The Ultimate Homebuyer’s Guide: Budgeting & Mortgages
Everything you need to know about setting a budget and getting a mortgage for your new home. After you’ve saved, cleaned up your credit, and done your initial research and set some guidelines for your search, you need to start thinking about financing. It might sound like you’re putting the cart before the horse, but understanding the steps to getting a mortgage and getting a pre-approval letter will give you a significant advantage over other buyers. Many sellers won’t even accept offers from buyers who aren’t pre-approved.
PMI Mortgage Insurance: Who Are The 7 U.S. Mortgage Insurers?
The 7 US mortgage insurers that provide private mortgage insurance (PMI) to lenders. Private mortgage insurance (PMI) insures the lender, not you when you buy a home with a down payment of less than 20 percent. It protects their interest in the event you default on your loan and is a requirement by lenders on loans provided to borrowers, with less than 20 percent as a down payment, toward the purchase of a home. So, essentially you are paying an insurer to protect the banks interest on your mortgage if your down payment is less than 20 percent because they are the ones taking the risk on your viability as a borrower.