What to Do After Your Mortgage Application Has Been Denied

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When you make a mortgage application and it is denied, you should know the procedure to follow when you want to fix it. However, this is always a simple process that you can do yourself. Here is a guide on what to do if mortgage declined:

  1. Read the rejection reason

When a financial institution rejects your mortgage application, they often give reasons why they think you are not suitable for the given mortgage. You should ensure that you read the reasons why your application has rejected to enable you learn on what you need to fix before they can adjust it for approval. In addition, when you lack ability to comprehend on what might be the problem, you can get help from financial experts who will guide you on the reasons for rejection thus helping you make corrections for approval.

  1. Fix the Problem

Once you know the set of problems that you need to fix before getting a mortgage loan, you should go ahead and do it. By contacting your creditors, you will explain to you the conditions to meet such as having a poor credit history as well as things that you must fulfill if you were to get your loan to be approved. In addition, they will suggest a set of financial changes you have to make in your mortgage application before it is approved.

After you have fulfilled the given conditions, you can reapply again from the financial institution to see whether they will approve your loan. If you do them right, you will always be certain that you will get the mortgage loan that you will need.

  1. Apply with Other Lenders

Just because one financial institution or lender refuse your loan request doesn’t mean that the next lender will. How do you do this? You can go ahead by checking with other lenders within your area. From your research, you will always have online companies or institutions who are ready to give you loans from the available credit history. However, you must do your research well in the market before deciding on what will actually work for you especially when looking for mortgage loans from the financial market. In the end, you will get a financial institution or lender who will be ready to approve your mortgage.

In conclusion, the above is a guide on what to do if mortgage declined if you need to get the best rates when looking for the mortgage loans.

Your Mortgage Payments: Are They About to Increase?

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Finding the right kind of mortgage in this market can be a really difficult job. Most people try to avoid adjustable rate mortgages, because in that case your payment may increase from time to time. But even if you succeed in finding a fixed rate mortgage, there is a high chance that the fixed monthly payment may increase. The main reason behind such hike is your escrow account.

Escrow Account: In case your borrowings exceed 80 percent of the total value of the property, then you will be asked to open an escrow account by your lender for your own benefit. Apart from the fixed payment every month, you also have to pay your lender property taxes, insurance and other expenses that are necessary. All these expenses are deposited into your escrow account and gets broken down into monthly payments. Thus, it becomes much easier for you to pay. You don’t have to pay a lump sum amount of money at once.
The reasons behind the increase in mortgage payment are:

1. Property taxes: Property tax is the main reason behind the increase in the fixed monthly mortgage. They can fluctuate very frequently, especially if you live in a posh location. Increase in the property value, change in the tax structure of the government or home improvements can end up increasing your monthly payment.

2. When these rates increase, lenders are also forced to collect more money in your escrow account to cover up all the additional costs. As a result, your monthly mortgage increases. You have the option to file an appeal against the increase in property taxes. But there is no guarantee that the ruling will be in your favor.

3. Homeowners insurance: Just like property taxes, homeowners insurance can also end up increasing your monthly mortgage. If you are investing in a large remodel project, then there are many extra costs like repairing expenses or some additional constructions. As a result, the homeowners insurance cost will rise, which in turn will result in the increase of your monthly mortgage.

Lender error: Sometimes, your lender may by mistake make some wrong calculations in calculating the property tax or insurance amount. This means that you will have to pay more in your escrow account to cover up the costs. Although such mistakes are completely unintentional, but you are the one who will suffer. You will have to end up paying an increased monthly mortgage. Hence, it is your responsibility to make sure that all the costs are properly calculated.

Hence, it is very important that you shop for your mortgage very carefully. Jerry Stiles, mortgage broker can help you out in this regard.

Using Down Payment Assistance in Acquiring a New Home

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Often, people who are looking for a new home find the ideal candidate for their purchase. At first, people might be excited, but then, the bad news comes around: the same property demands a 20% down payment. For many individuals, couples or families, these 20% end up being a very hefty sum which they cannot easily acquire. When they are met with this problem, a substantial number of potential buyers would simply give up. But, this does not have to be the case. With down payment assistance program, the same real estate can be in their reach. Currently, there are almost 2,300 programs that are designed to provide support in the domain of down payment. For these, requirements of eligibility are in places which are connected with a person’s credit, occupation and income, but many do not even know that the same programs exist. Here are the most important facts about these programs.

How Much Will Down Payment Assistance Help?

Recently, a study found out that these programs save, on average, over $17,000. Out of this sum, about $6,000 represent the savings in the down payment stage. A further $11,000 is saved through the monthly payments that take place over the loan’s lifetime. But, when all of these are combined, it is clear that the savings represent a very valuable opportunity. In fact, the savings are so big that for many homes, they represent a big chunk of the entire price of the property.

Who is Eligible for the Programs?

Most often, down payment assistance programs are designed to help out low-income buyers who are looking to buy property. But, there are a lot of programs which do this for the middle-income buyers as well. Here, the problem is that middle-income buyers are regularly completely uninformed about the availability or even the existence of these programs, especially those offered by the federal government, but also the counties and the local communities. Additionally, homes that are included in the Neighborhood Stabilization Program regularly qualify, as well as firefighters, teacher and others who work as civic employees. There are also programs that offer assistance to first-time home buyers, which can be anyone who has not owned their own home in the previous three years.

Finding Down Payment Assistance

The most important place where everyone should start looking for this type of assistance is the readily available online resources that specialize in this domain. Here, many useful tools are available, along with a calculator which will point out which programs are accessible. Other options include using state lists of payment assistance programs, but the DHUD (Department of Housing and Urban Development) website is also a great resource. Finally, any offer should be checked in relation to the county in which the property should be purchased, because conditions and terms often vary.

With all of this, anyone will be able to attain the best possible down payment assistance program. For more information and the best possible advice in the same domain, mortgage broker Jerry Stiles and his website on http://www.jerrystiles.com/ will clear up any dilemma and help people make a substantial savings.

Points, Interest Rates, And How You Can Cut Down On Mortgage Payments

Points, Interest Rates, And How You Can Cut Down On Mortgage Payments
Points, Interest Rates, And How You Can Cut Down On Mortgage Payments
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Points would be the common term for an upfront cost paid to a lender in exchange for the loan itself. The higher your credit score and annual wages, the fewer points you have to pay to get your loan. Despite this, having more points can be better and something you can request for.

The correlation of points and interest is a fascinating thing to consider in a mortgage. A low-interest rate usually goes with a high amount of points to be paid. Only in case you have a bad credit rating, the above rule would not always apply. You can play around with this relationship to your benefit.

It doesn’t matter whether you pay a lot of points on a loan – the cost will not even come close to the amount of interest paid over the loan’s entire lifespan. If you love your new home and want to stay there for a good number of years, you will need to find a way to cut down your interest rate big-time. This is an excellent way to save cash. And you can do so by actually using your points.

It is possible to buy down your interest rate through points – pay a greater amount of points to the lender so that you can enjoy lower rates. Try to balance the effect on your interest rate with some points you need. The math can be complicated, so have the documents from your lender in writing and use a mortgage calculator to do the math. It would also be nice to reduce your monthly payments. After figuring out the numbers, compare them to the number of points needed before making your final choice.

The concept of points can be simple if mastered, and doesn’t need to be considered the wrong side of the mortgage business. You could potentially save thousands, or even hundred thousand, over the lifespan of your loan.

Interest-only mortgage rates allow you greater purchasing power. Because interest-only mortgage rates have lower costs compared to fixed rates or other types of loans, you are afforded extra money which would have been spent on high monthly payments. Interest-only mortgage rates give you the chance to qualify for other loans, thus enabling you to buy more home or real estate properties.

Common Mistakes Made When Applying For a Mortgage Loan

Common Mistakes Made When Applying For a Mortgage Loan
Common Mistakes Made When Applying For a Mortgage Loan
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Did you know that some mortgage applications are turned down just because of a few simple mistakes? Here are some of the most common errors made by those looking for a mortgage loan. Take a look at them; maybe you can identify or if not hopefully avoid doing them in the future. This could save you some money on your mortgage.
First of all, when it comes to the amount of down payment to apply towards the purchase, some people are unsure of exactly how much. The more money that is used towards the acquisition for a deposit means there is less of a risk to the lender, along with cheaper interest rates. Just remember to stay within your budget and financial resources.

Unfortunately, not all mortgage loans are processed. It would be in your best interest to have a talk with your mortgage broker about his track record. Does he provide you with any guarantees?

Apply for a mortgage loan is not that familiar of a process for Americans, being that it is not something we do every day. It is important that you work closely with your mortgage broker and try to understand the mortgage process. Stop and ask any questions you might have, and make sure that you are working with someone who is willing to help you out.

A common mistake made by prospective homeowners is choosing a lender that has limited options. It is important that you go with a lender who offers you a range of mortgage products. Figure out your needs and make sure that they will be met, before deciding on that broker. Look for a mortgage broker with many connections and who will be able to meet your needs accordingly.

Some people believe it is in their best interest to get large purchases paid off before going into a mortgage. Lenders take a look at your total debt to income ratio when assessing applications. It is best to leave expenditures along until the mortgage has been drawn up.

Everyone would like to get the best interest rate possible on their mortgage; this is a goal. Just keep in mind that with every application there also is a credit check. Too many of those will eventually affect your credit rating. This is where your mortgage broker should be helpful with any insight into the market. They should be able to discuss their lenders with you and cut out any need to process applications just for the sake of establishing interest rates.

Let’s be honest; just about everyone has had some form of financial difficulty in their lives. Of course, when it comes time to apply for a mortgage loan, some believe it is better not to be forthright with their entire financial past. Your broker and lender are there to help you, but it’s better, to be honest, upfront so it can be dealt with and go from there.

You cannot keep any part of your financial or credit past a secret.

Take a look at your past year when it comes to paying your bills. Have you been on time or possibly even missed any of those payments? This could have an adverse effect when applying for a mortgage loan.

Ultimately, depending on your record, this could end up in being refused the loan. Just make sure you are on top of your finances, not missing any payments and paying on time.

If you are looking at getting a mortgage loan, now is the time to work really on keeping your debt as minimal as possible. By keeping your credit balances low or even paying them off, will result in the best terms for your mortgage.

The common mistake some people make when committing to a mortgage is not having all of the facts from the beginning. Make sure you understand what are the closing costs and any ongoing costs. When you are comparing lenders, just a fraction of a percent might not seem like much, but make sure you do the math. Over the term of your mortgage loan, that can add up.

Just make sure you get all of the facts before taking out a mortgage loan. Try to avoid the common mistakes, take care of your finances and before you know it, you will be on your way to owning your home.

7 Commonly Forgotten Home Maintenance Tasks

7 Commonly Forgotten Home Maintenance Tasks
7 Commonly Forgotten Home Maintenance Tasks
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Some often forgotten home maintenance tasks become memorable when they cause a big repair bill. We have identified 7 commonly forgotten home maintenance tasks which can be costly when they are overlooked.

Clean Out The Gutters

Gutters can accumulate leaves, bird nests and other debris which will weigh enough to pull the gutters away from their mounting. This condition will cause water to run down the side of the home and into the foundation. These gutters will not drain properly causing the water to flow over the side and onto the landscaping.

Hire A Professional To Inspect The Roof

The roof should be inspected once a year to find the problems that can cause water to leak into the home. Caulking, sealant and flashing should be inspected because these materials can also allow water to leak into the home when they are defective. The roof decking should be examined to determine whether it is rotting. Curled shingles and shingles out of place need to be replaced or nailed down securely. One other important part of the roof is the drip edge since this is what channels the water into the gutters.

Clean The Chimney

Creosote can build up in the chimney. This is a very flammable substance, and it can cause a fire. Critters can build nests in the chimney, and they will cause a problem when the fireplace is used.

Service The Heating And Cooling System

These systems should be inspected and serviced before each season begins. Routine maintenance will prolong the life of the equipment and help prevent emergency repairs. Well-maintained systems will be energy-efficient. Checking the thermostat is also essential.

Flush Out The Water Heater

Mineral deposits will build up over time on the bottom of the tank. The result is corrosion which causes the tank to leak. These deposits also make it more difficult to heat the water. The result is an unnecessary use of energy.

Clean The Refrigerator Coils

Dirt, dust and pet hair will clog the coils to the point where they can no longer release heat removed from the refrigerator. This condition makes the motor work harder to release heat through dirty coils.

Check The Slope Of The Soil Around The Foundation

The soil around the foundation should slope away from the foundation to prevent water from becoming a problem. Water that builds up can result in hydrostatic pressure which can cause water to push through the foundation into the basement. Hydrostatic pressure is the main cause of basement leaks.



3 Ways To Cut Home Energy Costs

3 Ways To Cut Home Energy Costs
3 Ways To Cut Home Energy Costs
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Home energy use can be very expensive, and the high expense of home energy sneaks up on us. Most homeowners don’t know how much energy an appliance or a technology item really uses. It isn’t easy to find out the energy use of any one item, not to mention every item collectively. Regardless, saving energy is possible by taking a few steps to reduce energy consumption. The following steps have been proven over time to save homeowners money and also to prolong the life of some equipment.

Set the Water Heater Thermostat 120 Degrees

Most households only require the water heater temperature to be set at 120 degrees. This temperature will also prolong the life of the water heater by slowing mineral buildup in the tank. This temperature poses little if any health risk. if a family member has a suppressed immune system or a chronic respiratory disease, you might consider setting the temperature at 140 degrees.

Change the Furnace Filter

A clean furnace filter puts far less stress on the furnace and its fan motor particularly. A dirty filter forces the furnace to work harder because the filter restricts the air flow. Thus, the air quality in the home will not be as comfortable, and it might even be less healthy because the allergens, dust and other floating material cannot get through the filter. The frequency with which you change the filter depends on several factors. Pets in the home may require a frequent change as might a home located in an area where there is a lot of dust in the air. Of course, and a filter that appears to be dirty is dirty. Several opinions exist on the best type of air filter. Check this website for an excellent discussion on filters: bobvilla.com/articles/furnace-filter/bv=relart#.VtdE7vkrI1k

Caulk Around Doors, Windows, Outlets and Switch Plates

These areas will allow outside air to enter and inside air to escape to the outdoors. You can also buy foam pieces that fit behind the outlet and switch plates. Caulking around the door and window frames is an excellent idea for saving energy. Infrared technology studies have been conducted on homes that do not have adequate caulking and these studies clearly demonstrate that air does escape through these unprotected areas. Installing new weather stripping around exterior doors is also an excellent idea. Make sure that the door thresholds seal the bottom door opening. Have someone outside watch while you shine a flashlight under the door. If the light comes through, then the threshold needs to be adjusted.