If you’re a military veteran, you’ll be glad to know that the Department of Veterans Affairs has a program to help you buy a home. This program, known as VA loans, makes it much easier for a veteran to get a VA mortgage through a private lender. The VA does not make loans directly and instead, guarantees home loans for veterans.
One advantage of a VA loan is that a down payment isn’t always necessary. Other advantages are that mortgage insurance is not required, plus there is no VA requirement of a minimum credit score.
VA loans are available to active duty military personnel and also military veterans, who generally find that they can qualify for a VA loan easier than a conventional mortgage, especially View full post…
Posted: November 14, 2018 Under: Mortgages By: Gust Lenglet
What is a mortgage preapproval and why would I want to get one? Short of a formal loan commitment, there are two types of letters that a lender will issue to help a house hunter in the purchase of a home.
A prequalification letter is one that is issued by a lender after reviewing certain financial information submitted by the buyer. This letter is rather broad and gives an estimate of the amount of a mortgage that the buyer may qualify for.
A preapproval letter is one that is issued by a lender after reviewing and verifying all of the financial documents that are required View full post…
Posted: October 30, 2018 Under: Mortgages By: Gust Lenglet
How To Know If a Mortgage Refinance Is Your Best Option?
When interest rates are low, applications for a mortgage refinance are a major portion of the total of all mortgage applications. This is due because when mortgage interest rates fall, many borrowers see an opportunity to restructure their debt hoping to get a more favorable rate or term.
Simply having a drop in mortgage interest rates doesn’t mean that its the right thing to do for everyone. We all have different situations and lifestyles and everyone doesn’t fit into the “average” cookie cutter mold. Because of this, the following 9 points may help you if you are considering refinancing your mortgage.
The equity in your home
Equity is one of the first items that a refinance lender will look at. If it’s not there within the banks’ guidelines, most conventional lenders will decline your request. During the last recession, many homeowners were underwater, some very deep.
The value of homes has been rising as of late and the number of underwater loans has dropped. This varies from state to state and is determined by a number of factors. If your home has little equity, a conventional lender probably View full post…
Posted: October 14, 2018 Under: Mortgages By: Gust Lenglet
How Do Reverse Mortgages Work? – The Ultimate Guide
If you’re getting near retirement age you may have come across this financial product. Just about everyone asks the same question, just how do reverse mortgages work? They continue to grow in popularity and the basics are relatively simple.
A reverse mortgage is designed for senior adults getting near retirement or already retired. Its similar to a conventional mortgage in one respect – it allows you to borrow against the equity that you have in your personal residence.
However, unlike a traditional mortgage where you are required to make monthly payments of principal and interest to repay the loan, with a reverse mortgage, you don’t. As long as you live in the home, none of the mortgages has to be repaid. Not until you sell the home, or it is no longer your personal residence, or the last borrower dies, is the loan repaid.
This program is administered by the FHA and does have certain conditions that must be met.
From a financial perspective, how do reverse mortgages work?
A reverse mortgage does differ from a conventional mortgage or a home equity loan. The latter two View full post…
Posted: September 30, 2018 Under: Mortgages By: Gust Lenglet
(BPT) – Buying a home is a major financial commitment. It’s exciting, but can also be confusing and overwhelming. Choosing the best mortgage that fits your needs is an important first step and first-time homebuyers in particular should research the many options and know the right questions to ask. Here are some questions to ask a lender when shopping for a mortgage that will help you make an informed mortgage decision:
* How much can I afford? A home affordability calculator can help you get an idea of what you may be able to afford and keep your monthly payments within your budget. In addition to recurring expenses like car payments, student loans, credit cards and disposable income, be sure to consider other monthly expenses related to the new home, like association fees, homeowners’ insurance, utilities and property taxes. Further, some types of mortgages have firm eligibility cutoffs related to the ratio between a buyer’s total debt amounts and their monthly income.
* How much do I need for a down payment? It’s a common misconception that a View full post…
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