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.

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/.

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.

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/.

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.

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/.

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.

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/.

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/.