Framework Homebuyer Course

We can deduct mortgage closing costs and earn tax credits on upgrades such as solar panels

Equity is the amount of ownership a homeowner has in their home. You subtract the balance on the mortgage from the current market value.

When you fail to meet financial obligations

It's any person or company to whom money is owed

If you have accounts that have been open a long time, that helps your credit. If you have inactive accounts, that could hurt your credit. Also, opening too many accounts in a short time can hurt your score.

850

You can get your credit report for free once a year. You can get your credit score for a fee.

Pay your bills on time

7 years, and bankruptcy for 7-10 years

No, as long as you do it from www.annualcreditreport.com

You can purchase it from one of the credit reporting bureaus.

Fixed expenses occur regularly without changing much (e.g. rent, utilities). Flexible expenses are discretionary, such as clothes, Starbucks, etc. A periodic expense is a expense that might be paid quarterly or annually, such as car insurance.

You take your monthly income minus fixed expenses

They provide guidance throughout the home buying process

They review the offer you make, and helps to resolve issues like title insurance and environmental laws.

Put X dollars into savings every paycheck, put your tax refund or a raise into your savings.

Someone who scrutinizes and approves your loan on behalf of the lender.

Someone who helps you shop for and compare loans between different lenders

It's a written contract signed by the buyer and seller specifying the terms and conditions of the sold property.

A real estate agent who just helps complete the purchase agreement and doesn't represent you directly.

The amount you borrowed from the lender

It used to be by hand and could take 2 months. Now, there are automated underwriting systems that make it so they can make a decision in a few days.

This is sometimes called an "escrow officer". They represent the title company and facilitate the final transaction. They conduct the closing (although the real estate attorney might do this).

Payments are spread out over a set period of time: the term of the loan (30 years in our case)

It's a special account used to collect and hold monthly payments for property taxes and insurance. These payments are folded into your monthly mortgage payment. When the expenses come due, the lender pays them for you from the escrow account. It's like having a dedicated savings account without the interest.

Prequalification gives you an informal estimate of how much you can borrow, based on your income and debts. Preapproval comes later when you start seriously looking at homes to show what the lender has agreed to.

3% to 6%