An agent who is authorized to open and run his/her own agency. All real estate offices have one principal broker.

If you’re prequalified it means that you POTENTIALLY could get a loan for the amount stated to you, assuming that all of the information you provide to the bank is accurate and true. This is not as strong as a preapproval.

If you’re preapproved, it means that you have undergone the extensive financial background check, which includes looking at your credit history, previous tax returns and verifying your employment – and the lender is willing to give you a loan, basically meaning you’re approved!

You will usually be provided an accurate figure which shows the maximum amount that you are approved for.  Most sellers prefer buyers that have been preapproved because they know that there will not be any problems with the purchase of their home.

Title insurance is insurance that protects the lender and buyer against any losses incurred from disputes over the title of a property.

If your taxes are paid through an escrow account set up when you purchased your home, the taxes and most likely the insurance will be paid by the mortgage holder. Tax authorities may mail an informational copy of the real estate tax statement to the homeowner in addition to the mortgage holder.  However, in some cases,  there are statements tax authorities do not forward to the mortgage holder. This can happen if your closing happens close to tax time.  If you receive a statement for any of the following, please forward it to your mortgage holder.

• delinquent real estate taxes
• supplemental or additional real estate taxes
• special assessments
• if the tax authority will not honor a bill request from another party.

The easiest way to avoid PMI is by putting 20% down payment; however, PMI can also be avoided if you only have 5% or 10% for the down payment. The way to accomplish this is via a first and second mortgage combination commonly referred to as 80/10/10^s or 80/15/5^s.

These two methods combine a first mortgage lien for 80% of the home price with a second mortgage lien for either 10% or 15% of the home price leaving the remaining 5% or 10% as the down payment. Because the first lien is at the magical 80% loan=to-value, there is no PMI required, even though a second mortgage is being |piggybacked| onto the financing thus allowing for the lessor down payment.

While the second lien terms are not as attractive as first lien rates, the second mortgage is still home mortgage interest and thus deductible as such on your federal tax return where PMI is insurance and offers no deduction.

Most mortgages originated today calculate interest in arrears, unlike consumer loans which calculate interest to the date of payment receipt. As an example, when borrowers pay their February mortgage payments, they are paying the January interest. This method of calculating interest is based on a 360 day year in which each month has 30 days.

Title insurance is insurance that protects the lender and buyer against any losses incurred from disputes over the title of a property.

Title insurance is insurance that protects the lender and buyer against any losses incurred from disputes over the title of a property.

Many tax authorities will mail an informational copy of the real estate tax statement to the homeowner in addition to the mortgage holder.  However, there are some statements tax authorities do not forward to the mortgage holder, and in special cases the mortgage holder will need your assistance.  If you receive a statement for any of the following please forward to your mortgage holder:

• delinquent real estate taxes
• supplemental or additional real estate taxes
• special assessments
• if the tax authority will not honor a bill request from another party.

Most mortgages originated today calculate interest in arrears, unlike consumer loans which calculate interest to the date of payment receipt. As an example, when borrowers pay their February mortgage payments, they are paying the January interest. This method of calculating interest is based on a 360 day year in which each month has 30 days.