it, they will pay most of the property’s sale price upfront.