Daybreak Publishers

Let’s say you are just beginning the home buying process and have not yet hired a real estate agent to help you with your search. You drive by a house that you absolutely must see. You jot down the name and number of the real estate agent that is prominently displayed on the “for sale” sign. Hang on a second. Before you pick up the phone, read on.

Learn six ways FHA home loans differ from conventional mortgages. Learn about maximum purchase price, minimum down payment, co-borrowers, debt-to-income-ratio, mortgage insurance, and credit score for each loan type.

Look at the differences between being pre-qualified for a mortgage loan and getting a mortgage pre-approval. Learn how they both differ from a full approval. View the documentation you will need for both and see how a pre-approval will give you more bargaining power with home sellers.

A detailed look at how to calculate your debt-to-income ratio. Learn the definition of debt-to-income and exactly what factors are used. See how your mortgage lender’s debt-to-income calculation may differ from your own. View the ratio limits for each mortgage type available.

An important look at how to become a responsible first time home buyer. Learn how the amount of money a mortgage lender offers you is different from how much you can truly afford. See how lenders come up with their numbers and why and when you should run your own.

Take a look at the potential pitfalls of buying a starter home vs a forever home. See how the home’s perceived value, closing costs, pre-payment penalties, home renovations, resale values, and a volatile housing market can make buying a starter home a risky idea.

Most new home buyers will hire a real estate professional to assist them through the home buying process. Here we will discuss the different levels of training, knowledge, certification and experience of real estate agents, real estate brokers and Realtors (members of the National Association of Realtors).

During your home buying travels, you may have seen the letter combination of P-I-T-I or heard it spoken as “pity”. PITI represents four individual components which together make up your monthly mortgage payment. P is for Principal Mortgage principal is the actual dollar amount you will borrow from your lender.

For people over the age of 50, The American Association for Retired Persons provides a wealth of information and resources including an entire section devoted to reverse mortgages. You can download a booklet covering the basics and the different mortgage types available to you. The booklet is written simple language with supporting graphics and charts. The site also provides links to counselors, originators, lawyers, financing planners and other reverse mortgage professionals.

An in-depth look at the two types of online mortgage websites. Learn the differences between mortgage lead generators (ex. LendingTree) and aggregation sites (ex. Bankrate).