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Fannie Mae, a government-sponsored enterprise, has rules about certain assets when you’re getting a mortgage. Assets include the money and property you own. Understanding these rules helps lenders decide if you can afford a mortgage. When you apply for a mortgage, the system used by Fannie Mae (known as DU)…
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When you apply for a mortgage and it is checked by DU (which stands for Desktop Underwriter, a system used to evaluate your loan), the system looks at your easy-to-access (liquid) assets. Liquid assets are funds you can quickly turn into cash. DU checks these to help decide if you…
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When buying a home, if you are also a real estate agent and you’re earning a commission from selling the home you’re buying, this commission can be used as part of your down payment and closing costs. This is what we call “earned real estate commission.” To do this, you…
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Lenders can initially decide if a borrower might be able to afford their closing costs based on the borrower’s expected savings. However, before the loan is finalized, the lender must check to make sure the borrower has actually saved this money. When figuring out how much a borrower is expected…
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When you’re buying a home, you might need money for a down payment, closing costs (the fees associated with finalizing the mortgage), and reserves (extra money set aside to show you can keep paying your mortgage in tough times). One place you can get this money is from the cash…
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If you’re buying a home and need money for the down payment, closing costs, or reserves, you can sell something you own, like a car, jewelry, or electronics, to help cover these expenses. However, the person buying this item from you should not be involved in your property purchase or…
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The topic focuses on personal unsecured loans and their role in buying a home. Personal unsecured loans are types of loans that don’t require you to put up any property or assets as security. This means if you fail to pay back the loan, the lender can’t automatically take your…
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When you’re applying for a home loan, there are certain fees you need to pay early on. These can include fees for securing your interest rate (lock-in fees), the initial loan processing fee (origination fee), a commitment fee showing the lender’s commitment to the loan, a fee for checking your…
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When you’re buying a home, you might need money for the down payment or to cover closing costs. One way to get this money is by borrowing it, as long as you promise something you own as security for the loan. This means if for some reason you can’t pay…
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A bridge or swing loan is a type of loan that can help you buy a new home before you sell your current one. Think of it as a financial “bridge” that spans the gap between purchasing your new home and selling your old one. When you use a bridge…