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Category: Mortgage

  • Navigating the Home Buying Journey: Step-by-Step Guide and Anticipated Milestones

    Navigating the Home Buying Journey: Step-by-Step Guide and Anticipated Milestones

    Infographic provided by The Sherry Riano Team, a leading FHA loan lender

    Embarking on the journey to purchase your first home can be a daunting task but breaking it down into manageable steps can make the process more approachable. Here’s a brief overview of the home buying experience and what you can expect.

    It’s crucial to recognize that the timeline from initiation to closing on a house varies depending on market conditions and various factors, spanning from a brisk 15 weeks to a more extended eight months or beyond.

    Begin by assessing your financial situation, considering factors such as applying for an FHA loan and evaluating your credit health. Having a clear understanding of these aspects at the outset facilitates securing funding and starting the process on a solid foundation.

    Once you’re ready—or if you seek further insights into financial aspects—reach out to a mortgage lender for pre-approval. In today’s seller’s market, possessing a pre-approval letter is pivotal in demonstrating your suitability as a buyer. Additionally, a lender can assist in establishing your initial budget and addressing any loose ends to secure a favorable mortgage rate.

    Upon securing approval and enlisting a real estate agent, the next step is to explore available listings. Whether you rely on the realtor’s suggestions or online listings, it’s advisable to refine your search based on parameters like price range and location. Maintaining realistic expectations streamlines the overall process.

    Once you’ve identified potential options, schedule property tours. While virtual tours offer convenience, personally assessing the property before committing is essential. When ready to make an offer, be prepared for potential competition. Collaborate with your realtor to negotiate with sellers and navigate contingencies to secure your desired home.

    Upon acceptance of your offer, you’ll enter the due diligence period. This involves scheduling a home inspection and appraisal. While these steps can be expedited, they should not be overlooked.

    The subsequent underwriting process, which may take days or weeks, involves a thorough review of your finances and property details. Responsiveness to the lender and underwriter is crucial to keep the process moving smoothly.

    Finally, the closing phase arrives. Once the loan is finalized, both parties review the deal, a final house walkthrough occurs, and, if everything aligns, the last paperwork is signed, funds are transferred, and you receive the keys to your new home.

    For a detailed breakdown of the home buying timeline, explore the accompanying resource to deepen your understanding of the process.

    Author bio: With over 20 years of experience in the mortgage industry, team leader Sherry Riano exudes a deep passion for helping families in North Carolina, South Carolina, Tennessee, Virginia, Florida and Alabama financially obtain their dream home. Ensuring its clients and business partners are top priority, The Sherry Riano Team consistently takes into consideration each customer’s needs and goals to build a lifelong relationship. With a specialized approach to self-employed borrowers, first-time homebuyers, jumbo loans and VA loans, The Sherry Riano Team has knowledgeable advocates for any customer with which it partners.

  • What is New to Canada’s Mortgage Program? Requirements, Advantages, Tips

    What is New to Canada’s Mortgage Program? Requirements, Advantages, Tips

    Getting a new house can be a dream for everyone, who has had some good and hard years in Canada. Nothing is feeling like getting a new house for you and your family when you stroll from the entryway and know it’s yours.

    Obviously, it is not an easy task to get home in Canada. Being a newcomer can be tough to hold onto things in the new country. It requires a lot of investment and expenditure. Undoubtedly, it would be so stressful. In this case, you may need an expert to assist you regarding the newcomer to the Canada mortgage program. mortgagehelpline.ca advisors can help you and will guide you to provide direction to your dreams.

    There are several steps and supporting documentation that you need to ensure according to the new immigrant program 2021. It would depend on whether you are a permanent resident or not, your credit rating, and saving for the down payment.

    Residency status: Residency status is a vital step to the mortgage application. Newcomers are people, who have just immigrated to Canada within the last 5 years and are already permanent residents/received confirmation of permanent residence from immigration, refugees, and citizenship Canada (IRCC).

    Do I need to be a permanent resident to get a mortgage in Canada?

    No, In case you are not a permanent resident occupant of Canada yet, but rather you hold a current work permit and have applied for permanent residency, you can still apply for a standard mortgage.

    Credit rating: Credit scores are report cards which present how well you are in setting and managing your debts and financial responsibility. It is 3 digital number scores, usually between 300 to 900. It is analyzed by a lender to check whether you are qualified or not.

    Down payment: additionally. However, the size of your down payments also impacts long haul monetary arranging objectives, as it decides your monthly contract installments. To build your credit, you have to start saving a down payment.

    If you are a newcomer to Canada but have permanent resident status, you need to put down 5% of the purchase price. And for non-permanent residents, it is 10%. If you are purchasing a property with a price of $5,00,000 or more. Then, the minimum down payment would be 5% for the first $5,00,000 and 10% for the amount over $ 5,00,000. This applies to both permanent and non-permanent residents. The rates may change depending upon the economic cycles or depending upon the province you are living, so it’s better to consider an experienced mortgage broker to check current mortgage rates.

    Requirements for New to Canada’s mortgage program.  

    New to Canada’s mortgage program to apply for residents of Canada, who immigrated to Canada within the last 5 years, looking for an insured mortgage but did not establish Canadian Bureau history. You need to accept the following requirements listed:

    • Newly people visited to Canada (whom are immigrated just within last 5 years)
    • 5% of the purchase price as a down payment is required. It should be from your own resources. Borrowed down payments are not allowed.
    • Full-time employment of minimum 3 months in Canada(exempt: professional employee relocation)
    • Report of if, any previous bankruptcies or foreclosures or no mortgage negligence.

    Can I get a mortgage without a job in Canada? Well, it is not so easy to qualify for a mortgage plan, if you are unemployed. You can qualify by having a co-signer with a high net worth or by proving that you have some other sources of income.

    Application requirements for newcomers are more comprehensive than for Canadian citizens. Lenders require many documents and information for newcomers, applying for mortgages. Here are some following documents:

    • Proof of Revenues/income
    • Proof of rental payments and a letter from the landlord
    • International credit record
    • Months of bank statements
    • 3 months Employment history
    • Payments record to service providers, such as mobile plans and utilities
    • Agreement of Purchase and Sale
    • Report of down payment
    • Reference letter from a financial institution, even if from a newcomer’s home country
    • Documentation of savings
    • Valid work permit, Permanent Resident Status, or a Landed Immigrant Status

    Advantages:

    • This program is approachable to both permanent and non-permanent residents. it can be accessed by both
    • For permanent residents, alternative sources for the establishment of creditworthiness may be countable.
    • The borrower doesn’t require any minimum period of residency.
    • Non-permanent residents can also buy homes easily, in Canada.
    • Tips:

     Buying a home can be stressful but it can manage by following these tips below:

    Prepare for Down payment: you must prepare yourself for your down payment which totally depends on your savings. You must have a better budget to monitor your expenses. You can use various budget applications for that.

    You have to cut your unnecessary expenses and divert your excess money to your savings account. Then, you have to cut down your bad habits; this can include your impulse buying or getting takeout. Make sure you buy only what you need only planned purchases and deny fast food. Nothing feels better than the feeling of having your own home. You can skip vacations for a few weeks.

    Credit score: Your credit score is very crucial in getting a mortgage. So, maintain your good credit score. There should be no mortgage negligence.

    Pay your all bills on time. You can set reminders. Pay your credit card bills every month. Managing accounts online can also be helpful. It can regulate your online account balance.

     

  • Home Loan from Professional Mortgage Brokers In NH?

    Home Loan from Professional Mortgage Brokers In NH?

    If you’re a New Hampshire resident and are shopping for a mortgage or home loan, then reaching out to a professional company like Nextgen Mortgage Inc. is your best bet. Whether you are interested in refinancing, taking a home equity loan, or would like to purchase a home, a mortgage loan acts as a product whose terms and prices are negotiable. Careful and thorough searching, comparing, and negotiating will help you save your thousand dollars of income. Finding the best mortgage lender in New Hampshire means looking for the perfect blend of fast loan processing, low-interest rates as well as reliable customer service. In this regard,  you will need to search out several mortgage brokers in NH so that you can find the best loans according to your requirements. These brokers are licensed financial professionals who function as a bridge between loan borrowers and lenders. They work in tandem with several underwriters, real estate agents, lenders, attorneys, and loans providing companies and manage the entire lending and purchasing processes. In addition to that, they also pinpoint the best mortgage rates in NH for you and assist you in overcoming borrowing challenges.

    Recommendations of Mortgage Brokers in NH

    Mortgage brokers have the responsibility of their customer care, meaning that they must make the justifications regarded their recommendations. Most commonly, they recommend something depending on their client’s circumstances, some of which may include:

    • Deposit size
    • Monthly payment preferences
    • Interest rates
    • Personal information like credit card histories
    • Records of personal balance addition or transactions

    Process of Getting A Home Loan from Mortgage Brokers

    1. A Professional mortgage broker first assesses the current situation of the client’s finances.
    2. Then theytake into account your creditworthiness for developing a better image of your chances for qualifying for a home loan.
    3. Thirdly, they take necessary personal information from you.
    4. After completing your information and requirement gathering, they work to find a loan that meets your demand and budget as closely as possible.
    5. Finally, they ask you to choose among their recommended home loans.

    Popular First-Time Home Buyer NH Programs

    The best mortgage program for you as a first-time home buyer NH is the loan for which you will be best qualified. It all depends on several factors that include credit score, down payments, mortgage insurances, and closing costs. Following are some of those programs:

    1. Home Flex Plus mortgage with closing cost assistance and down payment.
    2. Home Preferred Plus mortgage with discounted mortgage insurance, down payment, and closing costs.
    3. Home State Homebuyer Tax Credit, for a yearly portion of mortgage interests.
    4. Purchase Rehab Mortgage along with closing cost assistance and down payment.
    5. Home Preferred Manufactured resident-owned community mortgage, with extremely low-priced mortgage insurances.
    6. Home preferred NO MI along with no mortgage insurance requirements and low-down-payment.

    Advantages of Taking A Home Loan from A Mortgage Broker

    Taking the assistance of a mortgage broker benefits you in several ways. A professional mortgage broker will save you time and money simultaneously by giving the perfect suggestion for you. Following are some advantages that first-time home buyers NH take from them:

    1. Firstly, mortgage experts provide you trustworthy access to various loan types, lenders, and mortgage rates in NH for interested buyers.
    2. Secondly, they share insights into your chances of loan approval and how much a home loan will be easily affordable for you.
    3. A significant benefit of mortgage brokers is that they can offer reasonable mortgage rates, calculated accurately by the mortgage calculators, that a traditional bank may not offer
    4. Moreover, these brokers also keep complete records by critical paperwork and the coordination of loan information with the relevant parties. That helps you in closing your home loan faster.
    5. Still, if you don’t get satisfied with any mortgage brokers, you will not be forced or locked to work with them. You can have a chance to change the broker at any time by telling them in advance.
  • Should I Refinance My Mortgage?

    Should I Refinance My Mortgage?

    After making one of the biggest decisions of your life – whether or not to buy a home – you took the plunge and became a homeowner. But after a few years of homeownership you now find yourself facing yet another big decision: should you refinance your mortgage?

    Refinancing your mortgage involves research, paperwork, and fees. With that said, it’s a smart financial move for many homeowners. To help you decide whether it makes sense for you to refinance your mortgage, take a look at three primary reasons for doing so:

    ● You’ll lower your interest rate: Lowering the interest rate on your mortgage can save you thousands of dollars throughout the life of your loan.

    ● You’ll lower your monthly mortgage payments: Securing a lower monthly payment means that you’ll be able to save money on your mortgage bill every month. At the same time, the length of your loan may be longer once you start refinancing your mortgage.

    ● You may get a better loan overall: Changing your loan type can mean going from a fixed-rate mortgage to a variable rate mortgage or vice versa. It could also mean changing from a 20-year amortization schedule to a 25-year amortization schedule.

    Do any of these reasons feel relevant to you? Read on and find out more about whether or not refinancing is for you.
    Is Refinancing the Best Move for You?
    Once you understand why you might want to refinance your mortgage, it’s time to break down the mortgage lingo. This will give you a deeper understanding of mortgage refinancing and help you find the best loan.

    1. Lower interest rates
    Interest rates for loans may feel like arbitrary numbers, but mortgage interest rates are important because they can increase or decrease the cost of your mortgage.

    For example, if you took out a mortgage for $360,000 with a 4% interest rate and a 25-year amortization schedule, you would pay a total of $210,000 in interest during the life of the loan. If the interest rate were to increase to 4.5%, then you would pay an additional $30,299 for a total of $240,299 in interest during the life of the loan.

    So, even though it may seem like 0.05% is a small amount, the interest rate percentage – even less than 1% – is an important factor. As you can see, refinancing your mortgage to secure a lower rate is a wise idea.
    Refinancing Fees
    Before getting too excited about the money you’ll save throughout the life of your loan, it’s a good idea to make sure that you’re not spending more than you would save. Keep in mind that refinancing your mortgage may introduce a slew of fees. Here are a few examples of the fees associated with refinancing:

    ● Application fees
    ● Home appraisal fee
    ● Title search
    ● Credit report charge
    ● Title insurance
    ● Legal fees

    When considering refinancing your mortgage, run all the numbers and consider these three factors:

    1. What is the new interest rate?
    2. How much will you pay in fees?
    3. Will you save money or at the very least, not lose money?

    For example, if you have an interest rate of 5% and can save $10,000 over the life of your loan by refinancing with a rate of 4.75%, then you should make sure that the refinancing fees are less than $10,000.
    2. Lower monthly payments
    Lower mortgage payments may provide you with immediate relief if you’re focused on paying other bills, eliminating debt or building savings. Refinancing your mortgage may also be a great way to secure a lower monthly payment.

    Yet, before you take the plunge and refinance, make sure you fully understand the ins and out of associated fees and how your new loan term can affect your monthly payments. Take a look:
    Fees
    Some of the fees associated with refinancing include title insurance, legal fees, and application fees. Also, if you break your contract during your current term, you will incur prepayment penalty fees.

    Here’s how it works—if you have a fixed-rate mortgage, you’ll be paying whichever is greater: three months’ interest or the interest rate deferral. What’s interest rate deferral? It’s the difference between the interest rate on your current mortgage term and today’s interest rate for a similar mortgage.
    If you have a variable rate mortgage, you’ll pay three months’ interest. While fees shouldn’t deter you from refinancing your mortgage for a lower monthly payment, make sure that you will actually save money with your new loan.
    Length of Your Loan
    Lower mortgage payments are wonderful, but they often go alongside a longer loan. Before you refinance your mortgage, you might want to check the length of your new loan.

    Here’s how it works – the longer the loan, the more interest you’ll pay. So, if you have 15 years left on your mortgage and refinance to a 25-year amortization schedule, you’ll probably have lower monthly payments,but you’ll likely pay more in interest throughout the loan term.

    If this sounds complicated, just remember: a longer loan typically equals more interest.
    Should You Refinance to Another Type of Loan?
    Changing your loan type can be a great way to save money on interest, decrease the length of your loan, or secure more favorable terms. Here are a few things to keep in mind if you want to change your loan type.

    ● Interest savings: Even though it may be tempting to focus on your monthly payment and how to reduce it, a lower interest rate may be the key to saving you more money in the long run. That’s why changing your loan type and decreasing the length might be a smart financial move, even if your payments remain the same.

    ● Length of loan: Don’t forget the most important rule about loan length: the longer the loan, the more interest you’ll typically pay.
    Types to Loans to Consider
    There are many different loans to consider when it comes to refinancing your mortgage. Here are a few loan types you may want to think about if you’re looking at refinancing.

    ● Fixed-rate mortgage
    ● Variable rate mortgage
    ● Adjustable rate mortgage
    ● Hybrid mortgage
    ● Collateral mortgage
    ● Closed mortgage
    ● Open mortgage

    When it comes to changing your loan type, keep in mind that it’s most important to find the best loan for your situation and goals.
    Bottom line
    Refinancing your mortgage is a big decision. After exploring your options and experimenting with the numbers, you’ll be ready to make an informed decision that takes into account both your short-term and long-term financial goals.

  • April 2016 Stamp Duty Changes Cause a Stampede

    April 2016 Stamp Duty Changes Cause a Stampede

    The UK chancellor, George Osbourne, has just revealed his latest budget for 2016. One of the headaches caused for the property market from the previous budget was the stamp duty rise – set to come in on April 1st 2016. The changes will see investors pay a 3% surcharge on stamp duty for their property purchases in the future, therefore, many are rushing to beat the profit reducing tax increase and pushing their buy-to-let mortgages through as quickly as possible.

    In fact, in January 2016 the number of buy-to-let mortgages rose by 22% on 2015 – a huge increase which clearly indicates the concerns property magnets have. 9,500 loans were taken out in January compared with 7,800 the year before. The total amount borrowed increased by an even higher rate, 40%, to £1.4bn. Nowhere else has this been noticed more than by letting agents in Stockport, who have noticed a huge rise in demand with the regeneration of the town centre, in turn causing many investors to focus on the area.

    Aside from the large increases in the commercial, investor side of the property market, there has also been a notable increase in the residential area. Homeowners looking to re-mortgage their property also appear to be rushing to get things sorted before April, in fact the amount lent (according to the Council of Mortgage Lenders) was £5.8bn which is the highest since January 2009 and is a 32% increase on this time last year. First time buyers we also active in January with 21,400 home loans being obtained, a 14% increase.

    Another reason for the rise in home loans, re-mortgages and buy-to-let mortgages in January 2016 was the lenders producing appealing packages. Mortgage rates are currently very low and the numbers of people obtaining them is just as low, therefore, the banks and building societies are looking to get customers in by creating attractive propositions elsewhere. It has proved to be very successful and goes some way towards generating the profit they require in another side of the property market. The number of ‘challenger banks’ on the landscape these days who are offering tailor made, attractive propositions to first time buyers is forcing the bigger players to up their game and offer something better than historically they have been doing.

    We are now moving in to the Spring of 2016 and the buoyant property market is set to be under the spotlight as the most popular moving period of the year begins. First time buyers will be tracked more than anyone to see how the governments ‘help to buy’ scheme performs, to see if it has in fact stimulated the market or if it has been another failed project. The ‘Help To Buy ISA’ works by rewarding first time buyers who are saving for a deposit by giving them £50 for every £200 they save. The maximum government bonus it is possible to receive is £3,000 and you must have saved at least £1,600 before you can access your government bonus of £400.

    Amidst global uncertainty in the markets (particularly in China), George Osbourne and David Cameron will be desperate to see a great year in both the lending and property sectors for 2016, it will separate the UK somewhat for the global issues. It will also be interesting to see how the challenger banks fair. Many now don’t trust the big corporations and would prefer a more ‘down to earth’ lender that won’t take their money and gamble with it leading to a possible second wind for building societies. Building societies gradually got bought out and sold off to banks but were the solution to the greed and relentless profits that the large banks target.

  • 3 Reasons Mortgage Applications Get Rejected

    3 Reasons Mortgage Applications Get Rejected

    Getting home loans are very tough these days rather than what it was a few years back. When credit crunch happened, banks made their credit benchmarks really stiff. Lenders today accept only 55% of the mortgage applications duly submitted, Mortgage Bankers Association (MBA) reports.

    The FDIC data says, the U.S. banks experienced an all-time low of 7.4% in 2009. This is the sharpest fall since 1942 and the banks haven’t thought of easing the lending standards. So, families thinking of refinancing their current homes or taking loans to buy a house should collect all the information that will ensure positive response from the lenders.

    3 reasons out of many for people get turned down while asking for mortgage and how to get over these obstacles:

    • Improper documentation of income

    Most people think documenting their income is pretty simple. That’s where they are mistaken. Even the ones with high FICO scores might not qualify from a mortgage bank lending business. Even if you have scored some 700 points in FICO and carry a huge amount of cash on in your bank, you would need to prove your income to qualify for the mortgage.

    Other attributes related to income that can hinder your mortgage loan application are: changing jobs frequently, employment gaps, not working continuously for two or more years, or shifting from salary based work to work on commission. In short, if your document history cannot be properly tracked, mortgage bank lending will become a difficult possibility.

    Both credit scores and cash reserves matter in case of loan sanctions. However, the present scenario has banks and private lending enterprises carefully looking into all the factors- the amount asked for lending by the applicant, loan-to-value ratio for the loan asked, what your debt to equity values are, and if your tax returns shows if you can manage the taxes in case situation gets adverse.

    • Strong compensation factors missing

    In case you find some problem with your application or you might be on the borderline of qualifying as your debt ratio is high, you could make your application strong with compensating factors. Compensating factor is one lingo of the mortgage industry. This shows the positive aspects that your mortgage application has to side-line other negativities.

    The compensating factors can include:

    • More than 20% of down payment
    • Less than 80% of loan-to-value ratio
    • Having cash reserves in huge amounts for 12 months and more
    • Credit score above 740

    If borrowers come with improper applications (not polished), if they cannot substantiate with a strong compensating factor will mean turning down the mortgage loan request.

    • Picking wrong type of property

    There are certain properties in mortgage lending most lenders are scared to finance. Two of them are investment properties and second homes. This, of course, does not mean funding is not possible for these properties. The only factor is carrying stringent terms and conditions like higher amount of down payments in cash and have higher cash reserves.

    Buying condominiums, especially in newly developed localities could be tricky. The buyer might assume getting a good bargain by taking a condo that is under construction. The warning is: most of the lenders, whether it’s banks or private lenders won’t sanction loan until more than 70% of these condos have been sold. To add to the misery, lenders do not approve loans to condos that do not have FHA approval.

    There are many other reasons why mortgage bank lenders turn down most mortgage applications. However, if you have taken care about the above 3, you have at least started to find some ways to make your loan plans successful.

    Author Bio:

    Preethi vagadia is a business architect worked in Mortgage and Finance software department with top notch companies and has over 8 years of experience in Mortgage Lending Technology,Mortgage Loan Servicing Software, mortgage management software, mortgage loan software etc.  She has also worked in several process improvement projects involving multi-national teams for global customers in warranty management and mortgage.