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...]
What is the Purpose of the Good Faith Estimate?
If you apply for a loan with a lender, within 3 days you’ll receive what used to be known as the Good Faith Estimate. Today, it is actually two documents – the Loan Estimate and the Loan Closing Disclosure. The documents are supposed to give you a good idea of how much the loan will cost you at the closing as well as over its entirety. You’ll receive this document from each lender you apply for a mortgage loan with – they must send it within three business days of your loan … [Read more...]
How Long Does a Mortgage Pre-Approval Last?
The buyer’s market can be a competitive one. What can set you apart from the other bidders? It all comes down to a mortgage pre-approval. Showing sellers you are serious about buying the home makes your bid stand out from others.Compare Offers from Several Mortgage Lenders.Approval from a lender also shows sellers that you are capable of buying the home. You could be in the market for a home, but have no idea how much you can afford. This is a risk for a seller. Instead, showing them you … [Read more...]
Understanding Real Estate Market Value
If there’s one thing that determines your loan’s approval just as much as your credit score, it’s the home’s market value. This value can make or break your loan. Understanding it is crucial to your success in buying or even refinancing a home.Compare Offers from Several Mortgage Lenders.What is Market Value? A home’s market value is the amount it will for within 30 – 90 days. This is what the real estate market considers a ‘reasonable timeframe.’ The value is more of an opinion than … [Read more...]
Is Mortgage Assistance Taxable Income?
If you have trouble making your mortgage payments, you may receive mortgage assistance. This is aid from any program that helps you prevent foreclosure.See if you qualify for a mortgage, here.Whether you received the money yourself or the money was paid on your behalf, it may not be taxable income. As a financially distressed homeowner, you received help and you didn’t lose your home. Even more good news is that you don’t have to claim it on your taxes. However, there is one area it … [Read more...]
Is it a Good Idea to Use Retirement Funds to Buy a House?
If you’ve spent time as an adult contributing to your retirement account, you may not have a large amount to put down on a home. However, you may be able to use your retirement funds to buy that house.Is it a good idea, though? Technically, you can do whatever you want with your money. But, there are penalties and taxes to consider. Before you jump in headfirst, consider the following things. Only then can you make the right decision for yourself.Borrow vs Take First, let’s clarify the … [Read more...]
Things you Must Know About Choosing a Mortgage Lender
Today, finding the right mortgage lender may mean more than going to your local bank. Years ago, that’s all you had to do. Your local bank knew you and could get you approved for a loan. If they didn’t approve you, it was much harder to find a loan.Get today’s mortgage rates!Today, you have hundreds of options. Your local bank is still an option, but it’s not the only one. You can use other banks in the area, credit unions, and mortgage lenders. You can also try a mortgage broker. A … [Read more...]
The Real Reason You Shouldn’t Lie on Your Mortgage Application
What harm could a little white lie on your mortgage application do? That’s what many homeowners have thought before. They figure either the lender will never know or it won’t do any harm. This isn’t the case, though. It does matter and it does have large consequences.What White Lies do Borrowers Tell? You might be surprised to learn what potential borrowers lie about. Sometimes it’s as straightforward as their income. They inflate it to make themselves look better. Stated income loans are a … [Read more...]