Mortgage Loan Information
Your Savings and Down Payment
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- Written by Haley Group
When preparing to buy a home, the first thing many home buyers do is look at "homes for sale" ads in newspapers, magazines and listings on the Internet. Some potential buyers read "how-to" articles like this one. The next thing you should do - before you call on an ad, before you talk to a Realtor, before you shop for interest rates - is look at your savings.
Documenting your Assets - Verifying Your Down Payment
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- Written by Haley Group
When buying a home, it is not enough to just "come up" with the money. With the exception of "no asset verification" loans, lenders want to verify where the money comes from. If you can document the funds comes from your personal savings, the lender is more confident of your strength as a borrower.
The Bi-Weekly Mortgage - Who Needs It?
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- Written by Haley Group
Have you received an advertisement offering to save you thousands of dollars on your thirty-year mortgage and cut years off your payments? With email "spam" becoming more pervasive as everyone tries to "get rich quick" on the Internet, these ads are popping up with troublesome regularity. The ads promote the "Biweekly Mortgage" and for the most part, do not come from a mortgage lender.
Closing Costs When Buying or Refinancing A Home
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- Written by Haley Group
This is a detailed summary of costs you may have to pay when you buy or refinance your home. They are listed in the order that they should appear on a Good Faith Estimate you obtain from a mortgage lender.
Which ARM is the Best Alternative
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- Written by Haley Group
How would you like a mortgage loan where you did not have to make the whole payment if you did not want to? Or would you like a loan with an interest rate about one percent below a thirty-year fixed rate mortgage and pay zero points? Or a loan where you did not have to document your income, savings history, or source of down payment? How would you like a mortgage payment of only 2.95 percent? You can have all that with the 11th District Cost of Funds (COFI) Adjustable Rate Mortgage.
What is a FICO Score?
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- Written by Haley Group
FICO stands for Fair Isaac & Company and is the name for the most well known credit scoring system, used by Experian. The credit bureau's computer evaluates a complete credit profile and assigns a score, which is used to estimate credit worthiness.
FICO Scores and Your Mortgage
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- Written by Haley Group
Three years ago, credit scoring had little to do with mortgage lending. When reviewing the credit worthiness of a borrower, an underwriter would make a subjective decision based on past payment history.
Then things changed.
Items You Need When Applying for a Loan
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- Written by Haley Group
It used to be that lenders mailed out verifications to employers, banks, mortgage companies, and so on, in order to verify the data supplied by borrowers. Nowadays, the interest is often in speed and getting answers quickly, so "alternate documentation" has become more widely used.
Where Does the Money for Mortgage Loans Come From?
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- Written by Haley Group
In the "olden" days, when someone wanted a home loan they walked downtown to the neighborhood bank or savings & loan. If the bank had extra funds laying around and considered you a good credit risk, they would lend you the money from their own funds.
It doesn't generally work like that anymore.
Types of Mortgage Lenders
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- Written by Haley Group
There are several different types of mortgage lenders out there. It is a good idea to know the differences and consider the pros and cons of each one when determining who to approach about your mortgage.
The Advantages of Different Types of Mortgage Lenders
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- Written by Haley Group
Loan officers and Realtors may have differing opinions when it comes to the best types of mortgage lenders. The truth of the matter is that each type of lender has their own strengths and weaknesses, and quality can vary depending on a number of factors.
The No-Cost Thirty Year Fixed Rate Mortgage
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- Written by Haley Group
There really is no such thing as a "no-cost" mortgage loan. There are always costs, such as appraisal fees, escrow fees, title insurance fees, document fees, processing fees, flood certification fees, recording fees, notary fees, tax service fees, wire fees, and so on, depending on whether the loan is a purchase or a refinance. The term "no-cost" actually means that your lender is paying the costs of the loan. All a "no cost" loan means is that there is no cost to you, the borrower.
Except that you pay a higher interest rate.