Tag Archives: Mortgage Lenders

100 Percent Mortgage Financing – Qualifying for a FHA Loan

Posted on by
Reply



If looking for a no money down or 100 percent mortgage financing, you have several options. Understandably, many homebuyers have little cash on hand for a down payment. Because of the increase in home prices, saving the typical 20% is practically impossible. Fortunately, FHA home loan programs offer 100 percent mortgage financing, which eliminates the need for a large down payment. Here are a few tips on qualifying for a FHA home mortgage loan.

Employment Guideline for Getting a FHA Mortgage Loan

FHA loans are very flexible. Still, before approving a homebuyer for a FHA loan, the lender will carefully review several factors to determine whether they are an ideal candidate for a mortgage loan.

To acquire a FHA loan, lenders require steady employment. Usually, this involves two years of continuously working. It helps to maintain the same employer throughout the two years.

Individuals who change employers every four to six months or those who only held employment for half of the 24 months may have a hard time getting approved for a FHA loan. If unemployment was due to layoffs, illness, or other legitimate excuses, the lender may consider the applicant for approval.

Credit Guidelines for FHA Loans

When reviewing a homebuyer’s application for a mortgage loan, the lender will look at all credit activity that has occurred within the last two to three years. Concerning late payments, applicants cannot have more than two 30 days late payments within a two year period.

Bankruptcies must have a discharged date of at least two years. Furthermore, foreclosures must be at least three years old. In both cases, mortgage lenders require that homebuyers have begun re-establishing credit and building a good credit history.

Income Guidelines for FHA Loans

To qualify for a FHA mortgage loan, lenders will evaluate combine household incomes and other consumer debts (auto loan, credit cards, student loans, etc) to ensure that the mortgage payment does not exceed 30% of income. However, FHA loan lenders are flexible in this regards. Because of rising home prices and modest incomes, lenders may approve loans that exceed 30% of the homebuyer’s income.

Mortgage Broker Careers

Posted on by
Reply



Mortgage Broker

A mortgage broker is someone who arranges mortgage loans for individuals and businesses. He is different from a loan officer who is the employee of a particular lender. Mortgage brokers are the largest distributors of mortgage products in developed mortgage markets like the U.S., Australia, Spain, Canada and the United Kingdom. People tend to confuse mortgage brokers with lenders. A mortgage broker offers loan products from various lenders to borrowers. He actually works with a number of lenders, and therefore has information about various mortgage options that are available, and is able to advise and help the borrower in securing a mortgage loan.

The lender is the one who actually funds the loan. The mortgage broker does not have any funds of his own involved in funding a mortgage loan. As the role of a mortgage broker is of a vital nature, most people prefer to engage the services of a CMP (Certified Mortgage Planner) who is licensed, and has to undergo rigorous training and tests before receiving certification. CMPs work in concert with CFPs, or Certified Financial Planners, to ensure that the best products are available to the borrowers of home mortgages.

Functions

Nowadays, due to competitive market conditions, lenders have a plethora of offers at various rates. Since the general borrower is usually not conversant with financial products, a mortgage broker is able to advise the consumer on the best offers according to his needs. The broker also takes care of the entire procedure of securing the mortgage for the borrower, along with proper advice regarding the mortgage and the property offered against it. Mortgage brokers are especially useful for borrowers with poor credit records. Since they often find it difficult to secure a mortgage, the broker is usually able to obtain the required finance, as he is in touch with different lenders and is aware of their terms.

A summary of the work of a mortgage broker includes:

- Marketing for client generation

- Making as assessment of the borrower, based on credit reports and income documentation

- Recommending a suitable product, according to the financial standing and need of the consumer

- Making an application for a pre-approval lender’s agreement

- Compiling all documents that need be submitted for mortgage processing

- Correctly filling in the details required in the lender’s application form

- Clarifying and explaining the requirements of legal disclosures

- Forwarding completed forms and documents to the lender

The mortgage broker’s services are limited to providing assistance up to the closure of the mortgage loan. Once that is done, all dealings are thereafter to be between the lender and the borrower.

Earnings

The earnings of mortgage brokers are from commissions payable for bringing together lenders and borrowers. Generally, the borrower pays it in the form of additional loan points or closing costs, which is paid to the mortgage broker only after closure of the loan.

A career as a mortgage broker is very satisfying, and involves helping people obtain loans against their homes, at rates suitable for their requirements. A mortgage broker can also help homeowners sell or purchase property within their specified requirements, due to his vast connections with lenders and other borrowers of home loans. It offers handsome financial rewards for services rendered.

Take Advantage of Obama’s Home Mortgage Stimulus Refinance Plan

Posted on by
Reply



President Obama’s recently enacted homeowner mortgage stimulus plan will allow millions of homeowners the amazing chance to refinance their current home mortgage into a new one with a 4.5% fixed rate. This “Mortgage Refinance Affordability Plan” will have homeowners savings hundreds per month. Here is how it works:

- Right now, there are several grants, tax credits, and incentive programs to help homeowners overcome this tough economy and mortgage crisis, regardless of their credit history. Although these Government backed programs are designed for help in the short term, it will save millions of homeowners from losing their home to foreclosure or forced sale. These government grants and loans can also be used to pay off other debts a homeowner may have such as credit cards, auto loans, tuition, and a whole list of others.

- Also now available to homeowners who are facing “Financial Hardship” are home loan modification programs. These “Financial Hardships” can be a loss of job, loss of income, hospital bills, tuition, credit card debts, auto loans, and other expenses. Using these home mortgage modification programs, a homeowners mortgage payment will not be more than 31% of their gross monthly income. In addition to that, a homeowners total monthly debts, including mortgage payments, must not exceed 51% of the gross monthly income of the homeowner.

- Both President Barack Obama and the Federal Reserve would love to see mortgage interest rates set at a fixed 4.5% for all homeowners and any potential home buyers for the life of the home loan.

- Free, professional, mortgage counseling is available to homeowners using HUD. These mortgage counselors will act as representatives on your behalf and represent you when talking with banks and mortgage lenders about refinancing or modification of a home mortgage.

- Property values that have dropped by more than 15% as a result of this economy and mortgage crisis can now refinance their home into a fixed rate 4.5% home mortgage. This really helps homeowners who have seen their property and surrounding values drop as a result of the mortgage crisis.

Refinancing your mortgage using President Obamas “Home Affordability Plan” will save millions of homeowners thousands of dollars over the course of their home loan. The rush to refinance is on as homeowners look to take advantage of this refinance stimulus plan and lock themselves into a fixed rate low interest loan. Others are using this refinance package to save their home from foreclosure. Either way take advantage now and see the savings start to quickly add up.

California Mortgage Refinance Loans

Posted on by
Reply

A California mortgage refinance loan is a good solution for those individuals in California who cannot meet their monthly mortgage loan payments. To be exact, this type of mortgage loan is taken to pay an existing mortgage loan.

California mortgages are loans for large amounts, commonly taken for a property or a house. They are available through banks, private lenders or property sellers. Unlike usual personal and home loans, they are termed for longer periods (up to 50 years). A California mortgage loan requires a minimum duration of 15 years. But, California refinance mortgages are short term loans that have considerably lower interest rates. They have lower EMI compared to those decided for the usual mortgage loans.

California mortgage refinance loans sometimes help you free the property being held as security for an existing mortgage loan. You can give the same property on rent or lease instead to achieve more cash for the installments. There are different types of California mortgage refinance loans. The lenders help you choose the best refinancing plan to suit all your needs.

California mortgage refinance loans can be used to pay off either the first or second California mortgages. Refinancing can lower the EMI to a great degree.

It is wise to look into all the pros and cons before getting into an agreement for a refinance loan. Financial advisers, licensed brokers and mortgage lenders are able to provide ample advice on mortgages refinance loans at no cost. A number of websites also provide some excellent information regarding all the procedures involved in applying for a California mortgage refinance loan.

Free refinancing quotes are also available on the Internet. A few sites even supply multiple quotes from various mortgage lenders with just one refinancing application form. From these quotes, you can easily select one that is ideal for your needs.

Home Insurance, Flood Alert

Posted on by
Reply



The Royal Institution of Chartered Surveyors warns that if you can’t get insurance for your house, you’re in big trouble. Mortgage lenders won’t lend on houses that are uninsurable and as a result its value could fall by up to 80%.

It’s a high flood risk that’s most likely to make your house uninsurable. According to a recent survey, 6.5 million homes are already at risk from flooding of which 1.5 million are in high risk areas. The government has completed flood defences in many such areas and protection for a further 80,000 homes is due this year. But concerns have also been expressed about a further 120,000 new homes planned for the Thames Gateway which are potentially in a high “at risk” zone. Yet many areas remain vulnerable. And if global warming continues, by 2030, the 1.5 million at risk could mushroom 3.5 million. Back in 2003 the Association of British Insurers (ABI) agreed the principles which committed UK insurers to offering home and contents insurance for properties in areas which are assessed to be at a flooding risk once in seventy five years or more. The rider was that the flood defences had to be already in place or would be completed by the end of 2007.

The Department for Environment, Food and Rural Affairs (DEFRA) has the responsibility of developing and maintaining these flood defences but within the insurance industry there’s widespread concern that insufficient progress is being made. As a result the insurers have has warned the government that there could be widespread withdrawal of insurance cover if progress is stepped up.

In the mean time, those in areas threatened by flood water could find their insurance premiums soaring. Whilst the insurance industry agreed to provide insurance cover, their commitment was simply to maintain premiums at “reasonable” levels. But there was no definition of what “reasonable” means. As a result premium increases of 60% have been common with up 400% increases in bad areas. In a tiny number of cases, cover has been withdrawn altogether, mostly in country areas where DEFRA considers the cost of defending a cluster of a few homes to be uneconomic.

Environmentalists warn that unless DEFRA gets it’s skates on, the UK ‘s current bill for flood damage could rise from

Mortgage Refinancing Points to Consider

Posted on by
Reply



There are a few things one must do before he can refinance his mortgage successfully. It is not merely a cakewalk that one can simply dance around on. There are procedures to go through and some fees to pay up for completion of such requirements. It is not too much trouble, but not knowing what they are is.

Though it is probable to attain a no-cost refinance mortgage from a mortgage loan lender, remember that these lenders are out there, trying to earn a business by making money out of your money. If he gains nothing in by charging costs to make a loan, then he might just be messing around with you and those fees are to be either rolled into the loan or paid through higher-than-market interest rates.

Some of those fees that you are required to pay include Loan Discount Points. Loan Origination, Processing, Administration, Application, Inspection, Document Preparation, Appraisal, Credit Report, Title Policy, Escrow Fee, Re-conveyance, Beneficiary Demand, Notary, Loan Tie-in, Delivery and Courier, E-Mail Documentation, Tax Service, Recording Fees, and many more.

Those do sound a whole lot, but most of them are taken care of by the process of bureaucracy that you wait in long lines for anyway, so all you really need to do the most is to pay them. Also, time must be invested into this procedure. If things are planned from the beginning, then things might go a bit smoother than anticipated and you can save some time for other things. It will not be worth the money at all if it takes too much time to take care of. Time really is money, after all.

Mortgage lenders are also inclined to charge what is known as garbage fees. This only means that whenever a particular situation allows it, these fees can basically be bargained by the mortgage borrower. Those fees are stuff like document preparation, administration, processing, application, and so on. If you ask and are lucky, the lender might just waive them.

Be wary though of the possibility of everything being a scam, and you becoming another victim; another number in the growing statistics of people losing both house and money. There are predators out there, or parasites, if you prefer, that prey upon those who are not aware of the potential hazards of refinancing.

Such scams include additional fees that have no logic whatsoever other than give money to the supposed lender. Some even take advantage of one’s desperation due to bad credit and immediate need for some cash. Under these conditions, it is very hard to avoid an offer than sounds good. Although the need feels like it is overpowering your emotions, do not let it override your logic and common sense.

The most important thing to consider before getting into refinancing your home mortgage is information. You can never learn too much about this, since it is your own money you are trying to safeguard here. Eliminate what is unneeded when possible and keep away from offers that seem too good to be true and are unproven. What matters most is that you get the most out of the money you spent for your dream home.

Mortgage Brokers Vs Direct Lenders

Posted on by
Reply



The mortgage industry has been in the news more recently than ever before. Almost every night on the news there is something about the mortgage industry, foreclosures, loan modifications, refinances, etc. Many people looking to obtain a home loan, whether it be for a new purchase or to refinance their existing mortgage, are being a lot more careful about the decisions they make.

Nowadays, there are generally two ways to obtain a mortgage. A consumer can contact a mortgage broker, or they can go to a direct lender. Many people prefer one over the other, but what are the real advantages and disadvantages to both.

Advantages of a Mortgage Broker

There are many reasons that most loans today are originated by a mortgage broker. The number one reason is that the mortgage broker can shop around for the consumer to find them the best home loan with the best lender at that time. They are familiar with multiple lenders and can broker the consumer’s loan to whichever lender has the best interest rates and service at that time. They also know what lenders are more strict in certain areas than other lenders. If a consumer uses a good mortgage broker, this advantage can really benefit them in the long run.

Advantages of a Direct Lender

The major advantage of a direct lender is that the loan officer usually works along side the underwriter much more closely than with a mortgage broker. The salesperson will often know their company’s home loan products much better than a mortgage broker since the salesperson only works with one Lender, their employer. This advantage can help a consumer know up front what issues there may be with obtaining a loan. However, with a good mortgage broker, they may know the issues just as well as a salesperson employed by the Lender.

Disadvantages of a Mortgage Broker

The greatest disadvantage of a mortgage broker is that if they are not good at their job, they may submit the loan to the wrong lender and waste you valuable time. If the consumer can find a good mortgage broker that knows many different home loan products with many different lenders, then the consumer will have an invaluable resource for getting their loan done right the first time.

Disadvantages of a Direct Lender

Direct Lenders only provide one set of home loan products. If a consumer doesn’t qualify for any of the Direct Lender’s home loan products, then the consumer may be forced to go find another Direct Lender or Mortgage Broker on their own. This also can waste valuable time. However, if the Direct Lender pre-approves you, then you have a very high likelihood that you will be able to close the loan.

Either option could be a good fit for your situation. If you know a good mortgage broker, then you may want to consider working with them to find the best home loan product for your situation. Make sure that the person you are working with to originate your loan knows what they are talking about. Shopping around and talking to a few different Mortgage Brokers and Direct Lenders may give you a better idea of who to work with through the process.

Effective Role Of Mortgage Broker Bond

Posted on by
Reply



Mortgage brokers play an essential and important role all over the economy. Nowadays, mortgage broker bond becomes the important bond and it is required for the people who are engaged in the business of mortgage broker business, mortgage lending business. Mortgage brokers or lenders or dealers are required to obtain license and permit from the licensing department. This mortgage broker license is required for the mortgage brokers who are engaged in the business of mortgage in state. To obtain this mortgage broker license, the applicant is required to obtain mortgage broker bond from the appropriate state. Mortgage broker bonds are issued as per the statutes and ordinance of the state and federal jurisdiction.

Mortgage broker bond ensures proper performance of mortgage business without any default act of the mortgage broker or lender. Mortgage broker bonds are issued all over the different parts of the states and most of the industries analyzed the need of mortgage broker bond in the state. Mortgage broker bond protects the obligee against the non performance of contract by the principal in the state and enforce the mortgage broker to give a performance. Today, trend has been changed and most of the people enforce to issue mortgage broker bonds as per the state ordinance. Mortgage broker bond also forms part of different kinds of surety bonds and this mortgage broker bond are issued in separate forms and different bond amounts.

Mortgage broker bonds play an effective role in the economy and all most every part of the world mortgage broker bonds are required. Mortgage broker bond are issued as per the rules and regulations of the state statutes and ordinance. All mortgage brokers of the state are required to obtain a mortgage broker bond from the appropriate surety bonding company. Nowadays, more number of surety Bonding Company comes forward to issue mortgage broker surety bond to the people as per their requirement and needs. This mortgage broker bonds are issued to the people as per their requirement and different premiums.

When people recognize the purpose and use of surety bond, then it can be said that nonperformance and default act of the contract will be avoided and prevented. When the mortgage broker or lender or dealer fails to perform the contract, then the obligee can sue the mortgage broker or lender or dealer for non-performance of contract. The obligee has every right to sue both the mortgage broker and surety for the non-performance of contract. When all requirements are satisfied and legally compiled by the applicant, mortgage broker bond will be issued to the applicant. Mortgage broker bond and mortgage broker license are the most important requirements needed for the mortgage broker or lender or dealer.

Can Debt Consolidation Help Increase my FICO Score?

Posted on by
Reply



Credit card debt and revolving charges determines 30% of your FICO scores. High balances or, more precisely, balances that are close to your credit limit can negatively affect your personal credit scores. Thus, one of the best ways to improve your credit rating is by paying off outstanding debts. A debt consolidation loan by means of mortgage refinancing or a home equity loan (second mortgage) can help you do this. On top of that, you may be able to deduct up to 100% of the interest you pay from your taxes. With the new, tougher bankruptcy laws in effect, consolidating your credit card debt with a second mortgage or home equity loans and other consumer debt is a far better option for debt relief than bankruptcy.

The way debt consolidation helps your FICO credit scores not only by raising them, but also by lowering your debt-to-income ratio. A debt-to-income ratio is a measure of financial stability calculated by dividing monthly minimum debt payments by monthly gross income. Typically, the lower your ratio, the better handle you have on debt. The only ways a debt consolidation loan can hurt your FICO scores is if you run up too many inquiries shopping for a loan, run up the debts again after getting the loan or you stop paying your bills on time. If you need a loan, according to Fair Isaac and Company (the creators of the FICO credit scoring system), do your rate shopping within a focused period of time, such as 30 days. FICO scores distinguish between a search for a single loan and a search for many new credit lines, in part by the length of time over which inquiries occur. They go on to say that looking for new credit can equate with higher risk, but most credit scores are not affected by multiple inquiries from auto or mortgage lenders within a short period of time.

If you are tempted to use the credit cards you just paid off, cut them up or lock them away in a safety deposit box. But, save two major credit cards (American Express, Visa, MasterCard, Discover) and use them SPARINGLY. Keep balances at 30% of your credit limit or lower and pay your bills on time. Closing revolving accounts you have paid can hurt your credit scores by raising your debt-to-income ratio and making your credit history look younger than it actually is. Keep the credit accounts open, but just do not use the credit cards. A refinance or second mortgage for debt consolidation is available as a fixed mortgage rate loan or an adjustable rate mortgage (ARM). Check with your lender to see which is best for you.