Tag: mortgage

3 (More) Questions to ask Your Mortgage Lender

A little research to compare your options for a mortgage, and a few questions in your artillery, will help you get the best one when you work with your mortgage lender.

Previously, we wrote about three questions to ask your mortgage lender before you secure your mortgage–we now have three more questions you should ask to give you even more knowledge and help to secure the best mortgage that you can get. When you are ready to get the best potential mortgage, here are three (more) questions you should ask your mortgage lender.

  1. What are the closing costs that go with this loan? Closing costs usually fall between 2 and 5 percent of the total loan. This range, when factored in with hundreds of thousands or millions of dollars, is big enough to make this question an important one.
  2. Is it an adjustable-rate or fixed-rate mortgage? An adjustable-rate mortgage locks your mortgage for a specific amount of time, and at the end may increase your monthly mortgage rate. A fixed mortgage keeps your interest rates and mortgage payment locked for the duration of the loan but is a bit more expensive than the adjustable-rate mortgage.
  3. What is the down payment that’s required? There exist many kinds of loan types, and not all of them require the same down payment. Make sure to ask what your down payment will be–if it’s less than 20 percent, ask if attaching private mortgage insurance (PMI) will be an additional requirement.

It’s best to put your pride aside and ask as many questions as you possibly can when it comes to something as vital to your life as your mortgage. This thing is going to be with you, potentially, for the next thirty years! Contact  Dean Rathbun when it comes time to finding the perfect plan of action to buy your home. We are happy to help you.

Should You Lock Your Mortgage Rate?

If you’re not a betting man, you may think that when you lock your mortgage rate it may be too much of a gamble, but a little can go a long way.

Shopping for a mortgage is a lot like playing the tables at Vegas: it’s going to take both luck and some skill. One mortgage game that you can try your luck in is called “mortgage rate lock.” But before you buy in at the table (or close on a home sale), learn the various situations in which you should lock in a mortgage rate to give you the best chances of winning.

  1. What is a mortgage rate lock? This is when you strike a deal with your lender that allows your mortgage rate to freeze for a certain amount of agreed upon days. If you don’t lock, your mortgage rate could change by the time the loan paperwork is finished being processed.
  2. Should you lock in your mortgage? This is where your gambling skills come into play. If you believe that your interest rates will rise, lock! If you think they’ll fall, don’t lock. But when interest rates are at historic lows (like they are now), it seems like a no-brainer to lock.
  3. Nothing is guaranteed. Read your lender; if you think they’re pushing you into locking, don’t be afraid to call their bluff. The lender has an incentive to get you to lock your mortgage. See, locking your mortgage isn’t “free.” The longer the duration of the lock, the greater the cost regarding basis points that are then shown in the mortgage rate. It may not cost anything upfront, but you will be charged a higher interest rate.

Contact  Dean Rathbun when it comes time to finding the perfect plan of action to buy your home. We are happy to help you.

Avoid These 3 Common Mistakes After Mortgage Preapproval

After people get a mortgage preapproval, they let their guard down and commit silly mistakes. Here are the top three you should avoid.

While it may seem obvious to you that you should continue paying your bills between a mortgage preapproval and your settlement date, some borrowers neglect their finances because they are so excited about shopping for a brand new home. Getting preapproved for a mortgage is something that is no easy task, so it’s logical that the last thing you want to be doing is showing signs of weak financial ability. Here are three common mistakes after mortgage preapproval that you should avoid.

3 Mistakes to Avoid After Mortgage Preapproval

1. Making a Major Credit Purchase

If you purchase something big, like furniture or even a new car, your lender will have to factor in the payments into your debt-to-income ratio. This could result in a cancelled or delayed settlement. Paying in cash may not be good either as you’ll have less cash towards a good down payment.

2. Applying for New Credit

Mortgage lenders have to do a second credit check before the final loan approval. If you’ve opened a new account, this new account will have to be verified which could cause a delay in your settlement.

3. Losing Track of the Deposits

Adding to your assets isn’t a problem, but you have to provide complete documentation of any deposits other than your everyday paycheck. Documenting everything is crucial so that your credit score and mortgage stay consistent. A good lender should be able to advise you on what you need for a paper trail.

If you attain a mortgage preapproval, it’s important that you keep a cool head. Contact Dean Rathbun when it comes time to finding the perfect plan of action to buy your home. We are happy to help you.

3 Reasons Why a Mortgage Prequalification Isn’t Enough

Mortgage prequalification is important, but you may find out—the hard way—that this may not be enough to buy a home.

Homebuyers are often told they need to prequalify for a mortgage. This is not bad advice—in fact, it’s rather good advice…up to a point. a prequalification is only a baby step toward getting a loan. What you would like to be is preapproved which is why many homebuyers confuse the two similar-looking terms. You may be asking, “Well, what’s the difference?” Here are three reasons as to why a mortgage prequalification is not enough to purchase a home.

1. Your loan might not be approved.

A prequalification is usually based on information about your employment and income that you provide verbally to the lender. It might, or might not, also be based on your credit score which is what actual mortgages are approved on.

2. You may look for the wrong home.

Without a proper preapproval, you may be setting your sights too high, or too low. Shopping for a home takes a lot of time, and that could mean a lot of wasted time and effort. Realtors won’t spend much of their time with prequalified buyers; being preapproved on the other hand, and they’ll be eating out of the palm of your hand.

3. Sellers may not accept your offer.

Sellers are very conscious about those that bid on their homes. Place an offer with a prequalification, and the seller may insist you have a preapproval. Dean Rathbun can help make that happen.

Contact Dean Rathbun when it comes time to finding the perfect plan of action to buy your home. We are happy to help you.

3 Ways to Get the Lowest Mortgage Refinance Rates

When you refinance you’re hoping you get the lowest mortgage refinance rates around, here are a few tips on how to get those rates.

If you’re considering refinancing your mortgage, you are likely on the edge of your seat wondering if you landed the lowest possible mortgage refinance rates. Before you start shopping for the lowest rates, there are some things that you should take care of first. You need to establish your objectives and prepare your financial situation to improve your chances of qualifying for the lowest interest rate possible.

  1. Raising your credit score

A credit score of 740 or higher puts borrowers in the best tier for a conventional loan. Most lenders require a minimum score of 620 to 640, but you’ll pay a higher mortgage rate unless your score is above that magic 740 score.

  1. Save cash for closing costs

Closing costs average about 2 percent of the home’s loan amount. You can save up and pay in cash or you can use your home equity to roll over these costs. Another option that some lenders offer is to pay a higher interest for a “lender credit” to cover these costs. This will help keep your cash to close amount lower.

  1. Lower your debt

One of the reasons that your credit score may be low is because you may have accumulated some debt over the years, and have not been yet paid it down. Lowering your debt is a good sign to lenders that you are taking financial responsibility and could positively affect your credit score.

Don’t let these three factors get in the way of the lowest mortgage refinance rates. Contact United American Mortgage Corporation when it comes time to finding the perfect plan of action to buy your home. We are happy to help you.

How to Be Your Mortgage Lender’s Best Client

Mortgage lenders appreciate when borrowers make everything as simple as they can, and being on your lender’s good side can only benefit you.

Getting a mortgage isn’t just about qualifying. It’s also about whether or not you can work well with your loan officer. Making the process easier for your officer will only be of beneficial use to you. Dream customers are not only financially well-positioned, but they’re also knowledgeable, realistic, and cooperative. No matter how qualified you are, you may never actually get an approved mortgage if you always ignore the advice of your mortgage lender. Here are three ways in which you can be your mortgage lender’s dream client and land you the best possible mortgage.

  1. Have some knowledge of your credit: Some borrowers are overconfident. Others genuinely don’t know if they will qualify. Neither is a problem for lenders. There are sites like credit karma that can give you some knowledge of your rating.
  2. Be educated about the basics of a mortgage: Lenders like a client who has some basic knowledge of mortgages. Know nothing of mortgages? Here’s a basic one everyone should be aware of: There is no such thing a no-closing-cost loan. The costs you pay upfront are financed in a higher interest rate or larger loan amount. Both can be a benefit, but knowledge of how it is done is important.
  3. Keep your cool and don’t be confrontational: Qualifying for a loan isn’t that hard, but there is a lot of paperwork involved. All “i”s must be dotted (along with every “j”), and every “t” must be crossed. No exceptions. Lenders are regulated by Federal Guidelines

Contact United American Mortgage Corporation when it comes time to finding the perfect plan of action to buy your home. We are happy to help you.

3 Loans That Will Affect Your Mortgage

If you feel like you’re drowning in debt, remember that not all loans are necessarily a bad thing—you can use them to prove you’re capable of making timely payments.

Different types of debt can actually boost your credit score, but overdoing it can, and will, hurt you. When you’re shopping for a mortgage, your credit score is the talk of the town. It can make or break your application and ultimately determine whether or not you’re going to get the home you’ve always dreamed out. There’s a lot of power within those three digits. The following consumer loans affect your mortgage worthiness in different ways. Here are some steps you can take to improve your credit if you have these loans, so you can qualify the best possible mortgage.

  1. Student Loans

Student loans are unsecured debt, but they won’t harm you if you pay your bills on time. Because they take decades to pay off, student loans can actually help your score. Student loans will figure into your overall debt-to-income ratio, but a large student loan you consistently pay might help you qualify for a mortgage.

  1. Auto Loans

Auto loans are secured debt, because the lender can always repossess the car if you don’t pay. In some cases, auto loans can help your credit score by raising your score since you’ve diversified the types of debt you carry. Because auto loans are easier to acquire than credit cards, mortgage lenders may look favorably on you because you’ve already qualified for a car loan.

  1. Existing Mortgage Loans

Mortgages are the classic example of secured debt because the bank actually owns your house, thus, has the ultimate collateral. When paid on time, mortgages are great for your credit score. A missed payment on previous mortgages, however, will wave a red flag to your potential lenders.

Loans don’t have to be the life-sucking entities you fear! Contact United American Mortgage Corporation when it comes time to finding the perfect plan of action to buy your home. We are happy to help you.

3 Questions You Should Ask Your Lenders Before Securing Your Mortgage

A little research to compare your options for a mortgage can help you get the best mortgage rate.

Use the power of choice to call two different lenders to apply for a mortgage—they may give you a different interest rate, and you can use this to your advantage. Even though information like your credit score and salary is set, financial institutions can interpret this information differently. And that can mean scoring a lower interest rate merely because of your choice in lender. Many borrowers don’t compare interest rate rates before selecting their mortgage, which possibly ends up costing them many years of a debt-free life. When you’re comparing lenders, here are a few questions to ask.

Will the size of my down payment impact the interest rate or fees on the loan? If you put down less than 20 percent when you apply for a mortgage and buy a home, you’ll likely end up having to pay for private mortgage insurance. Be sure to understand the minimum down payment and how it can affect the rest of your fees.

Are points included in the quote? A quote with an interest rate from your mortgage lender may or may not include points. Points are fees that you can pay to your lender when you decide on a home in exchange for a lower interest rate.

How can I lock the interest rate? When you get quotes for your interest rate, you need to ask how you can lock that quoted rate. If you wait too long between getting the quote and actually applying for the mortgage, the rate the lender gave you may expire, leading you to pay more in interest down the road. By locking in a rate, you’ll get what you budgeted for and can avoid having to ask for another quote with a potentially higher rate.

There is no such thing as a stupid question, especially when it’s something as important as the mortgage that’ll be with you for three decades. Contact United American Mortgage Group when it comes time to finding the perfect plan of action to buy your home. We are happy to help you.

Three Inspection Issues That Should Break the Deal

Your home is ready to sell, the only thing that could crush your dreams is a bad home inspection report.

There are very few guarantees in life: death, taxes, and home inspection reports turning up with “issues.” Home inspection notes can be as minor as a blown-out light bulb, other times they can be so horrid that it can actually ruin entire home selling plan. But, if you’re a buyer, it may not be the worst thing to proceed with a house that has “issues.” There are some, however, that you must look out for and tread with caution should you proceed. Here are three issues that should wave big red flags when looking to purchase a home.

  1. Asbestos. Pre-1975 homes could be infested with asbestos—a carcinogen that was used for construction and as fake snow in films like “The Wizard Oz”. If the report of the house you’re looking to purchase shows asbestos, take the appropriate actions to remove it from your premises.
  2. Termites. If the inspection shows termites, it’d be a good idea to leave this one alone. Termites are great at digesting wood, and the damage could extend well beyond what the report says. This is also going to call the help of a structural engineer A.K.A. more money out of your pocket.
  3. Black Mold. Black mold sounds something from a horror movie: black mold marks the territory of the creature from the Voodoo Swamp across the block. Fortunately, there are no such creatures in existence; unfortunately, black mold can cause severe respiratory problems. If you really want this house, have the seller hire a professional to get rid of the mold, and have the place tested before you purchase.

Contact United American Mortgage Group when it comes time to finding the perfect plan of action to sell your home. We are happy to help you.