The Concepts of “Escrow” Explained!

The Concepts of “Escrow” Explained!

In the real estate industry, the term “escrow” can refer to two distinct concepts with each an important part of the property buying process. If you are involved in buying a home, know the difference between “being in escrow” for a real estate...
Escrow and Loan Assumptions

Escrow and Loan Assumptions

Understanding the mechanics of loan assumptions and the role of escrow is crucial for home purchasers when navigating a transaction involving a conventional or VA loan assumption. A loan assumption occurs when a buyer takes over the seller’s existing mortgage...

What Is The Debt-To-Income Ratio (DTI)?

Measuring your existing debts against your existing income is one part of a lender’s required assessment of your ability to repay a loan. Like the video says:  debts are existing financial commitments; a car payment is a debt a...

What Does Ability To Repay Mean?

What are the “Ability to repay” rules about? In a nutshell, as this video shows, new laws require lenders to make a good-faith assessment of a borrower’s capacity to pay back their loan over time. It’s a longer-term view that goes...

What Is A Qualified Mortgage?

As this video explains,  Federal laws put into effect in 2014 and  supervised by the Consumer Financial Protection Bureau define lending practices and loan terms for a new category called “Qualified Mortgages.” They provide stable loan...

What Is Equity?

Equity is the value YOU own in property such as a house. It’s the difference between what’s OWED and what the property is WORTH in the current market. The example this video shows – you have a house worth $300,000 today and you owe the bank $200,000....