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Mortgage and Real Estate Information For Debtors

Posted by jfortunes on May 8, 2014


If you owe money and have a below average credit score you may find it difficult to get a mortgage loan. In view of these facts, you may find interest in asking a qualified real estate agent help you find a home. These agents have a database full of houses that stream from land contracts, bad credit approval, and so on. The real estate agent may help you find a home you can buy despite how bad your credit maybe.

If you have outstanding debt, the lender will inquire about your credit history and debts incurred. The lender will ask if you have any outstanding loans, and if so, what amount do you pay monthly. In other words, if you have car loans, you will need to supply the balance owed and the amount paid monthly toward the loan.

Lenders will ask about credit card debts. If you reply yes, then the lender will ask how much do you pay monthly. Overall, the lender will ask how much monthly do you spend on incurred debts that come from your pretax salary on credit card repayments etc.

You will need to answer questions pertaining to assets, which includes cash on hand. The underwriters will investigate information relating to the questions. For example, they will examine and ask, “What is the estimated amount in your banking account?” How much funds will be available in your account after you have paid closing fees, down payment costs, and other fees applicable to mortgage loans. Do you have a saving account?

The lender will ask how much cash do you intend to apply to the loan. The lender may ask also if the down payment is money coming from your pockets. If the answer is no then the lender will ask where the money is coming from…

Loan Purpose

The loan purpose is of interest to the lender. Accordingly, you will respond to questions relating to the purpose of the loan, which includes, are you refinancing a current home, or are you an innovative buyer?

Refinancing Mortgage

If you respond to the question pertaining to the loan, letting the lender know that you intend to refinance a current home with the money lent; the lender will ask, “Do you require cash at closing to repay debts? Of course, the question that follows will be, “How much” cash will you need to pay the debts in full?

Property Purpose

The lender will require information pertaining of the home’s purpose. Do you intend to use the home for work or dwelling? Is the loan intended to invest in the property?

Type of Property

The mortgage lender will also need to know if the home is duplex, condominium, or single-family housing.

For more information, do not hesitate to contact us or call James directly at 562-746-7263

Three Types of Home Mortgages

Posted by jfortunes on December 31, 2013


Three Types of Home Mortgages

When you go to a lender which is usually the bank (there are intermediary companies called lenders, but they don’t give the money for the loan they are in between you and the bank) for a home loan there are a few that may fit your situation. It is the lenders job to find the loan (in this case the mortgage) that best suits your situation.

The three loans that are primarily available for loans for mortgages are:

1. A Conventional Loan
2. A FHA Loan
3. VA Loan

A Conventional Loan is a regular mortgage loan. This is a go to the bank and take out a loan mortgage. FHA Loans are government loans that make it easier for people to buy a home. The thing about FHA loans is the government guarantees part of the loan. If a person has problems making their mortgage payments then the government will pay it back for you. This is providing you are in default (the bank is in the process of taking your home because you can’t meet the mortgage payments). Since FHA loans are guaranteed they are easier to pay back. Keep in mind that the government will only step in and pay after your house is repossessed. Not all home sellers will agree to take this type of loan. This is because they feel there is too much red tape involved. If you qualify for a FHA loan the house cannot be a fixer upper. An FHA home has to pass the home inspection with flying colors. However there are several FHA programs for those who qualify.

VA loans are for Veterans; those who have served in the armed forces of the United States. The good thing about VA home loans is that you may have the down payment waved. With a VA loan the government guarantees the loan like an FHA loan to make the lender feel comfortable with lending the person asking the money. A VA loan can be combined with a second mortgage. In that case the bank makes the primary loan for the price of the home and the seller makes a separate loan for the buyer so they can cover the rest of the costs involved. The best thing about a VA loan is that it can be qualified so that if a future buyer is interested in your home your hands are not tied if you have to sell it. You can also sell the home to anyone you choose. They do not have to be a veteran.

For more information, do not hesitate to contact us or call James directly at 562-746-7263

 

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