A First-Time Homebuyer's Guide, Start To Finish - The Strategic First-Time Homebuyer Book - Chapter 13 Post Closing and Glossary
April 28, 2026
r/NewbHomebuyer
......This is Chapter 13, just scroll down a little beyond the intro and you'll pick up where you left off......
Hey guys, I spent a lot of time writing this book, and I had this subreddit in mind as I was writing it, so I thought I would post it here for you for free. If you want the physical book you can always go on Amazon, but here's my gift to you 😄
I'll include links so you can jump between chapters easily.
I hope you find it helpful.
The Strategic First-Time Homebuyer
Start to finish, with strategies to get approved and save thousands in interest, costs, and the down payment.
Contents
Chapter 1 How Much Can I Afford? 3
Chapter 2 How Much Cash Do I Need? 16
Chapter 3 How To Find The Down Payment 30
Chapter 4 Your Debt To Income Ratio 41
Chapter 5 Choose Your Lender 69
Chapter 6 You’ve Been Denied (Your Credit) 80
Chapter 7 Selecting a Real Estate Agent 90
Chapter 8 Shopping For a House108
Chapter 9 Under Contract: Inspections and Appraisals 121
Chapter 10 Under Contract: Rate Lock and Underwriting 129
Chapter 11 How To Lower Your Rate 144
Chapter 13
Most guides stop once you’ve bought the home.
But I have more tips to give: one on refinancing that I think will save you thousands of dollars in equity, and another that could save you hundreds of thousands in interest by paying your mortgage off early.
Here’s what I’ll cover:
● Making your payments
● Maintenance
● Recasting your mortgage
● Refinance Strategy
● How to pay the mortgage off faster
Making Your Payments
Lenders and servicers will make it easy for you to make your monthly mortgage payment. Make sure you set it up for automatic payments. Recent late mortgage payments will kill your shot at refinancing or buying a new home.
If you’re struggling to make ends meet, talk to your mortgage servicer and see what type of plans or assistance they might offer.
Servicing
Your mortgage may switch hands more than once. It can feel like a game of hot potato. But this is also normal.
They try to make it easier on you when these types of transfer happen by also passing along your automatic payment information.
Before blindly trusting the new letter in the mail saying “We will be your new servicer” make sure you call your current servicer to confirm it.
Spam
It is public information that you just bought a home. You will be flooded with new home offers in the mail. There will be some that look like official mortgage documents, but are really offers for a different product.
The most common is life and disability insurance.
These are legitimate companies that offer this insurance, but I hate how they go about looking for business.
On the envelope they reference your loan and lender and say “urgent response requested” or something similar.
What they’re offering is insurance that covers the mortgage or monthly payments if you get injured or die. This is optional and not required.
Maintenance
If you bought a home, I bet you’d appreciate it if the seller had left behind a log of all of the maintenance performed on the house.
Now you can do that for your buyers when you sell (unless you’re in your forever home)
Create a physical binder with a table and boxes for checkmarks.
Here’s what I’d recommend for a maintenance schedule:
Monthly
● Quick 3-minute check that can catch leaks early
● Check HVAC filter (replace if needed)
● Inspect under sinks for leaks
● Quick walk-through: look for water stains, musty smells, or anything unusual
● Check water bill for unexpected spikes (early leak detection)
Quarterly
● Replace HVAC filter (if not done monthly)
● Test smoke and carbon monoxide detectors
● Test GFCI outlets
● Pour water into unused drains and floor drains
● Inspect visible plumbing connections (toilets, supply lines, water heater area)
● Clean dryer vent (or at least check airflow)
Bi-Annual: Spring
● Service A/C system
● Clean gutters and downspouts
● Check grading around foundation (water flows away)
● Inspect roof (post-winter damage)
● Check HVAC condensate drain
Bi-Annual: Fall
This prevents frozen pipes and expensive water damage
● Service heating system
● Clean gutters again
● Winterize exterior: disconnect hoses, shut off exterior faucets, blow out sprinkler system
● Inspect weather stripping
● Check roof flashing
Annual
● Flush or inspect water heater
● Inspect foundation for cracks
● Test main water shutoff valve
● Perform water meter leak test (all water off, check for movement)
● Inspect attic (moisture, ventilation issues)
● Review homeowner's insurance coverage
If you don’t trust yourself, visit tools.newbhomebuyer.com/homecheck and use the HomeCheck tool. It allows you to opt in for reminders for this maintenance list via email and text.
Recasting Your Mortgage
A mortgage recast is when you make a big lump sum payment directly toward your loan’s principal, and then your lender recalculates your monthly payments based on the lower balance.
Your loan term and interest rate stay the same, but your monthly payment goes down.
If your goal is to pay off your mortgage quicker, then this option isn’t for you. If you wanted to put a large amount as a down payment, but had to wait until after you bought the home, then recasting could be a great option.
How It’s Different From Refinancing
Refinancing replaces your old loan with a brand new one, often with a new interest rate and loan term.
Recasting just reworks your existing loan’s monthly payment after a lump sum payment.
No credit check or closing costs required. (Though they may charge a recast fee)
Here are the quick points:
● Your remaining loan schedule stays the same
● Your interest rate stays the same
● Your loan balance lowers with a lump sum payment
● Your monthly payment is recalculated to keep you on the same schedule
● FHA, VA, and USDA government-backed mortgages do not allow recasting at the moment
Visit tools.newbhomebuyer.com/recast and use the recast calculator to figure out how much it would lower your payment.
Refinance Strategy
I have a strong opinion about what refinancing should look like.
I think a lot of people make mistakes while refinancing because they want to save $50 on their monthly payment. The monthly payment savings blinds them from the loss of $20,000 in their home’s equity, because they rolled the closing costs into the mortgage balance.
A lot of people wait for the perfect interest rate before refinancing. They don’t want to pull the trigger unless the new rate is way lower, or unless they can “get the best deal.” But here’s the thing. You don’t need to wait for perfect. If you can refinance at no cost to you and lower your interest rate, even just a little, that’s a smart move every time.
And when I say no cost, I don't mean “no money out of pocket”, I don't mean “big closing costs rolled into your loan balance”. What I mean is a straight $0 loan cost refinance where your rate goes down and your equity stays untouched.
Here's an example:
Say your rate is at 7.5% (maybe you bought in October 2023).
Say the headline on the internet is "6.5% rates!"
Say your lender offers to get the rate to 6.25%
Ignore it.
I want you to ignore the noise. In this case, the 6.25% likely has a buydown cost. The 6.5% might not have a buydown cost, but it may still come with your typical lender fees: underwriting, title, processing etc.
Ignore it!
Ask what it will take to get to $0 cost. No underwriting fee, no processing fee, no title fees.
What happens is as you offer to take a higher-than-market rate, the lender will offer you an upfront credit to offset your closing costs.
Do you remember those buydown charts I mentioned at the beginning of this book?
Here’s the example chart again:
| Interest Rate | Cost/Credit |
|---|---|
| 6.375% | $1,500 Credit |
| 6.250% | $0 Cost |
| 6.125% | $1,500 Cost |
This example is limited, and your lender probably has an expanded chart that might look like this:
| Interest Rate | Cost/Credit |
|---|---|
| 6.875% | $4,700 Credit |
| 6.750% | $3,850 Credit |
| 6.625% | $2,850 Credit |
| 6.500% | $2,250 Credit |
| 6.375% | $1,500 Credit |
| 6.250% | $0 Cost |
| 6.125% | $1,500 Cost |
Let's pretend that rate, the $0 cost rate, is 6.875% (meaning the $4,700 credit is large enough to offset all lender fees.)
It's not as flashy as the 6.25% or 6.5%, but it lowers your interest (from the hypothetical 7.5%), and you don't get hit with high costs.
Take that option. Every time.
Then if rates go down again, you do it again. No closing costs. Just keep improving your position when it makes sense.
Yes, you’ll get a slightly higher rate than the one they advertise online, but if that new rate is still better than what you have today and you’re not paying to get it, what’s the downside?
You’re not trying to win some kind of rate timing game. You’re just building equity and lowering your monthly obligation as often as the market allows, with no damage done in the process. And that’s the key, no damage. You don’t give up cash or equity, so you keep flexibility and can always refinance again when it makes sense.
Rates could keep dropping. You don't want to kick yourself for refinancing 2 times in 2 years.
"But I don't want to reset the clock and go back to 30 years"
Then don't. You aren't forced to pay the minimum payment. That 30 years is assuming that you only pay the minimum.
If you lowered your rate, but kept making the exact same payment you were making before, you're going to pay it off faster.
Not just faster than the 30 years. You'll pay it off faster than your original loan.
Anything extra you pay goes directly toward your principal balance owed.
If you don't want to reset the clock, you have two options after a refinance:
Pay the same amount as before, paying it off much earlier
Calculate how much time you had left, then calculate what kind of payment that takes.
That second option is interesting. You'll keep yourself on the same schedule, but you'll have a slightly lower payment.
Here’s an example:
A $400,000.00 loan at 7.5% has a principal and interest payment of $2,797.00.
After 12 payments, that new balance will be $396,631.00.
A $396,631.00 loan at 30 years and 6.875% rate has a payment of $2,606.00.
But you don’t want to pay it over 30 years. You want the same 29-year schedule.
$396,631.00 at a 29-year term, at 6.875% rate has a payment of $2,633.
Problem solved.
You can stay at 29 years, pay a lower rate, and pay $164 less per month.
And all at $0 cost.
This works best for people who bought when rates were high, who plan to stay in their home at least a year or two, and who didn’t already pay points on their original loan. If that’s you, this is a strategy worth looking into.
How To Pay Off Your Mortgage Faster
A lot of people will say "don't pay off your mortgage, just invest instead."
But I'm not speaking to that.
I'm speaking to the huge relief you'll feel when you get that debt off of your back.
Here’s what I’ll cover in this section:
● The strategy that doesn’t work
● Bi-weekly payments
● Mortgage insurance removal
● Cancel escrow
● $0 cost refinance
Real Numbers
For this entire chapter we’re going to assume a $400,000 purchase price in Texas, a 5% down payment, and we’ll assume it was purchased in October of 2023 with a 7.125% interest rate.
Here's what the loan would look like:
● Loan Amount: $380,000
● Principal and interest payment: $2,560
● Mortgage insurance payment: $80 (estimate)
● Property taxes: $660 (estimate, TX also has really high property taxes)
● Homeowners insurance (HOI): $400 (estimate, TX does have high HOI too)
● Total monthly payment: $3,700
● Total interest paid over 30 years: $541,646
With these, we’ll have hard numbers to show the impact of these strategies.
The Strategy That Doesn’t Work
People think that converting your mortgage into a HELOC helps you pay it off faster.
It usually doesn't.
The reason it usually doesn't is because HELOCs usually have a higher interest rate than the mortgage you already have.
When you increase your interest rate, you set yourself back.
I like the idea behind it: it forces you to pay any leftover income toward principal. And you just operate your budget out of the HELOC instead of a checking/savings account.
But you'd have the same effect just balancing your budget to $0 at the end of each month, putting all leftover money toward the mortgage.
The HELOC strategy only works if the HELOC is at a lower interest rate than your current mortgage.
Bi-Weekly Payments
This is the most common strategy.
It takes a restructure of your budget, switching from planning monthly, to planning your money every paycheck.
If you get paid bi-weekly, then this strategy involves setting aside half of your mortgage payment each payday.
The result?
One extra payment per year.
There are 26 pay periods, divide that in half, and you end up with 13.
That's 13 full payments per year instead of 12.
What does that do to your mortgage?
You’ll pay it off in 23.6 years and pay ~$407,000 in interest instead.
That's 6.4 years faster and $134,646 savings in interest.
Mortgage Insurance Removal
Here's a fun one.
Your mortgage insurance will automatically fall off once you hit 22% equity.
That's $80 per month that you can choose to route to principal and interest, without feeling it in your budget.
Here's a tip:
If your home appreciates quickly enough, you can request for the insurance to be removed sooner.
But let's pretend your home doesn't appreciate, and instead stay stagnant.
Unlikely, but let's pretend, to keep this strategy tight.
22% equity is achieved at a mortgage balance of $312,000.
That was scheduled to happen at around payment number 142, or close to 12 years, on your original mortgage.
But since you switched to bi-weekly, it’s now on payment 98, or about 8 years.
Let's create a new chart where starting on payment 98, we route that $80 per month that just freed up, and apply it toward principal.
That balance would've been $311,565.
Without applying mortgage insurance, the remaining months from that point are 186 (15.5 years), and remaining interest is $203,678.78.
Once you add $80 per month to that, you lower the remaining months to 177 (save 9 months) and lower your total remaining interest to $192,195 (saving $11,483 in interest).
Cancel Escrow
I broke down the monthly payment earlier.
You pay property taxes and homeowners insurance in your monthly payment.
Well, once you get that 22% equity, you're in a good position to request a cancellation of escrow holdings.
That means instead of the mortgage servicer paying your property taxes and HOI on your behalf, you pay for it yourself.
A heads up: this applies to conventional loans. Your servicer may charge a cancellation fee (roughly $250 to $500). FHA loans require escrow for the life of the loan, so they can’t be cancelled.
But how does that help? Couldn't that make it worse, if you mess up?
It doesn't help directly.
Your principal and interest payment stay the same. This doesn't free up any extra money to pay toward principal.
Or does it?
The biggest problem I have with escrow accounts (mortgage lender saving and paying on your behalf) is that you don't earn any interest off those accounts.
Local banks and credit unions might provide a flexible CD, where you can start with a low balance, and make contributions to it on a fixed rate.
I know you can do way better on mutual/index funds. But let's keep this example tight.
Homeowner's insurance is due annually.
Property taxes are usually due annually.
So set the money you’d normally pay toward your mortgage escrow account, and put it in an investment account.
Your investment account needs annual access to withdraw/close out each time your homeowners insurance is due, and another for property taxes.
I'm using an investment calculator for this.
Starting balance $0
Contribute $1,060 per month over 12 months at 3%, and you’ll end up with $208.61 in interest earnings that you can apply toward the principal balance.
That's $17.38 per month on average. (this is the least effective strategy, but it's something)
That takes you from the 177 months remaining and $192,195 in interest, down to...
175 months and $189,929 in interest (saves 2 months and $2,266 in total interest).
No Cost Refinances
The lower the rate, the faster you can be done.
What people will say (and I'll agree with them) is you can't predict the future. You can't know if rates will ever go back down to those low points we saw in 2020.
And it's true. We can't predict the future to a degree. I don't know if rates will rocket upward tomorrow, or plummet downward.
But you can always be ready.
I can predict that rates will move around. There may be a short window where rates dip.
Example: October 2023 average rates were around 7.125% and on 4/11/2026 they were at 6.39%.
Visit tools.newbhomebuyer.com/refitrack to use the RefiTrack tool for alerts when rates drop to your target.
As mentioned before, no-cost refinance options put you in a position to continue to refinance and secure a lower rate without setting your mortgage balance backward.
Always go for that option, even if the rate only drops by half of a percent. If it didn't have any loan costs, then it's a win, and will allow you to pay off your mortgage much faster.
But let's pretend rates stay the same and don't move around much.
Here's the exciting part:
Even if rates never got better, or stayed the same the entire 30 years, a 15-year mortgage will have a better interest rate.
15-year rates are about 0.5%+ lower than 30-year mortgage rates.
So we left off (on the cancel escrow section) with 175 months left, with $311,565 balance and $189,929 remaining interest.
Let's say you found a refinance option, with no cost, on a 15-year term, for 6.625% (I feel like I’m being VERY conservative here).
The trick to this is you need to keep making the exact same monthly payment you've been making.
Here's what that does:
166 months and $165,219.67 remaining interest. Saves you 9 months and about $24,710 in total interest.
Now, if you can lower your rate sooner, and for lower, then this will make an even bigger impact. But I'm trying to keep my estimates low to not sensationalize it.
The Totals
So, here's the summary of what actions we take:
● Budget and pay bi-weekly rather than monthly
● Cut mortgage insurance at 22% equity, and apply mortgage insurance difference toward principal
● Cut escrow, invest the money, and apply interest earnings toward the mortgage
● Refinance after ~15 years to a 0.5% lower rate
Here are the assumptions we've made to keep the outcomes conservative
● Rates stay about the same, not dropping or rising
● Your home never appreciates
● You only get 3% returns on your escrow investing
This is what you'll save:
● $173,105 total interest
● 96 months (8 years)
● That's with minimal impact on your budget.
One More Tip
Pay extra toward principal each month. Things like raises, bonuses, tax refunds, etc.
Keep an eye on rates, and refinance sooner at $0 cost.
If nothing else, I hope this book inspires you to think of creative ways you can get the mortgage monkey off your back.
A Final Word
I spent a lot of time writing this book because I wanted to enable more homebuyers to get off the sidelines. A lot of people don’t jump in because they don’t feel ready, or didn’t know they could overcome a specific obstacle. I hope this book helped by showing you how to overcome that obstacle, or show that homeownership is more possible than you previously thought.
I also hope you save thousands of dollars by taking a few of my tips.
Take care, I’m rooting for you.
Sam
P.S. Wow if you made it all the way to the end, then you're amazing. If you can do me a favor, I wrote this book and published it on Amazon. If you can find it and leave a review, that would help me out a ton! Appreciate you.
About the Author
Samuel Thompson is a dual-licensed mortgage broker and real estate agent who has dedicated his career to demystifying the path to homeownership. With a rare “both sides of the desk” perspective, he has successfully guided thousands of individuals and families through the complexities of buying their first homes.
He lives with his wife and their four children, who remain his greatest inspiration for helping other families build a legacy through real estate.
Glossary
AMI (Area Median Income): The average income for people living in a specific county or region, used to determine eligibility for certain loan programs like HomeReady and Home Possible.
Amortization: The process of paying back a loan over time through regular monthly payments that include both principal and interest.
Appraisal: A professional assessment of a home’s market value, required by lenders to ensure the property is worth the loan amount.
Appraiser: A licensed professional who inspects a property and determines its current market value for the lender.
Assumable Mortgage: A mortgage that can be taken over by a buyer instead of obtaining a new loan, allowing them to keep the original interest rate and terms.
Buydown: An upfront payment made to secure a lower interest rate on your mortgage. Also called “points.”
Closing: The final meeting where you sign all documents, transfer funds, and officially become the homeowner.
Closing Costs: All fees and expenses you pay at closing, including appraisal, title insurance, origination fees, and prepaid interest.
Closing Disclosure: A final document provided three days before closing that shows your exact loan terms, monthly payment, and closing costs.
Co-Borrower: A person who applies for the mortgage with you and shares responsibility for repaying the loan. Their income and debts affect your approval.
Conventional Mortgage: A loan not backed by the government, typically requiring at least 3% down for first-time buyers and 20% down to avoid mortgage insurance.
Credit Score: A three-digit number (typically 300–850) that rates your creditworthiness based on payment history, debt levels, and other factors.
Deed: The legal document that proves you own the property and transfers ownership from the seller to you.
Deed-in-Lieu: An alternative to foreclosure where you give the property back to the lender instead of going through the foreclosure process.
DSCR (Debt Service Coverage Ratio): A Non-QM loan program for investors or self-employed borrowers, based on the property’s income rather than personal tax returns.
DTI (Debt-to-Income Ratio): The percentage of your monthly gross income that goes toward all debt payments, including the new mortgage. Lenders use this to determine how much you can borrow.
Earnest Money: A deposit you make when making an offer on a home, showing the seller you’re serious. It goes toward your down payment or closing costs if the sale goes through.
Equity: The difference between what your home is worth and what you still owe on the mortgage. It’s your actual ownership stake in the property.
Escrow: Money held by a neutral third party to pay property taxes and homeowners insurance on your behalf each month.
Fannie Mae: A government-sponsored company that buys mortgages from lenders, freeing up capital for new loans. It also sets lending standards for conventional mortgages.
FHA Loan: A government-backed mortgage insured by the Federal Housing Administration, designed for borrowers with lower credit scores or smaller down payments.
Float: Allowing your interest rate to change with market conditions rather than locking it in. Your rate moves up or down until you decide to lock or close.
Float-Down: A feature that allows you to take advantage of lower interest rates after locking, if market rates drop before closing. Usually a one-time option.
Foreclosure: When a lender takes back a property because the borrower stopped making mortgage payments, then sells it to recover the loan balance.
Freddie Mac: A government-sponsored company similar to Fannie Mae that purchases mortgages from lenders and sets lending guidelines.
Gift of Equity: When a family member sells you their home below market value, and the difference counts as your down payment.
HCOL (High Cost of Living): A region where living expenses and home prices are significantly higher than the national average, sometimes affecting loan program income limits.
HELOC (Home Equity Line of Credit): A revolving credit line secured by the equity in your home, allowing you to borrow against your home’s value as needed.
HOA (Homeowners Association): An organization in planned communities that sets rules, maintains common areas, and collects monthly fees from residents.
HOI (Homeowners Insurance): Insurance that covers damage to your home and liability if someone is injured on your property. Required by lenders.
Home Possible: A Freddie Mac loan program requiring only 3% down for qualified borrowers with income at or below 80% of the area median income.
HomeReady: A Fannie Mae loan program requiring only 3% down for borrowers with income at or below 80% of the area median income.
HUD (Department of Housing and Urban Development): The federal agency that oversees mortgage lending regulations and homeownership programs, including FHA loans.
Inspection: A professional examination of a home’s structure, systems, and condition before purchase. Unlike an appraisal, it focuses on the home’s physical condition rather than value.
Interest: The cost you pay to borrow money, calculated as a percentage of your loan amount and included in your monthly mortgage payment.
LLPA (Loan Level Price Adjustment): An additional fee or rate adjustment based on your credit score, down payment size, and loan type. Better credit and larger down payments result in lower LLPAs.
Loan Estimate: An official document provided within three days of applying for a mortgage, outlining your estimated loan terms and closing costs.
Loan Officer: A licensed professional who helps you apply for a mortgage, explains your options, and guides you through the approval process.
LTV (Loan-to-Value Ratio): The percentage of the home’s value that you’re borrowing. A 90% LTV means you’re putting 10% down.
MERS (Mortgage Electronic Registration System): A computerized system that tracks mortgage ownership and transfers, which is why you may see this fee at closing.
MIP (Mortgage Insurance Premium): The insurance payments required on FHA loans (both upfront and monthly) to protect the lender if you default.
MLS (Multiple Listing Service): A database of homes for sale used by real estate agents to list and search for properties in a given area.
Mortgage: A loan used to purchase a home, secured by the property itself. If you stop making payments, the lender can take the home.
Mortgage Broker: An independent professional who works with multiple lenders to find you the best loan rates and terms, rather than representing one lender.
Mortgage Insurance: Insurance required when your down payment is less than 20%, protecting the lender (not you) if you default on the loan. Called PMI on conventional loans and MIP on FHA loans.
NAR (National Association of Realtors): The largest trade organization for real estate agents in the U.S., which sets professional standards and controls MLS access.
Non-QM (Non-Qualified Mortgage): Alternative loan programs that don’t follow standard lending guidelines, designed for borrowers with unconventional income situations like self-employment.
Origination Fee: A fee charged by the lender for processing and preparing your mortgage, typically 0.5% to 1% of the loan amount.
PITI (Principal, Interest, Taxes, Insurance): The four components that make up your total monthly housing payment.
PMI (Private Mortgage Insurance): Monthly insurance paid by conventional loan borrowers with less than 20% down, which protects the lender if you default. It can be removed once you reach 22% equity.
Points: An upfront payment to lower your interest rate, where one point equals 1% of the loan amount. Also called a buydown.
Pre-Approval: A lender’s conditional commitment to loan you a specific amount after verifying your income, assets, and credit. Stronger than a pre-qualification.
Pre-Qualification: An informal estimate of how much you might be able to borrow, based on basic financial information you provide. Not a formal approval.
Prepaid Interest: Daily interest charges from your closing date through the end of the month, paid at closing as part of your closing costs.
Principal: The original amount of money you borrowed, which decreases as you make payments over time.
Purchase Agreement: The contract between buyer and seller outlining the price, terms, contingencies, and closing date for the home sale.
Rate Lock: A commitment from the lender to hold a specific interest rate for a set period (usually 30–60 days), protecting you from rate increases before closing.
Real Estate Agent: A licensed professional who helps buyers find and purchase homes, or helps sellers market and sell their properties.
Refinance: Replacing your current mortgage with a new one, typically to get a lower interest rate, change loan terms, or access your home’s equity.
Seller Concessions/Credits: Money the seller provides at closing to help cover the buyer’s closing costs, repairs, or rate buydowns.
Short Sale: Selling a home for less than what is owed on the mortgage, with the lender’s approval, to avoid foreclosure.
Title: Legal proof of ownership of a property and the right to use, sell, or modify it.
Title Agent: The representative from the title company who conducts the title search, prepares closing documents, and manages the closing process.
Title Insurance: Coverage that protects you and the lender against losses from title defects, liens, or ownership disputes discovered after purchase.
Title Search: An investigation into the property’s ownership history to ensure the seller has clear ownership and no unknown claims exist.
Underwriter: A loan specialist who reviews your application, verifies all information, and makes the final decision on whether you qualify for the mortgage.
Underwriting: The process of verifying your finances, employment, credit, and the property to determine if you qualify for the loan. This happens after you go under contract.
USDA Loan: A government-backed mortgage for eligible rural and suburban properties, requiring no down payment for qualified borrowers.
VA Loan: A government-backed mortgage for eligible military veterans, active duty, and surviving spouses, requiring no down payment and typically no mortgage insurance.
Originally shared by u/SamTMortgageBroker in r/NewbHomebuyer — view the original thread.