You are ready to buy a house – congratulations! Before you start, though, you need to do the hard work of finding a mortgage. If this is your first home, you may not even realize how many mortgage programs are available today. It’s more than choosing the right interest rate or even the right term – you have to put all of the pieces together to choose the right loan.Get Matched with a Lender, Click Here. The Type of Loan First, you must choose the right type of loan. The choices … [Read more...]
Can you Deduct HELOC Interest Payments on Your Taxes?
The Tax Cuts and Jobs Act changed the standard deduction for taxpayers. It increased the deduction enough that many people take the standard deduction. If you don’t itemize your deductions, you can’t write off interest on any loan, let alone your HELOC.Get Matched with a Lender, Click Here.Assuming your deductions exceed the standard deduction limit, can you deduct the interest payments on your taxes any longer? The Previous Ruling Prior to the Tax Cuts and Jobs Act, you could deduct … [Read more...]
The Steps to Making a Success Offer on a Home
You’ve decided on a home and are ready to make the offer. Do you know what you are doing? Do you know what sellers want?Looking for Current Mortgage Interest Rates? Click Here.Even if you work with a realtor (which we recommend), it’s important to know what makes a great offer. We outline the steps for you below. Get a Pre-Approval Before you look at homes, find a reputable lender and get pre-approved. This step saves a lot of time and frustration.Sellers will take your offer more … [Read more...]
What is a Closed-End Home Equity Loan?
If you want to tap into your home’s equity, you have a few options, one of which is the closed-end home equity loan. A closed-end home equity loan is like your standard mortgage with monthly payments and a finite term.Looking for Current Mortgage Interest Rates? Click Here.Keep reading to learn how it works. How the Closed-End Home Equity Loan Works The closed-end home equity loan gives you the chance to tap into your home’s equity. Let’s say you borrow $100,000 of your home’s equity … [Read more...]
Refinancing with a Stated Income Mortgage
The stated income refinance loan lost its power during the first few years after the housing crisis. Lenders were too afraid to offer anything but purely mainstream loans for fear of borrowers defaulting on their loans. After the release of the Qualified Mortgage Guidelines, borrowers got even stricter with what they would offer borrowers. No one wanted to be accused of providing loans that were not “Qualified” according to the new guidelines. Fast forward a few years and banks have loosened up … [Read more...]
Employment Verification for Stated Income Loans
In the past, stated income loans required very little verification. You stated your income, proved your credit score and provided assets – this was all the lender required to approve you. Then the housing crisis happened and the stated income loans took the brunt of the blame. Most lenders refused to offer stated income loans at all. After a few years, guidelines relaxed a little and portfolio lenders started offering stated loans. Today, you can find them at a variety of lenders; however, they … [Read more...]
How to Calculate Self Employed Income for Mortgages
Before you get approved for a mortgage, lenders need to know that you can afford it. If you work for someone and get a W-2, it’s easy for lenders to calculate your income. You can even do it, by just dividing your income by 12 months. But, if you work for yourself, there’s a whole different aspect that comes into play. Looking for Current Mortgage Interest Rates? Click Here. Keep reading to learn how to calculate your self-employment income to see if you may qualify for a mortgage. You Need a … [Read more...]
Should I Lock in My Mortgage Rate Today or Wait?
The average rate lock is for 30 days. That’s the typical rate lock a lender will offer free of charge. Of course, you can lock your rate for less or more time if needed. If you lock for less than 30 days, you’ll still get it for ‘free.’ If you need more than 30 days, though, expect to pay extension fees. Looking for Current Mortgage Interest Rates? Click Here. You can lock an interest rate for as long as 120 days. Unless you stumble across an interest rate that is unbeatable, though, you … [Read more...]
What Debt Ratios Should Self-Employed Borrowers Have?
Self-employed borrowers face unique circumstances. Lenders look at you as risky because you don’t work for someone else. Your income is dependent on how your company does. When you work for someone else, there’s a bit more consistency and reliability in your income.This doesn’t mean it’s impossible to get a mortgage as a self-employed borrower, though. You have options; it comes down to proving that you are an attractive borrower, which means showing low debt ratios. Looking for Current … [Read more...]
Mortgage Questions You Need to be Asking Your Loan Officer
Buying a home means making a lot of decisions. Before you even look at homes, though, you have one very big decision to make. You need to find a loan officer. While they are a dime a dozen, this isn’t a one-size-fits-all approach. You’ll want to look for certain characteristics of the lender and even the person handling your loan before you jump on board. Looking for Current Mortgage Interest Rates? Click Here. Consider these top questions before you choose someone to handle your next … [Read more...]
