Tag: United American Mortgage Corporation

What You Should Know About Getting Low 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 Dean Rathbun when it comes time to finding the perfect plan of action to buy your home. We are happy to help you.

The Loans That Can 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 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

To lock or not to lock: that is the question…you should be asking if you own a home. 

Banks often encourage home buyers to lock in their mortgage rates to guard against any rising borrowing costs. But seeing as how bankers were responsible for the collapse of the real estate market in 2008, it’s easy to understand why one would be wary of what they tell you to do with your mortgage. Locking your mortgage rate to protect against any increases may sound appetizing, but is it the right move for you? Here are the reasons should you lock your mortgage rate?

Rate locks allow home buyers to guarantee a particular mortgage rate if they close on the home sale within a set period, no matter the influence outside factors may have on the market. This way, home buyers can avoid larger monthly payments on their loan.

Since interest rates had been at historic lows, many people did not opt for locking their rates, but now with interest rates finally rising, it became a very popular action within the last year.

But the drawbacks can be significant. Locking your mortgage rate is a double-edged sword.

Why? To start, locking your rate comes at a price–literally. They offer free rate locks for as long as 45 to 60 days, the amount of time it takes to process a mortgage. Additionally, locked mortgage rates are typically higher than the market rate by and eighth to a quarter percent.

Locking your mortgage ultimately depends on what you can afford. If you want help with the process of securing your mortgage, or advice on whether you actually should lock your house mortgage,  contact  Dean Rathbun when it comes time to finding the perfect plan of action to buy your home. We are happy to help you.

The Mortgage Checklist

Mortgage lenders require certain paperwork that verifies every single aspect of your life: income, debts, assets, and more. 

Being on the lender’s best side is a good idea. A substantial step in the right direction is by having everything you need before you apply for a mortgage. The lender will request the following documents, so gather them before you apply for a mortgage. Here is a mortgage checklist you should use before shopping for a mortgage.

Mortgage Checklist

  • W-2 – Lenders require the most recent W-2 wage and tax statements, but some will need two years of W-2s.
  • Profit and Loss Statements (or 1099, if you own a business) – Self-employed borrowers may have to submit a current-year profit and loss statement.
  • Payment Stubs – In order to verify that you make as much as you claim you make, loan guidelines say to have one month of verified income.
  • Tax Returns – Including all the pages and schedules will be expected. The returns will be scrutinized for unreimbursed employee business expenses, self-employment business losses, and signs of loan fraud.
  • List of Debt – On your list should be credit card debt, student loans, car loans, and child support payments.
  • List of Assets – Including bank statements, mutual fund statement(s), real estate, automobile title(s), brokerage statement(s), and records of any other investments or assets.
  • Cancelled Checks – If any checks have bounced, your mortgage company wants to know about it. They want to know if your rent payments are up to date. If you don’t have those checks from months or even years ago,  you can supply the mortgage company with the name of your ex-landlord.

Mortgages may seem like stressful contracts to obtain, but with the right preparation, they don’t have to be! Contact  Dean Rathbun when it comes time to finding the perfect plan of action to buy your home. We are happy to help you.

Questions You Should Ask Your Mortgage Lender

Are you ready to buy a home? Not so fast, cowboy. 

Do you think you’re ready to purchase a home? While the “perfect plan” is a myth, it definitely helps to have some guidelines to assist you along the way. Buying a home is likely the most expensive investment you will ever make in your life, and it is one that will be with you for decades, so being fully prepared is the best way to go about it. Here are some questions you should ask your mortgage lender before you apply for a mortgage.

  1. What is the interest rate on this mortgage?
    Ask to take a look at the lender’s loan estimate which breaks down the contract. It should include the annual percentage rate (APR) which includes: rates, points, fees, and other charges you’ll have to pay for the mortgage.
  2. How much are the closing costs? 
    Borrowers pay fees for the services that the lender and other parties provided to you. It is required for lenders to give you an estimate within three days of receiving a loan estimate.
  3. Will there be any origination/discount points for which I have to pay?
    Lenders have the option of charging origination points, discount points, or both. 1 point is equal to 1 percent of the total loan amount. DISCOUNT POINTS reduce the interest rate, and ORIGINATION POINTS are fees by the lender for originating the loan.
  4. Prepayment penalty
    Some lenders charge a penalty if you prepay your mortgage. If you want to pay off your mortgage faster and get rid of that incredible burden, you should know of any penalties that may come.

If you want help with acquiring the mortgage that’s right for you, contact  Dean Rathbun when it comes time to finding the perfect plan of action to buy your home. We are happy to help you.

Real Estate Market Trends for Fall 2016

What should you expect from the real estate market in the fall of 2016? 

Seasons change, and the real estate market is not immune to this shift. The fall of 2016 is here, but what can you expect to happen to the housing market during this change in seasons? Will the prices be affected by the presidential election? Will an up and coming generation finally make its mark in the real estate market? And for what should potential buyers be on the lookout. Here is what you should know about the real estate market trends for the fall of 2016.

In the fall, mortgage rates will rise. Mortgages have been low for the past decade and with a strengthening economy, prices are looking to be back on the rise.

Rent rates will climb gradually. Rent rates have increased since 2015, and it will remain steady through the fall of 2016 and into the future. This steadiness is because American households simply do not have the credit, savings, and stable income that’s required by modern-day lenders.

Millennials will take the wheel. The fall is known for the slowing down of home sales, but in 2016, Millennials will finally start making a difference in the real estate market as more of them buy their very first home. Recovering Gen Xers and Baby Boomers will also make an impact in the home buying field as well.

The fall is a time for change, and the real estate market will be changing along with it. Being prepared for this shift is the only way you’ll be able to take advantage of the opportunities that may be coming and acquire the house that’s right for you. 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 (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.

Negotiate Like a Pro: Winning a Stalemate

When you play the Game of Real Estate, you win, or you lose; you’re going to need some negotiation skills if you’re going to be the victor.

When it comes to negotiation, there are only two kinds of people: those that bend over and take the deal as is without any push back, and the ones that will fight tooth and nail for the best possible deal and only compromise when it benefits them. You might be the kind of person who never questions the price of an item and just sees it as normal without ever considering you could purchase it for a lot less. If this sounds like you, here are negotiation skills for doing more than just playing the game of real estate: they’re for winning the game of real estate.

Don’t be an emotional seller: This is business, it’s as simple as that. This means that you’re going to have to throw you emotions out of the window and only think rationally. Having your real estate agent find out the buyer’s desired purchase price will give you the greatest advantage during negotiations.

Be realistic: Being realistic is at the core of thinking rationally. Being stubborn clouds your judgement and may lead to you passing up what is in actuality a fantastic offer for what you are selling.

Embrace creativity: If you and your buyer have reached a stalemate, it might be time to ponder some out-of-the-box ideas. Throwing in some furniture or something else the buyer had their eye on may sway them to budge and accept your standing offer. Yes, you might lose a beautiful patio table, but it may be worth it to sell you house.

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 Compete With Cash Buyers

Don’t have stacks of cash lying around like The Wolf of Wall Street to spend on a new home? Don’t worry; you can still compete with these kinds of buyers.

“Money talks” is a phrase that rings true in almost every corner of the world, from sports to real estate. All-cash means that there will be no mortgage, and that means that you won’t have to rely on lenders for anything. The housing market is firing up again, and bidding wars are the new normal. Unfortunately, sellers tend to favor an all-cash offer than those that depend on a mortgage approval. But not everyone has hundreds of thousands of dollars in between their sofa cushions, so what is one to do? Worry not, for here are three ways in which you can compete with cash buyers in a seller’s market.

  1. Bid higher – The highest offer doesn’t always guarantee a sale, but it can’t hurt to hike your offer up a bit. In order to beat the competition and temptation of cash, you’re going to have to make your offer more attractive. Sometimes the extra $1,000 on top of the listing price can be the determining factor in the seller’s eyes.
  2. Know what the seller needs – What are the terms the seller is seeking? Does the seller need extra time in the property to find a new home? Looking for a quick close? Having a real estate agent who can handle this early on will only increase your chances.
  3. “As is” can be the magical words – What can be more attractive to a seller than a buyer taking the home “as is”? They won’t have to spend any money on repairs or even lower their price.

Not having cash doesn’t put you out the game, you just have to find a new way to play it. Contact  Dean Rathbun when it comes time to finding the perfect plan of action to buy your home. We are happy to help you.