Don’t Get Pre-Qualified For A Mortgage

We recently had a new home buyer looking for a Santa Clarita home loan. They had worked with several mortgage brokers in Santa Clarita and two different real estate agents.They had a pre-qualified home loan Santa Clarita letter from all of them. Here is why they did not get approved for a new home mortgage Santa Clarita and what you can do to avoid the same mistakes they made.

Pre-Qualified vs Pre Approved

When you are looking for a new home loan the most important thing is to make sure you are not just qualified but can really get that loan after you have made an offer on a property or ready to refinance your loan.Maybe your in need of a home equity loan Santa Clarita, or a reverse mortgage Santa Clarita the guidelines are the same.

Each time the Santa Clarita borrower got pre-qualified, the lender checked their credit score. Each time running the score down. Not only the lower FICO credit score, but also the many inquiries will hurt your Santa Clarita morgage approval.

In mortgage qualification, your credit is the single biggest factor in qualification. In a pre-approval, everything including income, debt, assets and credit will be looked at to attain the approval.

many loan brokers do not like to issue a pre-approval as they feel it locks them down to funding the loan. The borrower also mistakenly feels there is no way they will not get the loan. Normally, the loan professional will run your loan thru Fannie Mae’s desktop underwriter for an approval. This is an automated system that checks known and provided numbers to determine your eligibility to get the loan.

We can not stress enough to skip all the pre-qualified stuff and get only 1 lender to give you a full pre-approval. Your credit is only ran once, you only have 1 inquiry on your record and the file has received the DU approval.

No matter if you are looking for a new home loan Santa Clarita or a home loan refinance Santa Clarita, we can help. We offer First time home buyer assistance in Santa Clarita, FHA home loans Santa Clarita, or refinance home loan Santa Clarita. We offer online mortgage approval Santa Clarita and have a great mortgage payment calculator showing 30 year mortgage rates Santa Clarita and Santa Clarita adjustable mortgage rates today for you to use.

FHA Home Loan Mortgage Insurance

Getting an FHA home loan in California just got easier. FHA home mortgages have always been popular options as a way to buy a new home with a low down payment. The problem is you have to pay mortgage insurance to have FHA insure the new home loan. Great for first time home buyer in California, the FHA loan gets you in the home of your dreams but at a high cost. Recent changes by FHA now make the program a better option.

Recently FHA lowered the amount of insurance cost associated with an FHA new home loan. Normally, there is a 1.75% upfront cost to originate the FHA loan and also an ongoing fee added to your monthly mortgage payments. FHA has now lowered the annual insurance premium making the FHA loan much more attractive to home buyers.

FHA Mortgage Refinance

FHA home loans originated in the past that have the higher annual mortgage MIP can now refinance their home loan and reduce the monthly payment. In a typical FHA home loan situation, a $300,000 mortgage would have up to $300 of MIP added to the monthly payment. Now with the new FHA announcement, that MIP would only be about $180 per month saving the borrower about $120 per month. Over 30 years that would add up to a hefty amount.

If you are shopping for a California home loan and are considering an FHA home loan in California, let us show you alternatives to this option. Mortgage interest rates for California are low now and looking at alternatives to an FHA mortgage Porter Ranch is a smart decision. We can also show you how to get rid of mortgage insurance. If you have a FHA loan now and want to do a home loan refinance in California, there are other options to consider.

Get Low Interest Rates on Valencia Mortgage Refinance

If you are a Valencia home owner looking to get a new home loan Valencia, there are some helpful hints that will save you money. A Valencia mortgage refinance at today’s low interest rates makes sense. But how do you know if you are getting the lowest interest rate possible.

Valencia home loan interest rates are tied to Bond yields. As the 10 year bond goes up or down, mortgage interest rates will change. Recently money has poured into bonds as Europe has had some financial issues come to lite chasing money to US bonds.

We feel this situation will not improve anytime soon as the result will be continued low mortgage interest rates for Valencia home loans.

Interest Rate Tips

So your mortgage professional quotes you a great rate and you go thru the lengthy process of submitting for a new home loan. That rate may be much different when you go to complete the rate and lock the loan rate. Be sure to Lock the interest rate when you do the application and get a written confirmation it is locked.

A common trick among mortgage brokers is to lock the rate then drag their feet on getting the loan underwritten and the lock expires. The borrower is worn out from the process and just says OK and pays either for a rate extension or a higher rate.

The key is to get a list of what the lender needs, get everything to them and ask the rate be locked after they review. If you don’t request the lock, you may be in for a big surprise.

Deal With A Valencia Bank

There are certainly good mortgage brokers Valencia but what about your personal information. Is your social security number and bank information laying around some desk for anyone to come by and note. Banks are FDIC insured which means they are also supervised in how they treat your personal information.

Type of Loans Rate Differs

Different types of home loans offer different rates. A 15 year home loan will have a lower rate than a 30 year home loan. An FHA home loan Valencia might be a full point below a conventional loan. This is because FHA insures the mortgage. A first time home buyer Valencia might pay a higher rate than someone else. We are here to help you make a decision about your home loan.

How To Get A Home Loan In Valencia

A mortgage Valencia may be getting harder to get with upcoming Fannie Mae regulations.No matter if you are getting a new home loan in Valencia or doing a refinance Valencia, the new guidelines will effect you.

Located just north of Los Angeles, Valencia real estate values are rising and home demand has increased recently.Valencia home loan demand is strong as interest rates in Valencia are low. The area offers excellent schools, shopping and a nice variety of homes for sale, it is a great place to raise a family.

Valencia Real Estate

But, new Fannie Mae regulations regarding appraisals may greatly reduce the possibility of a Valencia home owner or prospective resident from attaining a new home loan.

The plan is the appraiser does the appraisal and establishes the value of the property. That value will determine if many qualify for a Valencia home loan or not. But, now the appraiser must enter the value into a Fannie Mae system to be compared against thousands of other homes. If you have a pool that is elaborate and cost maybe $100,000, your pool will only add value as a basic pool. That might add $10,000 value to your home. Even though the pool design may be the absolute major feature of the property and why the home is higher priced than others, it won’t be valued that way.

Let’s say you add a room. The extra sq footage will be added to the appraised value. You may have paid only $100 a foot for the addition but get $200 extra on the appraisal.

Because Valencia home prices have climbed rapidly recently, there is a rush to get new Valencia home loans or get a refinance Valencia.  Even first time home buyers Valencia will have trouble with the new appraisal rules. We can help. As a mortgage lender Valencia, we offer FHA home loans Valencia as well as reverse mortgage Valencia.We can assist you determine what the Value might come in at before you begin the mortgage Valencia process.

Home Loan Palmdale Prequalification Made Easy

So you live or want to live in Palmdale and are seeking a Home Loan Palmdale. Or maybe you are seeking a mortgage refinance Palmdale. Getting pre-qualified for your new Palmdale home loan can be frustrating but with a little advice, we make it easier for you.

Palmdale Real Estate

Palmdale is a great area just North of Los Angeles. Located in the high desert area of Southern California, it offers a diverse setting of real estate. Some of the area is older yet right down the street is a new track homes grouping and shopping.

Home prices in the area have been rising and it has made home sales brisk. However, it has also seen many not able to afford the home that was many thousands less just months ago now priced much higher.There are still great home bargains in the area but definitely the market place is changing.

How to get Mortgage Qualified

Mortgage qualification is based on simple requirements. Income, Credit, Assets and Debt. Each has it’s challenges but if you are good on all these, your in a position to get a new Palmdale home loan.Here is some useful information on each:

• Income– mortgage income calculation is based on the last 2 years tax returns.Not your latest paycheck. The paycheck is used to verify that you are making at least your last 2 year tax return income.
• Credit– the credit score to qualify for a mortgage is usually about 640 FICO score. Experienced mortgage professionals can work with scores as low as 600.
• Assets– either down payment or Palmdale home equity is needed. The best mortgage pre-qualification rate will come if you have 20% down or equity.
• Debt– this is the item that gets most Palmdale mortgage turn downs. DTI or debt to income is an important of getting your approval for a new mortgage in Palmdale. If you have high revolving payments, auto loans and other, your debt service will hurt your chances of a mortgage Palmdale approval.

Mortgage Calculator

Before you do anything, use a mortgage payment calculator to see what your new Palmdale home loan payment might be. If you are doing a home loan refinance Palmdale, use it to see what the payment might be at a lower mortgage interest rate.

Mortgage Lenders In Palmdale

As a home loan Bank Palmdale, we offer mortgage options. Featuring FHA home loans Palmdale, VA home loans or maybe you want to do a home loan refinance Palmdale, we can help.Interest rates are low now and a good time to get a new home loan.We also offer home equity loans Palmdale and for seniors, reverse mortgage Palmdale.

How To Get A New Home Loan In Santa Clarita

Looking to get a new home loan in Santa Clarita? Finding it difficult to get approved. Or maybe you live right next door and you are having a hard time getting a new home loan Valencia. Most of the problem in the area seems to be the appraised values. Here is some tips on what you can do.

Most who are applying for a new home loan or even a refinance of their current loan do not do the necessary steps to help the value before the appraiser comes.If you are doing a refinance home loan Valencia or a refinance home loan Santa Clarita it is important the home be in its best showing condition for the appraisal.

Treat the appraisal like you have company coming over and you want your home to show at it’s best. Have the windows washed, put some fresh flowers on the table, tidy up. Your home will be valued based on comparable sales in the area. These are homes that have been on the market and sold.

The appraiser will choose what homes to use as Comps.If your home is in top shape and shows well the appraiser will be inclined to choose other homes that sold and the value is higher. A good idea is to have your Real estate agent or mortgage professional run you a report of recent sales so you can be prepared to discuss with the appraiser.

First Time Home Buyer Santa Clarita

If you have not owned a home in the last three years, you are considered a first time home buyer Santa Clarita. There are also down payment assistance Santa Clarita available for those that qualify.

We are a Santa Clarita home loan lender offering the best rates to the best borrowers. If you are looking for a morgage Santa Clarita or a Valencia mortgage refinance, we can help. We just completed a refinance mortgage Santa Clarita at below 4% rate for a 30 year fixed loan, so now is the time. We also offer reverse mortgage Santa Clarita for seniors. If you are a Vet, you can get a low interest rate VA home loan refinance Santa Clarita.

If Your Mortgage Is Not Three Percent Or Lower

In these days of low home loan interest rates, you should look seriously at doing something if you do not have a mortgage rate below three percent. Now is the time to refinance your home loan. Even if you have an FHA home loan or even a jumbo home loan rates are low and now is the time to act.

If you have at least 20% equity in your home and preferably even more, you can get extremely low mortgage rates if you do a mortgage refinance.

Fixed Rate vs Adjustable Rate Mortgage

Many homeowners bought homes using an adjustable rate mortgage. Now the rate is recasting and the payment is going up.The fear is not a small increase at the end of the 1st 3 or 5 years, it is the future rate and what the mortgage payment might be.

But, instead of paying the fixed rate you have been paying a reduced rate for the last say 5 years. Let’s say that saved you $100 a month on your house payment. That is $5,000 you just saved. if your adjustable payment goes up you have years before the savings are offset.

The bad mortgages are the ones called ‘Neg Ams”. These actually started you with a payment way below what it should have been to get you in the home. Now you have to start paying the shortage. Those type hurt. 

Don’t be afraid of an adjustable rate mortgage. It may be your only option or it may be just the best option for your situation. Just be sure you get a 5/1 arm so the payments are at a fixed amount for the 1st 5 years. Most adjustable refinance rates are running below 3% right now.

15 Year vs 30 Year Mortgage

By all means do the 15 year mortgage if you can afford the payment. In a perfect world, you got an adjustable rate mortgage when you bought the home. Hopefully, you have had time to save some money and also build up some equity in your home. Now you refinance to a 15 year loan. Yes, the payment will be higher but the rate on a 15 year home loan are below 3% in most cases right now.

That low rate can save you money and on a 15 year mortgage, you are cutting the time to own your home in full in half. We just completed a home loan refinance Santa Clarita and the borrower say the payment only go up $200 a month but cut the payoff time in half. Use our mortgage payment calculator to find your mortgage payment amount.

How To Prepare For Your Home Appraisal

So you have finally found your dream home and made an offer or maybe you want to do a home loan refinance before rates go back up. Both will require an home appraisal. But new Fannie Mae home loan appraisal guidelines may cause you problems.

Normally, the appraisal person comes, does the home appraisal measuring to confirm the footage & size and taking photos. He goes off and finds similar comparable homes that have sold recently to use as appraisal comps.

The appraiser makes adjustments to the home value based on the Comps. Maybe you have a pool and the Comp does not. He can still use the Comp but just adds value to your home to account for the pool. Other adjustments are made and the appraisal is issued.

Value Comes In Low

The big surprise…the value is way below the purchase price or amount needed to do the home loan refinance.What can you do? Back up to the beginning…did you prepare correctly for the Appraisal or did you just answer the door and let the Appraiser in?

You have to make a good impression. The appraiser will view your property and then decide which comps in the area are similar to yours. As an example, let’s say you had weeds growing 5 foot tall in the front hard.The appraiser won’t necessarily find others with the same. But they might not use a pristine home that just sold for top dollar either.

Treat the appraisal as showing off you home in it’s very best viewing. Do the necessary cleaning and organize things. Get the windows washed and go buy some fresh flowers to sit on the counter.

Appealing an Appraisal

Yes, you can get your mortgage professional to appeal the appraisal value given, but good luck. To appeal, you must provide Comps to support your appeal. Immediately, most will go find homes that sold for a higher price and use those. A home appraisal is a mix of all homes and most of the time represents the worst case example …not the best.

If you find similar homes that sold for more, be sure and don’t find similar homes that sold for less.

New Second Appraisal

Unfortunately, you can’t just keep getting new appraisals until you get the value you are looking to get. Each situation is different. Discuss it with your mortgage lender and see if a 2nd one can be done. Remember, you will have to pay for another one.

We recently saw a homeowner who was doing a mortgage refinance Santa Clarita get 3 appraisals and each one came in lower.Then right down the street, another had bought a new home and was getting a FHA home loan Santa Clarita and the appraisal came in 20% higher that anticipated. Prepare for the appraiser is the key.

How To Qualify For A New Home Loan!

Getting a new Home Loan is getting harder to get.As the economy recovers, home prices are heading up. Many home buyers report homes are selling quickly at higher prices. One Borrower reported while getting a mortgage in Porter Ranch the Porter Ranch Real Estate agent sold the house right out from underneath him. Here, we will give you some solid advice how to get your new mortgage quickly.

Calculate your Mortgage Payment

Before you go out and make an offer on a home, find out how much monthly mortgage payment you can afford. Mortgage lenders will look at your monthly payment as a combination of the Principal & mortgage interest on the loan and add Property Taxes, Hazard Insurance and HOA fees to it.

The total should not be much more than about 30% of your gross income monthly. This figure is referred to as your ” housing cost” monthly.

Now Calculate Your Debt to Income

What you made last month is not the income used to calculate your DTI. Mortgage lenders will use the last two years tax returns to average your income. Then, that number must be what you are making as your pay now as a minimum. It will be adjusted down if your paycheck stubs reflect it has went down, but not up. Remember, mortgage qualifying is always “worst case”.

Next, you need to add in the monthly payments on all debts reporting to your credit report. As an example, if you have a Granada Hills mortgage payment of say $2500 including taxes, you would need to add auto and credit card, revolving debt to that amount. This is your total debt per month.

Your income to your debt is called your DTI. If you want to get approved home loan done quickly, know your DTI before you go house shopping. A experienced mortgage broker will calculate it for you. The DTI should not exceed 43%. Meaning, your debt payments including housing should not exceed 43% of your average income over the last 2 tax returns.

Get Your Mortgage Qualifying Docs Ready

The mortgage lender underwriter will need the following to give you an approved new home loan:

• Last two years tax returns
• Last two years W2’s or 1099 on all Borrowers
• Two months recent bank statements- all pages
• Photo ID, like a drivers license or passport
• Copy of your social security card
• One months paycheck stubs
• A copy of your purchase agreement
• An estimate for the insurance cost
• A decent FICO credit score

Each home loan might require a few more items but the important part is get everything ready before you apply for the new mortgage. One Granada Hills mortgage application took 4 months as the Borrower dribbled in documents. Another took 5 months to get approved for a new Santa Clarita home loan.

The secret is do your DTI calculations or have an experienced mortgage professional do it for you and get your documents ready before hand. No matter if you are applying for a mortgage in San Clemente or a Granada Hills refinance, use our mortgage payment calculator to find your new payment amount. Give Mortgage Consumer.com  call with any questions you may have. If your around LA Feb 7th, be sure to join us and The Foodology Master at the LA Bacon Festaval.

Mortgage Refinance Valencia

Looking for a lower rate on your Mortgage Refinance Valencia? A mortgage refinance represents the restructuring of an existing loan’s terms to different parameters. By refinancing your Valencia home mortgage, you may enjoy lower monthly payments, which can free up funds for other investments or purchases. However, finding the best options for a Valencia home mortgage refinance can be tricky, so it helps to work with a lender that has experience and able to offer you multiple options on your refinance.

Valencia first time homebuyers can get Valencia home down payment assistance. These loans usually do not require a lot of money down and often have lower interest rates than mortgages. Most first time home buyer loans are guaranteed by the government; thus, there is more paperwork needed than standard mortgage applications.

Low Home Loan Rates on Homes In Valencia

Homeowners most often turn to a mortgage refinance as a way to save money on their monthly payments or get cash out to pay other debts. This type of financial action can reduce interest rates, thereby successfully scaling back what borrowers pay each month and over the life of the loan.

This helps families as they need to manage the rest of their monthly obligations, and even allow them to take on financial investments or projects that they may not have otherwise considered.

Cash Out Refinance

If you find that you need more cash on hand for other important expenses, you can draw from your home’s equity with a refinance. On the other hand, if you want to eliminate your monthly mortgage insurance, you can use a refinance to pay more money into your loan.

When looking at offers from different lending institutions you must also consider fees, points and closing costs. Compare all of these factors from at least three different lenders before you decide which mortgage is best for you.Though a traditional mortgage refinance – one in which your interest rates are lowered – is the most common, there are several different types of refinances that you might want to consider.Getting the right mortgage for your needs is not just a matter of comparing mortgage interest rates.

A cash-out refinance, for instance, allows you to convert a portion of your home’s equity into cash, which can provide money for emergency or discretionary spending. The opposite, a cash-in refinance, occurs when you pay more into their loan at the closing table, potentially increasing your equity enough to eliminate costly mortgage insurance payments.

Home Improvement Refinance

And by combining a mortgage refinance with a Valencia home improvement loan, you may be able to secure the money you need to renovate your home without incurring a separate monthly payment. Also known as a Valencia Equity Line of Credit.

FHA home loan Valencia homes. Lenders appreciate a hands-on approach, which helps simplify a potentially complicated process. We like to sit down with Valencia borrowers and work on a one-to-one level to determine the best mortgage product and actions for each individual customer.

Start saving all of your paperwork that may be required by the lender. These documents include pay stubs, bank statements, W-2 forms and your income tax returns. Keep these documents together and ready to send at all times. If you don’t have your paperwork in order, your mortgage may be delayed.

Getting a low interest rate Valencia home loan or refinancing can be a challenge. You will want to use our Valencia mortgage payment calculator to find out your monthly payment. If you don’t have 20% down payment on buying a Valencia new home, consider a Valencia FHA loan that only requires a small down payment.