Tag Archives: Mortgage

5 Things You Need to Get Pre-approved for a Home Loan

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Looking for a house before getting pre-approved for a mortgage is like walking into a grocery store without a wallet. There’s nothing more disappointing than finding your dream house and then discovering you can’t afford it. To ensure that you have the best shot at getting the home you want, you need to obtain a mortgage pre-approval from a lender. It is a reasonable assurance you’ll be approved for a loan.
Here are the 5 things you’ll need to get pre-approved for a home loan:

  1. Proof of income. A record of employment income such as a paystub, T-4 slip or a personal income tax return (if you are self-employed, at least two years of Personal Income Tax Returns and Financial Statements) Proof of any additional income such as alimony or bonuses.
  2. Proof of assets. To prove that you have funds for the down payment and closing costs, you will need to present bank statements and investment account statements as well as cash reserves. Assets may include vehicles, retirement savings account, jewelry, collections and other real estate holdings.
  3. Your credit score. The loan officer will actually do this part for you! You’ll need to provide them with some key information so they can pull your credit. A “good” credit score depends on the scoring system used by your particular lender. Different scoring systems use different scales, and they each develop their own credit score range. Customers with a higher credit score will be able to get lower interest rates which will affect how much you can afford.
  4. Employment Verification. Not only will your loan officer want to see your pay stubs, but they are likely to call your employer to verify if you’re still employed and check on your salary. Today, lenders want to make sure that they are loaning money only to borrowers with stable employment. Borrowers who are self-employed still need to provide additional paperwork concerning their income and business.            
  5. Be ready to provide any additional paperwork requested by the loan officer as quickly as possible. The more cooperative you are, the smoother the transaction will be and the sooner you can find your new home.

The bottom line is by getting a pre-approval first before looking for a house can save a lot of disappointment and heartache later. By doing so, you also have an opportunity to discuss loan options and budgeting with a professional. If you’re interested in talking with a loan officer to learn about your credit score, you’re price point, or a home mortgage, Click here to contact our trusted loan officer John Roehrich.

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HARP Refinance Program

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The time to act is right now! HARP, a refinance program that has been around since April, 2009, can assist homeowners who owe more on their homes then the homes are worth! HARP stands for “Home Affordable Refinance Program/Plan” and allows you to refinance your home at low rates, and reduce your payment. The program is also known as Making Home Affordable, the Obama Refi, A Better Bargain For U.S. Homeowners, DU Refi Plus, and Relief Refinance.

The basic HARP Requirements are as follows:

  1. The mortgage must be owned or guaranteed by Freddie Mac or Fannie Mae.
  2. The mortgage must have been sold to Fannie Mae or Freddie Mac on or before May 31, 2009.
  3. The mortgage cannot have been refinanced under HARP previously unless it is a Fannie Mae loan that was refinanced under HARP from March-May, 2009.
  4. The borrower must be current on the mortgage at the time of the refinance, with no late payment in the past six months and no more than one late payment in the past 12 months.

The reason to act now, is that this program is set to expire on December 31st, 2015.

Here are some benefits to the program:

  • The average monthly savings for most eligible Americans is $250.
  • Many homeowners not only save every month, but depending on their current rates, they can also shorten their term.
  • Deferred payments – typically, one or two payments are skipped / deferred as well.

Our trusted loan officer John Roehrich with Homes Mortgage has offered some wonderful thoughts and insights on this program:

If your current mortgage was originated prior to May 31st, 2009 and you are paying more than 5.00% on your loan, we can definitely put you in a better financial position.  By removing the need for an appraisal, HARP loans are the fastest and least expensive way to start saving money immediately.  Interest rate today are still at incredible levels but most expect them to increase throughout the year so don’t delay and give me a call right away.  I can let you know exactly how much money you will save right on the first phone call

If you are interested in talking with a trusted lender about this program, please contact John Roehrich.

John Roehrich
Mortgage Planner NMLS: 300490
Homes Mortgage  NMLS: 298853
Office       651-748-3706
Cell       612-396-2578
Fax       651-766-5201
jroehrich@homesmortgage.net
www.MNmortgageplanner.com

References:

1. http://joemetzler.com/harp-refinance-mn.htm
2. http://lifestylejournal.com/act-now-to-refinance-your-home-before-rates-rise/?aff=1169&lturl=1&sub=BTT777&utm_medium=myfox-myfoxtwincities
3. http://themortgagereports.com/259/harp-making-home-affordable-guidelines

Waiting to Buy Could Cost You!

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As a seller, the cost of your home only affects you for a short period of time. But, as a buyer, the price of the home affects you for YEARS, and many buyers do not take this into consideration. Of course it is all dependent on the type of mortgage your choose and the interest rate at the time.

Interest Rate– is the key thing to keep in mind. In the recent news, many of the major players projected that mortgage interest rates will increase. Possibly even a FUll 1% in the next few months. So, in addition to home prices rising, interest rates will also continue to rise.

So, if you are considering a home purchase in the near future, NOW may actually be the right time to buy. Waiting…may cost you more then you think. Although the fluctuating interest rates can only be as estimate from week to week, talking with an experienced realtor in the area you’re looking in could help you get a closer estimate.

So, if the average price of a home is $250,000, and the interest rates rise by 1%… here is how you would be affected. Your mortgage cost would be an extra $150 dollars a month. An extra $1,800 a year. And approximately $54,000 in interest over a 30 year loan.

If you have any questions on buying or selling, give us a call at 651-269-3487 or email us at Sandy@SandyErickson.com!

Buying now could actually save you around $54,000! These are fairly significant changes for the average middle class family.