– USDA RURAL DEVELOPMENT LOANS OFFER 100% FINANCING FOR SURROUNDING AREAS OF DFW!!! –

Over the past several years, the Government and the Mortgage Industry as a whole has continuously tightened the rules and regulations when it comes to buying a home.  It has gotten to the point where even people with stellar credit and a solid borrowing history still need a hefty down payment before they can purchase a new house. Fortunately though, there is a new program available from the United States Department of Agriculture that offers 100% financing for people that live (or are looking to live) in rural areas. Why would they do this?  Is it too good to be true?  Well, long story short, the government offers the option of “zero money down” so that people who live in rural areas (who may have always been renters) can finally have access to affordable mortgages. Consequently, this type of loan is often the best scenario for people who live in the country and want to find a place they can call home.  Another amazing feature of this loan is that 100% of repairs that ...

– ALL ABOUT PRIVATE MORTGAGE INSURANCE (PMI) -

If you find yourself in the market for a new home, it is obvious that you will need some money available to use as a down payment when you get to closing. As far as the industry goes, there is an age old adage that says a new home buyer should have at least 20% in reserves to pay when they get their new home. But why 20%? Isn't that a tad high? Well, the reason for this is Private Mortgage Insurance, or PMI, and if it ends up that you are unable to make a down payment of at least 20% of the sale price, you'll be required to obtain private mortgage insurance from your lender. But what is PMI, and why are you paying for it? In the most basic sense, PMI protects the lender in the event that you default on your mortgage. Unfortunately though, it doesn't protect you from anything. How much you will pay in PMI charges will vary depending on the size of your loan, the size of your down payment, and even the lender you use. Generally, the charge is equal to about one-half of one percent.

- CLOSING COSTS EXPLAINED -

When it comes to purchasing a house there is one thing that will shock a first-time home buyer more than anything, and that is the total cost associated with closing a loan. To be totally honest, closing costs can be quite earth-shaking to someone who isn't ready. If you are planning to buy a house anytime soon it is strongly recommended that you get your budget in order ahead of time. Some of these costs are charged by the mortgage company itself, while others are payable to various parties. Here's a little breakdown on some of the fees you may be charged, and who's getting your money. One of the first fees you're going to run into is the Application Fee. This is charged when you fill out your initial application (the 1003) and is non-refundable. This covers the costs your lender pays in regard to paperwork, or maybe even your credit report when you got pre-approved. Next is the Loan Origination Fee, which is charged by the lender to cover all the costs that are associated with processing your loan. This also covers their administrative costs. This fee is generally ...