MORTGAGE EDUCATION
In today's digital world, it's easier than ever to apply for a mortgage online. A few clicks, some basic information, and—boom—you’ve started the process. But is that really the best way to go about one of the biggest financial decisions of your life?
The short answer: No.
Sure, online applications are convenient, but when it comes to something as important as the largest investment you and your family will ever make in buying a home, convenience shouldn't replace clarity, guidance, and confidence. Here’s why applying in person (or at least over a video or phone call) is always the right move.
You Don’t Know What You Don’t Know
Online applications are designed to be simple. And while that sounds great, mortgages aren’t one-size-fits-all type of process. A website won’t ask follow-up questions to uncover potential savings, better loan options, or strategies to improve your approval odds.
When you speak with a real person, (that’s where I come in) we can dive deeper into your financial situation, goals, and concerns—ensuring you’re making the best possible decision for your family and for your particular situation. Read More...
DTI
If you are in the homebuying process, you have undoubtedly heard the term DTI over and over again. What is a DTI and why is does it matter? DTI stands for Debt-To-Income Ratio. The DTI is one of the most important ways a lender analyzes your application for credit. A DTI is not just for mortgages. A DTI analysis is completed for Automobile Loans, Credit Card Applications and Mortgage applications. When you apply for a mortgage, auto loan, credit card or other types of loan, banks and other lenders calculate your DTI to help determine if you can afford more debt. In lenders terms do you have the capacity to pay for new credit? How much more debt can you afford?....Read More
Mortgage Rates Hit a 40-Year High? Would a Buydown Help?
Over the past two-years the rapid increase in mortgage rates shocked potential homebuyers. The average 30-Year Mortgage Rate increased from 3.22% in January 2022 to a 40-Year high of 7.08% by the end of October 2022. The spike in mortgage rates basically doubled the cost of homeownership. When mortgage rates are high, borrowers will look for ways to lower their monthly payment. One of the options available to help you reduce your mortgage rate and monthly mortgage payment is a buydown. A buydown may be the perfect way to make your monthly mortgage payment more.... Read More
What is Home Equity?
In an economic climate plagued by rising inflation and disrupted stock market performance, many of FDM’s clients have found themselves looking for more (and sometimes, detrimental) ways to make ends meet. While many have smartly leveraged the equity in the home, others have relied on credit cards and personal loans. As we all know, taking on more consumer debt to pay off existing consumer debt is akin to “robbing Peter to pay Paul.”
Today’s homeowners have an important choice to make- Through which avenue or vehicle are they going to position themselves to overcome these tough economic times, and many are simply making the wrong decision. In this post, we will break down what home equity is and how to leverage those funds which still maintaining an excellent credit profile and maximizing tax savings... Read More
Secrets of a Credit Score!
Everyday we hear about Credit Scores on the news, radio, on line and on tv. We see ads for Credit Karma, Experian Boost, Free Credit Report.com. and others. We hear a lot of noise about Credit Scores, but what is a Credit Score and why does It matter? Many of us know if you are buying a car, applying for a credit card or buying a home Credit Scores matter. Did you know that your Credit Score impacts car insurance, and a poor Credit Score may even hurt your search for a new job?
Your Credit Score helps financial institutions determine your overall credit situation. A Credit Score helps insurance companies, and employers determine your judgment and sense of responsibility. Bad credit can indicate irresponsible behaviors. If your Credit Score is too low and you have poor credit, you will pay higher interest rates and receive unfavorable terms from lenders. You even may be denied the products and loan programs you desire.... Read More
To Lock or Not to Lock that Mortgage Rate!
One of the most pressing issues when applying for a mortgage is when do I lock in my mortgage rate? Rates go up. Then rates go down. When is the right time to lock?
When it comes to “timing the market” the mortgage market is just like the stock market: “The odds that you will achieve long-term success by actively trading or timing the market round to zero” Morgan Housel. The reality is trying to time the market according to Warren Buffet is “Impossible and stupid.” Where does that leave us when applying for a mortgage?... Read More
Applying for a Mortgage
Buying Your First Home, or Your fifth? The Game Has Changed, Yet The Rules of Engagement Remain The Same.
Review your credit, and take steps as needed to elevate to “Mortgage-Ready Status”
Long before you start your search for your right (or right NOW!) home, it’s always advised to do a deep dive into your current credit status.....Read More
The Power of Homeownership: A Path to Independence!
Here at Fidelity Direct Mortgage, we believe that owning a home is more than just a financial investment; it is a symbol of independence and security. For many of our clients, the journey to homeownership symbolizes freedom, stability, and a sense of accomplishment. There are several different dimensions in which owning a home contributes to independence, as well as exploring the financial, emotional, social and psychological aspects.... Read More
Home Purchase Basics
Congratulations on your decision to buy a new home! There are many important things to consider throughout the process, especially if you're a first-time homebuyer. Here's some information that will keep you on track... Read More
Get Pre-Approved
Are you shopping for your new home? Many lenders offer a quick Pre-Qualification, basically a review of your credit report and stated income to give you an estimated loan amount. This does not provide a firm loan commitment allowing you to shop in confidence. Read More
Application Steps
The first step in obtaining a loan is to determine how much money you can borrow. In case of buying a home, you should determine how much home you can afford even before you begin looking. By answering a few simple questions, we will calculate your buying power, based on standard lender guidelines. Read More
10 Do Nots
Getting a Mortgage Loan is all about your ability to repay that loan. Even if you have a preapproval offer from a Lender it is based on an evaluation of your credit, income, debt and your assets (If you are buying a new home because you are getting married remember your spouse's credit, income, debt and assets also affect the final approval). Read More
Mortgage Glossary
Mortgage Terminology can be confusing. Do not let the terminology bog you down. Here is a list of all the terms that may be used during your mortgage process. Read More