Top 3 Dampeners to Home Mortgage Loan Approval

For most people, moving into their own home is one of the biggest decisions that they will ever make. Subsequently, another key factor that comes to mind is getting financing to buy that home. In this context, taking out a home mortgage loan can actualize their dream. As soon as potential home buyers choose a property, they start visualizing their life in a new home. After putting in their best efforts, when home buyers eventually own a property, the feeling is unmatched.

However, the most trying period for home buyers start when they decide to take a home mortgage loan. It is very important to think rationally right from the start. One should choose to work with a lender who is compassionate enough to understand the current financial condition of a borrower and make suitable suggestions. Also, the lender should be able to make the mortgage process as hassle-free for borrowers as possible.

These days, some lenders offer online services to make things simpler for borrowers. The online home mortgage loan process is automated; thus convenient for borrowers as they can check their loan status by accessing the internet. Loan applicants just need to register on the company’s website and create an account. They also need to authorize lenders to access their credit reports so that the relevant information can be collected.

Online mortgage processing helps borrowers keep track of their loan at every stage; be it the application filing, underwriting, approval or closing of the loan. It saves both time and cost for borrowers compared to a manual process.

When a professional mortgage company does all the paperwork by using advanced loan technology, it accelerates the loan approval process. Also, borrowers need to submit all the necessary documents, and disclose accurate information about their personal and financial history. For example, income disclosures should be backed with supporting documents as proof.

In addition to the above, borrowers should avoid committing the following mistakes:

Buying a new vehicle or getting a new credit card
During mortgage processing, avoid taking out any auto or credit loans. The reason being, a new purchase will reduce your savings and increase outstanding debt. This will in turn affect your credit score.

Making big purchases by using credit cards
Spending lavishly by using your credit card to buy new furniture or the latest home appliances or electronic gadgets may prove to be costly as your credit score will take a hit. If you already have outstanding debt, a big spending spree could make your debt-to-income ratio very high and reduce the chances of mortgage approval.

Job-hopping
Changing your job frequently could indicate an inconsistent income history. Similarly, staying with the same employer but changing to a commission-based or bonus-based income may not be considered positively. Home mortgage applicants should be careful about their expenditures to increase the chances of their loan approval. Keeping in mind the above factors can really be handy for borrowers.

When Your Dream Home is Just a few Steps Away!!

Are you looking to buy your first home? Or do you want to move in to a new one that is more spacious and in a better location? Then you are not alone. Millions of people in the U.S. are constantly searching to find a cozy corner called ‘Home’.

Getting financing for the dream purchase

When the housing market and the economy are struggling to get back on the growth path and stricter regulations have tied banks and other financial institutes from giving away easy loan, the going is tough for homebuyers.

Whether you wish to buy a new property or looking to refinance your mortgage at low interest rates, you need a trusted lender that can provide guidance and support in every step to qualify for a loan. Hiring a lender is considered as the best solution when cash reserves are low, and monthly incomes are moderate.

Getting a Loan that is flexible

You may not be sure to qualify for the conventional mortgage as criteria are stricter, and rejection rates are higher.

In such a scenario, an FHA home mortgage can provide you with the best solution! This loan program is run by the Federal Housing Administration (FHA), and it has specifically been designed for homebuyers who have difficulties in getting conventional financing. 

There are various factors that determine whether an applicant is eligible to receive a loan such as savings in a bank, credit score, and income to debt ratio. In normal circumstances, banks and lending institutes reject applications on the basis of these factors. However, the FHA is much flexible to provide loans to potential home buyers even when they don’t fulfill all the parameters.

How an FHA loan is just right for you

An FHA loan can be beneficial to all kinds of people such as first-time home buyers, families with low income, families of armed forces or homeowners who don’t want to spend a lot to refinance their existing mortgage through conventional loans.

FHA program offers the following benefits:

• This loan program allows down payment as low as   3.5%
•  People with low credit scores are eligible to get this loan. Also, there is no minimum credit score requirement.
• There are no specific income limits to get an FHA loan, which is commonly seen in other programs.
•  Home buyers need not pay any prepayment penalties for paying off their loan early.
•  Borrowers can use their gifts such as borrowed money from friends and families for making down payments or to pay closing costs.

Besides the benefits mentioned above, another key aspect of FHA loan is that, in case of defaulting payments, Federal Housing Administration covers borrowers by providing insurance on the loan.

Borrowers can do their homework to find the lending firm that fulfills their financial requirements. Some of these lenders even provide the facility of applying online for quick consulting and processing. So, potential home buyers can click their way to receiving a loan faster!

Why Prefer a VA Home Loan?

Have you served in the U.S. Army (or still are) and are looking into financing to move into your own home? Well, there is a good reason for you to be happy! You may benefit from the Veterans’ Affairs (VA) loan program. The program, since its launch in 1944, has helped more than 19 million veterans and their families enjoy living in their own homes. For about 70 years the program has been coming to the aid of veterans, even in the harshest of economic times. Let us talk exactly about what this loan program is!

The US Department of Veteran’s Affairs offers this loan option to military families, in order to help them enjoy home ownership through a home loan that involves no down payment and very less restrictions as compared to other mortgage loans. However, there are a few conditions for eligibility:

●     Applicants must be serving in the military currently, retired or a surviving spouse of either

●     No bankruptcy in the past two years from date of application

●     The credit reports should not reflect any loan default 12 months prior to the application date

US military veterans who meet the above criteria may be eligible for a VA loan. Get in touch with a VA home loan lender at the earliest! The next question that one may ask is, why go for this loan program? With home mortgages showing an upward trend, people either shy away from buying a house, or they keep looking for affordable solutions to owning a property. This program is definitely a silver lining for those eligible.  Whether you are seeking a loan for a new purchase, or hoping to refinance your existing mortgage, a VA home loan lender has a lot on the menu for you! Here’s why it is beneficial to be a part of this program:

●     Little or zero down- Applicants can do away with the hefty down payments that other loans require, helping them save almost 10-20% of the purchase cost. This is a big factor that attracts eligible borrowers as they can think about home ownership even if they do not have big savings.

●     No Private Mortgage Insurance (PMI) costs- This is another great feature of a VA loan. The borrowers do not have to bear the cost of PMI

●     Relaxed Refinancing options- As compared to regular borrowers, under this program, veterans pay much less to refinance their VA loan to a reduced rate.

●     Much lesser restrictions- The loans have gained a huge base of borrowers, as they involve much fewer restrictions.

The program is backed by a federal guarantee, and veterans who qualify for the program can get a loan to finance 100% of their property. To understand the program better and start the loan at the earliest, interested borrowers may go online and search for VA home loan lenders. By working with professional lenders, the whole process of understanding, applying for and closing a home mortgage loan can be simplified to a great extent.

The Mortgage Lenders that make Relocating to Texas Easy

Texas is the second largest and the second most populous state in the United States of America. It has become the most preferred state for Americans to move to. A slew of reasons are being cited by various economists for this preference among Americans, but the most important one is that buying a home is easier in the state. Even the housing market crash did not affect Texas much, which had and still has the most thriving housing market in the country. Only a dozen US states of rural background, such as Montana and South Dakota had a lower foreclosure rate than Texas.

In 2010, around 6 percent of Texas’s 3.1 million mortgage borrowers were facing foreclosure, according to Mortgage Bankers Association. Since then, better performance of Texas mortgage loans has been observed. According to Dr. Ali Ansari, a research economist at the Real Estate Center of A&M University in Texas, an abundant supply of land, less governmental regulations, and a better business attitude of Texans are significant factors. However, another major factor was strict lending rules in the state.

Mortgage lenders that make lending easy despite strict rules
Despite strict lending rules, people shifting base to Texas with their families find it quite easy. They are helped by some reputable mortgage lending firms. For mobile families looking to move to Texas, these lending firms ensure a smooth relocation. They have an expertise in offering the ideal mortgage loans based on the unique needs of individuals and families.

Whether it is your first move to a new city or a big move in your career that lands you in Texas, you can depend on some trusted mortgage lenders to get a suitable mortgage. These lending firms evaluate the standard of living and quality of life of their clients and ensure the same after their family moves to Texas. Their smart home loan process and streamlined operations ensure that you get the benefit of best interest rates and a low closing cost for home loans.

Technology used by online mortgage lenders
Some reputable online mortgage lenders use cutting-edge online techniques to ensure a great mortgage experience. Some features of their services include:

●     Dynamic tools such as online chat, automated mortgage approvals and signing of documents online
●     Powerful web-based tools that allow you to close your loans quickly and track its status 24/7

When looking for online mortgage lenders that can provide the services mentioned above, make sure they are committed to being your lender of choice.

VA Approved Lenders to Help Veterans become Homeowners

The Veterans Affairs (VA) loan is authorized by the U.S Department of Veterans’ Affairs. This loan program helps veterans who have served/presently serving the U.S. Military. It offers loans to purchase a new home through VA approved lenders. Even some of the surviving spouses of military personnel can qualify for such a loan.

Eligibility criteria for a VA loan

An applicant has to be a veteran who has a home loan entitlement. Conditions require a minimum number of active duty days for military personnel.

1.    Within a certain period of time after loan closure, the property has to be occupied by the owner.

2.     The applicant must have the reasonable credit to qualify for the loan process.

3.    The income of applying veterans and spouses should be adequate to cover all expense obligations.

Thus, the rules to qualify for the government backed loan process are quite straight forward.

A look at the benefits of VA home loans

1.    No down payment associated: Conventional loans usually require a down payment while those backed by the U.S. Department of Veteran Affairs finance up to 100% of the purchase price.

2.  No mortgage insurance: With traditional loans, when borrowers make a down payment of less than 20%, they have to bear the expenses of PMI; there’s no such insurance associated with VA loans.

3.   Guaranteed by the U.S. government: These loans come with a guarantee from the VA that a portion will be repaid to VA approved lenders if the applicants are unable to make monthly payments. This enables lenders to offer attractive terms to borrowers.

4.  Compare and make the best choice: These loans are offered by banks, credit unions, mortgage lenders and other institutions at different rates and fees. So, applicants can actually compare and make the best choice as per their budget.

5.  No prepayment penalty: These loans do not restrict you from selling your home or refinancing an existing loan into another, at any point of time.

6.   Wide variety of options: You can either opt for the loan process to buy a new home or to make repairs/improvements or to refinance an existing mortgage.

7. Easy to qualify: Compared to other loan processes, the ones backed by the Department of Veterans Affairs are more flexible and it is easier for applicants to qualify for the process.

8.  Lower closing costs: These loans limit the amount of closing costs charged by lenders.

9.  Funding fee flexibility: These loans associate a funding fee which is an upfront cost based on the loan amount, service type and other factors. Such fees can be financed with the loan itself, without any dues at the time of closing. These fees are usually not applicable for veterans receiving disability compensation or for eligible unmarried surviving spouses.

10. Assumable financing: These loans can be transferred to a future VA eligible home buyer.

Licensed VA approved lenders help veterans to understand the loan process matched with their requirements to let them avail the maximum benefits. They assist in obtaining a Certificate of Eligibility (COE) for the loan, calculate entitlements, select the right loan, apply for funding fee waivers (if applicable), explain fees and closing costs and other important decision making steps. Nowadays, such lenders are also available online to take care of the entire process. You can even check the present status of your application to stay updated about your VA home loans.