Category Archives: Mortgages

mortgage

The Right Questions to Ask the Mortgage Lender

Home buying is a tedious process that takes time and is a major financial responsibility. You need to understand your financing options even before start searching for the properties because you have to deal with the mortgage lenders.

The lender or broker is the person or institution that helps you understand how to plan the budget for making the purchase. A successful mortgage approval depends on finding someone who is communicative and is willing to help. However, you have to ask some important questions to ensure that you are going to get the best financial solution.

What is the interest rate?

Your credit and the amount of the loan will determine the interest rate offered by the lender. The rate and two other factors – the loan term and mortgage balance – are vital in calculating the final payment that you will pay per month. The monthly installment will be proportional to the rate and balance.

If the offered amount is way higher than your expectation, clean up your credits and apply again for a revised rate.

What are the qualifying requirements for the mortgage?

The broker assesses many aspects before approving the loan. Your current income, credit history, employment record, liabilities, assets, etc. will play vital roles in deciding your eligibility. So, learn about those requirements before beginning your house hunt and work on them to make the figures look impressive.

You will face less strict guidelines if you are a first-time homebuyer, a veteran, or are going to apply for a government-sponsored mortgage program.

What type of mortgage is it?

The loan can be of two types – fixed-rate and adjustable-rate mortgages (ARMs). The first one can range between 10 and 30 years, and its rate will be the same for the entire period. On the other hand, the other type offers a regular change of rates after an initial period.

An ARM might be a good choice if you don’t plan to live in the same house for your entire life. However, you have to ask the lender about the loan’s margin, the factors related to rate changes, and the interval of changing the rates to see if you can afford the calculated monthly installments.

What documents will I have to provide?

You need to keep some paperwork ready to speed up the whole process. The broker is likely to ask you to show the proofs of income and assets. The official papers that you have to submit are recent pay stubs, W-2 record, tax returns, bank statements, and more. Sometimes, you might be even required to show the proof that you are capable of paying the down payment and the closing costs.

What factors can affect the approval?

The lender may take more time in approving the loan if your financial status alters or is likely to change because of a personal affair. The determining factors, for example, could be a change in marital status, credit history, or your income. Avoid such a hassle by trying to keep the financing state unchanged until the sanction of the loan.

Don’t let the experience with the lender ruin your home buying journey. Have a good understating of your credit score, learn about the mortgage options, and prepare the right questions. You’ll surely find the rate you are expecting.

credit score

5 Things That Could Destroy Your Credit Score

When you seek for a loan to mortgage bankers or auto dealerships, the lenders give the approval after calculating the risk of lending money to you. Your credit score is the metric that helps them to determine the risk. Based on the credit rating, they will determine how financially responsible you are and how much they will lend you at what interest rate. Read More →

mortgage-refinance

5 Things to Consider Before a Mortgage Refinance

Refinancing is one effective way if you want to pay off your mortgage early. However, like every method, it has its perks and drawbacks. If you have decided to refinance your mortgage, you should know what you are signing up for.

Refinancing gives the homeowners an opportunity to restructure their finances. But, you have to consider some factors to figure out whether or not a mortgage refinance right for you. Peruse these few considerations before applying for a home refinance: Read More →

mortgage

4 Proven Ways to Become Mortgage-Free Early

An obligation to a financial commitment is stressful. Even if you are financially solvent and have no problem in paying your loans and mortgages, every homeowner is familiar about the mental strain the monthly mortgage payment can inflict on them.

The mortgage term is fixed and it can be short-term or as long as 30 years. The term is usually fixed during the approval of the loan, but you can still speed up the process to see yourself mortgage-free before the due time. Read More →

mortgage-rate-hike

The Impacts of Mortgage Rate Hike in the Housing Market

The mortgage rates took a significant jump after the U.S. presidential election. Donald Trump’s victory and his pro-growth agenda have likely affected the borrowing costs, resulting in some fluctuation in the country’s housing market. Read More →

mortgage payment

Mortgage Payment Struggle: The Measures You Can Take

It’s typical for most people to face a financial quandary at some point of their life. Most homeowners live paycheck to paycheck, and any disruption to that routine may push them to the point of thinking how to make their next mortgage payment. Read More →

right-mortgage-rates

How to Know You Have Found the Right Mortgage Rate?

Getting a good mortgage rate is tough and it’s actually a whole lot different than comparison shopping. The mortgage lenders analyze and investigate lots of factors to determine your eligibility for the loan. However, according to the recent data published by the St. Louis Federal Reserve, average 30-year fixed mortgage rates are still less than 4% in 2016.

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online-mortgage-lenders

Shopping Mortgage Online? 3 Ways to Find out If Your Lender Is Legit

Home buying is daunting – both physically and financially. Only a handful of people are possibly able to buy a home outright with cash. Others have to take mortgages that involve repaying a huge amount of money over a long period. Plus, the entire process of shopping, applying, and securing a mortgage is complicated and stressful. Finding a mortgage online is a tad more convenient and hence cuts down a lot of stress. However, the only problem with online mortgage is to avoid scam and find out a lender who is credible!

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common-mortgage-misconceptions

Mortgage Misconceptions that Keep Homebuyers on the Sideline

Most of the consumers don’t have any clear idea about the requirements for a mortgage qualification. A recent Fannie Mae survey shows that almost half of the respondents either have no idea or bear misconception about some key mortgage requirements such as credit score, down payment percentage, and debt-to-income ratio. It means that many eligible homebuyers face rejection just because they don’t know!

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new-home-construction-14033685368jC

Paper Trail: The Documents You Must Have to Get a Mortgage

Buying a new home is exhilarating but managing the money to pay for the new digs is a different story. Though you can’t really control anything when it comes to the approval of your mortgage application, a few things are there that you can do to speed up the process.

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