Buying a second home can pose some challenges you don't face when buying a home for your primary residence. The mortgage interest rates are higher. Lenders will scrutinize your credit reports and income documentation very closely to ensure you have sufficient income to meet all your obligations. The property itself may be difficult to qualify for a mortgage.
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Interest rates, like summer temperatures, have been rising. Many expect them to continue to do so, after a long run of historically low rates. As a result, many borrowers are looking to convert their HELOCs to a traditional mortgage or other type of fixed-rate loan.
There are a lot of advantages to refinancing your mortgage. But what about the downsides? Are there any disadvantages borrowers need to be aware of before taking out that new loan?
Income verification is a basic part of applying for a home loan. But there's more to providing proof of income than just handing over a couple of paystubs. You need to be able to show your earnings are stable. When making a down payment, you may have to be able to show the source of that money as well.
Want to get the best deal on a home? Pay cash. Want to outbid a bunch of other buyers seeking the same property? Pay cash. Want to buy a fixer-upper that the bank's leery of financing? Pay cash.
Like many types of loans that were easy to get years ago during the housing crisis, home equity loans and other loans to cash out on equity in rental properties were relatively easy to get. Now, not so much.
Your brother got a free ride for college on a basketball scholarship, and your best friend has a hefty inheritance. Will you have to attend the local community college, or just wash a lot of cars to pay for the university of your choice? Don't worry…no matter your situation, there are loans to fit your needs.
It's not uncommon for home buyers to get cold feet when it's time to sign the papers that make their mortgage loan official. Taking on a monthly mortgage payment is a serious financial responsibility. Seeing all that new debt on paper can make even the calmest home buyer sweat a bit.