Ian Mcintosh asked:


When you finally find the new home you are looking for that suits you and your family perfectly, it is so exciting. Having difficulty securing a home loan or a home mortgage can put a huge damper on the experience. To take the pressure off applying for home loans, check into pre-approved home loans or mortgage loans, which have many benefits including knowing your maximum home loans price range. When you get pre-approved home loans, you know exactly how much you can afford to spend when house hunting, your minimum down payment, maximum monthly mortgage payment and the best part is that the bank guarantees the home loans.

Along with different lenders, there are many different home loans available on the market today. They all have something a little different from the other such as benefits, costs, and features. People looking for home loans for the first time often find this confusing. Many first time homebuyers choose basic home loans, which have no special benefits or features adding to the cost. They do have relatively low, variable interest rates with loan repayment terms that are shorter. The minimum repayment amount decreases if the interest rate drops. There are a few cons to getting basic home loans such as repayment amounts rising when interest rates do. In addition, they do not have the features or flexibility of many other types of home loans.

Many believe fixed rate home loans are the safest mortgages because the bank locks in the interest rate and this remains the same throughout the home loans mortgage, so even in a volatile market, the interest rate remains the same. You know exactly what your mortgage payment is each month, so it certainly makes budgeting easier, which gives the homeowners a sense of stability and security. The market conditions do not affect the principal and interest of a home loans mortgage. The downside is that homeowners with fixed rate home loans or mortgages do not benefit if the interest rates drop because a fixed rate locks them in.

Interest rates on variable rate mortgages change and increase or decrease when the interest rate varies. Fixed-rate mortgages, known as adjustable rate mortgages in the United States, are usually more expensive than variable rate mortgages. The borrower’s payments may change because of interest rates that increase or decrease. There is also a graduated payment mortgage, which has a fixed interest rate but changing payment amounts. There are several other types of home loans mortgages including balloon payment mortgages, negative amortization mortgages, and interest only mortgages.

And remeber, Purchasing a first home is very exciting and usually the biggest investment that most people make in their lifetime. To pre-qualify for mortgage loans involves providing the lender with personal information such as income, assets and liabilities. Although the lender gives you a rough estimate of the maximum amount you qualify for, there is no charge for this service from the lender. This is a very informal process where the information is not checked and there is no formal agreement on approving mortgage loans to the client. Pre-qualification of mortgage loans gives you a broad idea of how much money you may be able to borrow from a lender and the price range to look in for a home. There is no guarantee when it comes to pre-qualification of mortgage loans but the lender does give you an idea so you can decide if you are ready or willing to borrow that amount.



ABEL

Brad Stroh asked:


Qualifying for a Mortgage

Before you buy a home, it is crucial that you weigh how you can afford to pay for it. You don’t want to waste time or money by bidding on a house that you cannot afford or by applying for a loan that is beyond your means to pay month after month and year after year. Figuring out your budget for your home will make it easier to get the right loan and also to know what changes you may need to make to your finances and to you credit profile.

As a standard rule you are advised to buy a house worth no more than 3 times your gross household income. Use this figure if you have some other debts, such as student loans, car payments, or sizable credit card balances. If you have no other debts, you likely can afford a house that costs as much as five times your annual household income.

When potential lenders review your ability to qualify you for a home loan, they are going to pay close attention to your debt-to-income ratio (DTI). To determine your DTI, start by computing your total net monthly income. This includes your monthly wages and any overtime, commissions or bonuses that are guaranteed; plus any pension monies or monies that come from alimony or child support, if applicable. If your income varies month-to-month, calculate your monthly average over the past two years. Don’t forget to include any other monies earned, whether from rentals or any other additional income.

To determine your monthly debt obligations, make sure to include all of your credit card bills, any loans, such as automobile, student, or personal and the amount of the new mortgage payment in the loan that you will apply for. Make sure to include your monthly rent payments if you rent. When you are adding up your credit card obligations, use the minimum required monthly payment. Divide your total monthly debt obligations by your total monthly income. This is your total debt-to-income ratio. The lower your DTI, the better. A high DTI can prevent you from getting the loan. It also can be a warning sign that even a loan that you qualify for could be a serious burden to make each month.

Most lenders traditionally will qualify your for the loan with a DTI of 28% to 44% of your monthly income. In other words, if your monthly income is $4,000, the lender would ordinarily want you to pay no more than $1,760 (.44 x $4,000) toward all your debts. Some sub-prime lenders will allow borrowers to have DTI ratios as high as 55%.

You may have compensating factors that will allow you to qualify for the loan, even with a less than desirable DTI. For instance, f you have an excellent credit record, a lender might allow you to go more deeply into debt. Just how high a DTI you can have and still qualify for the loan will depend on such factors as the amount of your down payment, the interest rate on your new mortgage, your credit history and score, and how much other debt you are carrying.

Bills.com has mortgage calculators that will help you quickly determine monthly payments on different size mortgages so you can learn how much house you can afford. All calculators are not created equal — but all of them are free. You should investigate different scenarios, so you can see how the amount of down payment, the length of the loan term, and the interest rates will affect the size of the monthly payment. (http://www.bills.com/mortgage/)

Before you start shopping for a loan and a home, you need to know some terms you will encounter:

Pre-qualification. Getting pre-qualified for a loan is a good thing, but it is NOT a guarantee that you will actually get the loan. To get pre-qualified, you will speak to a lender and go over the standard questions: your income (and DTI), your credit rating, and the size of your down payment. Prequalifying lets you determine exactly how much you’ll be able to borrow and how much you’ll need for a down payment and closing costs. Still, the lender is not asking to see the proof of your income claims, so any ‘approval’ you receive you can vanish into thin air.

Pre-approval. If you are serious about moving forward, it is recommended to get pre-approved for a specific loan amount. To get pre-approved, the lender will actually verify your credit and income documents, rather than relying on the numbers you provide them about your income and debts.

The documents that you will need to assemble for the lender to get your pre-approval are: Federal Income Tax Returns and W-2 forms for the past two years; the two most recent months’ pay stubs with your name and year-to-date earnings; proof of any other income you claim on your application, such as alimony, pensions or Social Security income; a list of all your creditors that shows the total balances due and the minimum required monthly payments, and proof of all assets, such as savings, stocks and bonds, or any other real estate owned.

Funds to be used for a down payment likely need to be in your account for two months before you can use them, IF they are coming from someone else, like your parents. Just having the funds in your account is NOT enough. Lenders will demand that any funds used to satisfy down payment and closing costs must come from your own resources. Funds must be ‘seasoned’ in your possession for at least two to three months. You can prove the funds are ‘seasoned’ by supplying two to three months of bank statements or documentation demonstrating that funds have been in your possession.

Almost every lender is going to ask to see the credit reports supplied by the three main credit bureaus: Experian, Equifax, and TransUnion. The credit report will show your financial history, showing the different transactions you have made, as well as providing your credit risk score. This score is known as the FICO score, named after Fair, Isaac, & Company, who developed many of the computer scoring models. It can be almost impossible to fully understand why your FICO scores is what it is, but key factors that are weighed in determining your score are: How timely you have paid your bills, how much debt you are carrying, how much of your available credit you are using (the size of the balance compared to the size of the credit line), how many credit cards and loans you have open, how many people have looked at your credit report recently, and if there is any negative information about in the public record area of your report. This area is where a judgment against you would appear as well as items like tax liens filed by the State or Federal Government.

The higher your credit score, the easier it will be for you to qualify for a loan. If you routinely pay your bills late, you will have a lower score, in which case a lender may either reject your loan application altogether or insist on a very large down payment or high interest rate. Because your credit history has such an important effect on the type and amount of mortgage loan you’ll be offered, make sure that you check your report regularly. If you find it necessary to clean up your report, you will want to do so before you apply for a mortgage. Almost every lender is going to ask to see the credit reports supplied by the three main credit bureaus reporting your file: Equifax, Experian, and TransUnion. The credit report will show a history of your financial transactions as well as providing your credit risk score. This score is known as the FICO score, named after Fair, Isaac & Company, who developed many of the computer scoring models. It can be almost impossible to fully understand why your FICO score is what it is, but key factors being weighed in the scoring are: How timely you have paid your bills, how much debt you are carrying, how much of your available credit you are using (the size of the balance compared to the size of the credit line), how many credit cards and loans you have open, how many people have looked at your credit report recently, and if there is any negative information about in the public record area of your report.

At the end of the day, if your mortgage and home fit into a well thought out financial game-plan, home ownership can be one of the most rewarding investments in your portfolio. Be sure to consider all of the issues, and make sure you get the right loan for your needs.



JULES

Kristin Abouelata - Home Loans asked:


When deciding upon a home mortgage, one of the most common options to consider other than a fixed rate loan is an ARM loan. ARM is an acronym for adjustable rate mortgage. With this product, a starting rate is fixed for a certain period of time, and then when that time is up, the rate can adjust depending upon a pre-determined index and margin. This period can be from anywhere of 1 month or 10 years, and can reflect principal and interest or sometimes interest only payments. The adjust results in the mortgage payment either increasing or decreasing. There is also a cap on how much the interest rate can go up or down.

Many people today are afraid of ARM loans and automatically only consider a fixed rate loan when applying for a mortgage. Depending on the market, this philosophy is sometimes the most economical route. But many times it may be worth your while to consider an ARM loan.

Within the past year or so, there wasn’t any real discernable advantage to considering an ARM over a fixed rate loan. The rates were comparable. But lately, the rates in general have crept up and, when comparing them, the ARM rates can have a healthy edge.

When I take a loan application, I ask my customer what their future plans are. Only going to be in town for a couple of years? Do you work for a company that relocates often? Do you plan to expand your family any time soon? Answering yes to any of these questions is a trigger for me to present an ARM loan as an option. The average homebuyer only stays in their home 7.5 years. I recently had a customer who knew she would be in town for only 3-4 years. The difference between a fixed rate and an ARM rate was .375%. The ARM rate was fixed for 5 years before any adjustment would occur. No brainer.

There are a myriad of mortgage products out there for the consumer to consider. Ask questions of your loan officer, and more importantly, expect your loan officer to ask questions of you. And if you can’t sleep at night because you know that one day that ARM loan can adjust, just remember one thing. You can always refinance your loan when that time comes. Now, get some sleep.

Kristin Abouelata mortgage website



ROYAL

generic asked:


Are there any websites I can post my home for sale? I don’t want to go to a realtor. And I have no interest in making payments on a $60,000 loan with 17.5% interest rate. Can I let it go into foreclosure? I owe more then it’s worth and i don’t have any type of updates done to it. So it doesn’t really stand out from the rest of the homes for sale in the park. If I let it go into foreclosure, and it only sells for less then I owe, will I be sued for the rest? What if I don’t have any money to pay for the rest owed on the home? Or what if I don’t pay my lot rent, and get evicted. Will I still be responsible for my mortgage payment on the home and the lot rent even though I got kicked out? I have never been 30 days late on my mortgage, but can not do anything with this high interest rate because my husband and I have bad credit. Any suggestions would help. Thanks

AL

Truth asked:


Presuming the couple has no kids, earn a combined 80,000, and only has bills like school loans, car insurance, and daily living expenses of about $600/monthly.

You don’t have to factor in this information. You can state what you want based on what you believe is an ideal mortgage payment. Just need a clue. We would like a brand new home ideally between $170-250k.

Please share any info. you may have.

Thanks

ALBERT

Benard Worseley asked:


If you are moving to Sydney, or if you are just planning to get out of that rental property, you may be looking for a Sydney home loan. Of course, before you sign on for a Sydney home loan, you should remember that a mortgage is a huge responsibility. Rather than a rental agreement, which is generally on the terms of a year, a mortgage agreement tends to last thirty to thirty five years. While you can sell the home and move, you can’t count on being able to sell your new home quickly. Before committing to a Sydney home loan, you should make sure that you plan to stay in the same place for at least five years.

In a tough economy, a Sydney home loan can be difficult to come by. Home loans are a risk as property values tend to go down. However, if you are able to get a Sydney home loan, a poor economy can help you to get a decent price on a home. If you are willing to do the research, home prices are dropping continually. When looking for a Sydney home loan, a little preparation can save you a lot of cash. Searching for a mortgage can be a little difficult, but finding a good lender is much better for you in the long run.

Before you sign anything or jump on board with your Sydney home loan, you need to make sure you are prepared. First of all, know your credit history and rating. If you have poor credit history, your interest rate on your Sydney home loan can be sky high. In some instances, you might be turned down when you request credit. In the economy today, a large percentage of people have poor credit. If this is the case with you, you might want to consider continuing to rent until you can repair your credit history. This can be a long, arduous process and you don’t want to find yourself locked in a mortgage with rates too high for you to afford. Also, a mortgage payment can be higher than a rental payment. In that case, you need to make sure that your budget can handle the extra money before you commit.

When entering into a Sydney home loan, remember that there are different types of mortgages. Many mortgage agreements start with lower rates and then suddenly balloon up after a set number of years. Many people are trapped in these agreements because at the time of signing, they believe that their income will increase by the time the terms are up. This can create difficulties for many people. You shouldn’t count on your situation changing in the future. After all, even if you have the promise of an income increase at your current job, unfortunate things happen. You don’t want to put yourself in a position that might lead to an eviction and foreclosure. This can not only leave you without a home, but can scar your credit report in a huge way. Before you find your Sydney home loan, make sure you are absolutely prepared to handle the responsibility. A little preparation can go a long way.

 



RENE

Reginald D. Wimbley asked:


When you look towards a home purchase loan, you’ll need to fully understand the interest rates. They are never the same and will vary among the different financial institutions, as well as from time to time. In many cases, home loans can change on a frequent basis, with little to no notice. When you buy a home, it is very important that you keep up with the economy. Any change in interest rates for a home loan can either increase or decrease the amount you pay back.

When getting a home loan, you’ll also need to understand the terms and the length of the loan. Almost all financial institutions and lenders have a variety of different plans or periods for you to choose from. If you choose a longer period, in most cases your interest rate will drop. You can find this out yourself by using a mortgage calculator. This way, you’ll know how much your mortgage payment will be before you decide to further pursue the loan.

As you probably already know, your ability to pay the loan back is very important. Some lenders require that you keep your loan full term, while others may provide you with the option to pay it off any time you wish. Home loans that give you the option to pay it off early will normally save you quite a bit of money in the end. If you are able to pay your loan off several years early, you’ll save a lot of money in the long run.

Even though the early payoff option is great to have, it can also come back to haunt you if you end up defaulting on the home loan. Or, if you decide to sell your home in the future, the early payoff can haunt you as well. For those very reasons you should always consult with a specialist before you commit to any type of home loan.

For the potential home buyer, home loans offer several different opportunities. Before you rush out and get a home loan, you should always know what you are agreeing to. You should also look into the company you are thinking of getting the loan from as well, so that you can better prepare yourself when you go through their process of getting your loan.



ANDRE