27 Mar 2025
By Aadil Nathoo

Temporary and Permanent Mortgage Buydowns: How They Work

Mortgage, ,
When securing a mortgage, borrowers have the option to reduce their interest rate through a mortgage buydown. This strategy can help lower monthly payments, either temporarily or permanently, depending on the type of buydown chosen. 1. Temporary Mortgage Buydown A temporary buydown allows the borrower to pay a lower interest rate for the initial years of the mortgage, with the rate gradually increasing to the original agreed-upon rate. Common Structures: A 2-1 buydown reduces the interest rate by 2% in the first year and 1% in the second year before returning to the full rate in the third year. How…
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26 Mar 2025
By Aadil Nathoo

The Difference Between FICO Score and Credit Score: How It Affects Your Mortgage and Rates

Mortgage, ,
When applying for a mortgage, your creditworthiness plays a significant role in determining your loan approval and interest rates. Two commonly referenced terms are FICO score and credit score, which are often used interchangeably but have distinct differences. 1. What is a Credit Score? A credit score is a broad term that refers to a numerical representation of a consumer's credit risk. It is calculated based on various scoring models, including FICO and VantageScore, and is derived from credit report data such as payment history, credit utilization, and length of credit history. 2. What is a FICO Score? A FICO…
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25 Mar 2025
By Aadil Nathoo

Navigating Mortgages as a Self-Employed Professional

Mortgage, ,
Securing a mortgage as a self-employed professional can be more challenging than for traditional W-2 employees, but with the right preparation and documentation, it is entirely achievable. Here's a guide to help you navigate the process: Document Your IncomeLenders need to assess your financial stability and income consistency. To do this, you'll need to provide: Tax returns for the past two years Profit and loss statements Bank statements Client invoices or contracts Consistency is key, so showing steady or increasing income over time strengthens your application. Manage Your Tax ReturnsMany self-employed individuals minimize their taxable income through deductions, but this…
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24 Mar 2025
By Aadil Nathoo

What’s Ahead For Mortgage Rates This Week – March 24th, 2025

Financial Reports, ,
The previous week had the Federal Reserve making their first rate decision since the Trump administration had taken office. With many uncertainties about the current direction of things, the Federal Reserve had decided there would not be any change necessary to the current rates. Stating that the current inflation and economic conditions have largely been a result of the Trump administration’s policies on tariffs. Chairman Powell has been strongly dovish at this point, stating they would need to “see how things actually work out.” There were a slew of other minor data releases but none were far reaching in their…
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21 Mar 2025
By Aadil Nathoo

Mortgage Options for Non-U.S. Citizens

Mortgage Tips, ,
Purchasing a home in the U.S. as a non-U.S. citizen is entirely possible, but the process comes with unique requirements and considerations. Whether you are a permanent resident, temporary visa holder, or foreign national, understanding the available mortgage options can help you navigate the path to homeownership successfully. Can Non-U.S. Citizens Qualify for a Mortgage? Yes, many lenders offer mortgage options for non-U.S. citizens. However, eligibility is influenced by factors such as residency status, credit history, and income verification. The type of residency you hold will determine the loan programs available to you and the specific documentation required. Mortgage Options…
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