If you are asking your mortgage lender for help because you can’t make your payments, you may need to write a financial hardship letter. This letter lets the lender know the exact circumstances of what happened to cause you to fall behind.Looking for Current Mortgage Interest Rates? Click Here.Your hardship letter must be very detailed and include the points that lenders look for when deciding if you are a good candidate for a loan modification.Keep reading to learn more about the … [Read more...]
What Should you Look for in a Predatory Loan?
Predatory lending is certainly much less common today than it was just 10 years ago. That doesn’t mean that they don’t exist, though. Understanding what they are and what to look for can help you avoid taking on a loan that might not be what you think.Typically, lenders target borrowers that don’t qualify for standard loans, such as conventional or government-backed loans, to get them to take the predatory loan. While they aren’t always bad, you should know what to look for in … [Read more...]
The Top Reasons a Mortgage is Denied After Preapproval
You secured your pre-approval for your mortgage, so you assume you’ve got it ‘in the bag.’ Did you know, though, that there’s no guarantee of getting the mortgage to the closing table? The preapproval does mean that the lender evaluated your qualifying factors for the loan, but there are many things that can still go wrong.Looking for Current Mortgage Interest Rates? Click Here.Typically, there are at least a few months between when you get preapproved for a loan and when you close on … [Read more...]
How to Shop for a Stated Income Loan the Smart Way
The housing crisis is behind us and more lenders are willing to provide a stated income loan. How do you know which lenders are good and which are not? What’s the best way to shop for this loan?Looking for Current Mortgage Interest Rates? Click Here.This guide will help point you in the right direction. What is a Stated Income Loan? First, let’s look at today’s stated income loan. It’s not the same one from 10 years ago. Before you could literally state your income and assets and get a … [Read more...]
When is it Not a Good Idea to Refinance Your Mortgage?
When rates fall, it can be very tempting to run out and refinance your mortgage. Did you know that it’s not always a good idea to do so, though? Below we offer tips on when you should not consider refinancing. Closing Costs are too High Every time you refinance you pay closing costs. If you don’t pay them because you have a ‘no closing cost loan,’ you pay them in the higher interest rate. One way or the other, you are paying the bank because they don’t write loans for free.Get Matched with … [Read more...]
House Hunting the Right Way
House hunting means more than shopping for a home. You have to take the right steps in order to make sure you get the right home. It’s more than about the home itself, it’s also about the financing and finding the right neighborhood too.Get Matched with a Lender, Click Here. Do Some Soul Searching Before House Hunting Start the process by doing some soul searching. What is it that you want in a home? How long will you be in the home? How much room do you need? Is this a forever home or is … [Read more...]
Why is the Truth in Lending Act Important?
Many things have changed in the mortgage industry, but one thing that remains the same since 1968 is the Truth in Lending Act. Otherwise known as TILA, this federal law helps make sure consumers receive fair treatment when obtaining a loan. It ensures that all consumers understand the terms and how to shop around for the right loan for themselves.Compare Offers from Several Mortgage Lenders.All mortgage lenders must provide TILA documents within three business days of loan application. … [Read more...]
Simple Ways to Save Big Down Payment on a House
It’s no secret, putting a big down payment on a house helps you get a mortgage. It helps you get approved and helps keep your monthly payment down. But saving up thousands of dollars can seem rather overwhelming. Here are some simple ways to save for a big deposit on the house of your dreams.Get Matched with a Lender, Click Here. Look at Your Spending Habits The first step might not be the most pleasant. It’s time to look at your spending habits. Look at your bank statements over the last … [Read more...]
The Top Credit Mistakes to Avoid Before a Home Purchase
You put a bid down on your dream home and it was accepted! Congratulations! Now you need to get yourself to the loan closing. If you already received a preapproval for your financing, you are halfway there. Remember, though, you still have to verify everything you stated in your contract. You also have to be very careful about what you do with your credit between now and the loan closing. There are many credit mistakes people make that ends up costing them their dream home in the end. Closing … [Read more...]
Guide to 12-Month and 24-Month Bank Statement Mortgage Programs
Sometimes you just can’t qualify for a loan the standard way. Self-employed, seasonal, and commissioned employees often have this trouble. They don’t have a steady paycheck and they take numerous deductions on their taxes. Both of these issues combine for a very risky loan, causing lenders to turn them down. Luckily, there is the option of the bank statement loan. Using 12 or 24 months of your bank statements, you may qualify for a loan.Compare Offers from Several Mortgage Lenders.Keep … [Read more...]
