NSH Mortgage Reports

 

Eight Things You Should Avoid Doing Between Your Mortgage Application and Final Approval.

[dropcap type=”2″]G[/dropcap]etting a mortgage can be a lengthy process, particularly when you have a pre-approval built into it. Many people start the application process before they even begin looking for a home by getting a pre-approval. The purpose of this pre-approval process is that it shows a home seller that you are capable and qualified financially to get the home. However, it also involves a bit of paperwork and extends the mortgage process. Other delays in the inspection and negotiation periods can further lengthen the time from the initial mortgage approval and the final approval. As a result, you will likely have a significant wait between your application and final approval of the mortgage. During this time frame there are a number of things that can impact your mortgage application and lead to a higher interest rate or a rejection of the mortgage that was previously approved. Any pre-approval is dependent on other factors and it is possible to lose your pre-approved mortgage amount. This article will highlight: “Eight Things You Should Avoid Doing Between Your Mortgage Application and Final Approval”. 1. Default On Debt: There are a number of different factors that can significantly impact your credit rating. None of these factors have as negative an impact as an actual default on any debt that you have outstanding. Defaulting on any existing debt will cause your credit score to plummet. As such, it is important to avoid this at any length. Do not declare bankruptcy either. This will likely prevent you from being able to take out a mortgage of any kind. 2. Being Late on Any Debt Payments: Any late debt payments will show financial difficulties to a lender and may lead to them cancelling your mortgage approval. Be sure to remain current on all of your existing debt to make sure that you show a positive view to a potential lender in order to get a top mortgage interest rate. 3. Switching Jobs: Lenders like to see consistency with earnings. Switching jobs before a mortgage has been finalized may have a lender questioning the reliability of your income source, even it was a positive move financially. As such, if possible, defer the change in a job until after a mortgage has been approved. 4. Borrowing New Money: Any new debt will be viewed as negative on your credit history. New borrowings without a lengthy repayment history will cause…

Mortgage Products That Require Little Or Zero Down Payment

Trusting the economy again can be hard for buyers looking for home ownership. There is no better time than the present to save money on a mortgage. The future is not guaranteed, but the present interest rates are at an all time low. Interest rates translate into lower pay back amounts which result in monthly savings for homeowners. Unfortunately, many buyers are hesitant to purchase because of large down payments which were once required. Things have changed; low down payments and zero down payment is available to new purchasers. This is a tremendous help to families – saving out of pocket expenses. 20 % Down Payment: No longer a requirement Most professionals in the real estate market have seen growth since the end of 2011. The market has not fully recovered; however, growth has begun at a sound rate. The financial crisis as it pertains to the housing market is no longer on a downward spin. This is wonderful news for new home buyers. Another benefit to buyers is the value of home buying. Buying a home is now more affordable than in recent years. Buyers want to take advantage of the savings, but with thoughts of large down payments how can they? Twenty percent down is a lot of money for the median home value and most people do not have this much money saved in their bank accounts. There are three mortgage types that work well for these buyers – FHA, VA lending, and USDA mortgages. FHA Mortgages: Lower Down Payment An FHA is a loan type that is insured by the Federal Housing Administration. The FHA provides guidelines for lenders including required credit scores and down payments. Their guidelines are not as strict as traditional (conventional) lending (which requires higher credit scores and larger down payments). In fact, an FHA insured loan may allow borrowers with low credit scores with detailed explanation. An FHA loan requires a borrower to put down 3.5%. 500 is the minimum credit score. The mortgage insurance for the year must be paid at closing. Through FHA there is a realistic hope of taking advantage of the affordable housing opportunities that are currently available. VA Lending: Eliminates Down Payment Thanks to VA loans men and women who serve in the military are able to obtain loans without a down payment. As with FHA loans the Veterans Administration is the insurer of the loans….

HARP 3.0 Mortgage Loan Refinance: Even Better Than HARP 2.0

HARP 3.0 Mortgage Bill Has Been Introduced in Congress In 2012, Senators Barbara Boxer and Robert Menendez unsuccessfully attempted to push through the Homeowners Refinancing Act of 2012, also known as HARP 2.0. The purpose of the bill was to assist home owners in the United States who were suffering under the weight of an underwater mortgage. Part of the benefit to home owners of the bill would be getting lower mortgage rates. Redrafted as the Responsible Homeowner Refinancing Act of 2013, also known as HARP 3.0, the proposal from the senators now looks to remove closing costs from the mortgage loan process and make it easier for a home owner to change the financial entity with which they have a mortgage. One of the fees slated to be eliminated is the closing costs associated with the signing of a mortgage. What Is HARP? Originally created in 2009, the Home Affordable Refinance Program (HARP) offered homeowners the chance to refinance with lower mortgage rates if their Fannie Mae or Freddie Mac mortgage had lost value since the peak of the housing boom. The program negated the need to obtain new private mortgage insurance coverage, so a significant cost of refinancing a home was eliminated. Click Here To Get HARP Mortgage Rates The way in which the Home Affordable Refinance Program HARP originally worked is that a home owner who originally put down at least 20 percent of their home’s value down would be eligible to refinance without private mortgage insurance coverage fees coming into play. HARP 2.0 vs. HARP 3.0 Expansion of the program in 2011 to the HARP 2.0 program offered additional benefits to home owners, which made it easier for home owners who were suffering from a significant drop in the value of their home to qualify for the HARP program. The “loan to value” cap of 125% from the original Home Affordable Refinance Program was completely eliminated, which meant people in markets devastated by the recession like Florida and Nevada could qualify for refinancing. In addition, the expanded program also introduced protections for homeowners who had an underwater mortgage by placing caps on the potential loan fees. For homeowners suffering from a significantly underwater mortgage, or owners who wanted to refinance to a 15-year fixed rate loan, the program drastically reduced the costs of the application. Click Here To Get HARP Mortgage Rates The first version of the…