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Hello! This is Joe Harris with Morgan Financial and here is your “Joe Knows Mortgages MINUTE”. This week, we answer the question: What is an Earnest money deposit?
An earnest money deposit is also known as good faith money, or an escrow deposit. This is the amount that you put down as a deposit when a real estate offer is accepted. This money can typically be used towards your transaction at closing. If you do not close on your transaction, you may be entitled to a refund of your earnest money, as long as you meet the stipulations of the contract. In some instances the earnest money deposit may be forfeited if the timeframes and stipulations of withdrawal from the contract are not met.
Thank you for tuning into this Joe Knows Mortgages MINUTE If you have any home loan related questions, we want to hear from you! SO please comment down below! Also, please feel free to like and share this information with your family and friends. See you again next Monday!

As a benefit for those on active duty or serving overseas, military members can qualify for a VA loan if they have intentions to return home within one year as long as a Spouse or dependent children will also occupy the property in the meantime. Otherwise they must occupy within 60 days. 

What is the difference between mortgage insurance and homeowner insurance?
This is a common mix-up, but they are in fact two very different things.  

PITI is an acronym for your payment and it stands for principal, interest, taxes and insurance.

When someone says a VA Loan is assumable, they mean that VA Loans can be transferred to the next homebuyer should they qualify. This could add significant value to a home, especially in a rising-rate market.

Hello! This is Joe Harris with Morgan Financial and here is your “Joe Knows Mortgages MINUTE”. This week, we answer the question: If you have debt, can you still qualify for a loan?

Between car loans, student loans, and a few credit cards, it can be easy to feel like you may have too much debt to qualify for a mortgage. This is not necessarily true. The best way to figure out how much debt you can afford to carry is to calculate your debt-to-income ratio, or DTI. Calculating your DTI is simple. Simply add up your recurring monthly debt obligations such as a car payment, minimum credit card payments, student loan payment, and anything else that you are required to pay on a monthly basis that shows up on a credit report. Things like electric bill, water and phone do not count. Take your total and divide that by your gross monthly income, or your income before taxes. The resulting number is your DTI. Typically, lenders will want your debt to income ratios to be under 45%, however, there are some loan types that will go higher. A lender will take this number and factor in your potential mortgage payment.

Thank you for tuning into this Joe Knows Mortgages MINUTE If you have any home loan related questions, we want to hear from you! SO please comment down below! Also, please feel free to like and share this information with your family and friends. See you again next Monday!

Does it take longer to get a VA loan compared to other loans?
With the right lender, a VA loan shouldn’t take much longer than any other loan. In fact, Morgan Financial is averaging under 10 days from signed application to clear-to-close on all loans, including VA loans.