Common Mortgage Refinance Problems!

Want to do a mortgage refinance? Well, before you do so it is important to know some of the many problems associated with home mortgage refinance. Getting a refinance Valencia may be just a matter of knowing your options.Knowledge is king when it comes to refinance a new home loan.With the huge spate in the growth of mortgage providers, it’s essential to prevent such home mortgage refinance problems from happening to you!

Normal Refinance Issues

Nothing will help your Valencia home loan refinance more than working with an experienced mortgage banker. While the prospect of owning your home may prompt you to make timely and accurate payments towards the home mortgage refinance payment, even the lender will try to keep your current mortgage strong enough. After all, he wouldn’t want to lose out on your money! Nothing in life is certain – employment conditions change, your place of stay may change unexpectedly and you may have the bad luck to be dealing with an inexperienced lender will hurt your chances of approval!

Valencia Mortgage Rates

To get the lowest mortgage rates in Valencia, you will need a good credit history. Many people face this problem especially when they are suddenly out of work or have been laid off. This can significantly impact the payment towards your home mortgage refinance and then it becomes very difficult to get out of this vicious cycle. One of the best things you can do in order to avoid this situation is to assess if you either have a secure job or whether you have set aside sufficient funds for crisis situations in future. Therefore it’s best to go for a Valencia home mortgage refinance only when you are absolutely sure that your job is secure enough to support you for a long time. After all mortgage payments are typically made over several years. Settle for a home mortgage refinance only when you’re sure of these conditions.

Change of place

There could be a reason  you moved. It could be because of a transferable job, a bitter divorce or some other condition. Usually in the case of a situation like a divorce, once one partner has moved out, the other one is forced to pay all the bills. This can really eat into the income levels of that person. That means the home mortgage refinance payment too takes a beating. There might even be legal consequences of not being able to make payments on time and within the due date. There is certainly no guarantee on the strength of a relationship but when going for a home mortgage refinance it’s best to go for it only when the couple is committed to each other for long term.

Getting a Refinance

The purpose of refinancing is to free up cash flow. Maybe a lower mortgage payment or maybe a higher one with cash out to pay off other things. There maybe situations when you’re caught in a home mortgage refinance deal that’s actually costing you more, rather than helping you save! In such situations it is in one’s best interest to get a home mortgage refinance from a FDIC insured bank. A bank has strict supervision on your sensitive information which also protects you from identity theft. Sending your information off to some mortgage broker middleman isn’t a smart move.

Mortgage Turn Downs

If you have been turned down for a Valencia mortgage refinance, all is not dead. There is a reason for the turn down and most of the times an experienced mortgage professional has overcome these exact issues in the past. To get a mortgage refinance, give us a call 877-244-9190. Out team of home loan bankers can work with you to get you new home loan options.

Mortgage Help For Home Buyers

Obtaining a new Santa Clarita mortgage has become increasingly difficult in recent months. But there is Mortgage help available.Whether you’re trying to purchase a new property or refinance your existing home, loan requirements have become stricter in the face of declining home values, falling buyer demand, and financial market concerns. But there are ways to get that dream Santa Clarita home mortgage. One of the most exciting new programs available is an Equity Share Partner.

California Equity Share Partner

The concept is rater easy…you and a Partner buy a new home. The Partner puts up all of the Down Payment and pays all closing cost. You move in with absolutely no money down. You make the payments including taxes & insurance. At the end of 2 years, you refinance. Assuming the property value has risen and you have been able to save some, you pay off the equity partner. The Partner will want his 50% share of the gain in property vales as well as his initial investment back.

So educating yourself is critical. Most people shop around to find the best deal on a home loan. But for many the process is of limited use because they don’t know what to ask. Before embarking down the path to a new mortgage, take the time to identify the questions you’ll need to ask. These questions will help your determine whether the loan is right for your individual situation. Just as importantly, they can provide you with significant insight into the mortgage professional’s intentions and credibility.

1. What kind of mortgage is this?

Ask questions of your mortgage professional. One of the most fundamental but least often asked questions relates to the type of mortgage you are getting. There are essentially two kinds of mortgages: fixed rate and adjustable rate. Fixed rate mortgages require you to pay the same monthly payment over the entire life of the loan. Adjustable rate mortgage payments are normally frozen for between two and five years, but then adjust according to market forces. Thus, fixed rate loans can be slightly more expensive, but they offer more stability to your budget.  Sadly there have been a number of cases in the past two years of borrowers being told their mortgage was fixed when really it wasn’t.

2. How much money will I need spend to close this loan?

Will you need cash to close.Whether you’re purchasing a new home or refinancing your existing one, try to find out how much money you will need to pay to close the loan. This is almost always a rough estimate, but it will give you an idea of what to expect. Sometimes your lender or broker can roll all the extra expenses into the loan itself, but even in this scenario there’s usually some out-of-pocket cost. To be safe, if the cost is zero set aside a few thousand dollars, or if the cost you are told is more than zero multiply it by 10 percent.

3. How much mortgage can I realistically afford?

Find out the mortgage payment including taxes, insurance and HOA.This is a critical question for buyers because there is a strong temptation to purchase the biggest, most luxurious home available. But look realistically at your lifestyle, and at where you’d be content to live. Ask your broker or lender how much of a loan they can approve you for, and then stay under that figure. Never try to persuade them to approve you for a bigger loan amount, and beware if they offer to do just that.

4. How long does it normally take for your loans to close?

This can be a good indication of how much time you can expect to wait before your new mortgage is set in stone, and how honest the broker or lender is. The answer to this question is normally 15 to 25 business days. Any response less than 10 business days should be treated with suspicion. And regardless of their response, be prepared for the process to take at least 25 business days. While a home loan can be closed in under two weeks, assuming that it will be can create unnecessary stress for you.

5. What is the index and margin associated with the loan?

 The index and margin combine to determine your mortgage interest rates once any introductory rates have expired, and therefore how much your new or adjusted monthly payments will be. For example, a 5% margin added to a 6 Month LIBOR rate of 5.3% will equate to an overall interest rate of 10.3%. Margins for people with good credit are usually around 2.5% to 3.5%. Anything more can be a sign you’re getting conned. If your broker or loan officer seems flustered by this question or tells you it is too complicated for you to understand, chances are they’re not confident enough to answer you, or they have something to hide.

Mortgage can be confusing but working with an experienced mortgage professional will be the answer to getting you approved.Use a mortgage payment calculator to find your monthly mortgage payment. Always get your mortgage proposal ( GFE) in writing. If you have questions, ask!

How To Pay Off Your Mortgage Early

Paying off your Santa Clarita mortgage early can make a whole difference to your life. In this article, we will discuss how to pay off your mortgage early.Most homeowners would gladly reduce that debt if the opportunity presented itself, though they do not realize that the key to reducing their mortgage debt lies in reducing the amount of interest that they pay on their mortgage. By paying off their mortgage months or even years in advance, all of the interest that they would have had to pay during that time obviously will not have to be paid.

Also, the interest rate that will be paid will be at a reduced rate because they are reducing the total amount that the interest is applied to at a much faster rate.The trick, of course, comes in figuring out a way to pay off the mortgage early.

For individuals who live on a tight budget as it is, the thought of paying even more toward their mortgage may seem almost laughable. There are a number of ways that homeowners can pay down their overall mortgage in order to pay it off early without having to cause a strain on their finances, as well as services which can assist them in doing so if they aren’t able to accomplish it on their own. Here are just a few examples of how a mortgage can be paid off early without causing undue financial strain.

Pay Extra on Payments

One easy way to pay off your mortgage early and possibly even make your finances easier to handle is to simply put aside a portion of your mortgage payment from each paycheck (or even from every other paycheck, if you get paid weekly.) If you put aside approximately half of your mortgage payment every other week, you’ll end up saving the equivalent of an extra payment every year. If you add just $100 every month extra to your mortgage payment, most mortgages will be shortened by many years.

Setting aside slightly more than half will cause an even greater savings, causing you to pay down your mortgage at an even faster rate. Depending upon the length of your mortgage term and when you start this savings plan, you can cut months or even years off of your mortgage. All that you have to do is pay whatever you have put aside each time your mortgage comes due (which should cause you to end up with a few payments that are significantly more than the minimum payment.)

Additional Payments

Making just 1 extra payment every year will reduce the normal 30 year mortgage by over 5 years. If you don’t like the idea of having to keep track of savings over the course of the year, you might use income tax returns to help you to make up the difference. For many people, the amount that they receive in their tax returns is significantly more than their mortgage payment. While you may have at least some of your tax money earmarked for specific purchases or to pay off other debts, using part of that money to make the equivalent of an extra mortgage payment once per year can significantly reduce how much you owe.

If you can afford to contribute more than just the amount of one payment or if you use this in conjunction with the savings plan mentioned above you can pay off your mortgage even faster.

Using Interest to Overcome Interest

If you have a high-interest savings account, you can use that interest to help you pay off your mortgage ahead of time. Once or twice per year, pull out money from your savings that’s equivalent to part of the interest that you’ve accrued and add it in with your mortgage payment. Provided that you have a high enough savings balance you should be able to make a significant impact on your mortgage debt by doing this. Over the course of the year the amount that you add to your mortgage payments could potentially equal an entire extra payment or more.

Bi-Weekly Mortgage Payments

If you worry that you can’t keep yourself motivated to keep making these extra payments, you might consider using a bi-weekly mortgage payments. These services automatically withdraw one half of your mortgage payment from your checking account every two weeks, and then make your payment for you when it comes due. You can usually set this up thru Bill Pay on your bank account. There are 52 weeks in a year and if you make a partial payment every 2 weeks if results in 26 payments per year of half your payment. That results in 13 payments a year or 1 extra every year. In 12 years you would have knocked 12 extra payments off your mortgage and shortened it by a full year.

Refinance to a 15 year mortgage

There are several options to reduce the time on your mortgage. The easiest is to just refinance and get into a 15 year home loan. Your payment will be more than the normal 3o year mortgage but you cut the time in half. A unknown fact is any new mortgage can have any amount of years they want. If you have had a mortgage for 7 years you only have 23 more years to pay on it. You would not want to go back to a 30 year mortgage. Have your mortgage professional quote the payment savings in the same exact amount of years you have left to go…that will tell you if there is real saving.

No More Mortgage Payments-Here’s How!

Are you house rich and cash poor? In recent years property values have soared, while investment returns have been modest. This has created a situation where a lot of seniors are finding themselves using their retirement savings to pay their mortgage payments. These cash strapped seniors are looking for ways to increase their retirement income while continuing to live in their homes. These retirees find that their options are limited, and in most cases require them to risk their home. Enter the FHA reverse mortgage, which can provide many advantages over the mortgage payments dilemma.

Seniors can sale their homes, will it to their kids or keep it as long as they want. The payments are deducted fro the equity in the home and when you decide to sell the home, it is just how much you sell it for less what you owe is  what you get. Just as it always has been. If you owe say $100,000 on your home and over the next 10 years the payments make it so you now owe $130,000 on it and you sell it for $200,000 you get the difference. But, during the 10 years you had the reverse mortgage, you didn’t make any house payments. So no matter if you have a California mortgage, a Nevada mortgage or anywhere else, consider a reverse mortgage.

Reverse Mortgages

You may not understand a reverse mortgage. The biggest advantage of a reverse mortgages is not having to make payments as long as you continue living in your home. In fact, this is the number one reason that seniors choose to borrow reverse mortgages. Almost 80% of reverse mortgage borrowers use a reverse mortgage to pay off their current loans in order to eliminate their house payments. Let’s say you owe $50,000 on your first mortgage and borrow $80,000 with a reverse mortgage. This would pay off and eliminate the payment on the first mortgage and provide you with $30,000 to use as you please.

Stay in Your Home For Life

The second advantage of reverse mortgages is the ability to live in your house as long as you like. The great thing about this is the amount you owe on the reverse mortgage can never be more than the house is worth. Let’s say you live to 115 and have selected to recieve a $300 a month payments for life from the reverse mortgage. The amount received from the reverse mortgage payments could be substantially higher than the value of your home, yet the amount owed will still only be the value of the home. In this situation, FHA insurance will cover the difference.

Reverse Mortgage Withdrawal Options

Another advantage of reverse mortgages is the different withdrawal options that a you are able to choose. These options include lump sum distributions, line of credit, monthly payments, or any combination of these three. So if you were eligible to borrow $100,000 on a reverse mortgage you could select to receive $30,000 up front to cover current expenses, and hold the rest as a line of credit that you can use whenever you need it. This flexibility of reverse mortgages can significantly improve you financial independence during retirement.

Tax-Free Advantages of Reverse Mortgages

Another advantage of reverse mortgage is the tax-free nature of the loan proceeds. The American Bar Association guide to reverse mortgages advises that generally the IRS does not consider loan advances to be income. This means that all the money from the proceeds of the reverse mortgage end up in your pocket.

With these features, reverse mortgage are definitely an option to consider if you are looking for ways to supplement your current income. As with any financial decision, you should seek the advice of a trained professional, a reverse mortgage counselor, to evaluate and determine if a reverse mortgage is right for your situation. We are happy to answer any questions about reverse mortgages with no payments. Give us a call 877-244-9190.

Quick Mortgage Pre Qualification-Go Buy a Home Today

Getting qualified to buy a new home can be challenging. Now, with the help of some very complex systems, we can get you pre-qualified for a new home mortgage in minutes. You will be able to quickly qualify and have confidence in making an offer on a property today.A Quick Mortgage Pre Qualification can be attained by just following some simple steps below.

Getting a new mortgage requires an abundance of information and support documents. But, getting pre-qualified looks at your overall financial status and compares it to mortgage requirements. Your credit score and your income are analyzed  to determine just how much of a mortgage you can afford.

Mortgage Payment Calculator

To help you determine your ability to buy a new home, you should use the mortgage payment calculator to see just how much the mortgage payment would be. Then you need to add property taxes and hazard insurance to the payment to get the total housing expense per month. If that amount exceeds 25-30% of your gross combined monthly income you can expect to have problems getting a new mortgage. If you have auto payment and high credit card or other revolving debt, again, it will cause debt to income issues.

Pre Qualification Letter

The good thing about taking the time to get pre-qualified is not only will you feel confident in making and offer on a new home, you will also have a written Qualification letter to show a real estate agent or seller. That will greatly help the situation. Hit the “APPLY NOW” button and complete the short application and receive your pre-qualification letter in 24 hours.

Getting a Mortgage With Bad Credit

Many home buyers with blemished credit from the past economy are now challenged with getting a new home loan. The decision to buy a house is a great one, and nothing can make the outcome of that decision greater than being well informed of what to expect from the process of choosing and Get a Mortgage With Bad Credit. A less than stellar credit history will not automatically exclude you from a mortgage approval. The first step in the process is to understand the process of mortgages.

Choose Mortgage Experience

Decide what you need from a mortgage company, and pick one that will work well for you: not only in buying the home, but also in the long-term. Lastly, begin planning now, and work to improve your credit history to minimize it getting in the way of an approval. Being informed will make the process of applying and being approved for a mortgage a much smoother and more pleasant process.

The process of how to Get a Mortgage With Bad Credit and its approval is generally uniform, with some minor differences from company to company. The initial step requires you to fill out an application form, from which the lender will have the information to research your personal finances and confirm what you have said. You may have to provide documents regarding your finances, such as previous years’ W2 forms, any outstanding debts you have, and information on the home you hope to buy. This information, together with any additional research, gives the lender an idea of your integrity and the probability of you paying off your mortgage.

The next step would be to determine the mortgage payment. This begins with the amount you hope to borrow from the mortgager, taking into account the approximate price of the house, based on the estimate of the appraiser, as well as your own financial situation. The final decision is usually known within a month of applying. If you have been rejected, the mortgage company must, by law, inform you of the exact reason. Even if you receive a rejection, use it to learn from, try to find a solution and reapply. Last point: never let it slip your mind that in agreeing to a mortgage, you are agreeing to give up your house to the lender, who will sell it to earn the balance that you owe, in the case that you do not manage to pay off your mortgage. This is known as a foreclosure, and is certainly a situation that both the lender and you, the homeowner, want and work to avoid.

Low Mortgage Rates

 While the interest rate that the mortgage company offers may influence your interest in working with them, keep in mind that a low interest rate should not be the basis for choosing a mortgage lender. Ask if the company’s rates are variable with time, or fixed for the life of the loan. If you plan to live in your new house for the long-term, then don’t automatically discount the long-term, higher interest rate mortgage. Also, be sure to check the total costs of the mortgage company, because a temptingly low interest rate could be lost in high closing costs. Last, but not least, in choosing your mortgage company, be sure you feel comfortable. If it is a huge, reputable mortgage firm, be ready to have less personalized assistance. On the other hand, a smaller firm may not be able to offer you the options of a large one, but a much more personal team or individual who will work on your mortgage throughout.

As important as it is that you like the mortgage company, making sure they like you is just as important. If your past credit history is not one to be proud of, do not lose faith of being approved for a mortgage. Instead, turn your energies to optimizing the present and future of your credit history. Think about this aspect even before you find your dream house and apply for a mortgage – if you do plan ahead, it could make the difference of an approval or a rejection. The first step to improving your credit history is to pay your bills on time. In addition to this, before applying for a mortgage, pay off any small debts you have remaining.

Keep your credit balances low, and close any unnecessary credit accounts (conversely, don’t open any new unnecessary accounts!). Do keep in mind, however, that an unused account with a zero balance may help your score. Even a late start in better money management will show a lender your effort and increase your chances of a positive result. Further, be prepared that your down payment may be another condition of receiving a loan. Having enough liquid assets is important for mortgage companies. In the case that an emergency arises, having enough of your savings will be safer both for you and the lender.

Getting a mortgage with Bad Credit is possible but you will need to work with an experienced mortgage professional to get it. A mortgage is not exclusive for those who perfectly pay off their credit. For the mortals among us, there are many mortgage companies who are just as human and willing to help deserving individuals obtain a mortgage. In addition to the process of the mortgage, learn about the different types of mortgage lenders that exist, and identify which will be the best partner for you. FHA home loans allow low credit score borrowers.  Lastly, start improving any shaky credit history early on to avoid any potential hold-ups in acceptance for the mortgage. Organizing the work of buying the house will better prepare you to organize for the rewarding work of owning a house.

Buying A New Home After A Foreclosure!

If you have had a past home Foreclosure or even sold your home with a real estate short sale, you could now be able to get a new Valencia home loan. Before attempting to buy a home after foreclosure, it is important to educate yourself on the necessary steps, and improve your odds of getting approved. Certain situations are extremely damaging to your credit report. These include bankruptcy, foreclosure, sheriffs sale etc. Fortunately, you can rise from a bad credit situation. Here are a few tips to help you get approved for a mortgage after a foreclosure.

Effects of a Property Foreclosure

Aside from embarrassment and shame, having a home foreclosure will significantly decrease your credit score. Immediately following a foreclosure, it is difficult to obtain any type of credit, especially a home loan. Because many factors contribute to the inability to repay a mortgage loan, those who experience a foreclosure may be able to afford a new home loan.

If you had a special hardship, there may be hope. For example, if foreclosure was due to loss of employment, once the previous homeowner finds work, they may be able to handle a new mortgage. The problem lies in getting approved. Lenders could careless about the circumstances surrounding bad credit. Their main concern is determining whether you are a good candidate for a loan. Thus, it is essential to improve credit before applying.

Your Credit 

To improve your credit score following a Home loan issue is to keep up with regular payments to your other creditors. For example, if you have three credit cards, make an effort to pay the bills on time. If possible, payoff the credit card balances. This will increase your available credit, which is perfect for quickly boosting credit rating.

If you do not have a credit card, another tactic involves applying for a new line of credit. This might consist of an auto loan or secured credit card. Likewise, maintain on-time payments. Be aware that late payments or skipped payments will cause further damage to your credit rating.

Work With An Experienced Loan Professional

Choose your Loan Professional carefully and make sure they have the experience you need. Ask them if they have worked with others with your exact situation. When applying for a mortgage loan after a foreclosure, many traditional lenders will not approve a loan request. For this matter, request quotes from several sub prime or high risk mortgage lenders. These lenders approve loans to people who have a difficult time securing financing.

Loan Modification

You will have to wait a minimum two years after a to get a refinance home loan. Some lenders will require you to wait up to four years. The key will be if you were late on payments at the time of the modification. Unfortunately, many Lenders told borrowers they must be late on payments to get their home loan modification. Many times the borrower had to be in pre-foreclosure to even be considered for a loan modification. That has hurt the borrowers credit and ability to get a future loan or home loan refinance. A good mortgage professional has encountered this and learned how to overcome it.

Mortgage Repayment Options You Need to Know…

Getting a new Valencia home loan can be difficult and challenge you. Many home buyers just get fed up with it and think there is no easy way to get a new home mortgage.When you are searching for Mortgage Repayment options, no matter if it is a first, second, or refinance, you have different options on repaying it which some people don’t realize. So, before you just take whatever is on the paperwork, you should consider the following options:

Valencia Mortgage Rates

Mortgage payments are set up to normally include interest and principal in the payment. This is the most common way to repay your mortgage, since you make your payments each month on the principle of the loan. In the U.S., this is called amortization. These types of loans are set anywhere from 10 to 30 years, depending on the lender and where you live. The payments that you give to the mortgage company each month take a percentage and place it toward the interest and the rest goes toward the capital of the loan. Earlier in the loan, most of the payment goes toward the interest and toward the end most of the payment goes to the capital.

Interest only repayment.

While this type of mortgage is not widely used in the United States, it is available in certain situations. In this type of mortgage, the principal isn’t repaid through the term of the loan, instead, you make regular ‘payments’ to an investment account or plan that helps you to build up a large lump sum that will in turn repay the mortgage completely at the end of the loan. This is usually referred to as an “investment-backed mortgage” or as any of these types of mortgages: “Home Equity Mortgage”, “Individual Savings Account Mortgage”, or a “pension mortgage”. So, when you hear any of these terms, you will know what the mortgage broker is talking about. These types of mortgages offer some great tax advantages, so just ask your mortgage broker about them.

Reverse Mortgages

Reverse Mortgages for seniors are a great mortgage option.If you are an older person, this might be the way for you to go. Some mortgage companies offer a mortgage that is usually referred to as a “reverse mortgage” it just depends on where you live and where the mortgage company is located. Basically this type of mortgage is just compounded each year, with the interest rolled up into the capital. The only problem is that the debt increases each year that the mortgage is open. One of the reasons that these loans are meant for older people is that they are not usually repaid until the borrowers pass away. These are FHA home loans and offer no payments to Seniors. It is a great way for a person on a fixed income to retain their house after retirement.

California Home Loans

We often get asked about Down Payment Assistance programs offered in California home loans. Yes, we do offer a program that allows a home buyer to buy a home with almost no money down home purchase. We also offer California FHA home loans, California VA home loans and California Home Equity Loans.

Mortgages for Self Employed

Apply for a Mortgage Santa Clarita can be challenging but if you are self employed, it gets much harder. If you follow some simple methods it can be much easier to qualify for Mortgages for Self Employed. Most small business owners have their business in a S corporation, get a W2 paycheck and income comes in via  a K-1 from the S corp. Here are some tips for that mortgage situation.

First, a business owner needs to understand that while he used the S corporation to reduce the taxes he would owe, it might hurt him in getting approved for a new home loan. Income is calculated over a 24 month period, not last months paycheck amount. We regularly get business owners who put their income at a high amount based on current pay. They think raise their paycheck amount and get approved. Not that simple. Income will be calculated off the tax returns for the past two years and then supported with current pay.

If your income has dropped in the most current tax filing, then only the most current year income will be used. Mortgage qualification is always using the most conservative approach.

Fannie Mae Qualification

Business owners can go online and get the Fannie Mae form # 1084. This is the form used by most Underwriters to approve a Santa Clarita mortgage application. There are also good instructions online to help you complete the form. From the simplest to the most complex multi corporation tax returns, this form addresses it all. You can also request an experienced mortgage professional to complete the form for you. Once the form is completed, it will tell you the true 2 year income to be used for mortgage qualification.

Debt To Income-DTI

If a business owner is turned down for a new home loan it is usually due to the DTI ratios. Basically, everything on your credit report plus the new mortgage including taxes, insurance & HOA cannot exceed 43% of your Fannie mae form #1084 income. However, you can help the situation with some mortgage experience. As an example, if you have an auto payment, most likely you pay it from the business account. That all gets expensed against the corporation. The auto payment and a host of other expenses can be added back to your income and many times it will be the difference in getting approved.

Deal with The Bank

Your first choice in getting a mortgage should always be the Bank. They make a profit off the fees they charge you on your checking accounts, ect and don’t want to loose that by turning you down for a new home loan. You can Get Started now and get your approval with 24 hours right here.

Mortgage Payment Calculator

Before you go looking for a new home or try to do a mortgage refinance for business owners, take the time to get all the required documents ready. Also, take the time to calculate how much of a home you can afford using a mortgage payment calculator.

Get a Credit Report

Your credit report is the best guide of your ability to get approved for a new home loan. If you have some blemishes on your credit, many times they can be dealt with and overcome by an experienced mortgage professional. We can get you a report the same day you apply and discuss several mortgage options to pursue. If you are self employed and looking for a new home loan give us a call.

Mortgages for Self Employed are available and understanding your options is a good place to begin.If you are looking for a Santa Clarita home loan or even a refinance Santa Clarita and are self employed, take the time to find a lender who specializes in this type of mortgage.

No Money Down Mortgages

A lot of people need some guidance when applying for a mortgage. The process included many details that are critical in determining how long your loan will be and what you will pay. What many borrowers do not know is the many programs available to buy a new home with a almost No Money Down Mortgages.

HFA Program

In California, the state offers a program where they contribute up to 3% of the home purchase price. There are some restrictions but basically, you need to live in the home as your primary residence and don’t sell it for 5 years. If you buy a home with a FHA home loan, it requires 3.5% down. Using the California mortgage assistance program and a bit of seller contribution toward closing cost and your in with no money down.

Save enough money to make a down payment. Lenders may accept as little as 3.5% down but try to make a larger down payment. If you put down 20% of your total mortgage, you won’t have to pay private mortgage insurance and your payments will be lower. You will also need cash to pay closing costs, application fees and other expenses.

Consider unexpected expenses when you decide on the monthly mortgage payment that you can afford. It is not always a good idea to borrow the maximum that the lender will allow if your payment will stretch your budget to the limit and unexpected bills would leave you unable to make your payment.

Buy with Seller Contributions

When you make an offer on a new house, ask for the seller to contribute up to 3% towards your closing cost. The 3% should cover most cost and you only need the down payment. If you get the real estate agents to contribute, your in with no money down.

Having the correct documentation is important before applying for a home mortgage. Before speaking to a lender, you’ll want to have bank statements, income tax returns and W-2s, and at least your last two paycheck stubs. If you can, prepare these documents in electronic format for easy and quick transmission to the lender.

You may wish to refinance without closing costs with No Money Down Mortgages. You do not always need to spend your money to save money when you refinance. Many lenders will offer mortgages that have no closing costs. Lenders make up for these costs by charging you an interest rate that’s slightly higher. This slight increase sometimes translates into some extra dollars in your monthly payment, but you can save thousands in your closing costs.

You may be able to add your homeowners insurance costs to your mortgage payment. One advantage of this is negating the need to make two payments. Instead of paying your mortgage and an insurance bill, you can pay both bills in one payment. If you like to consolidate your bills, this is a good idea.

Keep your job. Lenders look into many aspects of your financial situation and one very important aspect is your employment income. Stability is very important to lenders. Avoid moving jobs or relocating for as long as possible before you apply for a home mortgage. This will show them that you are stable.

You can request for the seller to pay for certain closing costs. For example, a seller can pay either a percentage of the closing cost or for certain services. Many times the seller is responsible for paying for a termite inspection along with a survey and appraisal of the property.

Seller Carries a Second

Years ago, most real estate sales involved the seller carrying a note for some of his equity. That is now starting to come back as we see values increasing. What this basically does is allow you to get a conventional loan at 80% of the purchase price. This is the best type of mortgage as if offers the best rates. The difference 20% is your down payment and a small note the seller carries. This can be a great situation to get you in the home of your dreams.

The seller carried second can have a small monthly payment with a balloon in say 3 years. This gives you the opportunity to get in your new home and get some equity built up over the next 3 years before you refinance and pay off the sellers note.

You may be so excited about getting a new home that you go out and start buying all types of furniture. Unless you are paying for the furniture in cash, you need to hold off on this. You don’t want to open any lines of credit or make any large purchases until after your loan is closed.

It is critical that you have an understanding of No Money Down Mortgages when purchasing your first home. You can avoid being taken advantage of if you learn about all of the small details. There are a lot of little things you may not be aware of at first. The fees can add up and you want no surprises. The most important thing in getting a no money down mortgage or other mortgage options is to work with an experienced mortgage professional who has done many of these type loans and can walk you thru it. Give us a call with any questions you may have. 877-244-9190