04
Feb
By First Rate Financial Group
Mortgage

What Homeowners Must Do When Behind On Mortgage Payments

What Homeowners Must Do When Behind On Mortgage PaymentsThere are lots of homeowners who fall on rough times from time to time. For example, some people may be in the midst of changing jobs. Other people might be going back to school. When this happens, it can be hard for homeowners to keep up with their mortgage payments. Even though they might be thinking about waiting for the bank to do something, this would be the ultimate mistake.

There are ways to handle late mortgage payments as long as homeowners reach out to the lender to discuss their options. What should homeowners do if they start falling behind on their mortgage payments?

Let The Lender Know Why They Are Falling Behind

If lenders do not hear anything from the homeowners, they are not going to know what is going on. Therefore, they may end up taking drastic action. The first thing that homeowners need to do is to let the lender know that they are falling behind on their mortgage payments. That way, the lender understands that the homeowner knows he or she is behind on the mortgage. Then, let the lender know why the mortgage payments will be coming in late. For example, there might be an unexpected medical expense that took the mortgage payment that month. Or, the homeowner might be looking for a new job. These are all understandable reasons why the mortgage payments might be late. 

Ask The Lender To Go Over The Options

Next, the homeowner also should discuss with the lender all of the options when it comes to late mortgage payments. There are lots of options available. If there is a one-time unexpected expense, the lender might simply break up that payment and spread it out over the upcoming payments without charging any extra interest. Or, the lender might be willing to simply add a few months to the mortgage in exchange for not charging a late fee. These are a few of the many options the lender has at his or her disposal.

Do Not Ignore Late Mortgage Payments

The only mistake that homeowners can make with late mortgage payments is not communicating with the lender. As long as the lender understands what is going on, homeowners should have options at their disposal.

 

03
Feb
By First Rate Financial Group
Home Mortgage Tips

Three Tips for How to Secure a Mortgage if You Are A Self-Employed Entrepreneur

Freelancing in 2015? Three Tips for How to Secure a Mortgage if You're a Self-employed EntrepreneurIf you are self-employed, either as a freelancer or as the owner of your own business, your income can fluctuate greatly from year to year. That can make it difficult to get approved for a mortgage, although there are some things you can do to improve your chances. Here are three tips for securing a mortgage if you are self-employed.

Make Sure Your Credit Score Is In Good Shape

While your ability to pay back a mortgage is the most important factor in approval, your credit score is a close second, and that goes for every borrower, not just those who are self-employed. If you have a credit score in the high range — something above 750 or 760 — it will help you get approved for a mortgage. To boost your score, make sure you pay all bills on time, pay down your debt levels and don’t make any new big purchases or apply for new credit soon before you apply for a mortgage.

Have a Large Down Payment

The more money a bank lends you to buy a house, the more risk it is taking in that the money won’t be paid back. If you are self-employed and considered a higher risk to begin with, one way you can alleviate some of that risk is to be able to put down a large amount of money. Putting down 20 percent is standard for a conventional loan, and you should be willing to contribute at least that much. Putting down at least 20 percent also will save you money in the long run, because you won’t have to pay for mortgage insurance and you will pay less in finance charges over the life of the loan.

Have Significant Assets

One way to put a lender at ease about your ability to pay for a mortgage is to have significant reserves in the form of assets. If you have large amounts of money in regular savings, brokerage and retirement accounts, it offers a reserve for you to tap should your income take a dive. Other forms of property, such as personal and business property that’s paid off and has value, also help.

02
Feb
By First Rate Financial Group
Mortgage

The Top Ways To Upgrade The Exterior Of Your Home On A Budget

The Top Ways To Upgrade The Exterior Of The Home On A BudgetThere are a lot of people who are spending more time at home these days. As the temperature starts to warm up once again, there are some homeowners who are looking for ways to upgrade the outside of their home. Even though there are some people who are looking at installing a brand new patio or deck, this can be extremely expensive. Fortunately, there are ways that homeowners can completely transform the exterior of their home without breaking the bank. Take a look at a few of the top ideas below.

Consider Adding An Outdoor Rug

First, homeowners should consider adding an outdoor runner or rug to the exterior of their home. Because this run is going to be outside, try to go with bright colors. Furthermore, there are also specific runners and rugs that have been designed specifically to stand up to the wear and tear of the outdoors. Consider adding a rug that leads from the patio door to the deck. Or, think about placing an area rug underneath the table outside. This can completely change the look of the patio.

Think About Installing A Swinging Chair

For those who are looking for a way to relax outside, consider installing a few swinging chairs. In some situations, homeowners might be able to attach a swinging chair directly to the awning outside. In other situations, it might be a smart idea to install a swinging chair that hangs from a tree in the yard. It is important to make sure the awning or the tree is able to support the chair before it is installed. Then, add a bright cushion to the chair and relax outside with a great book! 

Use Citronella Candles

Anyone who likes to spend evenings outside under the stars should consider using candles. Specifically, think not using citronella candles. Citronella candles will help keep the mosquitoes away in addition to adding a majestic fuel to the outdoors. Think about using them on top of poles that line the walkway. This is a great way to add a little bit of ambiance to an evening party.

Consider a few of these ideas to completely change the exterior of the home in a budget-friendly way.