Home Improvements Turn Average Homes into Dreams Come True
Joseph Valenzuela
http://www.myloanofficersite.com/josephvalenzuela
If you’re thinking about taking out a home improvement loan, there are several options to consider. First and foremost, your mortgage consultant needs to know why you want a home improvement loan. Here are some factors to take into consideration.
•How long have you been in the home?
•Will the improvements increase the property value?
•Are you making improvements to increase energy efficiency?
•Will improvements be made in one fell swoop, or in stages?
•What is the current outstanding balance on your mortgage?
•What is the appraised value of the home?
•How much will the improvements cost?
•What improvements will be tax deductible?
•Do you have other revolving debt that you would like to pay off at the same time?
•Are you making improvements because you plan to sell the property?
The New Tract Home Blues
Buyers of newly-built homes are often tapped out after making the initial down payment and closing costs, including upgrades to amenities and the inevitable need for new furniture. Shortly thereafter, they realize they’d like to make additional improvements to really have the home of their dreams.
If you’re planning on putting down roots (pardon the pun), landscaping may be in order. The developer may have been kind enough to make the front yard a perky green, but if the back yard is a disturbing brown color sparse with weeds, you may be entertaining the vision of a pool or deck.
Look into the option of a Home Improvement Loan with a fixed interest rate as a 2nd Trust Deed. This type of loan does not require you to have equity built up in the existing mortgage. The maximum loan amount could go as high as 125% of the current appraised value of the home, and you can make the improvements yourself or go the extra mile and hire a contractor if the job requires architectural design, permits and inspections.
The Major Overhaul
If you have built up equity in your home and are geared up for some major renovation, the Home Equity Line of Credit (HELOC) is probably your best bet. This adjustable loan allows you to use your equity as a line of credit, so if you have improvements that are phased in over time you can simply write a check when you need to pay a bill.
It’s like a having a credit card with a much lower financing rate. In fact, the HELOC can be used for any reason at all – even paying off that credit card debt. In most cases, this action turns that revolving debt payment into a tax deductible payment with a lower interest rate. The HELOC is generally a 2nd Trust Deed, unless it is used to pay off and replace the 1st Trust Deed.
A construction loan is an alternative to the HELOC for borrowers who don’t want to use or don’t have equity, and this type of financing can be used for construction on an existing dwelling. The lender will ask a lot more questions about what the borrower wants to do with the money, and the home owner will need architectural designs, permits and a licensed general contractor on board.
Construction loans are short-term loans that usually require interest-only payments until completion of construction, but the balance is due when construction is done. Most often, that is managed up front by setting up construction-to-perm financing. In this scenario, the loan is automatically rolled over into permanent financing at a fixed rate when construction is complete, and a rate-lock agreement can be purchased to carry the borrower through that period of construction.
Another option – depending on the value of your home and local loan amount limitations – is the FHA 203(k) Program. This financing is designed for the purchase or refinance and rehabilitation of properties that meet FHA guidelines. This is worth looking into if you need to bring a property up to compliance standards, finance eligible energy efficient improvements, or turn a single-family owner occupied dwelling into a duplex to accommodate Mom or Dad!
Just a Facelift, Please!
If you want to sell your home and you simply want to improve the curb appeal, it makes sense to go with a HELOC. Make sure you are aware of the current market value of homes in your area to make sure you’re not going over the limit on the fair market value of your home. You’ll want to get a return on your investment!
If you’ve had your home on the market too long and have not been able to sell, you might want to make some changes to give it a fresh new look and bring back the passion you once had for your home. Your mortgage consultant will help you weigh out your options for financing based on your outstanding mortgage balance, income and credit score.
Regardless of your reason for home improvement, make sure you share your goals with your mortgage consultant. He or she can walk you through the various loan options and confer with your tax advisor to make sure you’re getting the best deal possible.
About the Author: As a Mortgage Professional, I promise to be your partner in the mortgage process.
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Tuesday, May 22, 2007
Monday, May 21, 2007
Top Ten Credit Do's and Don'ts During The Loan Process
Top Ten Credit Do's and Don'ts During The Loan Process
Copyright © Joseph Valenzuela
http://www.myloanofficersite.com/josephvalenzuela
Keep in mind the actual lender will pull their own credit report at closing, and if your credit scores have dropped, you may no longer qualify for the rate that was underwritten and the final approval may come back with a higher rate. Unfortunately, all lenders qualify you by your credit score as to which criteria you fit and every loan has different criteria attached. The loan to value, the debt to ratio and so on etc. This is what borrowers do not understand, and they think the loan officer is baiting and switching. They are not. If an issue comes up that the lender decides you do not qualify for a certain loan, the only thing a loan officer can do is shop for lenders and see if any are willing to give the rate and program they thought you qualified for. If you have good credit and know your score, the loan officer can give you an idea what he or she can offer based on what you say. But do not expect them to stand by their quote if and when they pull your credit your scores have dropped.
Following are some helpful tips to avoid the credit mistakes that many borrowers make during the loan process:
1.DON’T APPLY FOR NEW CREDIT OF ANY KIND. Including those “You have been pre-approved” credit card invitations that you receive in the mail. Every time that you have your credit pulled by a potential creditor or lender, you lose points from your credit score immediately. Depending on the elements in your current credit report, you could lose anywhere from 2-50 points for one hard inquiry.
2.DON’T PAY OFF COLLECTIONS OR CHARGE OFFS during the loan process. Paying collections will decrease the credit score immediately due to the date of last activity becoming recent. If you want to pay off old accounts, do it through escrow, and make sure that 1) you validate that the debt is yours, and 2) that the creditor agrees to give you a letter of deletion.
3.DON’T CLOSE CREDIT CARD ACCOUNTS. If you close a credit card account it will appear to the FICO that your debt ratio has gone up. Also, closing a card will affect other factors in the score such as length of credit history. If you have to close a credit card account, do it after closing, and make sure it is a more recent account.
4.DON’T MAX OUT OR OVER CHARGE ON YOUR CREDIT CARD ACCOUNTS. This is the fastest way to bring your score down 50-100 points immediately. Try to keep your credit card balances below 30% of their available limit at all times during the loan process. If you decide to pay down balances, do it across the board. Meaning, make an extra payment on all of your cards at the same time.
5.DON’T CONSOLIDATE YOUR DEBT ONTO 1 OR 2 CREDIT CARDS. It seems like it would be the smart thing to do, however, when you consolidate all of your debt onto one card, it appears that you are maxed out on that card, and the system will penalize you as mentioned above in 4. If you want to save money on credit card interest rates, wait until after closing.
6.DON’T DO ANYTHING THAT WILL CAUSE A RED FLAG TO BE RAISED BY THE SCORING SYSTEM. This would include adding new accounts, co-signing on a loan, changing your name or address with the bureaus. The less activity on your reports during the loan process, the better.
7.DO JOIN A CREDIT WATCH PROGRAM. If you join a credit watch program, you can check your reports weekly, or even daily depending on the program you select. (When you pull your own reports, you don’t get dinged for a hard inquiry.) This way, if something does show up on your reports that has caused your score to go down, you’ll know it immediately, and you may be able to take care of the problem before closing.
8.DO STAY CURRENT ON EXISTINGING ACCOUNTS. Like your mortgage and car payments. One 30-day late can cost you anywhere from 30-75.
9.DO CONTINUE TO USE YOUR CREDIT AS NORMAL. Red Flags are raised easily with the scoring system. If it appears that you are changing your pattern, it will raise a red flag, and your score could go down.
10.DO CALL YOUR BROKER if you receive something in the mail from a creditor or collection agency that you
believe may affect your score during the loan process. Your broker may be able to supply you with the
resources you need to stop any derogatory reporting to the bureaus.
About the Author: As a Mortgage Professional, I promise to be your partner in the mortgage process.
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http://www.myloanofficersite.com/josephvalenzuela
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Copyright © Joseph Valenzuela
http://www.myloanofficersite.com/josephvalenzuela
Keep in mind the actual lender will pull their own credit report at closing, and if your credit scores have dropped, you may no longer qualify for the rate that was underwritten and the final approval may come back with a higher rate. Unfortunately, all lenders qualify you by your credit score as to which criteria you fit and every loan has different criteria attached. The loan to value, the debt to ratio and so on etc. This is what borrowers do not understand, and they think the loan officer is baiting and switching. They are not. If an issue comes up that the lender decides you do not qualify for a certain loan, the only thing a loan officer can do is shop for lenders and see if any are willing to give the rate and program they thought you qualified for. If you have good credit and know your score, the loan officer can give you an idea what he or she can offer based on what you say. But do not expect them to stand by their quote if and when they pull your credit your scores have dropped.
Following are some helpful tips to avoid the credit mistakes that many borrowers make during the loan process:
1.DON’T APPLY FOR NEW CREDIT OF ANY KIND. Including those “You have been pre-approved” credit card invitations that you receive in the mail. Every time that you have your credit pulled by a potential creditor or lender, you lose points from your credit score immediately. Depending on the elements in your current credit report, you could lose anywhere from 2-50 points for one hard inquiry.
2.DON’T PAY OFF COLLECTIONS OR CHARGE OFFS during the loan process. Paying collections will decrease the credit score immediately due to the date of last activity becoming recent. If you want to pay off old accounts, do it through escrow, and make sure that 1) you validate that the debt is yours, and 2) that the creditor agrees to give you a letter of deletion.
3.DON’T CLOSE CREDIT CARD ACCOUNTS. If you close a credit card account it will appear to the FICO that your debt ratio has gone up. Also, closing a card will affect other factors in the score such as length of credit history. If you have to close a credit card account, do it after closing, and make sure it is a more recent account.
4.DON’T MAX OUT OR OVER CHARGE ON YOUR CREDIT CARD ACCOUNTS. This is the fastest way to bring your score down 50-100 points immediately. Try to keep your credit card balances below 30% of their available limit at all times during the loan process. If you decide to pay down balances, do it across the board. Meaning, make an extra payment on all of your cards at the same time.
5.DON’T CONSOLIDATE YOUR DEBT ONTO 1 OR 2 CREDIT CARDS. It seems like it would be the smart thing to do, however, when you consolidate all of your debt onto one card, it appears that you are maxed out on that card, and the system will penalize you as mentioned above in 4. If you want to save money on credit card interest rates, wait until after closing.
6.DON’T DO ANYTHING THAT WILL CAUSE A RED FLAG TO BE RAISED BY THE SCORING SYSTEM. This would include adding new accounts, co-signing on a loan, changing your name or address with the bureaus. The less activity on your reports during the loan process, the better.
7.DO JOIN A CREDIT WATCH PROGRAM. If you join a credit watch program, you can check your reports weekly, or even daily depending on the program you select. (When you pull your own reports, you don’t get dinged for a hard inquiry.) This way, if something does show up on your reports that has caused your score to go down, you’ll know it immediately, and you may be able to take care of the problem before closing.
8.DO STAY CURRENT ON EXISTINGING ACCOUNTS. Like your mortgage and car payments. One 30-day late can cost you anywhere from 30-75.
9.DO CONTINUE TO USE YOUR CREDIT AS NORMAL. Red Flags are raised easily with the scoring system. If it appears that you are changing your pattern, it will raise a red flag, and your score could go down.
10.DO CALL YOUR BROKER if you receive something in the mail from a creditor or collection agency that you
believe may affect your score during the loan process. Your broker may be able to supply you with the
resources you need to stop any derogatory reporting to the bureaus.
About the Author: As a Mortgage Professional, I promise to be your partner in the mortgage process.
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http://www.myloanofficersite.com/josephvalenzuela
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Refinance Checklist
Quick Tips for Getting Started on Your Refinance
Copyright © Joseph Valenzuela
http://www.myloanofficersite.com/josephvalenzuela
When you refinance your existing mortgage, you are essentially paying off the existing mortgage debt and replacing it with a new loan. Many of the same costs are involved in refinancing a loan as are in first-time financing.
To start with, the lender will need personal information to verify employment for you and your co-borrower (if there is one). They will also need information regarding all of your debts and assets, including your existing mortgage.
In order to expedite the paperwork process, gather the following items together to take with you:
• W2's from the last two years (for borrower and co-borrower, if you filed separately).
• If you are self-employed, bring signed copies of your last two year's tax returns, as well as any schedules that were filed, and a profit/loss statement or balance sheet for the current year.
• Homeowner's insurance company name and number.
• The original lender’s contact information.
• Most recent bank statements.
• Most recent statements from 401ks, IRAs, mutual funds and securities accounts.
• A copy of the current payment coupon for your existing loan, along with the outstanding mortgage balance.
What costs are involved?
Some of the fees and closing costs involved in a refinance have the option of being waived.
Here is a brief rundown on fees you could expect with a refinance loan:
• Application Fee – A fee charged by the lender to process the loan application.
• Appraisal Fee – This determines the current value of your home.
• Credit Report – The fee the lender charges to pull your credit report.
• Title Search and Title Insurance – You may be able to get your current title company to reissue a new policy and save money in this area.
• Survey – The lender may order a property survey to document the current status of the land your property is on.
• Loan Origination Fee – A fee the borrower pays the lender to underwrite the loan. Usually expressed in the form of points.
• Discount Points – One point is equal to one percent of the loan amount. You may want to pay discount points to secure a lower interest rate.
• Miscellaneous Fees – VA and FHA loans may have fees associated with them. Private mortgage Insurance (PMI), document preparation fees, notary fees and tax service fees may also fall under this category.
• Prepayment Penalty – If your existing loan carries a prepayment penalty clause, you will have to pay a percentage of the outstanding loan amount for paying the loan off early.
Just as with your original loan, your lender is required to provide you with a Truth-in-Lending Statement outlining the fees associated with your new loan.
About the Author: As a Mortgage Professional, I promise to be your partner in the mortgage process.
-----------------------------------------------------------------
http://www.myloanofficersite.com/josephvalenzuela
-----------------------------------------------------------------
Copyright © Joseph Valenzuela
http://www.myloanofficersite.com/josephvalenzuela
When you refinance your existing mortgage, you are essentially paying off the existing mortgage debt and replacing it with a new loan. Many of the same costs are involved in refinancing a loan as are in first-time financing.
To start with, the lender will need personal information to verify employment for you and your co-borrower (if there is one). They will also need information regarding all of your debts and assets, including your existing mortgage.
In order to expedite the paperwork process, gather the following items together to take with you:
• W2's from the last two years (for borrower and co-borrower, if you filed separately).
• If you are self-employed, bring signed copies of your last two year's tax returns, as well as any schedules that were filed, and a profit/loss statement or balance sheet for the current year.
• Homeowner's insurance company name and number.
• The original lender’s contact information.
• Most recent bank statements.
• Most recent statements from 401ks, IRAs, mutual funds and securities accounts.
• A copy of the current payment coupon for your existing loan, along with the outstanding mortgage balance.
What costs are involved?
Some of the fees and closing costs involved in a refinance have the option of being waived.
Here is a brief rundown on fees you could expect with a refinance loan:
• Application Fee – A fee charged by the lender to process the loan application.
• Appraisal Fee – This determines the current value of your home.
• Credit Report – The fee the lender charges to pull your credit report.
• Title Search and Title Insurance – You may be able to get your current title company to reissue a new policy and save money in this area.
• Survey – The lender may order a property survey to document the current status of the land your property is on.
• Loan Origination Fee – A fee the borrower pays the lender to underwrite the loan. Usually expressed in the form of points.
• Discount Points – One point is equal to one percent of the loan amount. You may want to pay discount points to secure a lower interest rate.
• Miscellaneous Fees – VA and FHA loans may have fees associated with them. Private mortgage Insurance (PMI), document preparation fees, notary fees and tax service fees may also fall under this category.
• Prepayment Penalty – If your existing loan carries a prepayment penalty clause, you will have to pay a percentage of the outstanding loan amount for paying the loan off early.
Just as with your original loan, your lender is required to provide you with a Truth-in-Lending Statement outlining the fees associated with your new loan.
About the Author: As a Mortgage Professional, I promise to be your partner in the mortgage process.
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http://www.myloanofficersite.com/josephvalenzuela
-----------------------------------------------------------------
Knowing Appraisal Guidelines
Understanding the Home Appraisal Process
Copyright © Joseph Valenzuela
http://www.myloanofficersite.com/josephvalenzuela
Consumers are often baffled by the home appraisal process. They feel their nest is worth a certain dollar amount, and therefore, the appraised value doesn't make sense to them. It is important to know that appraisal guidelines are dictated by the lenders. In many states, the lenders must disclose the purpose of the appraisal, as each situation operates by its own set of rules.
In essence, lender guidelines force appraisers to put a fair market value on a home based upon comparable sales in the area where the home is located, as the home must be bracketed according to size and value. For example, there is no set amount associated with a great view, pool, spa, bathroom upgrades, etc. If a homeowner installs a custom pool that cost them $30,000, and the local marketplace supports the value of a pool at $15,000, that item will be bracketed as [$15,000] on the appraisal.
Upgrades can usually be expressed at full value in newer homes since they required investing additional money into the cost of building the home. On the other hand, the amount spent upgrading or remodeling an older home is rarely reflected in full in the final appraisal. The reason is the home had value in its original condition, but again, the value of the upgrades must be supported by comparable examples within the same marketplace.
These comparisons must be drawn from current market activity within the last six months. Some lenders may want to look at both closed and pending sales to see if there is any room for negotiation. This is a safeguard to prevent appraisers from over-valuing the home in question. It is further stated in the guidelines that appraisers can only place a value on homes that have closed escrow. However, when property values rapidly increase within a marketplace, appraisers are generally permitted to make concessions and put more weight on the evidence provided by comparisons to pending sales and listings. This allows for a "real time" appraisal.
Although there is no formal standard to speak of, most lenders give the appraiser a 5% margin of error. If the file is reviewed and the appraiser is off by 8%, there is a good chance the value will be cut by the full 8%. It is in the best interest of both the appraiser and the homeowner not to push the value up higher than the market will support, otherwise the property evaluation may be exposed to a strict appraisal review.
As a loan executive, I make it a point to follow lender guidelines at all times, and work within the systems they provide. This promotes a good relationship with the lender, and smooth closure for my borrowers. As always, you are welcome to contact me if you have any questions.
About the Author: As a Mortgage Professional, I promise to be your partner in the mortgage process.
-----------------------------------------------------------------
http://www.myloanofficersite.com/josephvalenzuela
-----------------------------------------------------------------
Copyright © Joseph Valenzuela
http://www.myloanofficersite.com/josephvalenzuela
Consumers are often baffled by the home appraisal process. They feel their nest is worth a certain dollar amount, and therefore, the appraised value doesn't make sense to them. It is important to know that appraisal guidelines are dictated by the lenders. In many states, the lenders must disclose the purpose of the appraisal, as each situation operates by its own set of rules.
In essence, lender guidelines force appraisers to put a fair market value on a home based upon comparable sales in the area where the home is located, as the home must be bracketed according to size and value. For example, there is no set amount associated with a great view, pool, spa, bathroom upgrades, etc. If a homeowner installs a custom pool that cost them $30,000, and the local marketplace supports the value of a pool at $15,000, that item will be bracketed as [$15,000] on the appraisal.
Upgrades can usually be expressed at full value in newer homes since they required investing additional money into the cost of building the home. On the other hand, the amount spent upgrading or remodeling an older home is rarely reflected in full in the final appraisal. The reason is the home had value in its original condition, but again, the value of the upgrades must be supported by comparable examples within the same marketplace.
These comparisons must be drawn from current market activity within the last six months. Some lenders may want to look at both closed and pending sales to see if there is any room for negotiation. This is a safeguard to prevent appraisers from over-valuing the home in question. It is further stated in the guidelines that appraisers can only place a value on homes that have closed escrow. However, when property values rapidly increase within a marketplace, appraisers are generally permitted to make concessions and put more weight on the evidence provided by comparisons to pending sales and listings. This allows for a "real time" appraisal.
Although there is no formal standard to speak of, most lenders give the appraiser a 5% margin of error. If the file is reviewed and the appraiser is off by 8%, there is a good chance the value will be cut by the full 8%. It is in the best interest of both the appraiser and the homeowner not to push the value up higher than the market will support, otherwise the property evaluation may be exposed to a strict appraisal review.
As a loan executive, I make it a point to follow lender guidelines at all times, and work within the systems they provide. This promotes a good relationship with the lender, and smooth closure for my borrowers. As always, you are welcome to contact me if you have any questions.
About the Author: As a Mortgage Professional, I promise to be your partner in the mortgage process.
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http://www.myloanofficersite.com/josephvalenzuela
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Home Comparison Worksheet
Compare And Evaluate To Find The Right Home
Copyright © Joseph Valenzuela
http://www.myloanofficersite.com/josephvalenzuela
Do you remember which house had the… ???
Copy this flyer, and as you are hunting for a new home, you can evaluate everything on paper before you make a decision.
Address: ________
Price: _______
Monthly Payments (PITI): _____
Square footage: ______Type of construction: ______
Architectural style: _____________
Number of bedrooms: _____ Number of bathrooms: ____
Kitchen size: _______ Dining room size: ____
Living room size: ______ Family room size: _______
Fireplace: ____ Deck/Patio: ____
Basement/Attic: _____
Closet space: _____
Garage: _____
Décor (carpet, wallpaper, paint, tile): ______
Utilities: ______
Appliances: _______
Neighborhood: _____
School District: _________
Distance to workplace: _______
Extra notes: __________________
About the Author: As a Mortgage Professional, I promise to be your partner in the mortgage process.
-----------------------------------------------------------------
http://www.myloanofficersite.com/josephvalenzuela
-----------------------------------------------------------------
Copyright © Joseph Valenzuela
http://www.myloanofficersite.com/josephvalenzuela
Do you remember which house had the… ???
Copy this flyer, and as you are hunting for a new home, you can evaluate everything on paper before you make a decision.
Address: ________
Price: _______
Monthly Payments (PITI): _____
Square footage: ______Type of construction: ______
Architectural style: _____________
Number of bedrooms: _____ Number of bathrooms: ____
Kitchen size: _______ Dining room size: ____
Living room size: ______ Family room size: _______
Fireplace: ____ Deck/Patio: ____
Basement/Attic: _____
Closet space: _____
Garage: _____
Décor (carpet, wallpaper, paint, tile): ______
Utilities: ______
Appliances: _______
Neighborhood: _____
School District: _________
Distance to workplace: _______
Extra notes: __________________
About the Author: As a Mortgage Professional, I promise to be your partner in the mortgage process.
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http://www.myloanofficersite.com/josephvalenzuela
-----------------------------------------------------------------
Five Reasons To Refinance Your Mortgage
Five Reasons to Refinance Your Mortgage
Copyright © Joseph Valenzuela
http://www.myloanofficersite.com/josephvalenzuela
There is an old adage that says if you can improve your interest rate by at least two percentage points, then it is a good time to refinance. While that may work as a general rule of thumb, the truth is there are other reasons to refinance:
1. Lower your interest rate
Securing a lower interest rate is one of the top reasons for refinancing. This can make a big difference in your monthly out-of-pocket costs for housing and save money on financing fees.
2. Build equity faster
If you are in a position to make higher monthly payments due to an increase in salary or other good fortune, you may want to switch from a 30-year loan program into a 15 or 20-year loan structure. This enables you to build equity faster and save a tremendous amount of money on financing fees.
3. Change your loan program
Many homeowners who start with Adjustable Rate Mortgages desire to move to the stability of a Fixed Rate mortgage later on down the road. As interest rates fluctuate, making original deals less attractive, people will change their loan programs in order to capitalize on the best rates available.
We can provide you with loan comparison charts to find out what you can save with various loan programs.
4. Credit score has improved
If your credit score has improved as a result of making your mortgage payments on time and in full, you may be in a position to take advantage of your improved credit standing.
We can review your current credit score, the terms of your existing mortgage, and review options for other loan programs that could not only reduce your monthly payment, but also save on interest fees paid over the life of the loan.
5. Use the equity you have established
A cash-out refinance allows you to tap into the equity you have built up in your home. You may want to pay off revolving credit card accounts, send a child to college, or use the money for home improvements or personal expenses.
Regardless of your reasons for wanting to refinance, my team and I are interested in helping you make a decision that works best for you.
We will begin by reviewing the terms of your existing mortgage program. It will be important for us to know the purpose of the refinance and how long you plan to stay in the home. This helps us to determine whether or not it is beneficial for you to pay points up front to secure a lower interest rate on your new financing.
Throughout the process, we will present you with spreadsheets outlining various loan programs, and continue to monitor rates in order to inform you of the best time to refinance.
About the Author: As a Mortgage Professional, I promise to be your partner in the mortgage process.
-----------------------------------------------------------------
http://www.myloanofficersite.com/josephvalenzuela
-----------------------------------------------------------------
Copyright © Joseph Valenzuela
http://www.myloanofficersite.com/josephvalenzuela
There is an old adage that says if you can improve your interest rate by at least two percentage points, then it is a good time to refinance. While that may work as a general rule of thumb, the truth is there are other reasons to refinance:
1. Lower your interest rate
Securing a lower interest rate is one of the top reasons for refinancing. This can make a big difference in your monthly out-of-pocket costs for housing and save money on financing fees.
2. Build equity faster
If you are in a position to make higher monthly payments due to an increase in salary or other good fortune, you may want to switch from a 30-year loan program into a 15 or 20-year loan structure. This enables you to build equity faster and save a tremendous amount of money on financing fees.
3. Change your loan program
Many homeowners who start with Adjustable Rate Mortgages desire to move to the stability of a Fixed Rate mortgage later on down the road. As interest rates fluctuate, making original deals less attractive, people will change their loan programs in order to capitalize on the best rates available.
We can provide you with loan comparison charts to find out what you can save with various loan programs.
4. Credit score has improved
If your credit score has improved as a result of making your mortgage payments on time and in full, you may be in a position to take advantage of your improved credit standing.
We can review your current credit score, the terms of your existing mortgage, and review options for other loan programs that could not only reduce your monthly payment, but also save on interest fees paid over the life of the loan.
5. Use the equity you have established
A cash-out refinance allows you to tap into the equity you have built up in your home. You may want to pay off revolving credit card accounts, send a child to college, or use the money for home improvements or personal expenses.
Regardless of your reasons for wanting to refinance, my team and I are interested in helping you make a decision that works best for you.
We will begin by reviewing the terms of your existing mortgage program. It will be important for us to know the purpose of the refinance and how long you plan to stay in the home. This helps us to determine whether or not it is beneficial for you to pay points up front to secure a lower interest rate on your new financing.
Throughout the process, we will present you with spreadsheets outlining various loan programs, and continue to monitor rates in order to inform you of the best time to refinance.
About the Author: As a Mortgage Professional, I promise to be your partner in the mortgage process.
-----------------------------------------------------------------
http://www.myloanofficersite.com/josephvalenzuela
-----------------------------------------------------------------
Tips To Get Loan Approval
What Lenders Look for in Home Applications
Copyright © Joseph Valenzuela
http://www.myloanofficersite.com/josephvalenzuela
Once your loan application is filled out and sent to the lender for review, the first thing they will look for is your ability to payback the loan you are requesting. A grand slam loan package is in perfect order and answers all the important questions up front.
Based on our thorough knowledge of multiple loan programs, and an understanding of what lenders look for, my team and I have a stream-lined process that will get you fully prepared for the lenders review.
What does a lender looking for when they review a loan application?
The lender wants to know about your personal financial picture, including savings and credit history and employment stability. The co-borrower's history is also taken into consideration. The lender will also consider the loan amount and appraised value of the home you desire to purchase.
Not every applicant is approved the first time through the process. If the underwriter has any questions or concerns, he or she will require certain conditions be met before they approve the loan. Pre-approval prior to house hunting lets you know exactly how much you are qualified to borrow in advance.
What can I do on my end to make it easier?
Before taking out a home loan, it helps to establish a consistent record of paying bills on time.
If you have utility bills that are overdue, bring these up to date. Make sure you are paying credit card installments in a consistent and timely manner. Aim to have enough savings to cover your down payment, closing costs, and two month’s income for emergencies.
My team can help you evaluate your debt-to-income ratio and determine a monthly mortgage payment that is comfortable and affordable for you.
If I started a new job six months ago, can I still apply for a loan?
A stable employment history is important, but lenders will take human factors into consideration. If you've recently completed college or vocational training, or were released from the military, you have good cause to have a lack of consistent work history. If your profession is seasonal, and gaps in employment are the norm in your field, there are loan programs that will accommodate your situation. If you are a freelancer or do contract work, the lender will look for consistency in income over the last two years.
Consistency is the key word in the lender's mind, but know that lenders have developed many different loan structures to meet the needs of the general public.
My team and I remain on top of current mortgage trends and monitor rates on a daily basis. In addition, we have a support network of Realtors®, CPAs, Financial Planners and Credit Repair Consultants to lend you additional assistance.
About the Author: As a Mortgage Professional, I promise to be your partner in the mortgage process.
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Copyright © Joseph Valenzuela
http://www.myloanofficersite.com/josephvalenzuela
Once your loan application is filled out and sent to the lender for review, the first thing they will look for is your ability to payback the loan you are requesting. A grand slam loan package is in perfect order and answers all the important questions up front.
Based on our thorough knowledge of multiple loan programs, and an understanding of what lenders look for, my team and I have a stream-lined process that will get you fully prepared for the lenders review.
What does a lender looking for when they review a loan application?
The lender wants to know about your personal financial picture, including savings and credit history and employment stability. The co-borrower's history is also taken into consideration. The lender will also consider the loan amount and appraised value of the home you desire to purchase.
Not every applicant is approved the first time through the process. If the underwriter has any questions or concerns, he or she will require certain conditions be met before they approve the loan. Pre-approval prior to house hunting lets you know exactly how much you are qualified to borrow in advance.
What can I do on my end to make it easier?
Before taking out a home loan, it helps to establish a consistent record of paying bills on time.
If you have utility bills that are overdue, bring these up to date. Make sure you are paying credit card installments in a consistent and timely manner. Aim to have enough savings to cover your down payment, closing costs, and two month’s income for emergencies.
My team can help you evaluate your debt-to-income ratio and determine a monthly mortgage payment that is comfortable and affordable for you.
If I started a new job six months ago, can I still apply for a loan?
A stable employment history is important, but lenders will take human factors into consideration. If you've recently completed college or vocational training, or were released from the military, you have good cause to have a lack of consistent work history. If your profession is seasonal, and gaps in employment are the norm in your field, there are loan programs that will accommodate your situation. If you are a freelancer or do contract work, the lender will look for consistency in income over the last two years.
Consistency is the key word in the lender's mind, but know that lenders have developed many different loan structures to meet the needs of the general public.
My team and I remain on top of current mortgage trends and monitor rates on a daily basis. In addition, we have a support network of Realtors®, CPAs, Financial Planners and Credit Repair Consultants to lend you additional assistance.
About the Author: As a Mortgage Professional, I promise to be your partner in the mortgage process.
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http://www.myloanofficersite.com/josephvalenzuela
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