You know there’s a rulebook for applying for a mortgage. But is there anything you should avoid? Here’s what they are and how to avoid them.
Private Mortgage Insurance (PMI) is insurance required by lenders in most scenarios when the borrower makes a down payment of less than 20% on their home purchase. It protects your lender if you default on your mortgage and allows them to recoup losses related to the lower amount of equity in the home.
When you buy a home, one of the documents in your closing package is the deed of trust, which gives your lender an interest in your property. Because this information is now public and available to a variety of home servicing companies, it’s highly likely that you’ll start receiving print mail featuring product ads, service deals, and maintenance programs.