How to choose a loan officer

These steps can assist in finding the ideal agent.

1. Online Comparison of Mortgage Lenders - Conducting this comparison allows you to make an informed decision.

2. Refer a friend
3. Visit your local housing market to get acquainted with the real deal

4. At least three loan officers must be present.

5. Ask the Appropriate Questions
Asking the right questions can provide valuable insights.

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Dying To Buy A Home? Dealing With Bad Credit

No matter if your mortgage company has not been able to approve you for your dream home, people with poor credit have more options than ever before. If you don't know your credit score yet, now is the time to find out.

Speak to a credit specialist and create an effective plan to improve your score over time. Show the mortgage company that you are serious about improving your credit. Next, do some research. Search for local mortgage brokers who specialize in helping those with credit problems; local newspapers and magazines may help you locate a specialist.

Advertisements often claim we can help you purchase a home regardless of your credit history, including bad credit or foreclosures. In certain circumstances, however, you may qualify for programs like 'purchasing a house with the option to buy' which allow you to make an agreement with either the landlord or homeowner.

A down payment of between $3000 and $8000 will be necessary. The higher your deposit, the lower your monthly payments will be. In some cases, they may contribute part of your rent towards purchasing the house you are renting if you have not missed any payments. After 12-24 months, your landlord or homeowner will convert your lease into a mortgage and turn it into equity. This will enable you to become an owner and boost your credit score. All transactions should be documented; in addition, hiring a lawyer to review any'rent with the option to buy' agreement can prove beneficial for those involved. If renting with the option to purchase isn't your style, there are other options.

Foreclosed properties can usually be acquired at annual tax sales and in many states you don't need excellent credit to buy a home. One thing is essential for the county or city tax office: a cashier's check or money order for the entire amount of the sale.

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Steps to get approved for a Home

Today, mortgage lenders offer many loan products with flexible terms and low payments. Unfortunately, those with poor credit may find these offers to their advantage.

Let's say you want to refinance your home or take out a loan for equity. Even with bad credit, home loans offer the perfect solution: debt consolidation quickly and reduced monthly payments without needing perfect credit! So if you qualify, don't stress if your score isn't perfect!

What Does "Bad Credit" Mean for Your Mortgage?

Your credit score plays a vital role in many aspects of life, such as when applying for a loan. Lenders take into account any bankruptcy filings and past loans when deciding whether or not to approve your application. If they're not satisfied with your history, you could face lower rates or require more downpayment than usual.

Borrowers with poor credit can still secure home loans for bad credit. Cash-out refinance allows borrowers to switch their existing mortgage for a new one and receive extra cash flow. Homeowners looking to pay down higher-interest debts like credit cards may find this option advantageous; however, be aware that withdrawals reduce your stake in the investment.

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Little Known but very Important Mortgage Tips

 

Frequently we hear from clients, friends or simply overhear random conversations about how frustrated people are with the home buying process, particularly the mortgage loan portion – which is a pretty big portion! The three most important things to know about real estate are location, location, location, right? Well in the world of mortgages it’s preparation, preparation, preparation.

 

When I hear the irritation of those going through the mortgage process I have been able to come up with a few tips that if the buyer had known ahead of time would have saved everyone quite a headache.

 

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Considering being a first time homeowner - Consider all the factors

 

Imagining grassy lawns, picket fences and friendly neighbors? Dreaming of good schools for your kids and a comfortable home to retire in and pass on to your family? Homeownership is the hallmark of the American dream. Owning your own home can act as a 30-year savings investment plan and provide financial stability for your monthly budget and the foundation for your retirement plan. There really are a myriad of reasons why homeownership massively outweighs renting year to year.

Homeownership does also come with a few realities that dreamers like you don’t consider; which is fair! You don’t know what you don’t know quite yet. Owning your own home comes with a new list of responsibilities that you need to consider before purchasing that home and the maximum end of the amount your lender has approved you for. There are a bunch of new expenses to factor in both monthly and yearly that renters simply don’t have to deal with.

As the ink is still drying on your purchase contract you may be faced with a bunch of expenses you’ll have to dump right away into your new home. Consider the cost of having to replace a dishwasher, a leaky toilet or a bad showerhead. Don’t forget you may need to purchase your own appliances such as a refrigerator, washer, dryer or stove. For bigger repairs like a new air conditioner or a burst water heater you may want to consider purchasing a home warranty policy either through your title company at closing or through another company of your choosing.

That new home have a beautifully sparkling pool and the green lawn you were dreaming of? Well both take consistent effort to keep them as pristine as sale condition! Either plan on spending your weekends out doors or setting aside a couple hundred a month for landscapers and pool maintenance, not to mention higher monthly water bills for both.

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So you need to refinance an FHA Mortgage?

Let’s look at the positives; at least you’re not trying to refinance a conventional mortgage! FHA loans have been made more easy to qualify for than they were a few years ago thanks to recent legislation. Typically one of the largest disqualifying factors is the homeowners credit score. The Federal Housing Administration (FHA) requires a minimum credit score of 620 but good luck finding a lender willing to extend you a loan. Currently you’ll need a score anywhere north of 640.

In the past a low credit score plainly meant that you’d need to pay a higher interest rate, but these days it could mean facing the possibility of losing your home. If you find yourself struggling or unable to make your monthly mortgage, there is help out there. There are a handful of programs for struggling FHA homeowners. Check out www.HUD.gov for a comprehensive list as well as pertinent information.

By improving your credit rating you could qualify for a streamline refinance of your home. Yes, it is called a streamline because it is way more simplistic than a conventional refinance. It would be in your best interest to speak with a licensed mortgage professional to have your credit analyzed within the framework of the mortgage world. One piece of advice, avoid missing your mortgage payments if at all possible.

When refinancing, consider the various loan options available:

Fixed Rate Mortgages – The interest rate will never changed no matter what

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So you need to refinance a Conventional Mortgage?

You’re not alone. I’ve heard from hundreds of people about their interest rates coming up for adjustment on their 3, 5, 7 or 15 year interest only loans. The lower mortgage payments on these loans made them oh so tempting back when you were signing the note and deed on your home, but now the payment is about to, or already has, get or gotten really ugly. If you’ve tried to refinance in the past couple of years you’ve probably come across a problem or two, which leaves you unqualified for a much-needed refinance.

I’m sure a short sale or strategic foreclosure has crossed your mind but these should be done at an absolutely last resort. You may want to see if you can qualify for protection under the Housing and Mortgage Protection Act (HAMP). It’s a bit of a long shot but worth the try. If you qualify you could have a principle reduction or temporary lower mortgage payment applied to your mortgage. More than likely you are facing a lack of equity in your home or an ugly credit score.

Most of the recent legislation offering help to homeowners has applied to those with FHA home loans. With a conventional loan you are left out in the cold and facing a harder time qualifying for a refinance. You’re credit score as well as your credit history is two of the top few requirements to qualifying you for a refinance. Lenders are bumping their requirements on minimum credit scores thanks to incredibly low interest rates. It’s time to do everything you can to boost that score in the realm of the 700’s.

What to do:

1. Make all of your monthly mortgage payments on time - These types of late payments will not be received well by prospective lenders and are weighted more heavily than other types of late payments. If you are considering a short sale or foreclosure, WAIT! Let’s exhaust all other options first.

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Mortgage rates are so low, why is it so hard to get one?

 

Mortgage interest rates are so crazy low that it seems like lenders are practically begging you to come and take their money to buy a home. Interest rates are hovering at levels that rival the lowest rates over the past 50 years. All indications from the powers that be (the Federal Reserve) indicate that rates probably won’t be jumping anytime too soon either? If this is the case then, why is the housing market still so lousy?

It is true that mortgage lenders really do want to loan you their money for a new home, they are just being really picky about it! The housing crash shed light on bad lending practices that brought down behemoth Wall Street banks and now the few left standing are being really careful. So how can you actually qualify for these fantastically low rates? Review this quick checklist:

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Loan modification – is the lower payment worth it?

If you’re like an increasingly large number of Americans, you’ve recently received a letter from your bank. And if you’re lucky, it’s not a notice of foreclosure--it’s a letter announcing an offer for a loan modification. The banks are handing these things out like candy these days, and most people, especially those with banks that already have a tendency to try to upsell to their customers, are suspicious.

 

A lot of these loan modifications include options to switch an adjustable-rate mortgage (ARM) to a fixed-rate mortgage, partial debt forgiveness, and other bells and whistles. And, while the banks are not doing this out of some sudden bout of philanthropy, many unsolicited loan modifications are a good deal for both parties. Before we continue, never ever assume that all loan modification offers come from reputable sources because most are paid advertisements. There are scammers out there that will take you for all your worth if you aren’t vigilant. Real loan modification offers should come from the bank that handles your mortgage.

 

Banks are trying to get ARM loans out of their systems--they’re far more likely to end in default than fixed-rate loans and the government views them as “toxic assets”, which in turn can affect how the government and investors deal with the banks. In short, a farewell to ARMs is a hello to more money for the bank.

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Loan Modification - credit killer!

In Part One of our loan modification post, we discussed the fact that banks are sending unsolicited offers of loan modification to mortgage holders. These deals, which often involve a change from adjustable-rate mortgages (ARMs) to fixed-rates or partial “principal forgiveness” make a lot of sense from a purely economic standpoint: the banks get to clear their books of “toxic assets” and you get a lower mortgage payment. Unfortunately, the results can ding (or even wreck) your credit score.

 

There are a number of reasons why this is the case. First, the bank reports activity on your account to credit bureaus, which then alter your credit score accordingly. If you modify your loan and the bank submits “settled for less than the full amount due” to a credit bureau, that’s going to hurt you. And while this is technically true, a tiny line item leaves out the important information that it was, in fact, the bank that suggested the modification in the first place. To avoid this, make sure you ask specifically how the bank is going to report the change. If they don’t give you a straight answer right away, be clear that you’re trying to avoid “settled for less than the full amount due”.

 

Further, if the loan modification requires a trial period, especially one that lowers your mortgage payment, that trial period can damage your credit, as the bank will have to report the payment as less than what you owed, even though it’s the amount of money the bank is expecting, and will not respond to the customer as if anything were out of order.

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