As you can see in the video below, the amount of the down payment the size of the mortgage loan, the interest rate the length of the repayment term and payment schedule will all affect the size of your mortgage payment. In bullets:
all affect the size of your payment.
When you buy a home, you will be given a title to your new property. A title is a legal document that proves you own the property, and in most cases the title excludes other parties from making an ownership claim.
However, not all titles give you free and clear ownership of the property. Title insurance protects you and your lender from title disputes and other ownership issues that may arise. Here are just a few ways that title insurance can impact your mortgage.
How Title Insurance Protects A Lender
There are certain situations in which someone might put a lien on your property. New owners might see liens if the previous owner failed to pay the mortgage, if a contractor did work without the new owner’s consent or if the previous owner owes unpaid property taxes.
If these liens were not disclosed prior to the sale, a buyer could face a situation where a third party is making a claim to the property. Should the title by voided in court, the insurance policy would repay the lender the outstanding balance on the mortgage. The policy is valid until the mortgage loan is paid off.
When a homeowner refinances, it may be necessary to purchase a new title loan policy, as the new loan will technically pay off the old loan.
How Title Insurance Protects A Buyer
Title loan policies do not just protect the lender. In many cases, the lender will require the buyer’s title insurance to include an owner policy. This policy confirms that the buyer owns the title and that the title is free from defects.
The policy is in effect for as long as the buyer or his or her descendants own the house. Should a homeowner have his or her title challenged, the policy will cover all losses up to the amount of the original purchase price of the home.
How Much Does Title Insurance Cost?
The cost of title insurance can vary between locations. Sometimes, the purchase contract will stipulate that the seller is responsible for buying title insurance.
If this is the case, the buyer may pay nothing. However, it is common to pay on a sliding scale. Title insurance is usually a few hundred dollars for houses selling for under $500,000.
Title insurance is a great way to protect your investment in your home. It insures you against ownership disputes and liens, which means your house is truly yours. For more information about title insurance, contact a qualified mortgage professional in your area.
Building a tree house is a time honored tradition for many families. One of the benefits of having a yard is the ability to build a tree fort for your children.
If you’re planning to build a fun fort for your kids, here are seven steps to help you create the ultimate tree house.
The Ultimate Plan For The Perfect Playhouse
The best projects are often the most thought out. Sit down with your children and lay the plans for their tree house. Let them contribute their thoughts and ideas so they feel a part of the planning process.
Although you won’t need an engineering degree to build a quality tree fort, it’s important to calculate all the measurements and specifications of the build.
A Solid Foundation For Your Tree House
Prepare the location for your future tree house by trimming away any precarious branches or boughs on the tree you plan to build on. Ensure that your tree house will be well supported, and reinforce any questionable spots.
If your tree fort is being built from the ground up, make sure you’re working with a level foundation.
Have The Right Tools For The Job
Make sure you have all the tools you’ll need to construct your tree house. Power tools and construction equipment can be borrowed from friends and neighbors or rented from your local hardware store.
When the time comes to gather your building supplies, be creative and consider re-purposed supplies. These materials are less expensive and add character and charm. You can find recycled and salvaged items at various recycled construction supply companies and through online classifieds like Craigslist.
Construct Your Tree House With Confidence
When you’re constructing your tree house, make sure it’s structurally sound. Watch tutorials online – you’d be amazed at the things you can learn from watching YouTube videos!
Make sure to measure twice and cut once. Using the proper cutting tool for each cut will help you achieve cleaner, more precise cuts. Also make sure to obtain any permits that may be required for the project.
A Personalized Theme Encourages Creativity
Choose a theme that relates to your child. If they love fairies, use that as the inspiration for your design. Pirate forts and superhero lairs are perfect places to spark imaginative play and creativity.
Incorporate cannons, cupboards and ropes with pulleys to create a unique and fun space for your children to play.
A Colorful Paint Job Brightens The House
When the walls are up and the building is done, it will be time to choose paint colors. Bright colors are a great way to brighten and liven up an outdoor space.
You could even consider creating a mural. Choose something that fits with the theme. This is something that you and your child can do together, or that you can do on your own as an added surprise.
Perfecting Your Child’s Play Space
Once your tree house is built, it’s time to get it ready for play. Decorate the space with fun decor and functional items. Throw pillows and rugs can add color and personality to a child’s play space. Window coverings can be made from scrap fabric or bed sheets.
Creating a tree fort for your child is a memorable experience and a labor or love. A unique space that sparks imagination and nurtures creativity is a wonderful gift to give a child.
Too often, home buyers are disappointed when they find their dream home only to discover they are not able to get a mortgage to purchase the property. There are methods that potential buyers can use to ensure this does not happen to them. One of these options is to ensure you obtain a pre-qualification from your lender.
It is important to understand the difference between a pre-approval and a pre-qualification. While both are helpful, they do not carry the same weight.
What Are The Differences Between These Options?
A pre-qualification allows a borrower to determine how much money they may be able to borrow. For most borrowers, this allows them to start the house-hunting process with a mortgage amount in mind. Borrowers should understand, while the loan amount can be calculated, changes in interest rate as well as the borrowers credit are not evaluated in this process. In general, the lender will request specific information from the borrower including income and expenses as well as ask about their credit. None of this information is verified by the lender before sending a pre-qualification letter.
On the other hand, a pre-approval requires the borrower to provide a number of documents to the lender, typically the same documents borrowers need to apply for a loan. Oftentimes, this leads borrowers to speculate as to whether a pre-qualification is useful.
Why Pre-Qualification Helps
There are many valid reasons why potential homebuyers should ask about pre-qualifying for their mortgage. Some of these include:
Pre-qualifying for a loan can save a home buyer from being disappointed. There are few things that are more upsetting than finding a home you love only to discover you are not eligible for the loan you need in order to purchase that home.
If you’re contemplating a pre-qualification, call your trusted mortgage professional today for more information.
When you are purchasing a home, your broker may recommend you obtain a mortgage pre-approval before you find the home of your dreams.
There are some benefits to being pre-approved before you find a home, but oftentimes, people confuse pre-qualifications with pre-approvals.
So the question many buyers have is what exactly is a mortgage pre-approval?
In a nutshell, it’s when the lender provides you (the buyer) with a letter stating that your mortgage will be granted up to a specific dollar amount.
What Do I Need For Pre-Approval?
In order to obtain a pre-approval for your home purchase, you will have to provide your lender all of the same information you would need to show for qualifying for a mortgage.
This means providing tax returns, bank statements and other documents that prove your net worth, how much you have saved for your down payment and your current obligations.
What Conditions Are Attached To A Pre-Approval?
Generally speaking, a pre-approval does have some caveats attached to it. Typically, you can expect to see some of the following clauses in a pre-approval letter:
Getting pre-approved for a home mortgage may allow you more negotiation power with sellers and may help streamline the entire loan process.
It is important however to keep in mind there are still things that may have a negative impact on actually getting the loan.
It is important to make sure you keep in contact with the lender, especially if interest rates increase or your employment status changes after you are pre-approved.