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...]
Are Hard Inquiries on Credit Report Permanent?
Did you know that every time you submit an application for credit, it goes on your credit report? It’s called a hard inquiry and it lets other lenders know that you applied for new credit. This is the case even if you aren’t awarded the new credit. Looking for Current Mortgage Interest Rates? Click Here. Too many inquiries can have a negative effect on your credit score. One inquiry is only worth five points, but if you have a lot of them, it can bring your credit score down significantly. So … [Read more...]
Shopping for a Stated Income Mortgage 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...]
How the Truth in Lending Act Protects Borrowers
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...]
What Documentation is Required for a Home Equity Loan?
Do you have equity in your home and want to know how to tap into it? The good news is that it is fairly simple. The bad news is you have to qualify for it. It could be a little harder only because you likely already have the large debt of a first mortgage. Now you want to add another debt on top of it. There are willing lenders, but you must know how they verify your income to determine if you qualify.Looking for Current Mortgage Interest Rates? Click Here. Verifying Your Income Do you … [Read more...]
What Percentage of Your Home’s Equity Can You Borrow?
If you have equity in your home, you might think you can borrow it at any time. But that’s not the case. Each loan program only allows you to tap into a certain amount of your home’s equity.Looking for Current Mortgage Interest Rates? Click Here.Why do banks care how much equity you take out of your home? It’s simple – it keeps you paying your mortgage. Without any equity, it can be easy to walk away from your debt and your home because you have the cash in hand. This leaves the lender … [Read more...]
Contingencies to Include in Your Purchase Contract
Once you find a home you want to purchase, you have to put in a purchase offer. This isn’t just the number you are willing to pay for the home. It also includes the contingencies you will require before signing the purchase contract.Looking for Current Mortgage Interest Rates? Click Here.The contingencies are often just as important to the seller as the price you’ll pay. The contingencies determine how many different ways you have to back out of the contract in a specific period. Of … [Read more...]
When Does a Mortgage Pre-Approval Expire?
Before you even step foot in the real estate market, looking at homes for sale, you need to find a lender. Once you do, you need to secure a pre-approval letter from them that lets the seller and/or real estate agent know that you are pre-approved for the loan. Without this letter, many sellers won’t even waste their time showing you the home. They only want serious buyers that they know have the ability to secure financing (or pay cash).Looking for Current Mortgage Interest Rates? Click … [Read more...]
The Steps to Writing a Financial Hardship Letter for a Mortgage
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...]
Max LTV for Stated Income Loans
Stated income loans are still around, contrary to what many people believe. These loans may not look the same as you remember, but there are still ways for borrowers that can’t verify their income the traditional way to secure loan funding.Looking for Current Mortgage Interest Rates? Click Here.Just how much can you borrow and how do the loans work? Keep reading to find out more. Who Can Get a Stated Income Loan? First, let’s discuss who can even obtain a stated income loan. Typically, … [Read more...]
