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.

 

 

5 Tips To Manage Your Mortgage

5 Tips To Manage Your Mortgage
5 Tips To Manage Your Mortgage
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A home mortgage is not something you acquire and then forget about it, except for making payments. There are, however, ways that every homeowner can manage their mortgage for better short-term and long-term results. We have put together 5 tips to manage your mortgage. These are tips that have been proven to be important for every homeowner with a mortgage.

1. Pay The Payment On Time

Take every precaution to ensure that you make every mortgage payment on time. People can forget to make a payment when they are caught up in the challenges of everyday living, but forgetting a payment can ruin your credit for seven years. A late payment might result in accrued interest and penalties. You can avoid this by having the payment automatically deducted from your checking or savings account.

2. Consider Other Expenses You Will Have To Make When You Buy A Home

Buyers often have to scrape up every dollar they can find just to make the down payment and pay for the closing costs. Often, buyers will then go into debt to buy items for their new home. Buyers may also take out a personal loan to make these purchases. Problems arise when the interest accumulates and the payments are more than can be paid on time. A condition like this can interfere with making mortgage payments on time. Living on the edge is dangerous for managing a mortgage.

3. Create A Rainy Day Fund

Homeowners need a rainy day fund to cover unexpected expenses such as a leaking roof, a burst water heater, or leaking water pipes. Doing so will keep your mortgage payment funds untouched.

4. Keep A Watchful Eye On Your Property Taxes An Home Insurance

These are two automatic inclusions in your mortgage payment, and these can go up which means that your mortgage payment will go up by a corresponding amount. Many taxing authorities and insurance companies do not tell you when their rate are increasing. For some homeowners, this can be a significant problem. Property insurance premiums have been increasing by 10 to 20 percent annually. Call your insurance company before the renewal date and ask if your policy premium will increase. If it will, then look for another insurance company. If your property taxes are scheduled to increase, then you might want to appeal the increase. Check the tax rates for the property around you to see if rates are increasing for those owners. If they are not, then you have a right to challenge your increase. Keep in mind that many municipalities increase property taxes every year.

5. Try To pay Down Your Mortgage Quickly

One easy way to accomplish this is to pay your mortgage payment by paying one-half every two weeks. This will result in making one extra payment every year, and the savings in the long-run will be significant. Or, pay a monthly amount that is equivalent to what your principle and interest payment would be for a 15-year mortgage.

What Is A Jumbo Loan?

What Is A Jumbo Loan?
What Is A Jumbo Loan?
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Jumbo loans are mortgages that exceed $417,000 which is the traditional mortgage limit, also known as the conforming loan, for single-family mortgages. The conforming loan limit is the maximum amount that will be backed by Fannie Mae or Freddie Mac. However, the real estate market is not the same in every city, so in some places the jumbo loan threshold is higher. For example, in Alaska and Hawaii the conforming loan maximum is $625,000, so jumbo loans would be made for a larger amount. Jumbo loans are used to purchase higher priced homes.

Qualifying For a Jumbo Loan

It is not easy to qualify for a jumbo loan even if you have $1 million in liquid assets. Qualifying for a traditional mortgage loan means jumping through several hoops, and there may be more hoops to jump through for a jumbo loan. You will need to have all of the documents that will support your income from all sources. Tax returns and bank statements will also be required. It is nearly mandatory that you have at least six months of cash that could be used to make the payments on the jumbo loan. This requirement could be stricter if you work for yourself.

Your debt-to-income ratio must be below 36% if you are applying for a traditional mortgage loan. This ratio is calculated by dividing the total monthly debt payments by your monthly income. Jumbo loan applicants will need a significantly lower debt-to-income ratio. The ratio requirement may vary between jumbo loan lenders. However, it will not be as high as 36%.

An excellent credit score is essential when applying for a jumbo loan. Most jumbo loan lenders look for a credit score of at least 700. Keep in mind that credit scores are created by a variety of credit bureaus and by the independent FAIR ISSAC score organization.

Favorable Interest Rates are Available For Jumbo Loans

As recently as 2008, jumbo loans were not available, and if they were, the interest was higher than for traditional mortgage loans. However, borrowers looking for jumbo loans today will find that interest rates are slightly lower. The reason is people who apply for jumbo loans are viewed as less likely to default on the mortgage or fail to make payments on time. Many applicants are high-income earners with substantial assets. They are also considered to be financially stable through any economic downturn.

As with any mortgage, it pays to shop for the best jumbo loan deal. Jumbo loans come in a variety of adjustable and fixed interest rates. You might find investors among the secondary mortgage market.

Look at your finances carefully. Find the best jumbo lender for your needs. Be sure that you can make the long-term commitment to making the mortgage payment along with the high taxes and property insurance.

How To Determine The Best House For You

How To Determine The Best House For You

Buying a home is exciting, and the process can often be terrifying. Searching for your dream home, a place where living is at its best and memories are made is not difficult when you follow some guidelines. The question in the minds of many buyers is how do we know if a house if right for us? We have put together some ideas on how to determine the best house for you.

The first and only way to begin your search is to figure out how much you can afford to pay not just for the purchase of a house, but also for the monthly payment. Include in this assessment how much more you will spend on utilities and maintenance than you are spending currently. A home you cannot afford becomes a nightmare instead of a dream.

Decide on how you want to live rather than where you want to live. Focus on the features of a house that will make living in it enjoyable. Nice views are wonderful, but it is unlikely that you will enjoy the views more than you will enjoy your house. Look at the house from the viewpoint of practicality. If you have children, will they be safe in the house? Look at the amount of time required keeping up the house.

Can you imagine your furniture fitting nicely into the house? Will you need to buy more furniture? Does the house have a nice flow, or is it chopped up meaning that living in it could be frustrating. Does the house feel good? You will find some houses that just are not comfortable to be in.

Trust your intuition. Does the house impress you in the first 15 seconds, or is it depressing? Be sure to consider cosmetic repairs. Perhaps minor painting or some changes in decor will make a major difference for you. Can you imagine it being a happy house? Pay attention to your reactions as you move through the home.

You will also need to think about buying a resale home versus buying a newly constructed home. New construction will not have the same problems that older homes can have. Of course, putting in a yard and buying window treatments is an added expense. While you can get a home inspection on an older home, all of the problems may not be readily identifiable.

Ask the local police about the crime statistics for the area you are considering. Also ask the local government authorities if the neighborhood will be subject to any planned special tax assessments. Consider the quality of the schools even if you do not have children or do not plan to have children. The schools will affect the resale value of the house.

These are just some of the factors that you should consider when looking for a house to buy. A qualified realtor who is experienced in the area you want to buy can be an invaluable resource in your search for a house.

Mission Viejo View of Property

10 Major Mortgage Mistakes To Avoid

10 Major Mortgage Mistakes To Avoid
10 Major Mortgage Mistakes To Avoid
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Getting a mortgage is not easy, but it can become far more difficult than it needs to be due to some mistakes that mortgage applicants make. Here are the 10 major mistakes to avoid, and you avoid these with some planning and discretion in managing your finances.

1. Not Checking Your Credit Records

Check your credit history at least six months before you intend to apply. This includes checking your credit scores including the FairIssac score.

2. Applying For Credit Just Before You Apply For A Mortgage

Lenders will consider you to be a greater risk if you apply for new credit just before or while you are applying for a mortgage. Your credit score might drop causing you to either not be approved or approved for a higher interest rate.

3. Failure To Consider The Total Housing Costs

Your mortgage payment includes principal and interest, but taxes and insurance costs are added. All of these costs figure into the percentage formula used to qualify your income for mortgage repayment. Divide the mortgage payment by your gross income and the result should be around 25%.

4. Not Having Assets In Your Account For At Least Two Months

Lenders will want to see assets that you have accumulated and not used for living expenses. Don’t borrow from a relative days before applying. You can be sure that the underwriter will find this transfer.

5. Changing Jobs Frequently

Lenders look for stable employment and a job history in your field. Underwriters are wary of applicants who have gaps in their job history and fail to stay in one job or one field.

6. Not Getting A Pre-Approval

There is no substitute for good preparation when you want a mortgage. Make sure you can qualify for a mortgage before you even begin to look at homes. A pre-approval is better than a pre-qualification because it is based on a more thorough review of your financial status. Realtors will be more willing to work with you when you have been pre-approved.

7. Not Shopping For The Best Mortgage

Don’t let a pre-approval confine your mortgage search to that lender. A broker can shop your pre-approval at a number of lenders. You will want not only the best interest rate bit also the best terms and the lowest fees. Knowing closing costs in advance is essential.

8. Spending Time And Energy Looking At Unconventional And Complex Mortgages

Go with a mortgage that you can understand. Avoid paying interest only or adjustable rate mortgages. A fixed rate, fixed long-term mortgage is the best.

9. Forgetting To Lock-in Your Mortgage Rate

Mortgage interest rates can change daily. If you find an interest rate you like, then lock it. This means that the rate will be good for the number of days it is locked for. Always get the locked rate in writing,

10. Neglecting To Read The Mortgage Documents

Even though it may be a chore, take the time to read and understand the mortgage documents. This is time and energy well spent.

 

5 Tips To Help You Sell Your Home Faster

5 Tips To Help You Sell Your Home Faster
5 Tips To Help You Sell Your Home Faster
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If your home is not selling as fast as you think it should, then consider these 5 tips to help your home sell faster. Keep in mind that you should prepare your home to be sold with the same attention that you would prepare yourself for that all important job interview. The principle is the same; you want to attract the attention of buyers. A few simple projects can make the difference in how your home sells and even how much it sells for.

1. De-clutter
You may find that many of your possessions remind you of enjoyable times and successes in life. You may enjoy all of the over-stuffed furniture. However, all of these make your home look cluttered, too small and unattractive to buyers. Remove any indications of political party affiliations and signs of other organizations that may be objectionable to some buyers. Although your religious beliefs are important to you, a home that is filled with religious articles is not going to be attractive. Put items in drawers or closets rather than leave them scattered about. You can rent a storage locker to store excess furniture as well as boxed items. Now, you can imagine that buyers will visualize a home that they could live in.

2. Make What You Have Look Better
A few simple fixes can give your home a more modern feel. Upgraded fixtures will be attractive to buyers even if they might not like the fixture you choose. You can upgrade items without replacing them. For example, light fixtures can be painted a pewter color and doorknobs can be decorated with appliques. Replacing faucets is always a good idea, but if you can’t afford to do this, then clean them thoroughly and use a product that will make them shine. The concept at work here is to help buyers realize that they will not have to spend a lot of money immediately to make the home attractive.

3. Make Sure The Rooms Are Neat And Clean
Children’s bedrooms should reflect how the rooms can look when everything is in its place and the beds are made. Clothes should not be scattered over the floor. The colors in the rooms should be neutral if possible. Make the closets look better by not stuffing clothes into them. Clean carpet and clean tile are essential for attracting the buyers’ interest.

4. Change Colors That Over-Stimulate
Neutral colors attract buyers, and the bright red, purple and yellow colors are a turn-off for buyers. Area rugs should be designs that are attractive and in colors that compliment the rooms.

5. Curb Appeal Is Important
Your home’s curb appeal will be the buyers first visual image of your home, and it will create their impression of the inside of your home. A yard full of weeds or a flower bed with overgrown plants will deter buyers. Grass that is not cut and trimmed properly is not attractive.

For more information regarding Jerry Stiles and home loans, visit the website or Facebook page!