Can I get home loan rates without running my credit?

First, you should be aware that mortgage loan officers are primarily salespeople (including your humble question-answerer). An essential part of selling is getting the other person to commit to moving forward. From the salesperson’s standpoint, consent to run a credit report is the first step in that process. Many loan officers will tell callers shopping … Read more

Is it worth buying down interest rate points on a home loan?

It depends on the size of the mortgage, the points purchased, the reduction in interest rate for each point, and the time you plan on holding the mortgage. For example, if you have a 30-year fixed mortgage in the amount of $250,000 with an interest rate of 4%, your monthly payment will be $1,193.54. Let’s … Read more

Can I get a loan from my 401K to use as a down payment towards a home loan?

Technically, YES. Technically, however, doesn’t make something a good idea. Here’s the deal. In my observation, a 401(k) loan is a high-risk proposition. I’ve rarely seen them work out well, to the point that when I advise a client on setting one up I recommend that loans be disallowed. That at least keeps the employer … Read more

I have approved home equity loan. Can I use this loan to buy another property?

You bet. And that is a good strategy. Once you find a property you want to buy you can make an “all cash” offer. This is attractive and motivating to the seller because they know that you have the money and you can close on the property quickly. They see $$ in their eyes. Also, … Read more