Tag Archives: loan

Home Loans: How to Apply with a Bad Credit

Personal loan application with approved stampApplying for a home loan is not easy. Not only do you need necessary documents, you also need to have a good credit standing. This is the part where many people find it hard to comply. With inflation rates and economy fluctuating, it can be hard to make ends meet at one point in time. More often than not, bad credit discourages people to apply for home loans, which should not be the case.

You can apply for a home loan in Guilford and other states even with a bad credit. It might be a bit challenging, but it is possible to get approved.

  1. Honest credit evaluation

The first step in understanding your credit is by having an honest credit review. A credit report will help you understand what you did wrong and therefore, help you bounce back from it. This is also needed when you apply for a home loan.

  1. Take your time

Lenders will not keep you on the blacklist forever just because you had a bad credit standing Take your time and build your credit standing up while doing so. A year of successful payments and debt reduction will definitely help. Others, wait at least two years after bankruptcy or three years after a foreclosure to be eligible for a mortgage again.

  1. Loan type

The government knows that not everyone can get a good credit. That’s why there are certain loan types specifically made to accommodate people who have a bad to barely good credit standing. Ask your lender what type of loans you can apply with your credit score. There might be more requirements needed from you, to prove that you can pay. But, such loan types can be approved.

Do not let your bad credit pull you down. Rise up and see what you can do to get your finances in order while at the same time get the loan that you need.

Three Mortgage Facts that Will Surprise You

Mortgage Loan AgreementUnless you have some real cash holed up somewhere, you will need to take up a mortgage loan to finance your home purchase. Also, just like many things in life, you ought to know facts about your mortgage to get the most out of it. Understanding these facts will enable you to find the right lender and take full advantage of the current market. Here are some astonishing facts about mortgage loans.

Your Mortgage Can Be Sold

It comes as a surprise to many borrowers that their mortgage loans taken in Iowa or elsewhere changed hands. Some of them may also feel uncomfortable, especially when they wanted to work with the initial lender. However, you need not worry since the new lender will still honor the terms of your loan. It’s a thing that mortgage lenders do to create room for giving out more loans. Just stay on top of your statements so that when it happens, you will submit your payments to the right bank.

Mortgage Rates Keep Changing

It’s unfortunate that many borrowers think that mortgage rates are constant. You might be used to specific prices, but don’t believe that these changes are always gradual. What you see today in the market may not be available tomorrow. This means that you have to move with speed. Also, different lenders have different prices, so you should choose the most affordable ones.

Stay on Your Job until Closing

It will be a grave mistake to quit your current job before closing in on your new home. It’s not surprising to see people leave or change positions immediately after making an application. What they don’t know, however, is that lenders will always go back to your credit again before closing. Here, they check your employment status and finances. The secret is to stick to your job and avoid funding anything significant before closing.

A mortgage loan helps you make your dreams come true. However, to get its benefits, you must be well-informed. The given facts will go a long way in helping you get the right mortgage.

Mortgage Secrets: 4 Tips to Faster Approval

A mortgage application rejectedThe home loan approval process is generally the same for all Janes and Joes. Basically, the goal of lenders is to provide perfect mortgages that are constructed properly, leading to timely repayments, no threat of impending buyback, and a reduced risk of default.

To do this, lenders employ a consistent and structured process for assessing and vetting borrower profiles to figure out if a borrower’s collateral is really worth its alleged worth. To that end, here are four tips to help hasten your home loan approval.

Provide Every Single Document Request

Perhaps the most common reason that slows down the mortgage approval process is due to borrowers failing to give lenders the necessary paperwork they need.

You need to find out what documents you need to give the lender, and if they request for more paperwork, you have to drop everything and send it to them as fast as you can.

Don’t Keep Secrets or Lie to Your Lender

The vetting process for home loans is extremely exhaustive so if you’re thinking of covering up a significant debt or something similar to increase your chances of getting approved for a mortgage, JUST DON’T.

Tell your lender everything as early on as possible so that they could determine whether you just have to fix something or if your past misdeeds just won’t cut it.

Tie Up Every Single Bit of Loose End

Virtually every loan commitment comes with specific conditions that are essentially more information and paperwork. Whether it’s proof of insurance, a photocopy of a check for a previously canceled down payment, accept the fact you’re nearing the finish line.

These conditions are all that’s standing between and your dream of homeownership, says Primary Residential Mortgage, Inc., an experienced and reliable mortgage broker in Portland.

So while you could only do so much to help move the approval along, these will get rid of all those unnecessary delays that could significantly bog down your approval. And in the unfortunate event that you fail to satisfy the lender’s qualifications, don’t beat yourself up over it.

Consider it as your motivation to fix your credit and overall finances.

15-Year Fixed Rate Mortgage: Is It for You?

Mortgage loan agreement application with house shaped keyringWhile many home borrowers choose the 30-year fixed mortgage, there are also those who prefer its shorter version, the 15-year fixed loan. If you don’t want to get stuck paying the loan for 30 years, getting the 15-year term is advisable. This allows you to build equity faster, as well as let you own the home quickly.

A 15-year fixed loan has interest rates and monthly payments that will stay the same for 15 years (the time you are expected to pay the entire mortgage). This usually carries a low rate but has high monthly payments as you are paying the loan for a shorter period. If you’re thinking of getting this loan, it is important to be aware of what you are getting yourself into.

Stability and peace of mind

Unlike adjustable-rate mortgages, there won’t be any changes in your rates and monthly payment for 15 years. This gives you peace of mind and lets you manage your budget better, as you already know what your mortgage payments will be each month.

Less money spent on interest

A 15-year fixed loan is less risky and cheaper for lenders to fund. This is why it usually comes with lower interest rates than a 30-year loan. This also means lower total interest cost and paying off the principal faster, according to mortgage lenders in Tempe.

The risk with higher payments

The main downside of this mortgage is that it comes with an expensive monthly payment. If there is a significant change in your financial situation, you may experience difficulty in paying the loan. Note that missed mortgage payments can negatively affect your credit score.

Limitation on loan amount

The higher monthly payment of a 15-year fixed loan may also limit the overall price of the property you can afford. This means that you can only buy a more modest or a smaller house than you would be able to with a 30-year loan.

A 15-year fixed-rate loan always makes sense, as it can help you save more money in the long run. It is best to examine the pros and cons of this loan before making a decision. You can also consult a reliable lender to find out if you can qualify for this loan term.

Man Signing Loan Application

Credit Unions: Good Choice for a Loan?

Man Signing Loan ApplicationYou have a lot of options if you want to acquire a mortgage loan from lenders here in Ogden. You can choose from a number of banks, credit unions, and private financial institutions. These choices could confuse you as to which lender could help you in applying for a mortgage. Sometimes, the only option for you is a credit union.

What are Credit Unions?

Credit unions are financial entities that deal with savings and loans. They are formed by individuals sharing common ideas to offer loans to qualified individuals and demand deposits from other members.

Low Rates

Credit unions offer lower mortgage rates as well as less or lower fees than banks do. This is possible for credit unions, according to wasatchpeaks.com, since the union’s members are also the customers themselves.

Reliable Provider

With credit unions, you also get to stick with one provider who may be familiar to you. Banks usually employ different companies to collect your payments over the course of your loan. Mortgages from credit unions stay with the same credit union from which you borrowed the money.

Low Credit Acceptance

Low credit scores are not an issue for credit unions. Credit unions still lend loans to people with low credit scores. They can also offer programs for first time home buyers. Of course, before you can qualify for the benefits given by credit unions, you first have to become a member.

Qualify for a Membership

You can find credit unions here in Ogden that offer membership. You simply have to pass the qualifications they have set. Qualifications may range from geographic location, profession, college alumni membership, and religious affiliation. You can also become a credit union member because of the status or affiliations of a family member.

Credit unions are becoming the choice for many people who may not have the necessary qualifications to apply for a bank loan mortgage. According to the Washington Post, banks no longer dominate the mortgage lending market. You can join a credit union now as non-bank alternatives are becoming a popular choice.

Mortgage Loans in Ogden

3 Negatives About 15-Year Mortgages Many Misguidedly Think as Destructive

Mortgage Loans in OgdenHome loan shopping in Utah has never been just about the mortgage rates in Ogden, Sandy, and Salt Lake City. If you’re an informed borrower, you know that there’s possibly a myriad of other one-times and costs that might come into play before you finally determine the actual value of your loan. But other than these figures, the length of your mortgage is always worth paying attention to.

According to the experts from Wasatchpeaks.com, if the lowest mortgage rates Ogden can offer are still high by your standards, choosing the right term can help you save thousands of dollars in interest alone.

Other than 30-year loans, 15-year mortgages are some of the most common terms you’d find in the market. While they’re a great option for many borrowers, others are quite reluctant to choose them because of their inherent drawbacks — which are often misunderstood.

Higher Monthly Repayment

If your loan term is shorter, your monthly repayment would be naturally higher. When the difference is too big for your comfort — even if your income can cover it without a worry — you may feel that paying this much when you can repay smaller with a 30-year mortgage isn’t a good deal.

This argument would make sense if you really have a tight budget, but to say it’s a bad deal when you can actually save a substantial fortunate in interest is folly.

Fewer Homes to be Qualified For

Looking at your debt-to-income ratio is how lenders qualify for you a mortgage. A higher monthly rate with a 15-year mortgage essentially disqualifies you for some homes, which isn’t necessarily an unpleasant thing. What might be worse is to qualify for more houses in exchange for costlier interest.

Lesser Flexibility on Budget

Fearing you might run out of dispensable income by taking on a bigger monthly mortgage rate is normal. But, financial troubles only happen when you’re not prepared. If you have saved enough rainy day and emergency fund, a 15-year mortgage could do you more good than harm down the road.

Shouldering a higher mortgage repayment when there’s a smaller option is a hard decision to make. Dealing with a relatively heavier financial burden, though, can be justified when you realize how much you can save on interest over the lifetime of your loan.

Mortgage in Utah

Why is it Hard to Break Up with Mortgage Lender?

Mortgage in UtahYou have been paying for your existing mortgage for five years now. The term was favorable, but 60 months later, you’re no longer happy with what you’re currently paying. You know you signed up for an adjustable-rate mortgage, but you didn’t realize the increase would be so substantial and sudden. It caught you off guard, and you almost touched your savings to settle your other bills. That was the turning point: you want a refinance.

Many Americans consider refinancing for different intentions. Some want to benefit from low interest rates; others hope to shorten their term. But despite the sensible reason you may have, why is it so damn hard to call it quits with your current lender? Actually, you’re not alone, and there are plenty of explanations for that.

Emotion

Most people are raised to be polite and sensitive to the feelings of others. You have yet to say it because you’re afraid to hurt your bank loan officer or your agent who recommended the lender to you in the first place. Obviously, there’s something amiss.

Even if you don’t have the heart to upset the cycle, business is business. If you feel your current deal isn’t working out for you, then maybe it’s time to switch. Any self-respecting mortgage professional in the industry would understand.

Cost

When you refinance your mortgage in Utah, Florida, or anywhere in America, you may have to pay certain fees. Your new lender may need to do an appraisal and title search among others as part of their refinancing process.

Is it worth your while to spend on these things now? Well, if your new deal promises to save you hundreds of dollars in the long run, why not?

Hassle

Some people prefer to take the path of least resistance. But should convenience get in your way to keep you from getting a more favorable deal, and put you in a better place financially by going through the trouble of refinancing? Logic says no. And you should too.

These reservations are understandable, but simply working with an experienced broker can help you deal with your situation. With the assistance of mortgage professionals, you might have to break up with your lender personally.

Mortgage Refinancing in Utah

Reasons Mortgage Refinancing Is a Gift for Home Owners

Mortgage Refinancing in UtahRefinancing has always been a boon to mortgage borrowers from all walks of life. While it’s not for everybody, it can offer you different opportunities to help with your specific financial situation.

Although it involves an appraisal, title search, and certain fees, replacing your existing mortgage could be worth your while if…

You Wish Cut Down the Interest

Citycreekmortgage.com says applying to refinance your mortgage in Utah, California, or any U.S. state gives you the chance to get a lower interest rate. Other than helping you save dollars, it also lets you build home equity faster and reduce your monthly repayments. Most brokers say that a 2% decrease in interest is enough savings for the trouble.

You’re Tired of Variable Rates

Sometimes, the ever-changing nature of ARMs can get you fed up because you can’t expect how much you’re going to pay a year from now. It may start small, but periodic interest rate hikes can cause you to endure more than you’re hoping for.

Converting to a fixed-rate mortgage can give you the peace of mind you’ve always wanted.

You Want to Finish the Loan Faster

Shortening the term, even if it means slightly increasing the monthly repayments, is a mark of a smart borrower. If your budget permits, this promises to be a brilliant decision.

You Need Cash to Fund Big Expenses

Mortgage refinancing gives you a cash-out option, allowing you to turn a percentage of your property’s equity into cold cash. This is handy when you need to finance something huge, like a college tuition fee, a home remodel, or basically anything you want.

You Plan to Eliminate a High-Interest Debt

Debt consolidation is another useful function of refinancing. But since starting out a new mortgage is a serious financial responsibility, be prudent before signing on the dotted line.

Whatever reason you may have, make sure to consult an experienced broker to weigh the pros and cons of this new loan based on your situation. As many experts say, only ignorance makes refinancing a dicey situation.