01 May 2025
By Tawnya King

Can I Roll Closing Costs Into My Mortgage to Reduce My Upfront Expenses?

Mortgage Tips
Buying a home is an exciting milestone, but it also comes with a range of upfront costs that can add up quickly. One of the biggest financial concerns for many homebuyers is closing costs. These expenses, which typically range from 2 to 5 percent of the home’s purchase price, can put a strain on your budget. If you are wondering whether you can roll your closing costs into your mortgage to reduce your upfront expenses, the answer depends on the type of loan you are using and your lender’s guidelines. Understanding your options can help you make the best financial…
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30 Apr 2025
By Tawnya King

Should You Use a 401(k) for a Down Payment?

Mortgage Tips
Buying a home is a major financial milestone, and saving for a down payment can be one of the biggest challenges. If you’re struggling to gather the necessary funds, you might be considering using your 401(k) retirement savings to cover the cost. While this option is available, it’s essential to weigh the potential benefits and risks before making a decision. How Can You Use a 401(k) for a Down Payment?There are two primary ways to access funds from your 401(k) for a home purchase: 401(k) LoanA 401(k) loan allows you to borrow money from your retirement savings and pay it…
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29 Apr 2025
By Tawnya King

What Percentage of Your Income Should Go Toward a Mortgage?

Mortgage Tips
When buying a home, one of the most critical financial decisions is determining how much of your income should go toward your mortgage. Striking the right balance ensures that you can comfortably afford your home without stretching your budget too thin. Lenders use various guidelines to help buyers determine affordability, but personal financial goals and lifestyle should also factor into the decision.General Mortgage Affordability GuidelinesA common rule of thumb is the 28/36 rule, which lenders often use when evaluating mortgage applications: 28% Rule: Your monthly mortgage payment (including principal, interest, property taxes, and homeowners’ insurance) should not exceed 28% of…
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23 Apr 2025
By Tawnya King

How Child Support and Alimony Payments Affect Mortgage Qualification

Mortgage Tips
When applying for a mortgage, lenders carefully assess your income and debt to determine your ability to repay the loan. If you receive or pay child support or alimony, these payments can significantly impact your mortgage qualification. Understanding how they factor into your debt-to-income (DTI) ratio, income calculation, and overall loan approval process can help you better prepare for home financing. How Lenders View Child Support and Alimony Lenders evaluate child support and alimony payments in two key ways: If You Receive Child Support or Alimony—These payments may be considered additional income, helping you qualify for a higher loan amount.…
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11 Apr 2025
By Tawnya King

The Top 3 Home Loan Programs First-Time Buyers Should Consider

Mortgage Tips
Buying your first home is an exciting milestone, but navigating the mortgage process can feel overwhelming. With so many loan options available, it is important to choose one that best suits your financial situation and long-term goals. Here are three of the most popular home loan programs that first-time buyers should consider. 1. FHA Loan: Ideal for Buyers with Lower Credit Scores and Small Down Payments The Federal Housing Administration (FHA) loan is a popular choice for first-time buyers because of its flexible requirements. FHA loans allow for lower credit scores and smaller down payments, making homeownership more accessible. Down…
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10 Apr 2025
By Tawnya King

Why Your Mortgage Rate Isn’t the Same as the One Advertised Online

Mortgage Tips
Shopping for a mortgage can be exciting, but it can also be confusing when you see a low advertised rate online, only to be quoted a different rate when you apply. While this can be frustrating, there are several reasons why your actual mortgage rate may differ from what you initially expected. The good news is that understanding these factors can help you make informed decisions and secure the best possible rate for your financial situation. Personal Financial Profile Matters Advertised mortgage rates are typically based on ideal borrower profiles—those with excellent credit, low debt-to-income ratios, and substantial down payments.…
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09 Apr 2025
By Tawnya King

The Airbnb Factor and How Renting Out a Room Can Help You Qualify for a Mortgage

Mortgage Tips
With rising home prices and strict lending requirements, many aspiring homeowners are looking for creative ways to strengthen their mortgage applications. One potential game-changer? Renting out a room on Airbnb or another short-term rental platform. This additional income stream could help you qualify for a mortgage and make homeownership more affordable. How Lenders View Rental Income Lenders primarily assess your mortgage application based on your income, credit score, debt-to-income (DTI) ratio, and financial stability. While traditional employment income is the gold standard, many lenders are now recognizing rental income as a legitimate source of earnings. However, how they factor in…
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