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3 Money Habits That Can Hurt Your Mortgage Application

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A Mortgage ApplicationWhen you are planning investments, making your budget or just spending it somewhere, it’s essential that you do every transaction with due diligence. Whether you are spending your money using your credit card or just taking cash out-of-pocket, Altius Mortgage Group notes that you must also think about how your spending habits can affect your future financial situation.

Remember, the way you handle your finances can either boost your chances or rather jeopardize your mortgage approval. Below, see some of the money habits that can hinder you from accessing a home loan.

1. Making late payments

Sometimes things can get out of hand pretty fast, only to find yourself in a bad financial situation. You will have no choice but to postpone your mortgage loan payments to your lender in Utah or elsewhere.

This is normal, and when you explain yourself to your lenders, most of them will understand. However, a repeated pattern of late payments raises a red flag to the lenders, and they will want to avoid such borrowers.

2. Maxing out your credit accounts

If you shop with credit cards, you need to be careful. If you use them and ensure the balances are paid in time, the better. The problem comes in when you use every credit up to the maximum limit only to make minimum payments every month. This can hurt your overall credit report and eventually affect your future borrowing.

3. Applying for more credit

There is no sense in opening so many credit accounts when you don’t even need the money. To the lenders, you are a business risk if you have too much debt in your name.

Also, another critical thing to mention is applying for a loan from every other lender after one rejects your application. This can significantly lower your credit score and eventually deny you access to investment funding such as mortgages.

The bottom line is that there is no need to apply for a loan when you don’t need the money. It doesn’t just rack up debt burdens for you, but might also affect your future investment opportunities.


3 Key Factors That Will Influence the Approval of Your Home Loan

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Woman Holding a Model House

Woman Holding a Model HouseAs you take on the challenge of homebuying you’ll realize that a lot of things are involved in the process. This includes finding a mortgage that would help finance your home. That’s why it’s important to understand how a home loan works to determine which program will work perfectly for you.

To do that, you need to know some of the basic factors that will influence your decision. To start off, listed below are the components you have to pay attention to.

1. Lender

In any type of loan, the lender plays a vital role in providing you with the money you need. That’s why it’s important that you get as much information about the lender to gain insight into the way they handle this type of transaction as well as the reputation they uphold in the industry. To find the best mortgage company in Utah, researching is your best ally. Make sure to do your own homework to gain enough information about it.

2. Credit Score

Many lenders refer to the borrower’s credit score to help them know how good of a payer you are. This is why it’s important that you fix and update your credit report before applying for a mortgage. One good way to improve your credit standing is by reducing the amount of debt you have and avoid making delayed payments.

3. Interest Rate

An interest rate is the payment you have to make on top of the principal amount you’ve borrowed. Lenders take this to compensate for the possible risks they might face right after loaning you the money. Now, interest rates may vary for each lender, which is why it’s important that you shop around to find out the best option for you. It doesn’t always follow that lower interest rate would be the most ideal to take, you still have to check and compare it with others to figure out the best for you to take.

Along with these variables, repayment terms and closing costs is another part of consideration you have to consider. With these things in mind, it’ll be easier for you to tell which mortgage will work best for you. If you’re confused or something is unclear, it’s best to ask the pro to help you understand these things.


4 Best Options When You Have an Underwater Mortgage

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Man holding a mortgage document

Man holding a mortgage documentDiscovering that you owe more on your mortgage than your home is worth is never a pleasant thing, but relax. There are millions of homeowners in your situation. But what’s encouraging is to know that there’s always something you can do about your situation.

Here are your options.

Consider loan modification

More likely than not, the mortgage company here in Hendersonville you took the loan from will be willing to listen to you when you raise the concern of being underwater on your loan. This is particularly so if your mortgage payment is over 31% of your monthly income.

The lender may agree to lower the payment and interest rate, at least temporarily.

Consider a short sale

Approach your lender about the possibility of a short sale. If they give you the green light to proceed, you can sell your home for a lesser amount than the one you owe from a lender. Some will consent to wipe out tens of thousands of dollars you owe them.

However, ensure that you’ve cleared all the taxes on the pardoned debt.

Refinance the loan

When you have negative equity, chances are you’ll not be able to do a traditional refinance. Still, it doesn’t hurt to talk to your lender about what to do in your situation. The great news is that your credit score remains intact even with the refinance.

However, your home could still suffer foreclosure should you fail to keep up with your mortgage payments.

File for bankruptcy

When the financial burden becomes too heavy for you to handle, you can always file for bankruptcy. But realize that this move doesn’t erase your mortgage. However, getting your other debts eliminated frees up the money you need to catch up on your mortgage payment.

Don’t feel helpless when you find yourself with an underwater mortgage. There are always smart ways to deal with the situation and get good results.


A Look at the Different FHA Loan Types

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an fha loan contractA mortgage is one of the most important deals you will enter in your life. No wonder there are various mortgage deals from both private and government-backed agencies. One of the most popular ones is from the Federal Housing Authority (FHA).

Below are some of the most common types of FHA loans in St. Louis. See which loan type will suit your financial standing and needs.

Conventional fixed rate

As the name suggests, this is one of the most common types of loan where the borrower pays a fixed amount for the whole duration of the loan.

Conventional adjustable rate

Like the fixed rate, adjustable rates are also payable for a certain period. The only difference is various fluctuations in the market determine the rate of payment. This means the amount you pay every month varies. A fixed amount is paid on the first three to five years of the mortgage.

Hybrid mortgage

A hybrid mortgage is pretty much like a conventional adjustable. The difference is that instead of having a fixed rate for three to five years, borrowers who have hybrid mortgages have a 10-year fixed period.

Balloon mortgage

Blowing air into the balloon will make it expand larger and larger. Balloon mortgage payments are also the same. Borrowers initially pay small payments at the beginning of the mortgage and increase the amount, or pay the totality of it in the future. This mortgage type is best for people who are certain that they will have a huge amount of money to come.

Relocation mortgage

If your existing home is for sale, and you are looking for a new one to move at while it is on the market, then relocation mortgages are the right type for you.

Understanding the different types of mortgage can help you better choose the right mortgage type to avail.


When You Need to Refinance Your Mortgage

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Mortgage loan button on white computer keyboard

Mortgage loan button on white computer keyboardThere are times when you experience problems with paying your mortgage. This may be because of some problems that suddenly cropped up such as losing your job or a sudden death or sickness in the family. Despite these problems, you cannot stop paying your mortgage. Doing so would mean losing your home and adding up more to the problems you already have.

To continue the payment on your mortgage, you may need to consider refinancing. City Creek Mortgage shares some reasons you should do so.

Reasons For Readjusting Your Mortgage Payment

Refinancing your mortgage means replacing your existing loan with a new one. One reason you refinance is to get a lower rate than your previous loan. A lower rate makes it easier for you to pay your mortgage. Refinancing also allows you to shorten the payment term. With this, you can finally heave a sigh of relief and enjoy your home without worrying about the payments you have to make.

Wanting to change from adjustable rate mortgage to a fixed rate mortgage or vice versa is another reason you may need to refinance. With a refinanced mortgage, you also get to consolidate your debts instead of paying them separately.

How to Refinance Your Mortgage

You need to compare the rates offered by each lender. This helps you choose the best rate you can afford. Once you do so, prepare the documents you need to apply for a new loan and lock your rate.

Through refinancing, you make it easier to pay off the loan on your house. With a lighter interest or shorter payment terms, you get to focus on other things you need to spend money on, such as your child’s school expenses or the needs of your business.


Three Things that Help You Make Informed Decisions in Home Loans

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Buying a Home

Buying a HomeBuying a home is perhaps the most costly investment for most Americans. With such a decision, you do need to gamble. You not only need ample time to think about it but also seek expert advice on your home investment plan. Any financial institution you approach will evaluate you thoroughly before deciding on giving you home loan options in Ogden. You have to have a credible credit report, shop for the best interest rates, and get reliable loan products.

Creditworthiness

Financial institutions try to reduce their risks to a minimum. Any lender will want an official statement of your financial status. You do not want to present a document that betrays their trust in you. Credit unions want to know whether you have borrowed funds in the past and if you managed to repay within the stipulated time.

Similarly, a credit report will show your official address, police records, or any legal claims such as bankruptcy. You are, therefore, advised to request a copy of your credit report at least once a year. The Fair Credit Reporting Act entitles every citizen to free copy of their credit report.

Interest Rates

Credit companies are always looking to make a profit from the loan they award you. It is your responsibility to ensure that the rates are low and manageable. Interests on home loans change occasionally. Therefore, you need to make regular checks to be certain that your interest rate is locked. You need to confirm that the rates will not change before closing within 30 or 60 days. Moreover, you could ask your credit provider the cost of extending a rate lock, and if you can be allowed to switch to a longer rate lock.

Loan Estimates

Always shop and make a comparison between loans. You need to choose the best loan that will not hurt your budget and income. You want to request a loan estimate from various credit providers so that you can choose with whom you want to work. Inquire the reason for them suggesting such rates. In the end, make a choice based on comfort, cost of the loan, and confidence in the credit company.

When applying for a home loan, you need extensive research. You must have a reliable credit report, shop for comfortable interest rates, and compare various loan estimates.


Getting Your Dream Home: Things You Need to Consider

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Couple Outside Home with Sold Sign

Couple Outside Home with Sold SignAlmost everyone has a dream house that someday they hope they could either purchase or build for their family. But when people finally reached that point, many realize that there are things they need to consider seriously. One of these is finding a mortgage company in St. George that could help you build or buy your dream home.

Where to build

Two very pressing issues for most homeowners are the location and design. The location is important because no matter how nice your house is, if you are not happy with your surroundings, going home might not be as joyous as you thought it would be. Noisy neighbors, inaccessibility to modern conveniences, and even nature’s onslaught can affect your contentment on your home’s location.

How is it like

The home’s exterior and interior design are important. You should choose a design that suits your aesthetic and preferences. Even the choice of the fixtures and the furniture are important for you to feel comfortable and happy in your home. Design it the way you want it – from the materials used, the color, the number of lighting fixtures, to the stairway design.

You should consider the details, or you will end up paying more for future renovations. This is true even for those who decide to purchase a built house that may not fit your ideal.

How to pay for it

How to take out a loan is another consideration as there are many options available to you. Each choice has its pros and cons, and you should carefully deliberate since a mortgage could last for the next 5 to 30 years. The down payment, insurance coverage, and interest rate options are some of the things to consider before choosing the lender.

Making it easier in the long run

Finally, for those in the midst of their dream home loan, restructuring your loan or asking for better terms are also considerations as many institutions will not automatically adjust things for your sake. Homeowners looking to save money have to always be on the lookout for ways to reduce home mortgage payments, whether you’re in Salt Lake City or St. George.

It is always great to dream and even better to be able to achieve it. But you need full commitment to make sure that your dream becomes a reality.


Why You Should Consider a Refinance on Commercial Mortgage

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Refinance on a calculatorOnce the interest rates reach an all-time low, people look out to refinance their existing loans. This could be any loan: mortgages, car, or student loans. Many of them see the amount they can save, but they should first evaluate the conditions of the refinancing for their business before they take this route.

There are companies that offer various types of loans, refinancing and construction loans in Utah, provided by firms such as American Loans. If you are looking for refinancing your business, consult with experts and read its terms and conditions thoroughly.

Why consider refinancing?

Refinancing can benefit you in two different ways. The first reason is that you can save money when you refinance your business. You can save because you can get the loan at a much lower interest rate.

Lower rates are also possible if your business situation has dramatically improved, or your credit score has gone up. In these two instances, you can get your mortgage refinanced. If both have occurred at the same time, your interest rates could further go through reduction.

Another benefit of refinancing is if the loan shifted to a fixed rate, you could access your equity very easily: a benefit many businesses tend to overlook.

Involves a lot of paperwork

While you refinance your commercial mortgage, you will be required to submit a huge amount of paperwork. The lender will want every single detail of the operations of your company, including its financial health.

They will want to scrutinize the cash flow records and the balance sheets of your company for specific periods. They might also want to know the plans you have for your business, to get a view of how you plan to take your business forward.

Hire a professional to negotiate the commercial mortgage refinancing for you, as it can get complex. With a little research online, you can find a good company who can help you with refinancing your business.


Beyond Aesthetics: Things to Consider When Purchasing a House

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Couple Outside Home with Sold Sign

Couple Outside Home with Sold SignMany prospective homeowners in South Jordan are taken by the look of the house. Some claim to have fallen in love with the property at first sight — as soon as they saw the exteriors, they knew it was the one. However, your mortgage company and real estate broker in South Jordan, Utah might recommend that you look into other factors so that you won’t regret your decision later.

Ease of Transport

You should check how far is the property from your place of work. Check the surroundings and see how long it will take you to go to supermarkets, hospitals, schools, your office, and other important places. Factor these in when deciding if you are willing to pay for the price the mortgage company has set for you.

Presence of Asbestos and Other Harmful Chemicals

Checking a house for this is especially important if the house was built before the ’80s. When disturbed, asbestos may cause illnesses. Testing companies can help you check for the presence of asbestos. Do this before you have the house evaluated. If the house has dangerous levels of asbestos, it’s not a good option for your family.

Your Family’s Plans for the Future

It’s not just the state of the house that you need to evaluate. You also need to think about your plans. Are you staying on the property for decades or planning to resell it? Do you have plans to add to the family or is someone moving out? Will there be a baby or an elderly joining the household? All these determine how friendly and how adequate the house is for you.

The price of the house or its style are not the only things to consider when purchasing a property. Think about your family’s needs and long-term plans, as well.


Why Get Mortgage Insurance for Your Mortgage Loan?

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Mortgage Loan in Ogden

Mortgage Loan in OgdenBuying a house has a giant obstacle; that is coming up with a sufficient down payment. You can put less than the traditional 20% down payment, but the lender will likely require you to buy mortgage insurance.

Mortgage Insurance

Mortgage insurance works like any other insurance plan, but it all depends on the type of loan you acquire. Mortgage insurance gives people — who otherwise thought that they have poor financial standing — the opportunity to become homeowners. With minimal monthly payments, almost anyone can acquire a roof over their heads.

Private Mortgage Insurance

There are two types of mortgage insurance: private and government. Private mortgage insurance (PMI) benefits the mortgage lender. As the lender accepts a little down payment, they still consider it a big risk and require you to purchase mortgage insurance. Wasatch Peaks Credit Union noted that the size and type of mortgage loan you acquire could determine the cost you’re likely to pay.

When Can You Cancel Your PMI?

Upon reaching the principal balance (less than 80%), you can cancel the PMI. However, there are restrictions that govern the cancellation. If you successfully pay your mortgage halfway, there is a possibility of cancellation for your PMI. Before taking your mortgage loan in Ogden, your lender should tell how long it would take to reach the loan-to-value mark and inform you of mortgage cancellation options.

You might as well want to pay a little down payment, but consider the costs down the road. The large the down payment, the better the financing deal you land in terms of lesser fees and lower interest rate. Nevertheless, the process of getting yourself a mortgage is a result of your current and future financial capabilities.