Mortgage Archives — Page 62 of 165 — First Rate Financial Group

13

Oct

Mortgage

Finding The Best Mortgage Deal: What To Do

Finding The Best Mortgage Deal: What To Do You have worked hard for your money, and you probably want to save as much of it as you possibly can. That means you need to find the best possible mortgage deal you can. What are a few steps you should take if you want to get the best loan terms possible?

1. Get Plenty Of Estimates

You need to get a lot of estimates from different types of lenders. Examples include private mortgage companies, commercial banks, and credit unions. If you have a real estate agent, you may want to see if they can refer you to a loan officer. Many of these institutions have forms you can fill out online. Then, they will give you a custom rate estimate. When you compare rates across institutions, you must make sure you use the same loan terms. For example, you might want to get a 30-year fixed-rate estimate from all of these institutions.

2. Understand Closing Costs

When you get an estimate back from the lender, they will probably give you the total loan amount, the term (or length) of the loan, and the interest rate; however, you cannot overlook closing expenses. For example, some lenders will charge you a fee just for printing your loan documents. Pay attention to the closing costs and try to remove as many of them as possible.

3. Select A Lender

After reviewing the documents carefully, you should select a lender. Be sure to ask about the rate lock period, which guarantees your interest rate for a certain amount of time. You need to make sure your interest rate will not change before you get to the closing table. You should also ask about prepayment penalties, which refers to penalties you might have to pay for paying off your mortgage early. If you plan on making extra payments toward the principal, try to remove the prepayment penalty.

4. Finalize The Document

Once you are done with the negotiating process, go ahead and finalize the document. You cannot necessarily negotiate appraisal fees or government recording fees, but you can negotiate your closing expenses, interest rate, and points. Once you are done, work with your agent to get to the closing table and start the moving process.

06

Oct

By First Rate Financial Group

Mortgage

What Are Conditional Approvals?

What Are Conditional Approvals? As you take a look at potential houses for sale, what does it mean if you see a house with a conditional approval? Does that mean you can swoop in and purchase the house with a better offer? Even though a conditional approval doesn’t mean that the sale is guaranteed to go through, it does mean that an agreement is in place.

An Overview Of A Conditional Approval

A conditional approval is an informal acknowledgement that an agreement is in place between a buyer and the lender; however, the lender typically has to collect additional financial information to show that the house is a solid buy. If this process falls through, the house may go back on the market.

For example, the lender might require an appraisal before financing the house. If the appraisal comes in too low, then the buyer might have to bring additional cash to the table. Otherwise, the lender might refuse to finance the house, meaning that it will go back on the market. Or, the lender might require the buyer to submit additional financial information to show they can afford the home. If they cannot do so, the financing process might fall through.

Is A Conditional Approval The Same As A Pre-Approval?

Even though the terms are similar, they are not the same. A conditional approval is not the same as a pre-approval. The pre-approval process takes place very early in the mortgage application process. The pre-approval process is important because it gives the seller some confidence that the buyer can afford the house; however, a conditional approval process is more formal and takes place much further along in the application process.

What Is Required For A Lender’s Conditional Approval?

The conditional approval is only granted after the applicant has submitted an offer on a property. Some of the documents that the buyer might have to submit include financial statements, income statements, tax returns, explanations of negative credit report items, and evidence of any debt or liabilities.

Once all this information is collected, the lender will decide whether to grant the buyer conditional approval. This could help the buyer lock in his or her agreement before proceeding with the other steps in the mortgage application process.

05

Oct

By First Rate Financial Group

Mortgage

Using Your Equity To Buy Another House: What To Consider

Using Your Equity To Buy Another House: What To Consider Buying a home is a dream that many people want to make come true. At the same time, many people dream of buying a second home. Perhaps you are looking for a rental property. Maybe you are looking for a vacation home. Regardless, you might be wondering how you can come up with the necessary cash to finance this dream. You might even be thinking about tapping into the equity in your current home to make that happen. It could be your down payment for your second house, but what do you need to know?

How To Get A Home Equity Loan

If you want to take out a home equity loan for a second house, there are a few steps to follow. First, you need to figure out how much money you need. You need to take out enough money for the down payment and closing costs. Furthermore, you can only withdraw 85 percent of the equity in your home. If you don’t have enough equity in the home, you might not be allowed to take out a home equity loan.

Remember that you will also need to go through the traditional oan application process. Your outstanding debt will be reviewed, and your credit report will be checked. You will also need to verify your income or assets to qualify for a second mortgage. The process is similar to your first loan.

Why Take Out A Home Equity Loan?

There are a few reasons why this might be a smart move for financing a second home. You can probably get a lower interest rate, and you don’t have any restrictions on how you can use the money. With a larger lump sum, you might also be a more competitive buyer in a hot market.

Before you take out a home equity loan, you should work with a professional who can help you find the best loan option to meet your needs. That way, you can compare the benefits and drawbacks of each option before making a decision on what is best for your purchase.