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NJ Mortgage Resources

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          Learn more about the NJ mortgage process with our educational resources for homeowners.

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        • What is a Mortgage?A mortgage is simply a lien that is put on a property by a bank or lender of money to assist a consumer to obtain funding in order to purchase that property.
        • Mortgage Pre Approval vs. Pre QualificationAs a technical matter is there are actually 3 levels of “Pre-Approval” available as a lead-up to your mortgage.
        • What Factors Go Into Qualifying for a Mortgage?There are four main categories that a bank will review when they qualify you for mortgage financing, otherwise known as the four pillars of qualifying: Income, Assets, Credit, and Debt.
        • What is PMI Insurance?Private Mortgage Insurance (PMI) is quite simply an insurance policy that protects the mortgage lender in case of default on the mortgage.
        • New Jersey Mortgage Application ChecklistBeing fully prepared leading up to your application can prevent a lot of troubles and tribulations, which can be detrimental and emotionally taxing especially after you’ve gone to contract on your new home.
        • What Is The Minimum Down Payment For a House in NJ?Depending on your circumstances you may be looking to get into a property for the least amount of cash possible.
        • What Are The Three Different Types of Mortgage Lenders?There are 3 different types of lending companies that originate mortgage loans. Banks, Brokers, and Mortgage Bankers.
        • What Determines Mortgage Rates?A variety of factors lend their hand in the determination of where a particular lender will be on rates.
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Mortgage Application Process FAQs

What is a Hard Credit Inquiry vs. a Soft Credit Inquiry?
A “soft credit inquiry” is a financial background check that does not affect your credit score. A “hard credit inquiry” is a more involved investigation of a buyer’s credit and finances. Additionally, hard credit inquiries also can reduce a buyer’s credit score by three to five points or so.
What is a USDA home loan?
The United States Department of Agriculture (USDA) home loans are intended for rural homebuyers and allow for lower down payment and more liberal credit requirements in an attempt to encourage development in rural areas. In fact, there is no down payment for a USDA home loan. There are however county-based income restrictions that are applicable for qualifying.
What is a conventional mortgage?
Mortgages are generally referred to as conventional mortgages if they are supported and backed by the credit guidelines of Fannie Mae or Freddie Mac. These are the government sponsored private corporations which set the standards and guidelines for most originated mortgages in the country today. Examples of non-conventional mortgages would be VA loans, FHA loans, and Jumbo loans where the
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What disqualifies a home from using USDA financing?
Since the USDA program was designed with rural housing development in mind, the location of the home must be in a USDA eligibility zone. If not, the property will be ineligible for USDA financing. Click here to see if your property qualifies. In addition, there are maximum income eligibility restrictions with USDA financing. Click here to access the income eligibility
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What is a second mortgage?
A second mortgage (otherwise known as a “junior-lien”) uses property as collateral that already has another loan secured by the same property. The lien takes a subordinate position to the primary lien in the event of foreclosure, resulting in higher risk and consequently less favorable terms and rates. Typical examples of “second mortgages” are home equity lines of credit or
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Is mortgage interest tax deductible?
The simple answer is it depends. In 2018 with the change in tax laws and significant increase of the standard deduction, many individuals who would have been able to itemize mortgage interest as a deduction in the past became unable to do so due to the use of the standard deduction. This is definitely a question that is best served
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What is the “debt-to-income ratio?”
The debt-to-income (DTI) ratio is the ratio of your total housing and debt payments (including installment and revolving minimum monthly payments) divided into your monthly gross income. This information is often used by lenders to determine borrowing risks.
What percentage of income should go to a mortgage?
While circumstances can vary significantly based upon individual circumstances, most financial planners will tell you to keep your housing payments (including mortgage principal and interest, Property Taxes, Home Owners insurance, Private Mortgage Insurance, and Home Owner’s Association Fees to between 25-35% of your monthly gross income.
Once I apply with a New Jersey Mortgage lender am I obligated to close with them?
Just because you have applied with a mortgage lender, that does not mean you are under any obligation to close with them. In fact, you are able to walk away from a transaction at any time right up to the closing table (and even three days after due to right of rescission laws in the case of a New Jersey
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Why is my credit score lower than what I was told when I looked online?
Credit scoring is one of the most misunderstood factors of mortgage banking. The algorithms that go into it are complex in nature and to make matters worse, there are actually 49 different FICO (short for Fair Isaac Corporation) modeling scores available. Fannie Mae & Freddie Mac only accept 8 of those scoring models, so many times when consumers are getting
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NJMortgageResources.com provides homeowners with all the information they need to navigate the complex New Jersey mortgage process and get the best rate possible for their situation. Browse our educational resources and get a free customized rate quote from one of our top NJ mortgage specialists who can also help you with any additional information you may need or questions you may have.

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  • About
  • Resources
    • What is a Mortgage?
    • New Jersey Mortgage Application Checklist
    • Mortgage Pre Approval vs. Pre Qualification
    • What Is The Minimum Down Payment For a House in NJ?
    • What Factors Go Into Qualifying for a Mortgage?
    • What Are The Three Different Types of Mortgage Lenders?
    • What is PMI Insurance?
    • What Determines Mortgage Rates?
  • FAQs
  • Glossary
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  • Get a Custom Rate Quote

Resources

  • What is a Mortgage?
  • New Jersey Mortgage Application Checklist
  • Mortgage Pre Approval vs. Pre Qualification
  • What Is The Minimum Down Payment For a House in NJ?
  • What Factors Go Into Qualifying for a Mortgage?
  • What Are The Three Different Types of Mortgage Lenders?
  • What is PMI Insurance?
  • What Determines Mortgage Rates?

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