Why You Want To Shop Around For A Mortgage Lender
A home may be the largest single purchase that many consumers will make in their lifetime. As such, it will also generally take the longest to pay off. When taking out a loan to buy a home, the lower your interest rate, the less you will pay for your home over time.
How a Bank Statement Mortgage Works
A bank statement mortgage loan refers to a mortgage that relies on the applicant’s bank statements rather than the previous year’s W-2 forms as proof of income. It’s a convenient way for people who are not traditionally employed, including freelancers and small business owners, to qualify for a home or building loan. However, applicants may not be aware of this option if they do not work with an experienced mortgage loan officer.
Documents You Should Prepare Before Applying for a Mortgage When Self-Employed
Salaried employees with a W-2 often have an easier time applying for mortgages, leasing cars, and making other costly investments than individuals who are self-employed. A W-2 provides lenders with proof of stable and consistent income whereas self-employed applicants may be seen as a higher risk due to the unfixed nature of their business.
How Mortgage Providers Verify Income
When a person applies for a mortgage, one of the first steps is telling the provider how much income they have. This is a very important part of the mortgage process because it ensures that a person is not signing up for a mortgage they cannot ultimately afford. Understanding how providers will check to make sure all supplied information is accurate can help mortgage applicants make sure they are fully prepared for a mortgage. There are a few ways that providers can verify income.
How to Refinance Your Mortgage
Refinancing a mortgage can be a strategic way to improve how you pay for your home. Put simply, refinancing a mortgage entails paying off an existing home loan and obtaining a new one to replace it. The process can be costly, but many individuals see the value in refinancing their mortgage, especially for long term financial goals.
What to Do Before Applying for a Mortgage
Buying a house and applying for a mortgage are some of the biggest financial involvements most individuals experience in their lifetimes. By preparing for the application process, you can avoid unnecessary obstacles while expediting the process of approval. While securing a mortgage is relatively simple in most cases, you should do what you can beforehand to alleviate stress and ensure you have the best chances of obtaining a mortgage that suits your needs.
FHA Guidelines for Self-Employed Buyers in 2020
When you are self-employed, securing a mortgage or home loan can be challenging. Without the typical documentation of your income, some lenders may not be willing to loan you the funds necessary to purchase a home. Fortunately, there are non-traditional mortgages you can consider, and when it comes to applying for a Federal Housing Administration (FHA) loan, self-employed individuals should be aware of the guidelines that have been set in place.
What is a Subprime Loan?
Subprime loans are a type of financing offered by banks and lenders who charge higher than average interest rates and fees. In most cases, lenders offer subprime loans to borrowers who have poor credit and/or have had a recent derogatory event. Lenders make this type of financing available to consumers who have more risk factors than borrowers who have good credit to help protect the lenders’ finances.
How to Get a Mortgage When You’re Self-Employed
Applying for a mortgage can be a daunting task for anyone, especially first-time homebuyers, and when you are self-employed, the task can seem even more challenging. However, with more individuals being self-employed or earning income through alternative means, there are plenty of ways to apply and be approved for a mortgage.
Digital Mortgages and Old School Customer Service
We live in a digital world, from music and video to magazines and books, and even your bank account has become an instant access digital product. Digital is not a novelty though; digital products are easily accessible, convenient, and perfect for modern life on the go.