Skip to main content

A Better Alternative than Bank


The first thing that comes to the first time a homebuyer's mind that wants to buy is that they should get a real estate agent. If you are a first-timer, a knowledgeable agent will advise you that the first thing to the home buying process is to get prequalified for a mortgage before searching for a home. The agent will often know a loan officer of a mortgage broker that will assist you. The prequalification will then let the real estate agent know the price range the agent should search for a house for you to qualify for a mortgage. Without guidance, you may think that you should go to your bank. The bank will make an inquiry on your credit only to find out you don't qualify for much of a loan amount, or in most instances, the bank denies the loan. A credit inquiry by the bank could reduce your credit score and hinder chances you would have had with a mortgage company to get approved for a mortgage.

A bank's reputation is base on being secure, so they try to take the least amount of risk in lending the bank's money. Thus, bank loans on strict conditions that most people will not be able to qualify. For instance, a borrower's income must be exceedingly more than their current monthly debt added with their future monthly obligation of the loan amount to be eligible for a mortgage. The bank also will have to pull your credit report to analyze it for creditworthiness. The credits on your credit report have to be without blemish, or you will be forever waiting for approval.

Experience homebuyers usually go to a mortgage broker to get their mortgage even though the mortgage broker loan fees for initiating the loan may be a little more than the banks. However, the mortgage broker will advise you on how to qualify to fit in a loan program that is available that fits your needs. The loan officer will also notify you on how to resolve credit issues to position you for the loan. You may pay a little more in one-time loan fees, but you get more. The mortgage Company's specialty is taking real estate secured risk. Therefore, they have loan programs to fit various situations or issues that real estate buyers have.

The following are a sample of multiple liberal conditions a mortgage broker loan program can accommodate 1. they can lend to someone self-employed by using 12-months bank statements, 2. to persons one day out of short sale or foreclosure with a 580 FICO score and 20 percent down, 3. There is no need to divulge personal income for an investment property, 4. three percent down of the value of the property and the seller can pay all of the closing cost. The loan programs for luxury homes purchase and investment properties may be subject to similar creativity as well.

A big benefit with a mortgage company is that they can pull one credit report for you and use it to qualify under many loan programs with several lenders. This will save you money, time, and credit inquiry that affects your score.  If you go to a bank and get rejected, then you will end up going to a mortgage broker regardless if you still want to buy a house.

Comments

Post a Comment

Popular posts from this blog

Many Do Not Believe in the Covid-19 Vaccine

Despite the U.S. government stating that there is a vaccine to minimize the chances of death due to Covid-19, most people are in denial.  Many people think it is a trick to get some small technology into your body to control you and monitor you. They go as far as connecting their theory of an evil plot to implement 5 G technology. Some people have put out what they claim is proof that Bill Gates is involved, and he and others want to control the population of the world and so on and on. You wonder why there is so much mistrust? But it is not unwarranted. It is part of American history that the colonist gave free blankets and linen contaminated with smallpox to cause disfiguring scars, blindness, and death to the American Indians. Then there was Tuskegee experiment began in 1932, where they freely injected over 600 African Americans with syphilis, a contagious venereal disease with no known cure at the time. Some Republicans believe the Democrats want to use the COVID 19 scare to ...
Post a Comment
Read more

Prevent Foreclosure from the Start

Everyone feels a sense of pride after they have made their purchase of a home. For a while, you may not have the desire to go out much because you want to bask in your moment of achievement. Since you close on your home, you will find that more credit companies want to extend credit to you. Homes usually go up in value, so credit companies feel that you are collateral-worthy. It is easy to get overextended if you are not budget-conscious. When you applied for a mortgage, most loan officers will advise you not to buy anything with a credit card and do not ask for new credit while a mortgage decision is pending with a lender. The mortgage company uses all current minimum payments of your debts versus your income to determine a mortgage on your behalf. If you got new credits, it would throw off their figures and change your debt profile.  The lender uses the debt profile versus your income to determine the likelihood of the lender getting paid back for the loan. When your de...
Post a Comment
Read more

House Inspection a Necessary Evil

You have been looking around for months to find the home of your dream, and now you think you have found one. You are currently fascinated with your newfound love, but you should step back and analyze your findings. Some people may have worked two jobs to afford the down payment on a home and have limited liquid cash beyond that to provide anything breaking down in the first three years after closing. Thus, you need to get a home inspection known as the necessary evil of the industry. The results can determine the evil part. A home inspection can reveal a lot more than the owner of the home want to realize. If the owner does not want to make concessions for the negative home inspection report, it can be disappointing to the buyer after paying for a home inspection report. Many home buyers will feel upset that they paid the inspection fee and they cannot get the home because it reveals issues that the buyer would have to come out of their pocket to fix soon after closing. Going alon...
Post a Comment
Read more