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...]
I’m 3 Months Behind on My Mortgage Payments – What Can I Do?
If you are behind on your mortgage payments, know that you aren’t alone. Five percent of Americans are behind on their mortgage payments. The key is to know what to do in order to make sense of the situation. Ignoring it and hoping it will resolve itself won’t work. Instead, take the following steps.Looking for Current Mortgage Interest Rates? Click Here. Contact Your Lender Always let your lender know what’s going on. Yes, it’s embarrassing, but trust us, they hear the stories every day. … [Read more...]
How to Get a Mortgage Without W-2s
Today, securing a mortgage means you can verify every aspect of your mortgage application. This was not always the case prior to the housing crisis. Lenders used to accept what they called “stated loans.” These were loans where you could literally state how much money you made and still secure a mortgage. Those days are gone, though. Lenders want to you to verify everything now, especially in terms of your income. If you are without W-2s for one reason or another, you are not out of luck, … [Read more...]
How to Improve Your Financial Profile for a Mortgage
Securing a mortgage is one of the largest financial decisions you will make in life. In order to qualify for the least expensive product, you have to know how to improve your financial profile. Lenders look at more than just your credit score – they look at the full financial picture you provide in order to determine your risk level. In order to minimize how risky you look, consider the following tips. Maximize Your Credit Score The first step is to find out what your credit score is right … [Read more...]
Major Differences Between Traditional and Stated Income Loan Guidelines
Call them what you will – stated income loans, liar loans, no-doc loans – they are all the same thing. Borrowers do not verify their income in the traditional way, yet they still get the mortgage they need. We saw a huge decline in these types of mortgages during the last ten years as the housing industry took a major hit. Lenders were less enthusiastic about providing loans to those borrowers that could not fully document their income. In fact, the Dodd-Frank Act and the Ability to Repay Rules … [Read more...]
Are Stated Income Loans a Thing of the Past?
Stated income loans became a thing of the past after the terrible housing crisis in 2008. Lenders were not accepting these types of loans where borrowers simply stated their income, when in reality they couldn’t afford the loan. After the housing crisis in 2008 new loan regulations were put into place in order to prevent borrowers from getting into a loan they couldn’t actually afford. It became much more difficult to get any loan, which made stated income loans almost disappear for good. Today, … [Read more...]
Higher Interest Rates for Stated Income Loans
Stated income loans are slowly making their comeback in the mortgage market, usually through the smaller more non-traditional lenders. These lenders are the primary holder of these loans and can create their own guidelines to the mortgage loan options they offer. While still upholding the “ability-to-repay” rule so they cannot issue a loan a borrower can’t actually afford. Other than that, these lenders can offer whatever they choose and without restrictions on what they charge. What does this … [Read more...]
3 Steps to a Stated Income Loan
A stated income loan, which is quite similar to a stated asset loan, helps give you some flexibility within the qualification requirements. If you primarily work in a self-employed status it may be difficult to verify your income with documentations. While many people seem to think that this loan no longer exists, but in all reality many lenders are trying to give it a come-back. You will have to search around the smaller lenders to find a lender who offers this type of loan rather than the … [Read more...]
Funding Your Stated Income Loan
In today’s mortgage market lenders are required to document everything in regards to your home loan, this includes where your money is coming from. This can be difficult for people who stash their extra savings anywhere else than an investment bank or other financial institution and are looking to get a stated income loan.Since there’s no paper trail to your funds. You could still be approved based on your DTI ratio, income and credit history, but since there’s no way to show where your … [Read more...]
3 Rules to a Stated Income Loan
It is no secret that stated income loans became much harder to get immediately after the housing crisis in 2008. These loans obtained the name “liar loans” as they were a large majority of the loans that were falling apart at the seams and putting the mortgage industry in a downward spiral. Once the market started coming back it became very difficult to find any lender that would offer anyone a stated income loan. After a few years, however, they started to slowly make a comeback, mostly with … [Read more...]