Michigan mortgage knowledge center
Compare complete financing scenarios, understand the tradeoffs and build the payment and cash plan before the offer or refinance decision.
Guide 1
A mortgage pre-approval should answer more than one question. Yes, you need to know whether you qualify. But you also need to know what the payment looks like, how much cash you may need at closing and whether a different loan structure would leave you in a better financial position.
Guide 2
Most online affordability calculators begin with your income and finish by telling you the largest mortgage you might qualify for.
Guide 3
That misunderstanding keeps a lot of people renting longer than they need to. Depending on eligibility and the loan program, buyers may have options with substantially less than 20% down.
Guide 4
Different loan programs have different rules, and individual lenders can also add their own requirements. That means a borrower who does not fit one lender’s box may still have options somewhere else.
Guide 5
Buying your first home can feel like learning another language. Pre-approval. Escrows. PMI. Points. Appraisal. Closing costs.
Guide 6
Closing can include lender charges, title and settlement fees, recording costs, appraisal-related expenses and other transaction costs. Buyers may also fund prepaid items such as homeowners insurance, property-tax escrows and prepaid interest.
Guide 7
Cash to close is the amount you are expected to bring to complete the transaction after accounting for the pieces of the purchase.
Guide 8
FHA financing can be a strong option for buyers who want a relatively low down payment or need more flexibility around credit and qualifying.
Guide 9
Conventional mortgages cover a wide range of home-buying situations and are not limited to buyers putting 20% down.
Guide 10
The right choice depends on your credit, down payment, mortgage-insurance costs, property type, monthly payment, cash-to-close and future plans.
Guide 11
USDA financing can offer an attractive path for eligible borrowers purchasing qualifying homes in eligible areas, including the possibility of no down payment.
Guide 12
When the loan amount moves beyond standard conforming limits, financing can become more lender-specific.
Guide 13
A renovation mortgage may allow eligible improvements to become part of the financing rather than forcing you to purchase the house first and figure out the remodeling money later.
Guide 14
Manufactured homes can be financed, but the details of the property matter more than they do on many traditional site-built homes.
Guide 15
Being self-employed does not make you a bad mortgage borrower. It does make income analysis different.
Guide 16
Bank-statement mortgage programs are designed for certain self-employed borrowers whose cash flow may tell a stronger story than traditional tax-return income.
Guide 17
Independent contractors and 1099 earners often assume every mortgage lender will calculate their income exactly the same way.
Guide 18
Mortgage companies do not all offer the same programs or use identical overlays. A denial might be caused by the loan program selected, a lender-specific requirement, the way income was calculated, the property type or documentation that was missing or misunderstood.
Guide 19
The answer depends on the type of bankruptcy, discharge or dismissal timing, the loan program, post-bankruptcy credit history and the circumstances that caused the financial problem.
Guide 20
A collection account does not automatically produce the same mortgage answer for every borrower.
Guide 21
A DSCR loan focuses heavily on the income-producing ability of the investment property rather than qualifying the borrower the same way a traditional owner-occupied mortgage does.
Guide 22
Traditional conventional investment financing may work well for a borrower with documentable income and a straightforward property. DSCR or other non-QM options may solve different problems.
Guide 23
Both a HELOC and a home equity loan can allow a homeowner to borrow against equity without necessarily replacing the existing first mortgage.
Guide 24
A cash-out refinance replaces the existing mortgage with a new, larger loan and gives the homeowner access to a portion of the equity.
Guide 25
A lower rate can save money, but a refinance also has closing costs and can restart or extend the repayment timeline. The correct decision depends on the size of the payment reduction, cost of the transaction and how long you expect to keep the loan.
Guide 26
Two lenders can quote the same interest rate and still be offering very different mortgages.
Guide 27
Paying discount points may allow a borrower to obtain a lower rate. Choosing a higher rate can sometimes generate a lender credit that reduces upfront costs.
Guide 28
The interest rate helps determine the interest charged on the mortgage. APR attempts to express certain financing costs as an annualized percentage so borrowers can compare credit offers more broadly.
Guide 29
First, understand the gap. Then review the contract, financing and available options with the Realtor and lender.
Guide 30
A seller credit can reduce the buyer’s out-of-pocket closing expenses when the loan program and contract allow it.