Tag: United American Mortgage Corporation

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 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.

How to Keep Your Home Sale From Falling Apart

Learning from mistakes is the best way to avoid making decisions that will lead to said mistake—so it’s important to know what to look for when it comes to selling your home.

A home sale can be highly precarious, as uncertainty clouds your listing. One minute, your real estate agent may be sure an offer is right around the corner, the next: failure. The offer has been made to your neighbor’s house across the street instead. Beyond the financing issues or a buyer’s sudden change of heart, there seem to be about an infinite amount of reasons why a house sale falls through. Know the most common reasons why this happens, and learn how you can keep your home sale from falling apart.

What You Can Do to Avoid a Potential Sale Crumble

  1. Be willing to negotiate

We get it: you’ve lived in your home for many years and have made memories from within these walls. It can be difficult to part ways, even once you’ve made the decision to move on to the next home. Letting your emotions get in the way can negatively affect an otherwise solid offer, though.

  1. Keep the appraisal in mind

Unless you’re selling to a cash buyer, appraisals are non-negotiable during a home sale. Lenders need to know that what the buyers are willing to pay for your home is actually on par with what it’s worth. If the appraisal comes in low, it could make a home sale that seemed like a shoo-in rapidly crumble. You have to lower the price, or risk losing the sale.

Don’t take any chances when it comes to the sale of your home, and learn from the mistakes of others before you become the example of what not to do. Contact United American Mortgage Corporation when it comes time to finding the perfect plan of action to sell your home. We are happy to help you.

What You Should Never Overlook at an Open House

You don’t have to be a professional to know what you should look for in an open house—especially after reading this article.

When you’re in the hunt for a new house, weekends spent touring the town in which you want to live can turn from fun to a terrible daunting experience by house number three. Keeping track of which home had the great island kitchen versus the home with a terrible backyard but great flooring can be tough. While no home is perfect, some renovations are harder to squeeze into the budget than others. There are some issues that should give you pause because the cost of some renovations greatly outweighs the cost of others, and renovations are something all homeowners have to deal with at some point.

Questions to ask when attending an open house.

  1. Are there issues with the home’s foundation?

You wouldn’t stand on a ladder being supported by old moldy wood, right? Well, if you purchase a home with a poor foundation you are actually going a step further. If there are cracks in the foundation of the home you are likely going to be spending thousands to fix everything.

  1. How old is the roof?

Look beyond the superficial and consider the bones of your home. A bone you can’t ignore in your potential future home is the roof. (You know, that thing that keeps you safe from the elements.) The typical lifespan of a roof is 20 years, but the average cost to replace the thing runs deep into the five-figure range.

  1. What’s the sewer system life?

You don’t want biohazardous waste in your home; that’s simply unhygienic. When it comes to sewer and septic tanks, many people are left in the dark. If something goes wrong it’s up to the owner, not the city, to cover damages (normally through homeowners insurance).

Open houses are a great way to find the house that’s right, or completely wrong, for you. 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 find the home that’s right for 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.

What Can You Do to Avoid Losing Your Security Deposit?

With attention to detail and careful planning, you can ensure you’ll see your security deposit again.

You’ve known your landlord for months, perhaps years, so you’ve likely formed some type of relationship. Even if you have a good relationship with your landlord, they may do a complete 180 when it comes to your security deposit. Most tenants expect to see their security deposit back, especially when they’ve kept the place neat and tidy. Take the following steps to ensure that you receive your security deposit when you move out of your place (or, at the very least, get a detailed explanation of why it’s been withheld).

  1. Read your lease very carefully. Be sure to pay attention to the detail about when you’re moving out. Some leases have end dates, others don’t and automatically extend. If yours automatically extends, you’ll want to know how much notice you have to give, otherwise risk losing your security deposit because you broke your lease.
  2. Make an apartment rental inspection checklist. If your landlord doesn’t provide you with a move-in checklist you’re going to have to make your own. Make sure that every blemish and mark is noted in the checklist. Take pictures of your apartment before you unpack all your things. By being as detailed as possible, you’ll avoid future conflict with your landlord because he won’t be able to blame you for damage that was there before you moved out.
  3. Take Pictures. This is especially important the day you move out. Take photos of every room and email them to your landlord the very same day. That way, any damage that occurs post-moving out can’t be traced back to you. If you can’t email them, most smartphones record the date the photograph was taken.

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.

How a Side Gig Funded My Down Payment

How side income, based on true events, can help fund a real estate purchase.

There are many reasons to take up a paid hobby or side gig. Whether it’s taking extra work to build new skills or following a lifelong passion, when your side hustle starts to really pay off, that added income can be used to finance your home’s down payment. Some side gigs are so lucrative that they also allow people to save up for a massive down payment but also afford for renovations or even pay off their mortgage completely. Here are two real-life side gigs that helped two different people save enough for their down payment.

  1. Dream vacation to dream home

A Texas-based web designer named Tanner Callais wanted to help people create their dream vacations, so he built a website primarily for fun. What started as a cruise-only website that was making $300 a month, has boomed into a family of sites offering online booking and insider cruise travel tips. The income from his hobby earned him enough to put down 30 percent down on his home.

  1. Comedy Gold

Dan Nainan was terrified of public speaking, but he was a senior engineer with Intel and decided to take some stand-up class to relieve some of his phobia. It was here that he learned his true calling as a comedian. Through hard work and dedication, he climbed the ranks and has been asked to perform for President Obama, Steve Wozniak, and many other public figures. As impressive as Nainan’s career took off, it was this hobby that helped him pay off his New York apartment in cash!

Whether you’re trying to overcome a personal flaw, or just following your dreams on the side paying a large down payment on your home is important to not have the bank looming over your head for 30 years. Contact the mortgage experts atUnited American Mortgage Corporation for tips on how down payments will help you in the long run. We are happy to help you.

3 Rookie Real Estate Tax Mistakes

Don’t make these rookie mistakes when it comes to filing your taxes—be a pro!

Whether you just handed over the keys to your home for sale, or you just bought your new home, filing taxes as a homeowner can be rather difficult. While there are some basic deductions you may qualify for, there are plenty of others that aren’t very obvious, which means you’ll be missing out on possible tax breaks! If you want to maximize your tax benefit and avoid an IRS audit, you’ll want to steer clear of these 3 rookie tax mistakes.

  1. Being too antsy with the home office deductions

With so many people working from home, the home office tax deductions don’t raise as many red flags as they once used to. Still, you must follow the strict set of stipulations. For instance, the space can’t serve a dual purpose. It must be specifically used for your business. This space must also be the primary space in which your business operates.

  1. Not deducting private mortgage insurance

While your low down payment is forcing you to make up for it with monthly PMI, many homeowners can, at least, use their PMI expense as a write-off on taxes. You can qualify for a portion of the deduction if your loan was established in ’07 or later.

  1. Deducting the full escrow

If you’re paying your property taxes through an escrow account, you likely paid an amount that was either higher or lower than your actual rate was. The amount that you deduct has to match your bill, thus, deducting your full escrow amount is a rookie mistake you should avoid.

When it comes to avoiding real estate tax mistakes, contact United American Mortgage Corporation; we are happy to help you.