Cross Country Mortgage Brighton Michigan : 2016

Tuesday, November 29, 2016

Helpful Mortgage Advice For 2017

Homeowners looking to refinance or hoping to buy a new home in 2017 all have one thing in common, they will all need to get the money to make it happen. Below you will find helpful advice that applies to mortgages in 2017.

Homeowners can make a small down payment or none at all: Mortgage brokersare constantly dispelling the myth that a twenty percent down payment is required. Some mortgages require no down payment at all or as little as three percent. Zero down mortgage options are available as part of programs through the VA, Rural Development and Navy Federal Credit Union for purchase of a primary residence.

Homeowners no longer need perfect credit: FHA loans are a popular option in lending when a homeowner has less than perfect credit. The average homeowner has a credit score of around six hundred eighty six. In order to qualify for an FHA mortgage homeowners must have a credit score of five hundred and eighty or higher with at least three point fiver percent interest down. If your score is lower than five hundred eighty, in order to get an FHA mortgage homeowners will need to have at least ten percent down and a mortgage lender that would give you the loan.

Homeowners should keep money in their saving: Most mortgage lenders do not like to see homeowners deplete their savings in order to buy a home. Houses come with unexpected expenses that will need to take care of and lenders expect that this can be done without having to miss making a home loan payment.

Homeowners can save a great deal by refinancing a fifteen year mortgage:Mortgage rates have been at all time lows for a while now so one can only assume that 2017 will bring a rise in interest rates. Refinancing is still an option many people turn to even after interest rates have risen for many reasons including: divorce, finally recovering from a low credit score, to get rid of their existing PMI, to cash out equity in the home or to save money in financing to a shorter mortgage period.

Homeowners should only borrow what they can afford to repay: It is important that homeowners don’t over stretch their payments. Do not get into a mortgage for more than you can afford no matter how appealing the home is. A good rule of thumb to live by is to never spend more than thirty six percent of your income before taxes on your mortgage and other financial obligations.

Cross Country Mortgage in Brighton, Michigan provide mortgage services for clients including new home loans, refinancing, reversed mortgages, new purchase home mortgages and home equity loans to the entire Livingston County area including Brighton, Howell and Livingston County. Cross Country Mortgage Brighton, MI at http://brightoncrosscountry.com/.

Taking The Plunge Into Homeownership

Are you ready to take the plunge into homeownership? The cost of renting has continued to increase while the costs of buying along with interest rates have continued plummeting. The purchase of your first home can be quiet daunting. The process of getting pre-approved for a mortgage, hiring a realtor, finding a home, getting it inspected, getting a mortgage and moving in is quite an undertaking. It is important to make each of the tasks as simple as possible to help avoid delays and mistakes. In this article we will offer suggestions for first-time buyers on qualifying for a home loan.

The first question that is most often asked is about the amount that is needed for a down payment. Most lenders require some sort of a down payment. It is possible to purchase a home without one however not the best option. Lenders use a combination of things to identify homeowners that qualify for a mortgage verse those that may be too risky to lend to. These identifiers include the borrower’s credit score and down payment information. The higher the ratio of property value to the amount the borrower needs the more qualified you become as a buyer.

It is important also for homeowner to understand truly how much they can afford to spend each month on a home before they even begin talking to a realtor. Many homeowners think that they need to find a home at the highest point at which they qualify. This however is not the case. Many borrowers find that a payment at this price point is just too high for them to afford. Don’t buy based on what you are qualified to receive instead look to purchase a home that you can comfortably afford.

It is important for borrowers to understand the difference between pre-approval and pre-qualification. In order to be pre-qualified does not access your credit. It allows you to compare loan details and interest rates without requiring your social security number or credit to be accessed. Pre-approval means that a lender has run your credit and evaluated your finances. A pre-approval is the most accurate way to shop for a home but does require a hard inquiry of your credit report.

Homeowners must also understand that their debt to income ratio is also a consideration in home loan financing. Your total debt including car loans, credit card bills, student loans and mortgage should be no more than thirty six percent of your gross income. This is the maximum amount that most mortgage company’s desire when lending money for a home loan.

Mortgage lenders will also look at your employment history when looking to lend you money for a home loan. They consider this an important consideration in the ability to repay a home loan. If you are a person that hops from job to job you are considered a higher risk than someone with a lower income that has been stably employed.

Monday, October 31, 2016

Considerations In Financing Your New Home

Before you purchase your first home and finance your very first mortgage there are a few things to consider. Consider the following as you embark on your new life journey into homeownership.

Before you hire a realtor or start looking at homes it is important to meet with a mortgage broker. Once you have met with a mortgage officer you can determine if you have credit problems that need to be solved prior to looking for a home. This meeting will also allow you to know exactly how much you can afford to spend on a house and an estimate of your monthly payment.

It is also important to pay off as much debt as you can before embarking into the great wide open of homeownership. It is important to get a grip on your income to debt ratio. Take into account all of the money that is coming in and the debts that you have going out. Make sure to consider all forms of income and debt. If the monthly house payment is more than forty three percent it is unlikely to get a mortgage. It is best to keep the monthly payment to thirty percent of your monthly income. The lower your debt to income ratio the more likely you will be approved for a mortgage and a lower interest rate then borrowers with a higher debt to income ratio.

It is important to get into good credit habits before you purchase a home. If you find that you are constantly missing payments on student loans or constantly paying bills late it will lower your credit score and hurt your chances at obtaining a home loan. When bills end up going into collections it can take months to clear up the mess.

Before you look into finding your first home take time to look into consolidating student loans. Refinancing student loans can decrease the monthly payment. It may make sense to increase the length of time you pay on your student loans in order to buy a home sooner.

It is important to present work history that shows consistency. If you have just graduated from college it may be best to take some time and establish yourself in your career before you look into purchasing a home. After you establish a pattern of working for two or more years you will look more appealing to home loan lenders.

When you apply for your first mortgage be prepared to document your finances. You will need to have copies of the past two years tax returns, bank statements, brokerage account documentation and documents that verify all sources of money that you have coming in. Mortgage brokers will verify employment, income and debt. This will occur at the beginning of the home loan process as well as a few days before the closing.

While you are applying for a home loan avoid putting anything on credit or applying for any new credit. Don't start buying things for a new home until you have the home. Once the process begins don't spend a dime on anything you don't have to. Avoid adding to your debt as any added expenses can jeopardize the process.

Meet with a mortgage broker that is willing to shop around for lenders that are offering the best rates, loan options and more. Work with brokers that present you with all of your options including loans where you pay fees upfront in the form of points, interest rates, no closing costs and more.

Before you buy a home or consider meeting with a mortgage broker be sure you have enough cash on hand to cover all of your costs. You will want to have enough money to cover the fees charged by the lender and closing agent as well as the expense of having the home inspected, appraised and surveyed. It is also important to note that most lenders require the first years home insurance and property taxes to be paid up front.

As a first time home buyer you may also consider looking into an FHA mortgage. When looking into this type of loan option it is important to understand that not only will you have to qualify so will the home. The house will need to meet certain criteria to get approved for a FHA mortgage as well.

It is important to be open throughout the process of getting a mortgage and buying a home. The process is not simple and will have bumps along the road but the journey will be well worth it when you walk through that open door into your brand new home.

Tips For Finding The Perfect Mortgage

Finding the right mortgage or home equity loan is not as simple as it sounds. It is a task that should not be taken lightly. In this installment on home loans and mortgages we will take a look into considerations homeowners need to make before, during and after the process.

Never base your mortgage options solely on the interest rate. You will end up incredibly disappointed if this is the sole determination for your mortgage. The entire process of obtaining a mortgage needs to be based on establishing a relationship in which you enter into an honest agreement that benefits both parties while navigating throughout the transaction.

A mortgage is one of several financial communications that should not be made solely through online transactions. Getting a mortgage is nothing like buying a new rug or planter; there are too many variables that arise throughout the process that can’t be effectively addressed online. This is not to say that mortgage seekers should exclude the internet in their search to find the best rate, calculate your potential loan and get other helpful information. It is not a wise option to work with an internet-only based mortgage specialist.

It is best to avoid interest only loans unless you are planning on moving shortly or that the home loan is a short term bridge loan or construction loan. When you take out an interest only loan you essentially never build any equity in your home. You are only paying interest without building ownership in your home.

Fees in home loans are normal. Just how much you can expect to pay will be dependent upon the loan option and the company which you get your mortgage through. Some fees in home loans are unavoidable while some are unnecessary and junk. Before agreeing on a mortgage and the fees that you will pay get a good faith statement that shows all of the fees associated with it.

Here are some fees to ask about:

Application Fee: The amount it will cost to process your mortgage application.

Points: The fees that are paid directly to a lender at the closing in exchange for a lower interest rate. One point basically equates to $1,000 for every $100,000.

Credit Evaluation: This is a fee that is paid to determine the borrower’s ability and willingness to pay.

Loan Processing: The loan processing fee is charged to cover the costs of processing the application including credit checks, property appraisals and admin expenses.

Appraisal Fee: This is the cost for a professional to come in and estimate the value of the home.

Title Search: The cost of a title search is typically between $75 to $100 dollars. The title search company will research the history of a title on the home.

Title Insurance: There are two forms of title insurance: lender's title insurance policies and owner's title insurance policies. This protects both you and the lender.

Documentation Fees: This is a fee for processing documentation for the mortgage.

Underwriting Fees: This is a series of loan fees, most often wrapped together including origination fees, appraisal fees, credit report fees and such.

Escrow Fees: Lenders require the borrower to include taxes and insurance premiums within their mortgage payments. These fees are placed in escrow, which is basically a holding account, until the payments are due. The fees are then paid out by the lender to the appropriate parties.

Look deeper into "junk fees" that some lenders will try to sneak in including: amortization schedule fee, trustee fee, financing statement fees, appraisal review fees and such.

Monday, September 26, 2016

Popular Mortgage Options In 2016 Continued

In our last installment on mortgage options we discussed three popular options including the thirty and fifteen year fixed rate mortgages and adjustable rate mortgages. Throughout this installment we will look into other popular options homeowners have when looking into financing a home.

Interest only mortgages can be either fixed or adjustable rate and offer homeowners the option to pay only the interest on their mortgage for a specific term between five to ten years. The loan is set up in a manner in which you can pay the interest only or interest and principle until the end of the interest only period. The risk of this type of loan option is that if the value of your home does not appreciate as you may expect when you decide to refinance your options could be limited.

If you are unable to refinance at the end of the interest only period you could be stuck with an incredibly high mortgage payment. Interest only loans offer a flexible payment option that allows you to buy more home than what you may be able to afford when you are initially buying. This makes a lot of sense for homeowners who know that they will be making more income in the future and therefore will be able to handle the higher payment.

Another option homeowners have when it comes to obtaining a mortgage is the flex pay payment option. With this type of mortgage the homeowner has the ability to pay a different amount each month. The monthly payment can include a low payment option, an interest only payment option and an interest plus principle option. This option is great for those homeowners without a steady income. It is incredibly flexible month to month. The major risk with this type of loan is that if you only pay the interest payment option and the home does not appreciate homeowners may find themselves owing more on their home than it is worth.

A balloon mortgage is a fixed short term mortgage that follows an amortization schedule similar to traditional fixed term mortgages. The terms of a balloon mortgage are three, five or seven years in which you pay interest and mortgage. At the end of the balloon term you need to come up with a manner in which to pay off the home, most often this comes from refinancing. The one drawback is if the interest rates at the end of the balloon period are high you will not have an option to wait until rates are better to refinance. This means that homeowners could be stuck with a higher than average mortgage payment.

It is important to sit down with a mortgage broker to discuss available options. Homeowners all have different financial situations and different monthly needs.

Popular Mortgage Options In 2016

When it comes to mortgage options there are more than a few options to choose from. In this installment we will look at popular mortgage options from fixed to adjustable, thirty to fifteen years and more.

The first option we will discuss is the most traditional type of mortgage available is the thirty year, fixed rate mortgage. This option offers a mortgage payment where the interest and mortgage payment stays the same for the entire life of the home loan. At the end of thirty years you will have completely paid off your home.

Thirty year mortgages are good for individuals who prefer the stability of a fixed monthly payment. It is important to note that these type of mortgage is often more expensive than their adjustable-rate counterpart. Homeowners are willing to pay the premium because this home loan is pretty straightforward, easy to understand and provides payment stability. This option is a solid bet for homeowners that are looking to stay in their homes for more than ten years.

Fifteen year mortgages are the exact same as thirty year mortgages but require less time to pay them back. The benefit of a fifteen year, fixed mortgage is the rate at which you are able to build equity in your home. If homeowners can afford the higher monthly payment that comes along with a fifteen year mortgage and they like the stability a fixed mortgage offers than this is a solid mortgage option.

Another popular option in mortgages is known as ARM’s, adjustable-rate mortgage. This mortgage option adjusts the interest rate that homeowners pay at a given time and frequency. There are a few ways that an ARM can work. Most often however the mortgage starts out offering a lower interest rate then what is found with a thirty year fixed rate mortgage and steadily adjusts with the market. When the initial rate period of the mortgage ends and the ARM adjusts you may end up with a higher payment than you originally started out with.

The major risk involved in an ARM is that there is not a guarantee on what your future payments will be. ARM’s do have many benefits that homeowners should consider when looking into a mortgage. For instance, ARM has a lower initial rate over a fixed mortgage. A lower initial payment allows buyers to afford more house than they would have with a fixed rate mortgage. It is also advantageous to have an ARM if it is believed that the interest rates will lower in the future.

In our next installment we will look into more popular options in mortgages from interest only to balloon mortgages.

Monday, August 15, 2016

Buying A Home With A Less Than Stellar Credit Rating

Are you starting to consider buying a home? If so you have probably heard how important your credit score is in obtaining a mortgage. It is possible that you may have been previously turned down for a home loan because of your poor credit. Or that you have pulled your credit report to realize that your credit rating is far worse then you thought it was. Whatever the case may don’t give up on buying a home just yet. Even with a credit score that is too low for a conventional thirty year mortgage there are numerous options you can look into for financing a home. You might be surprised by what a mortgage broker can do to help your situation.

First off be aware what lenders are looking for when lending money to individuals for a conventional mortgage. A general rule of thumb is that a borrower should consider saving at least twenty percent of homes price for a down payment and a FICO score of about six hundred fifty to receive a conventional mortgage with a low interest rate.

There are a host of things that lenders look at when deciding whether or not a borrower is a worthy risk. One of the major factors, as previously discussed is a person’s credit score. Another element that borrowers use is the amount that borrowers have for a down payment. It is possible to offset a lower credit score with a higher down payment. Lenders are apt to believe that you are less of a risk the more equity that is invested into the home. Your personal interest in the home is greater and therefore lenders believe you are a better risk.

If you have a less than perfect credit score and a small down payment don’t count yourself out of the mortgage game yet. Talk with a mortgage broker about various non-conventional loan options. Some options include: FHA loans, VA loans or U.S. Department of Agriculture loans are all options with less stringent guidelines then conventional mortgages.

If none of these options pan out consider working on getting your credit score up, saving money and working towards financing a mortgage in two to three years when your financial situation has recovered. There are many ways to work towards a better credit score including:

Take care of correcting errors in your existing credit report especially with collection agencies and late payments.
Make payments on time all the time.
Pay down the balances on revolving credit cards to decrease your debt to income ratio.
Give yourself some time to build your savings.

Work with a mortgage broker to discuss options that are available today.

The Difference Between Mortgage Brokers and Banks

Are you looking into financing the purchase of a new home? You may be overwhelmed at the possibilities that exist within the mortgage industry. There are numerous options and channels that can be used to obtain a mortgage. In this article we will focus on two specific areas, mortgage brokers versus banks.

Mortgage brokers work as a middle man between lenders and borrowers. The broker works to secure several best case scenario’s for borrowers to choose from a variety of lenders. A borrower is allowed to compare and contrast the options that are available, using the knowledge and assistance of a mortgage broker. Mortgage brokers account for more than ten percent of the mortgage financing on all home loan originations. When the real estate market was in full bloom mortgage brokers peaked, accounting for thirty percent of loan beginnings.

Borrowers working with a bank are in more of a retail situation. A bank or financial lending institution states what their best available offer is, given the borrowers situation and they can either choose to accept the offer or continuing searching competitors for a better offer.

As with all financial transactions there are positives and negatives of both channels of obtaining financing for your mortgage. Some situations leave you with no alternative but to choose one over the other. If you are a borrower working with a poor credit or a loan situation that is a bit trickier than what is normal a mortgage broker may be your only option to finding a loan that works for you.

Most homeowners find themselves turning to their bank or financial institution when they find they are in need of a mortgage or begin looking into refinancing options. However, when they have trouble qualifying for a loan through their own bank many turn to mortgage brokers. Don’t assume that rates and loan options won’t be as competitive when using a mortgage broker over a bank. Many times options that brokers find for borrowers are as competitive as those from a bank. Be sure to work with a broker that is not taking abundance off the top before selling borrowers the loan. In actuality, wholesale mortgage rates can often be cheaper than what borrowers can find at local banks.

Bank Positives

Relationship building and the connection between community and your finances
Adding to an existing financial profile
Personal relationship with the lender

Broker Positives:

Brokers do all the leg work
Brokers compare rates from numerous banks and lenders all at one time
More loan options available
Can help with poor or tricky credit situations

Bank Negatives:

More conservative loan options
Lengthy and bureaucratic process
Incompetence because of high turn over

Mortgage Negatives:

May overcharge for services
Access to select bank programs
Lack of control for the borrower

Mortgage brokers are a great option for borrowers who are looking to compare multiple options all at one time without spending day in and day out searching around for available options. Borrowers with excellent credit and a solid relationship with their banks may find that working with their bank to locate a mortgage is better for them.

Monday, July 25, 2016

Refinancing With A Low Credit Score

Interest rates are at historic lows. More homeowners than ever before are considering refinancing. Think about it interest rates in 1998 for a 30 year fixed mortgage were on average about seven percent; today interest rates sit at an average of between three and three and a half percent. That is a huge savings for homeowners not just each month but over the entire course of owning the home. Refinancing allows homeowners to lower their monthly payment which can allow many to use the extra money for upgrades to the home that increase the value of the home overall. One problem that plagues some homeowners is less than stellar credit.

Homeowners with poor credit ratings can have a difficult time refinancing their current mortgage. Often this goes unrecognized until you begin the process of refinancing. Homeowners often think they are basically refinancing the same mortgage amount just for a lesser interest rate so why does it matter if their current credit isn’t up to par. For them it is the same mortgage just at a lower interest rate. This however is not how mortgage lenders see it.

Credit scores are used to determine an individual’s ability to pay debt back in full. A low credit score gives lenders the impression that you are taking on too much debt for the income that you have coming in. The snap shot of your current financial situation puts you at a higher risk then when you financed your original mortgage. The scores of an individual’s credit can range between three hundred, at its lowest, to eight hundred and fifty, at its highest.

Homeowners will pay lower interest rates with higher credit scores. With less than stellar credit it’s important to make sure that the savings you are looking for with the lower interest rate will really exist for you. You need to consider the actual rate you will be given. A homeowner with an eight hundred and fifty credit rating will receive a lower interest rate than those with poor credit.

Refinancing doesn’t always make sense for homeowners that have poor credit after they take into consideration an extended loan term, closing costs, loan fees, and more. When combining these concerns it maybe that refinancing actually increase the overall cost of your mortgage even with the lower interest rate.

When your credit is less than perfect it is especially important to work with a mortgage broker to find the mortgage refinancing option that works best for your situation.

Seeking Out Non-Traditional Financing For Mortgages

There are times when an individual’s credit rating doesn’t match their intentions. When a borrower has met with the unexpected in life such as a divorce, medical bills, job losses or poor money management it can wreak havoc on their opportunities to get financing. This can deter many individuals, especially when wanting to obtain a mortgage, discouraged. The thought is that people with poor credit will never achieve homeownership however this is not necessarily the case. People seeking home ownership with less than perfect credit should work with a mortgage broker to search out non-traditional methods and more creative financing to obtain a home loan.

The first step that people with poor credit should do when considering the possibilities of a future home purchase is to start to take steps to improve their credit. A lengthy history of delinquent payments isn’t a good thing but the change in those habits can be. A change in the habits you have with your bill paying can help creditors see that you are working towards change. Start by resolving to pay down debt to less than thirty percent of your available credit line. Don’t apply for more credit, pay creditors on time and eventually you will start to improve your credit score.

Mortgage lenders will want to see that you have history making a payment for housing. It may make sense to rent for two years to establish a housing payment history. During that time make sure that the payment for your rent is paid for on time, every month. An occasional late car payment or credit card payment could be overlooked but it is crucial that mortgage lenders see your ability to pay housing consecutively for at least two years prior to receiving a mortgage.

During the time you are renting, work to save money for a down payment. The larger the down payment on the home the more vested lenders will view you. A solid down payment for a first time home buyer is twenty percent even though there are mortgage options that don’t require this large of a down payment it helps those with poor credit.

Another feasible option for homeowners with imperfect credit is to find a lease option that can lead into the possibility of ownership. Motivated sellers can often be talked into a purchase agreement with an unconventional twist. If you find the right seller you can even work in a deal where they use the money paid on leasing as payment towards the home.

A mortgage broker is the first individual that most individuals with poor credit should speak with before even thinking about looking for a home to buy. Loan brokers have seen it all, more than your credit situation is not unique.

Wednesday, June 29, 2016

Prepare For the Spring Real Estate Rush

When it comes to real estate the busiest buying season of the year for residential real estate is the spring. The long northern winters make buyers and sellers alike ready to take advantage of the nicer weather and jump into the real estate market. No matter whether you are a first time home buyer or you have been in the market awhile there are some essential home buying tips to follow in order to ensure you find the home of your dreams.

Tip #1 For Buying A Home: Enlist the Assistance of a Professional Real Estate Agent

When it comes to buying a home it is important that you enlist the help pf a professional real estate agent. It is important to find an agent that is local to the area that make the challenge of narrowing down your search for the perfect home a whole lot easier. Real estate professionals have the inside scoop on homes in their market this is incredibly crucial when looking for a home during the spring when the market is active and full of buyers.

Tip #2 For Buying A Home: Make a List of That Includes Your Needs and Wants

Understand what you need and want in a home. A home isn’t only about the actual house it is a total package the neighborhood, the property and more. Some needs may be a certain number of bedrooms and bathrooms, a garage and a fenced in yard. Wants are things that aren’t needed but desired such as a gourmet kitchen, a weight room or an in-ground swimming pool.

Tip #3 For Buying A Home: Get Pre-Qualified For a Mortgage

Sellers are more apt to approve an offer from buyers who are already pre-approved. It is also an important measure in the hunt for the perfect home. A mistake that buyers often make is over estimating just how much they can afford. Meet with a mortgage broker as soon as you start thinking about purchasing a home. Mortgage brokers will give you several mortgage options for your financial situation which will allow you to know the price range of homes that you should be looking at.

Tip #4 For Buying A Home: Keep Your Numbers Top of Mind

Don’t assume that the mortgage payment is the only payment that will increase when you purchase a home. You will not only need to know the monthly payments it will be important to know the cost of PMI, primary mortgage insurance, the tax expense, water and sewer bills, extra utility costs and more.

Tip #5 For Buying A Home: Prepare Documentation Ahead of Time

In order to ensure the entire process of finding a home and financing that home is smooth buyers should prepare for the onslaught of paperwork. Begin the process by compiling needed documents into a single location. You will want copies of government issued identification, tax returns, pay stub information, bank statements, investment documentation and anything that stats your income and debt.

These five tips can make the home buying process a whole lot simpler. No matter if you are a first time home buyer or have been a part of the real estate market for a number of years these tips can help make sure you get the home of your dreams.

Cross Country Mortgage in Brighton, Michigan provide mortgage services for clients including new home loans, refinancing, reversed mortgages, new purchase home mortgages and home equity loans to the entire Livingston County area including Brighton, Howell and Livingston County. Cross Country Mortgage Brighton, MI at http://brightoncrosscountry.com/.

Mortgage Brokers Bridging The Gabe Between Lenders and Borrowers

Let’s face it most of us are not the ideal borrower. We don’t all have good credit ratings, substantial down payments, low debt to income ratios and more. In fact most borrowers have credit problems and obstacles to overcome when trying to meet lender requirements especially when seeking to refinance or to obtain a new home mortgage.

There are however, solutions to these common problems faced by both mortgage lenders and borrows. A mortgage broker can often help assistance to bridge the gap between lenders and borrowers.

Blemished credit is a common issue that can occur when borrowers have had issues making payments to past creditors. If you have a history of non payments, late payments or accounts that are delinquent you will have to face these problems head on. When your credit is evaluated lenders will see these blemishes negatively and may be reluctant to approve your loan.

There is not a sure fire way to improve your credit score immediately. It will take some time but if you take action sooner than later it will show lenders that you are serious about getting your credit history together. Be upfront with your mortgage broker so that they can address your credit issues head on when looking for a home loan that works for you both. Offer an explanation as to why there were issues in credit such as the loss of a job, a serious illness or other event that resulted in the inability to pay your bills on time. Mortgage brokers may suggest that you seek out a cosigner for your mortgage. This person should have an exceptional credit history along with a high credit rating.

If you are seeking to buy a fixer upper or cooperative apartment it will be difficult to find a lender. The reason is that there are already complexities when it comes to buying into cooperative living situations. The mortgage on a cooperative apartment is different than that of a standard mortgage.
Homes that require a great deal of repairs before they are considered safe are also hard to get mortgages on. These repairs can be quiet expensive and often exceed three percent of the homes overall value. This makes getting a mortgage loan problematic. A lender may be more apt to present a borrower with the option of two separate loans. A mortgage may be given to purchase the home and a construction loan to make necessary repairs and improvements.

More issues that can cause borrowers headaches in lending are:

A low appraisal on the home
A high debt to income ratio
A low income

Don’t let these issues worry you. Strap on your creative boots while working directly with mortgage broker that has connections within the lending industry to seek the best mortgage option for your situation.

Cross Country Mortgage in Brighton, Michigan provide mortgage services for clients including new home loans, refinancing, reversed mortgages, new purchase home mortgages and home equity loans to the entire Livingston County area including Brighton, Howell and Livingston County. Cross Country Mortgage Brighton, MI at http://brightoncrosscountry.com/.

Tuesday, May 31, 2016

Finding A Reputable Mortgage Broker This Spring Buying Season

When it comes to finding a mortgage broker there is a huge difference between finding one that is looking out for their clients best interest verse one that is looking to pad their own pocket. One way to start the process of finding a mortgage broker that is reputable, reliable and working to ensure you get a mortgage that best fits your needs is to ask your real estate agent, friends, family, co workers and other homeowners for recommendations.

It is crucial that you look for a specialist that is offers experience on top of patience. This is especially true if it is your first time looking to finance a home. Working with a broker that takes their time and can explain complicated financing in terms you can understand is vital. A broker that doesn’t take time to help you understand the home loan process as well as the different loan options available isn’t worth a dime of your money.

From the recommendations you are given start out interviewing two or three prospective mortgage brokers. Find out about their past experience and certifications. Ask about the number of residential mortgage loans they have brokered specifically for homeowners in situations similar to your own. Will they be able to broker a deal on an FHA loan or a government backed home loan? When interviewing perspective brokers ask for the names and numbers of references. Make the call to ask the references how satisfied they were throughout the process and if they are happy with the loan options they were given and finally settled upon. Talk about their communication with the broker. How accessible was the broker at various times during the mortgage process.

Many new homeowners don’t understand the difference between mortgage brokers and mortgage lenders. Some homeowners choose to work directly with a bank, credit union or commercial lender. If you decide to get a mortgage directly through a financial institution you will be dealing with one person, mortgage banker or loan officer. The duties are similar to that of a mortgage broker however they don’t search for loan throughout the entire loan market. Instead a loan officer only offers mortgage options from the financial institution they represent.

The loan officer, like a mortgage broker will help facilitate paperwork, applications and appraisals. Once you choose a bank to work with however you are stuck with the loan officer they give you unlike if you were working with a mortgage broker. There is not as much client control or personal contact when working with a loan officer. Many work mainly from email. Whereas when working with a mortgage broker you get plenty of individual contact as the broker works directly with you to understand your specific situation. They build a list of options from several lenders for you to choose from, offer the benefits and drawbacks of each mortgage option.

Tuesday, May 24, 2016

Finding The Best Mortgage Using A Broker

Buying a home for most of us means getting a mortgage. Homebuyers looking for a mortgage look towards a mortgage broker to finance their home loans. A mortgage broker consists of a group of professionals specializing in relationships with loaning lenders in order to provide the best option for each individual’s unique situation. Brokers perform as an agent for their clients. These licensed, certified mortgage experts take into account each buyer’s financial situation and goals in order to find mortgage options that fit their particular needs.

How Mortgage Brokers Help Clients Find the Best Mortgage

Mortgage consults speak with individuals looking to finance a home about their current financial situation and future goals.
Mortgage professionals locate and discuss home loan financing options that are available to individual homebuyer’s situation.
Mortgage experts support clients throughout the preapproval process.

After the preapproval process is complete mortgage brokers will step aside and their clients will work directly with a real estate professional to find the home of their dreams. The process of finding a home, putting in an offer and having it accepted takes on average between thirty and forty days. Once this process is complete and a home has been decided upon a closing date will be set. At this point mortgage brokers become crucial.

Mortgage brokers work feverishly to complete the home loan application. At this point the amount that is needed to be financed will be known and the application can be submitted. During this process employment & wages are confirmed, financial information including a credit report and other documentation required by lenders is obtained.
Once a loan is approved, mortgage specialists work with their clients to go over all of the loan documentation, coordinate property appraisals and work as a liaison between the lender and borrow up until the closing date.

Mortgage brokers mark up the cost of the home loan as compensation for facilitating the entire home loan process. This gets passed on to the recipient of the home loan through points, processing fees or higher interest rates on the mortgage. When better loans or rates become available mortgage consultants will get in touch with previous clients to discuss refinancing options. Clients also approach brokers they have previously used when they are in need of home equity loans or when seeking refinancing for their own needs such as using the equity in their homes to pay off outstanding debts with higher interest rates.

Thursday, May 5, 2016

Buying A Home With Less Than Perfect Credit

Buying a home is a large financial commitment. Often times the buyers credit score affects their ability to obtain a mortgage especially when their FICO scores are below 620. What is an individual who is looking to purchase a home do to ensure that even with less than perfect credit do to obtain a mortgage?

One thing that is helping individuals with a poor credit score obtain a mortgage is that FICO scores are putting less weight on medical bill collections. Medical bills actually account for more than half of all unpaid collections on consumers’ credit reports. Below are a few things to consider when getting a mortgage with a FICO score of 620 or below.

Get Ready To Shell Out A Bit More: Individuals looking to acquire a mortgage with less than perfect credit they should expect that they will pay more than those with credit scores on margin or better. If you have gone through a short sale it is advisable to wait at least two years before trying to obtain a new home loan.

Recognize That You Will Want To Refinance ASAP: A buyer that obtains a mortgage with imperfect credit should look to refinance in two years once they have improved their credit score. A mortgage with bad credit is only a short term solution that gets buyers into a home. Never allow bad credit to follow you any longer than it needs to. Refinancing to a lower interest rate as credit scores increase is a way to ensure that doesn’t happen.

Speak With A Mortgage Broker Regarding Your Options: There are many different options in regards to obtaining a mortgage. A popular option is a thirty year mortgage; this however may not be the best option with a low credit rating. Check with a mortgage broker to look at other options such as an adjustable rate mortgage. This is one way to borrow money for a home loan while helping to repair and maintain a better credit score. Often times an adjustable interest rate is lower than a fixed mortgage rate, at least in the short term.

Seek Out A Co-Signer: If a borrower has other assets, they may be able to secure a better mortgage interest rate when securing a home loan with a co-signer. Check with the Federal Housing Administration about having a co-signer on the loan. When damaged credit is involved it is particularly important to check with HUD, FHA, the FHFA, Fannie Mae and Freddie Mac to help along the way to homeownership even with poor credit.

Wednesday, April 27, 2016

Qualifying For A Home Loan In 2016

Getting approved for a mortgage loan is not something that is second nature to most of us. It is something many will only do a handful of times in their lives. With concern in the market about rising interest rates the spring of 2016 is seeing many first time home buyers jumping in on the real estate scene.

Qualifying for a home loan isn’t as simple as getting a car loan which is something first time home purchasers don’t realize. Put your anxiety to rest with proper preparations. Educate yourself on the preapproval process, home buying process, mortgage process in order to less the stress that comes along from those unexpected surprises that occur along the way.

First things first; if you are thinking about purchasing a home anytime soon take a few minutes and pull a copy of your recent credit report. Your credit score will be one of the most crucial elements in identifying your credit worthiness. This numbers allows lenders to place a value on how risky lending money to you is. Don’t assume your credit is good enough to qualify for a home loan. Take the time to review your entire credit report. Take time to clean up any errors that exist while working to maintain on-time payments decreasing your overall debt ratio.

Cash is king. When you are looking to purchase a home it is crucial that you have access to cash. Mortgage companies differ in the loans that are offered to individuals. Most companies however require a substantial down payment to ensure that the individual is vested in the purchase. Without a reasonable down payment home purchasers are often penalized by having to take out private mortgage insurance. This can add hundreds of dollars to your monthly mortgage payment none of which is applied to your actual mortgage premium.

Stay working at your current job until after you have received a mortgage. Changes in employment while applying for a mortgage can stop or greatly delay the process. It is crucial that you stick with your employer and your current income status throughout the mortgage process in order for a smooth transaction.

In the months before obtaining a mortgage preapproval it is important that you work to save money, pay down debt and that you avoid any new debt. This doesn’t mean you have to have all of your credit cards and loans paid off in order to obtain a mortgage but lenders will look at your debt to income ratio when determining how much you can afford to take on.

Just because you are preapproved for a mortgage doesn’t mean that you have to purchase a home of that value. It is important that you are comfortable with the payment. If you are used to traveling or such and will not want to stop doing that just because you now own a home consider that when looking at houses to buy. It is okay to buy a home that has a comfortable monthly payment over one to fulfill the preapproval amount. Just because it costs more doesn’t make it right for you.

There is a lot of consideration that go into obtaining a mortgage. When getting serious about finding a home meet with a local mortgage broker to go over available options and to begin the preapproval process. This will ensure that you have the right guidance throughout one of the largest financial commitments you will make in your lifetime.

Cross Country Mortgage in Brighton, Michigan provide mortgage services for clients including new home loans, refinancing, reversed mortgages, new purchase home mortgages and home equity loans to the entire Livingston County area including Brighton, Howell and Livingston County. Cross Country Mortgage Brighton, MI at http://brightoncrosscountry.com/.

Monday, March 28, 2016

Tips On Qualifying For The Lowest Mortgage Rate and Best Home Loan

2015 was a year known for consistency when it comes to mortgage rates. On average home loan rates stayed around four percent throughout the year. The same is not to be expected for mortgage rates in 2016. The National Association of Realtors says it expects to see rates upwards of four point five percent by the end of 2016. The rise in interest rates will have an effect on the housing market. It is important to note that even with the increase expected to be seen during the year that the rates being seen are still at an all time low. It isn’t necessary to panic but instead to be cautious when seeking to buy a new home or refinance and existing loan.

To ensure you qualify for the lowest mortgage rate and best possible home loan follow the advice below.

Enhance Your Credit Summary: A lender first looks at a buyer’s credit profile on a whole when determining if they are a financial risk that they are willing to take on. When you are looking to buy a home or refinance an existing loan it is important to manage your current debit. Be sure to pay your bills on time and pay more than the minimum on all outstanding credit card balances.
Start Hording Funds For A Down Payment: When a buyer puts less than twenty percent down on their new home they are often forced to pay what is known as PMI, primary mortgage insurance. This can raise the monthly payment of your loan upwards of fifty dollars each month. These funds go towards an insurance that is paid on your behalf to the mortgage lender to insure the mortgage. It is better to have fifty extra dollars each month going on the principle mortgage payment over insurance. A home can be purchase with less than twenty percent down however buyers should be conscience of the extra monthly expense.
Work With A Mortgage Broker: So much more goes into obtaining a mortgage than just finding a low interest rate. There are many programs available to home buyers as well as an abundance of financing options. A mortgage broker can help find a loan that caters to your specific financial situation. They will seek out a variety of options from a variety of lenders and present you with the best scenarios from each to assure you are getting the best deal for your all around situation.
Learn About Loan Types: As mentioned above there are several types of mortgages available. Just because a friend has a fixed rate, thirty year mortgage does not mean that is the best option for you. The same is true for an adjustable rate home loan. Different situations call for different mortgages. Learn about each option and ask about how each will affect your mortgage.

Buying a home is a complex process. Working with professionals within the industry will help smooth the transition into home ownership. It is advantageous for buyers to seek assistance from real estate professionals, mortgage experts, home inspectors and real estate lawyers when purchasing a home. This will help to ensure a positive transaction and beginning in your new home.

Thursday, March 17, 2016

It’s Time To Buy A Home

The busiest season for the real estate industry is the spring. With temperatures on the rise signs of life begin to be seen all around us. Flowers are blossoming, trees are blooming and homeowners are hitting the market with fresh listings. With spring comes a renewal in life, potential and inspiration. Spring is seen as the perfect time to take on a new adventure.

This is just one of the reasons why we see an increase in real estate transactions. Both buyers and sellers alike are looking to find a perfect match and be on the path of a new journey. Many real estate articles are centered on sellers and tips to selling a home however this leaves many buyers looking for tips of their own. Below buyers will find helpful industry tips to successfully purchase a home this spring.

1)      Hire A Real Estate Professional

A real estate agent is so important to the home buying process. An agent that specializes in local real estate serves so many purposes from tour guide to financial advocate. Hire an experienced agent. When chosen carefully a realtor will represent your best interests in all transactions throughout the entire buying process. Buyers agents not only work to find the buyer the home of their dreams, they help with contractual paperwork, all negotiations, home inspections and concerns as they arise during the process.

Many buyers believe they cannot afford a real estate agent. This is however the furthest thing from the truth. In fact you can’t afford not to hire a realtor. It costs nothing to hire a buyer’s agent; in fact the seller of your dream home pays the commission so you have nothing to lose.

2)      Get a Financial Profile Analysis and Mortgage Pre-Approval

Come up with a budget that helps you determine how much you are comfortable spending. This is a good place to start initially. Once this is completed it is important that you meet with a mortgage broker to examine how much money you are qualified to borrow. Do these two things before ever touring a home. If you meet with a mortgage specialists who says you are pre-approved for a two hundred thousand dollar mortgage but you are not comfortable with the monthly mortgage payment that comes along with it don’t tour homes with that price point.

Pre-approval on a mortgage helps to ensure that you will be taken seriously by sellers. It is more likely with a pre-approval that the bid you submit will be taken serious and that sellers will see you as an attractive buyer.

3)      Determine Your Needs Verse Your Wants

All buyers have their own list of needs when looking at buying a home. Some families want to live near a good school system; others want big yards with area for their children and pets to roam. Some want easy commutes to work or specialized rooms like libraries and woodworking. Only you as a buyer can articulate what you desire out of your new home. Be sure to create a detailed list of the musts such as three bedrooms and two baths along with a list of wants such as a large basement and laundry off the kitchen. This will help to ensure that the real estate agent can better access homes to make sure they aren’t wasting your time or theirs on homes that don’t meet your needs.

The process of buying a home is simplified with the help of a professional real estate agent. Find a local realtor online to help you through the home buying process. Find out more about hiring a real estate agent who is ideal to assist in the home buying process on our blog.

Tuesday, February 23, 2016

Getting A Mortgage With Less Than Perfect Credit

Many people seeking to purchase a home think that because of their less than perfect credit score that they are not going to be eligible for a home loan. This is no longer the case. With less stringent requirements, more flexible mortgage options and historically low interest rates on home loans getting an affordable home loan even with a low credit score is feasible. Here are a few things that you will need to take into consideration if you are seeking a mortgage with a low credit score.

Be Prepared To Pay More

Although homeowners with bad credit can be approved for mortgages it is important that they realize they will be paying more than those with decent credit scores. Be careful when seeking out a mortgage broker to be sure you are working with a home loan officer looking to provide you with the best mortgage for you. Watch out for dodgy characters looking to prey on individuals who they view as less than financially savvy because of their low credit scores. This is often the perception of buyers with less than perfect credit scores.

Refinance As Soon As Possible

Don’t think that a low credit score means you are signing your life away when you purchase a home. Buying a home should never be viewed as a bad deal. It does however mean that you need to maintain and improve upon your credit and refinance as soon as you are no longer viewed as a risk to lenders. This can take as little as two years if you are consciously working to improve your debit to credit ratio. A home loan when you have a low credit rating should be seen as a short term solution that is used to get you into a home while you work on improving your credit. It is always a better solution to sock away money into the equity of a home than wasting money on rent payments.

Understand Your Options

Work with a mortgage officer that specializes in obtaining mortgages with less than perfect credit. Ask about the available options. Although thirty year fixed mortgages are popular this does not mean it is the right option for your situation. An adjustable rate mortgage may be a better option while you work on fixing your credit score. Many people fell on hard times during the recent recession that are not typically bill skippers. Hard-working, responsible people often have legitimate reasons for falling into a vicious cycle of late payments. Consider all of the options you have when you are looking to become a new home owner.

Obtain A Co-Signer

If you have a substantial number of assets with equity you may not need a co-signer even with poor credit. Items such as motor homes, cars paid in full all work as forms of collateral against default on a mortgage and are seen as beneficial to lenders. However, if this is not the case you may need to look for a relative who is willing to sign on your behalf. A co-signer is essentially agreeing to make payments on your behalf if your loan should default at any time.

Although homeowners with credit on margin will pay lower rates than those with less than perfect credit it is possible for most everyone to obtain a mortgage in 2016.