10 Dec 2024
By Aadil Nathoo

Will Refinancing Impact Your Credit?

Credit Scoring, ,
Refinancing a mortgage can provide significant financial benefits, such as lowering your interest rate or accessing home equity. However, it’s important to understand how the process may temporarily affect your credit score. Here’s an in-depth look at the potential short- and long-term effects of refinancing on your credit, along with tips for minimizing any negative impacts. What Does It Mean to Refinance a Mortgage? When you refinance, you replace your existing mortgage with a new loan. Homeowners refinance for a variety of reasons, including: Lowering their interest rate Changing the loan term (e.g., from 30 to 15 years or vice…
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03 Dec 2024
By Aadil Nathoo

Steps to Prepare for Future Home Financing and Year-End Financial Checklist

Home Buyer Tips, ,
As the year draws to a close, it’s the perfect time to take a step back and review your financial health, especially if you plan to purchase a home next year. Whether you’re a first-time buyer or looking to upgrade, proper preparation can make all the difference when securing a mortgage with favorable terms. Here's a comprehensive checklist to ensure you’re financially ready for home financing in the year ahead. 1. Review Your Credit Score Your credit score is one of the most important factors lenders will consider when deciding whether to approve your mortgage application and what interest rate…
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27 Nov 2024
By Aadil Nathoo

Why Tax Prep is Crucial for Mortgage Applicants

Taxes, ,
When you are preparing to buy a home, tax season should be on your radar as it plays a significant role in your mortgage application process. Whether you're a first-time homebuyer or a seasoned investor, how you file your taxes can have a direct impact on the mortgage you qualify for. Understanding this connection can help streamline the process and potentially save you money on your loan. How Tax Returns Impact Your Mortgage Application The income reported on your tax returns is one of the most important factors in determining how much you can borrow for a home. For traditional…
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13 Nov 2024
By Aadil Nathoo

Understanding the Components of Your Monthly Mortgage Payment

Mortgage, ,
If you’re new to homeownership, you might be wondering exactly what makes up the mortgage payment you’re sending each month. Beyond just the loan amount itself, there are several different components that all factor into your monthly mortgage payment. Understanding these components not only helps you see where your money is going but can also assist you in optimizing your mortgage and possibly securing a better rate. 1. Principal The principal is the amount of money you originally borrowed to purchase the home. It represents the bulk of your loan balance and is paid down over the term of your…
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06 Nov 2024
By Aadil Nathoo

Understanding an Appraisal Contingency in Your Home Purchase

Mortgage Tips, ,
When buying a home, you have the option to include contingencies in your purchase contract. These protect you by setting certain conditions that must be met for the contract to remain valid. If any contingency isn’t satisfied, you can back out of the sale without penalty. Three main types of contingencies help protect buyers: appraisal, financing, and home inspection contingencies. Here's how each can impact your home buying experience. The Appraisal Contingency An appraisal contingency allows you to step back from the sale if the property appraises for less than the agreed purchase price. Since lenders typically only loan up…
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