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...]
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...]
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...]
Alimony – Will it Help you Get a Mortgage?
You know the number one factor in getting a mortgage is how much money you make. The easiest income to verify is salaried income. Of course, lenders allow other types of income, including alimony. But, how do they calculate it? Who can and cannot use it?See if you qualify for a mortgage, here.We discuss all of the factors below.Official Documentation Required Alimony doesn’t count if it’s not official. In other words, it must be court ordered. If one spouse is not legally obliged to … [Read more...]
Tricky Ways to Get the Seller to Pay Your Closing Costs
It’s no secret, buying a home is expensive. Not only do you have to worry about the down payment and moving costs, you have closing costs too. In most cases, you can expect to pay between 3 and 6% of your loan amount in closing fees.If you’re talking about a $200,000 loan, this can add up to as much as $6,000 - $12,000. That’s no small chunk change! If you are using a government-backed loan, such as the FHA or USDA loan, chances are you are hard up for cash. Coming up with that kind of money … [Read more...]
Learn How to Get a Mortgage Using Future Rental Income
Rental income can help you qualify for a mortgage. What happens if you don’t have a history of receiving the rent, though? Can you still use it? In some cases, you can, but you’ll have to understand the rules before proceeding.Renting Out a Home If you buy a home with the intention to rent it out, you’ll likely have another mortgage you pay on the home you live in. You’ll need something to offset that 2nd mortgage. Without having renters in the home paying you, the lender can’t use rental … [Read more...]