Bank statement loans have requirements just like any other loan. Just because they are an alternative documentation loan does not mean that there are not strict requirements you must adhere to in order to get approved. Aside from the general fact that you need to have decent credit, stable income verified on your bank statements, and a manageable debt ratio, you also need to have the right bank accounts in order to use them for qualification purposes. Get Matched with a Lender, Click … [Read more...]
The Types of Debts and How They Affect Your Mortgage Approval
All debts are not created equal. Lenders look at each type differently and with a different level of risk. Understanding the types of debts and how they affect your mortgage approval can help you prepare for your mortgage application.Looking for Current Mortgage Interest Rates? Click Here. What is a Debt Ratio? First, let’s talk about the importance of your debt ratio. Despite the type of debt that you have, a lender will calculate your debt ratio. This is the comparison of your gross … [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...]
What Should you Look for in a Predatory Loan?
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...]
The Top Reasons a Mortgage is Denied After Preapproval
You secured your pre-approval for your mortgage, so you assume you’ve got it ‘in the bag.’ Did you know, though, that there’s no guarantee of getting the mortgage to the closing table? The preapproval does mean that the lender evaluated your qualifying factors for the loan, but there are many things that can still go wrong.Looking for Current Mortgage Interest Rates? Click Here.Typically, there are at least a few months between when you get preapproved for a loan and when you close on … [Read more...]
How to Shop for a Stated Income Loan 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...]
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...]