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

Downsizing for Retirement

“I met my girlfriend in college who later became my wife. After we both graduated from college and pursue our careers we thought of having kids. After about five years we were able to save enough money to make a down payment for the house of our dreams. We got a single-family colonial 5 bedroom house. At the time we wanted a house big enough that we could raise a family. Our kids are all grown now and have started their own families. We do not see them much other than sometimes on Christmas. Though we have created lasting memories in the house it is feeling too big to manage and maintain. Both my wife and I have both been retired for a few years and are on limited retirement benefits. I have arthritis in my knee and it is perplexing to climb the steps every day to go up to my bedroom that often time I sleep on the sofa in the family room. When I was younger it was easier to do things around the house but climbing ladders, mowing the lawn, snow removal, etc., is too much at my age. The ...
Post a Comment
Read more

First-timer Almost Expense Free

Real estate is considered the best investment that the average person will benefit from in their lifetime. It is usually considered to be a long-term investment. So it is always best to determine the longest time you would live at the proposed property. It is not a good idea to buy a house to keep for less than two years unless you obtain it way below market value. Many people struggle with when is the right time to purchase. In determining the right time to buy are the purchase price, personal stability, and future market conditions.  Some mortgage companies made it now possible for first-time homebuyers to get loans to buy four-unit buildings with the use of first-time home buyer’s credit. The credits are designed to make homeownership easier, so they come in federal and state grants, tax credits, and other options. The credits with the residential classification of the multifamily building of 4 units or less make it possible for mortgage companies to fund the purchase of these b...
Post a Comment
Read more

Solar Panels a Necessity

More and more homes are popping up with solar panels on their roofs. It seems to be the new fad, but it is not exactly. Some people are only getting wise to use the sun for more than light, warmth, vitamin D, and a great tan. The sun supplies free energy that solar panels can catch and redistribute it into electricity to power up their home. Today’s home demands electronics, electrical equipment, appliances, and power for electric cars. Those demands cause higher demand on the power grid of your region. In the United States, the government, both federally and locally, is trying to influence all homeowners to get solar panels installed on their homes by giving a tax credit to those who use solar panels' alternative energy. The power companies do not see solar panels as the competition, but as assistance in that, they will, in turn, buy your excess energy produced by your solar panels. It is a no-brainer to get solar panels when your home is all-electric, and you have an electric car...
Post a Comment
Read more