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Viewing 15 posts - 1 through 15 (of 30 total)
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  • nhamilton
    Keymaster
    Post count: 30

    Hi Eliza, Each lender qualifies you differently using their own risk criteria and formulas. However credit scores are usually fixed in terms of number and often the number itself is what matters, not the history. Credit scores are created by a formula that weights things from your history in different ways. One idea is to try to boost your score using our credit guide, get things removed that are erroneous and also pay attention to the amount of credit you have versus how much credit you have used. That ratio is very important to your credit score in particular. So, accept the past but look to boost it in whatever ways that you can.

    nhamilton
    Keymaster
    Post count: 30

    Hi Eliza, the first step is figuring out for yourself how much YOU want to spend. A bank can decide how much they will qualify you for, but this should not be your guide. The work is to decide for yourself how much you want to spend on a property, given your unique financial goals. The next step after that is to find properties that fit within your budget. At any step you can ask a bank to qualify you for a mortgage based on the amount that YOU want to spend. Make sense? You can always ask a bank to qualify you above what you want to spend, but don’t SPEND more than you want to spend. 🙂

    nhamilton
    Keymaster
    Post count: 30

    Hi Eliza, a mortgage broker is simply an independent mortgage loan officer who has access to a number of different lenders. We always recommend that you include at least one mortgage broker in the mix as they can give you a good sense of the overall market, due to the fact that they deal with multiple lenders. However, just because they have access to many different lenders doesn’t mean going to a mortgage broker means you are shopping around! They have different deals with different lenders so it’s essential that you include other banks or brokers in the mix to make sure you are shopping effectively and competitively.

    A broker is not less reliable than a bank. A broker is simply a different type of mortgage professional.

    I hope that answers your question, but if not let me know so I can clarify further.

    nhamilton
    Keymaster
    Post count: 30

    Hi Dan, Did you request that the lenders send you the quote information in the Loan Estimate format? If so, then it should be complete. If not, you can look at an example of a Loan Estimate and request all of the categories that you see, and then confirm with the lender that you have all of the fee, insurance, etc. information so you can compare apples to apples.

    nhamilton
    Keymaster
    Post count: 30

    Hi Dan, Since lenders have different lending preferences and criteria it could be that one of the lenders can qualify you, or offer you a better rate, with more money down. I think the best way to weigh this advice is to think about your own personal finances in light of the offers that you have. It can be a very personal decision – how big a downpayment you can afford, vs. the trade offs for a better deal. I would strongly recommend that you add one or two other lenders to the mix. Who knows? Maybe you’ll find the sweet spot that’s right for you of downpayment + offer and the decision will become more clear with more information.

    nhamilton
    Keymaster
    Post count: 30
    in reply to: Tax documents #491

    Hi – While each bank has different lending requirements, most banks want to see the last two years. However, it doesn’t hurt to ask. But most likely the last two years are what a lender will use to qualify you.

    nhamilton
    Keymaster
    Post count: 30

    Hi Ann, you can find out your current equity by a very simple formula. Find out what your home is worth or estimate it by looking at properties similar that have sold recently. Then, subtract what you owe on your mortgage and any loans like HELOCs you have on the home. Equity is simply the portion of the home value you have, that you don’t owe to anyone else. Here’s an article on figuring out how much your home is worth: https://www.homeownering.com/blog/2017/09/01/find-housing-appreciation-data-area/

    nhamilton
    Keymaster
    Post count: 30

    Hi Ann, if you’ve found one, there are more out there who can help you. Here are some ideas for how to find more: 1) do a google maps search around the area the home is in for “mortgage brokers”. Mortgage brokers have access to many loans from many originators and so they can usually find a loan that fits your purposes. 2) do a google maps search for banks around the area the home is in. A lot of times local banks will be more familiar with appraisals and types of housing in their area and feel more comfortable lending. If you still can’t find any, come back and we’ll help you find some ourselves. 🙂

    nhamilton
    Keymaster
    Post count: 30

    Hi, Ann. Great question. This is a question we’ve gotten often – can you put down that a mortgage is a primary residence even if you plan to use it as a secondary residence or rent it out. This is because, yes, mortgages for primary residences are usually at better rates than for secondary, etc. We wrote a post on it because it’s a topic that is important and often asked about. Hope it is helpful: https://www.homeownering.com/blog/2020/12/28/what-if-you-say-that-your-mortgage-is-for-a-primary-residence-but-its-really-not/

    nhamilton
    Keymaster
    Post count: 30
    in reply to: Cranky loan officer #407

    Hi Tom – ha ha. Just like all of us, people can be cranky depending on what’s going on with their day. But if he’s rude, then I might worry he’s trying to discount you as a customer, so I’d proceed with caution and at the very least, don’t let him make you feel stupid so that you agree to something without being totally informed or comfortable.

    nhamilton
    Keymaster
    Post count: 30

    Hi – I think we answered your question awhile back over email but wanted to follow up and post an answer here so that others can see if they have the same issue. In the case of FHA loans, theoretically you’d get the same answer from all the loan officers on qualification because it’s a government backed loan and the government ultimately has to approve the loan applications. However, different loan officers have different priorities and may not want to prioritize your application given what else they have in their pipeline. So if you hit a roadblock with one, go back and find some more who can help you in the section where you find at least four loan officers. If one says you can qualify, there are likely more!

    nhamilton
    Keymaster
    Post count: 30
    in reply to: Informative movie #405

    Thank you! That’s great to hear.

    nhamilton
    Keymaster
    Post count: 30

    That’s amazing! Great work.

    nhamilton
    Keymaster
    Post count: 30

    Hi – I’ve heard about lenders lately who will offer a mortgage with a certain fee attached that is tied to the loan amount. This is often when you won’t quite qualify for their best products or it may be from a lender who is trying to reduce risk by tacking on fees. The 1% refers to a 1% of the total loan amount as a fee. In other words, in a loan that is $200,000, the 1% would be $2,000. These fees are usually “rolled in” which means added to the loan amount. So your loan amount would be $202,000 instead of $200,000. In our app, you would enter this loan amount that includes the fees in order to compare to other offers. Make sense? Let us know if you have additional questions.

    nhamilton
    Keymaster
    Post count: 30

    Hi – The best way to deal with this is as we outline in the steps that you gently make the loan officer aware that your other offers have better lender fee amounts. I assume you’ve tried this and have determined that they will not budge. It may rely a bit on whether you are dealing with a bank, which has set products of their own, or a mortgage broker, who will be an intermediary between you and the lender. In the case of a bank, they can have some wiggle room to shift fees around, offer different rate/fee combinations, etc. If you are dealing with a mortgage broker, they will be beholden to the terms of the lender and what the lender has fixed. Hope that sheds some light on the factors for you. Your best bet is, if they won’t budge of fees, to ask for other fee/interest rate/other factor combinations and then use our app to compare them. Or, they simply might not be able to budge in which case you make a decision on the offers you have.

Viewing 15 posts - 1 through 15 (of 30 total)