karnotda asked:


About 5 months ago I paid off all of my outstanding debt (credit cards, overdue bills, medical bills, etc…) I now want to purchase a new home. How can I raise my credit score so that I can get a great quote on a mortgage loan?

RONNY

Teresa D asked:


We have 2 medical-related judgements and one from a credit card on our credit report. We spoke to a lender about buying a home and he said every mortgage companay would deny us because the people who have the judgements against us would put a lein on the property until they were paid. Is that true?

ETHAN

Julian Lim asked:


Closing costs have a significant impact on the home loan rate that is paid when obtaining a new mortgage loan. Here are a few of the major closing costs and how they affect the home mortgage rates.

Closing Costs Affecting Home Mortgage Rates

First time home buyers or borrowers are often rather unpleasantly surprised at the time of closing or just prior when the good faith estimate of closing costs is received. These closing costs can sometime add a significant cost to the dollar amount that the borrower is expected to provide to clear the escrow account at the time of closing or shortly thereafter. The home loan rate is not directly tied to each of the closing costs, but indirectly, you will pay the closing costs. You should make sure you realize and understand each of these costs and how they impact your total cost of the loan.

Definitions

‘Closing costs’ is just one of the definitions that you should understand when considering obtaining a home loan. The ‘home loan rate’ is another. Closing costs are expenses related to the obtaining of the loan, such as document preparation, title search, appraisals, and various other expenses. These costs are typically listed as part of the closing process on the loan. The closing of the mortgage at the title company or with the loan officer will spell out each of these costs and who is responsible for payment of the cost at closing.

Title search

One of the responsibilities that must be met is a search by a title company of court records to insure that the ownership or title to the home in question is clear. They will be looking at sales and deed records to determine that the sellers actually have the legal authority to sell the property. There is a fee charged by the title company to conduct this search. The clear title means that the title company can guarantee the title is correct and that you will have a clear title to the property in question after closing. The title company actually provides a type of insurance, known as title insurance. The cost of the title insurance is one of the closing costs built into the home mortgage rates.

Origination fees

Another factor in the home loan rate is that of origination fees. These are costs associated with the work the lender or broker does in opening an application file and working to collect and pass on all the necessary documentation required to complete the loan according to the contract. These fees can be sizable or modest, depending upon the broker, but in most cases are negotiable also that fact is not commonly known.

Points

The borrower may be required to pay ‘points’ as part of the loan fees. There are two types of points that you may be asked to cover. Origination points are the fees you pay your broker or lender to secure the loan while discount points are essentially interest that you prepay in order to manage the best interest rates on your loan. Both types of points are usually paid at the home of closing. Payment of the discount points can significantly lower your home mortgage rates meaning thousands of dollars less in cost over the life of the loan.



ELISEO

jobless asked:


Anyone out there that knows what to do if your mortgage loan interest is about to increase and the value is over $200K on the negative and one of the bread winner is now jobless, how do I save my home?

NEAL

Jonathan Drake asked:


The second mortgage home loan is a good option for people and families who are looking to find a way to supplement their budget and financial capabilities. This in fact has been used as a way out of people especially during the recession where in many have been already evicted and thrown out of their homes. This option has easily allowed the persons already engaged in a contract with banks to have the necessary reinforcement with regards to the use of another money source. The Second mortgage home loan System works through the establishment of a new and independent contract that would lend the person a considerable amount of money to pay for the contract which has been first established. Basically, the property involved would now be transferred to the new bank or lending institution in case the person is unable to pay the intended amount in the contract. This system is a good step which has been undertaken by many banks not just in the United States but also in other countries experiencing financial problems and troubles. It has already helped millions of families worldwide which have prevented homelessness and lack of shelter. Statistics also reveled that at least 90 percent of the people who have availed of the contract where able to fulfill the requirements since it has served as their second chance.

The second mortgage home loan is a very good program which should be emulated by many banks in order to take care of their clients and customers who may experience hardships and troubles along the way.



TERRENCE

EARL F asked:


Is there anyway I could refinance my home to get my mortgage and equity loan combined into one payment at the one of the current lower loan rates?

ADOLPH

Mark J asked:


A mortgage consultant is an independent agent, an intermediary between you the consumer and the mortgage lender. The mortgage consultant will shop the available lenders to find the mortgage product that offers the best combination of features, options and rates to suit your individual circumstances. The best part - depending on your credit picture - there is no charge to the consumer for the service. The mortgage consultant’s fee is normally paid by the lender.

A Mortgage Consultant put together transactions between lenders and borrowers. They have Access to many different lenders, but don’t work for them as they work for the customers. New York Mortgage Home Loan independently advises and constructs the best mortgage plan, which usually costs the customer less than if they directly go to the lender themselves.

With the New York Mortgage Home Loan the customer can get the best of both worlds - access to big bank cost of money with lower overhead and better service.

The New York Mortgage Home Loan works hard, honestly, and intelligently. They are loyal to the customer as they share the conviction that the customer should be treated as a person, not a loan number. The customer should have the same contact person, from start to finish during the entire transaction. This one-person contact is available 24 hours a day/7 days a week.

New York Mortgage Home Loan believe in being very accurate with quotes regarding interest rates and estimated closing costs - and, we take this belief one step further - we attend settlement with every one of our customers to make sure what we quoted in the beginning is what shows up at the end from the lender.

New York Mortgage Home Loan also believes it is important for the customers to understand the issues which impact the decisions that only they can make. New York Mortgage Home Loan takes the time to provide the necessary information because only a well-informed customer can make the best decisions.

New York Mortgage Home Loan understands those concepts that often aren’t understood by most mortgage originators - property tax & hazard insurance escrow accounts, investor reporting, collection activities, foreclosure law, and most importantly, the understanding of the legal instruments which all borrowers must sign at closing.

New York Mortgage Home Loan believes in honesty, hard work, and attention to every detail related to the customer and mortgage. They provide accurate Rate Quotes. The Mortgage-related closing costs at settlement are exactly same as initially quoted. New York Mortgage Home Loan ensures professional & confidential interaction with clients.

A Mortgage Consultant is useful for any of the customers as with the fluctuation in interest rates of land; homeowners have become more aggressive in seeking out the best possible terms from a lender. The appeal of a mortgage consultant lies in the opportunity for you to effectively search a large segment of the mortgage industry for the optimum terms, rather than negotiate personally with only one or a few lenders.

A mortgage consultant can also be an independent source of information and an unbiased help in wading through the myriad of options available in the mortgage industry today.



JOSEF

homedepot asked:


i am a first time (or hope to be) home buyer, and i have a tax lien on me, however i am classified ‘currently non collectible’ by the irs. so in short,how does this effect my chance of getting a mortgage loan. also, the tax debt is not even in the 5 digits, it that even matters. thanks!

ABE

Minkesh Sood asked:


Home owners are in a special situation when it comes to secured loans. A home is often the major investment an individual or couple will make and that property will continue to appreciate in value over time. The longer you stay in a home, the more your home will grow in value and the more wealth you accumulate as you pay down your credit and watch your house grow more valuable.

Banks become conscious that home owners are in a powerful borrowing position. Their home is often their most valued ownership and banks have little fear that the standard home buyer will be unsuccessful to make payments putting that possession at risk. On these grounds, there are attractive secured loan options offered to homeowners using their home as guarantee.

Home:

A home is often the largest asset of a individual or couple. The financial arrangement, or mortgage, planned to purchase the home are secured by the home itself allowing lenders to offer very competitive interest rates. There are a wide range of mortgage options, but mortgages are all similar in that they use the actual property you’re purchasing as collateral.

Once you’re in possession of your home and you begin paying down the mortgage and the value of the assets increases, your equity in the property increases. A home equity loan allows you to borrow against this equity effectively creating a second mortgage or lien on the home. The funds you’ve borrowed are secured by the home meaning a default on your original mortgage or the home equity loan gives the bank the option to foreclose in order to recover their loss.

Mortgages:

The largest secured home loan is the mortgage used to purchase the home initially or as part of a refinance. There are a range of mortgage options including fixed and variable rate loans, government assisted loans and interest only loans. But all of these home loans are secured by the home itself. Very few people are in a position to pay cash for a new property. While there is satisfaction in owning a property outright, there are also benefits to leaving cash invested in other instruments and obtaining a mortgage – even if you don’t technically need to.

In many areas, the interest paid on a home loan is a huge tax deduction. By owning your home outright, you are not able to take advantage of this tremendous tax savings. By taking out a loan for the purchase of your home, you’ll effectively be paying more for the home over time, but you can counteract this by investing the cash you might have used for the home purchase in an account or instrument paying more interest than your mortgage.

If you arrange a mortgage for a new home with an interest rate of six percent, but invest the cash in a combination of instruments paying an average of seven percent over time, you’ll not only be earning a net profit of one percent on your investments, you’ll also be able to take full advantages of the tax benefits.

Home Equity :

When you have a sizeable investment in your home, you are able to access that equity in a special secured loan called a home equity loan. By borrowing a percentage of the equity you have in the home, the bank can offer you lower interest rates on the loan than other options. A home equity loan is often called a second mortgage as the home itself is used as collateral.

Funds borrowed in a home equity loan or line of credit can be used for almost any reason, but most homeowners use the funds for home improvement. Money borrowed against the home is used for additions or to upgrade the house making it more valuable. This effectively increases your equity and is an ideal situation all around.



BOOKER

Alan Lim asked:


FHA home loans are mortgages that are insured by the United States government, more particularly the Federal Housing Administration. FHA in itself does not make the loans. What they do is that they insure the loans that were in turn, given out by their qualified group of commercial lenders.

With the introduction of the FHA home loan, a lot of low-income Americans were able to secure a loan to purchase their homes. FHA home loans are conceptualized in 1930’s during the time of the Great Depression. The government acted to subsidize loaning programs through FHA in response to the growing rate of defaults and foreclosures.

The good news is that FHA is for every American. But they have to follow the set guidelines in applying for it. To know if you qualify for an FHA home loan, here is a checklist that you can use. See for yourself if you can take advantage of FHA’s easy mortgage loan plans.

1. First and foremost, you should have a steady employment history. By this, you should be able to prove to the agency that you have at least two years of service with your current employer. Stability of job and income is the main factor. That’s the primary requirement of FHA.

2. You should have an increasing income, or at least, a consistent one. So that FHA can correctly assess your capability to pay, you should show them that in your current job, you are earning a fixed amount. And if in case it is not the case, your income should follow a steady rising pattern, not a fluctuating one.

3. You should be able to boast about your credit history. Your credit report definitely says a lot about your financial status. It is FHA’s requirement that all their applicants are in good credit standing. And not only that, they also require that there is not a single payment over due for more than a month within the last two years in their credit reports.

4. You should also show that you’ve got no history of bankruptcy. Or even if you had, it should be at least two years before. You should also show and that you already had regained financial stability for the past two years. You should be in a good credit standing for two consecutive years.

5. Your foreclosures, if any, should be three years old at the very least. This one follows the same principle as the bankruptcy rule stated above. It is a must that for the past three years, what you have is a good credit standing.

6. You can only apply for a loan that is 30% of your total monthly income. If you have everything else worked out, remember this last important detail: FHA will approve you a loan corresponding to your gross income. So, do not apply for one that exceeds 30%. Your application will just be denied. Look and settle for a house that is just within the set limits.

These are the different points to consider when applying for an FHA loan. You should qualify in the every step stated here. These are the exact guidelines that FHA is currently following.

But you have to know that pre-qualifying for the loan is just the first step. It is not a guarantee of anything. All it means is that FHA will merit a review of your application and proceed from there. Your dream of buying the perfect house is still in the cooking stages, so to speak.

Pre-qualification is the first step to getting a loan, though. Needless to say, it is an important step altogether. If you don’t pass the pre-qualification stage, there is no way that you will be able to purchase the house that you always wanted, at least not through FHA.

What the pre-qualification step really does is that it assesses your income, your assets, and your ability to pay. After which, you are to show it to the lender waiting on the wings. Then they further study your case. You’ll get the loan once they see that you are indeed, financially stable.

With all these said, go ahead and start evaluating yourself for an FHA home loan. Take advantage of what they are offering today. This is your chance to own the house of your dreams. Take it while it is still there.



JUSTIN