elmosgirl82 asked:


Is this going to help first time buyers? Now that the Federal government took over, are the interests going to be lower? I’m in the middle of buying a house, I already got pre-approved with Countrywide, is it a good idea to go to what is now controlled by the government?

Dora

dre_gh asked:


I currently work in a distribution center, and i have a bachelors in economics and psychology. I am interested in becoming a mortgage loan officer so i took a 24 credit hour course in residential mortgage lending but unfortunately i haven’t been able to find a job because i do not have any mortgage or lending experience. What else should i do to achieve my carer goal?

Brittany

Jon Arnold asked:


Unless you fall into the very rich category, one of the most expensive loans you will ever get will be your mortgage loan. With even modest homes in nicer neighborhoods costing well over $150,000 these days in most parts of the country, even a quarter percent difference in the interest rate on your mortgage loan can account for hundreds of dollars per year, just in excess interest charges.

You need to fully understand that a mortgage loan is significantly different from a personal loan or a signature loan. Based on the amount of money you will be borrowing, which translates into higher risk for the lender, it is clearly in your best interests to start paying attention to your credit score, how it is calculated, and what you can do to raise your credit score.

In the eyes of the mortgage lender, the higher your credit score is, the less risk they feel like they will be assuming, which translates into a better mortgage loan program for you, better terms, lower down payment on the loan, better interest rate, lower closing costs, and many other factors that will either save you money or cost you more money, depending on how diligently you work on achieving your raised credit score.

With a mortgage loan, the lender has a bit of safety factor built in, because your house is really your collateral on the loan. If you default on the mortgage loan, the lender can sell your house and you get nothing. But unless extreme circumstances warrant it, lenders don’t like to do that. They make their money with loans, not by selling houses where the previous owner defaulted.

In the mortgage loan evaluation process, your credit reports from all three major credit bureaus will be analyzed thoroughly. Any skeletons in your credit closet will be exposed and you will be asked about them, even if it was from several years ago. Know this up front because chances are better than excellent that this WILL happen …. IF those entries are still on your credit report.

This is where knowing what you can do to raise your credit score comes into play, because you have rights under the law. One of those rights is that erroneous entries on your credit report can (and SHOULD) be disputed by you, and the credit bureau who is reporting that data then has 30 days to either verify it, or if it cannot be verified, it must be removed. You are the only one who can dispute data on your credit report, so get a copy of your credit report and start looking for errors.

Here’s another reason why this step is so critically important: studies have shown that the majority of consumer credit reports have errors on them. This only makes sense, because creditors and lenders typically only report to one of the three credit bureaus, and since they do not share data between them, it is a fact that not one of them has an entirely accurate picture of your credit history. That loan that you paid off three years ago might be showing as paid off with one agency, but might also be showing as still outstanding, past due, or even charged off by another agency. These errors all tie together to lower your overall credit score, so it is obviously worth your time and effort to get them disputed and corrected.

Another thing you can do is to make each and every one of your credit card and loan payments on time with at least the minimum amount due. Unfortunately, this is really a “history” thing, so if you are going to apply for a mortgage two months from now and have not been making timely payments before now, your mortgage loan is going to suffer. Making timely payments accounts for about 30-35% of your total score when your credit score is calculated.

If you have credit cards with outstanding balances on them, that is ok, as long as none of them are past due. Your best bet is to make payments on them such that you NEVER exceed your credit limit, and that your outstanding balance is less than about one third of your credit limit. This tells your mortgage lender that you are not abusing your credit privileges by “living on the edge” of your credit limits.

Bottom line: to get the best mortgage loan possible, take the time beforehand to review your credit report so that it looks as good as possible to the lender. The time and effort you put into this will pay itself back in spades.



Lisa

g w asked:


is it better to take the proceeds from the sale of our house and use it as a down payment or use it as cash at closing? The builder is paying 2% towards closing.

Also are FHA loans or conventional loans better?

Curtis

PsychoSam asked:


This question is for all those folks that don’t know too much about mortgage loans. Is it true that the best time to pay extra on mortgage loans are at the beginning years of a mortgage loan? That way an individual can beat the bank on the interest. Please give me your thoughts on this. Thank you.

Bertha

Eric Mabo asked:


Want to buy one of the Atlanta foreclosures and discounted homes? If you are buying a home for your first time, there are a lot of things you have to take into consideration.

The first step is to go ahead and apply for a mortgage loan. Now you have to ask yourself: will my application be approved for the mortgage loan? Would you be able to borrow hundreds of thousands of dollars and have this debt for years? Before you start asking your self these questions, it is important to keep in mind that many people have mortgages on their homes, so you don’t have to be worry. You are not alone. Most people who buy a home usually take out a mortgage loan.

The mortgage loan is also similar to a car loan, in which the lender agrees to provide you with a large sum of money to buy a home in exchange for your agreeing to payback the borrowed amount at the stipulated period agreed upon by both of you.

Most Mortgage lenders are more careful about lending money than credit card companies or auto lenders. The reason is that the lender knows that he is barring a big risk. So, if a lender is going to loan $400000 or so far a property, it wants to limit the risk to you not paying back. There are many ways the lenders go about it.

Applying for a mortgage loan is more detailed than anything else you have ever applied for. This is the biggest financial transaction for most people. In this type of loan the bank is looking at your ability and reliability when it comes to paying back the loan at the stipulated period and amount.

Before the lender accepts your request, they first of all look at issues such as your credit score to assess if you have acted responsibly with the previous debts. The bank looks at your earning history and annual income to determine if you be able to meet the monthly mortgage payments, you also need to be paying the property taxes on the property it is from all these examinations that you will either be approved or rejected for a mortgage loan.

If you are already approved for a mortgage loan, just go ahead and purchase the property you wanted to buy. And meet all you financial obligations for the loan, monthly payments, maintain homeowners insurance, pay the property taxes, etc. When you do all these things the loan will slowly be paid off and you will gain equity in your home or property. But if you don’t pay the loan for any reason, the lender will foreclose on your property and send you out. The bank will then try to sell this property as a foreclosure. There are many foreclosures in Atlanta because a lot of people borrowed more than they could afford.

So asking for a mortgage loan should not be a problem. Many people have done so successfully. To always be on the save side, be pre-approved for a specific amount prior to shopping your property. Or always meet specialist to give you advice before you go into the mortgage loan prior to looking for Atlanta foreclosure homes and other discounted homes.



Adam

Paige B asked:


I am interviewing for a F&I position right now with an car dealership. I don’t have much if any experience with car sub-prime lenders and lending. However, I have been in the mortgage industry and have worked as both a loan officer, analyzing credit and assets of individuals and shopping sub prime lenders to find the best deal and also worked for a lender and qualified sub prime borrowers to fund their loans.

Phillip

Adam Hefner asked:


Not all low interest mortgage loans were created equally. Some are truly good loans with valid low rates. Others are mirages using a low stated interest rate as camouflage for a higher rate. In order to tell the difference you must do your research, and then read the fine print of your mortgage documents before signing on the dotted line.

The easiest mortgages to understand are what are called fixed rate mortgages. These loans have an initial interest rate which never changes during the course of the loan without you desiring it to. It can change if interest rates go down and you wish to refinance. However, it can never be raised by the lender unilaterally.

The second class of mortgages are referred to as adjustable rate mortgages. These are most often referred to as ARM’s. Adjustable interest rate loans often have a lower initial interest rate than their fixed fate cousins. However, in many instances this is short lived. ARM’s have a proclivity to quickly rise.

The worst of the variety of ARM’s out there are called teaser rate loans. As their name implies, they serve to tease borrowers with a very low introductory interest rate. However, that low rate does not last long. Most teaser rate mortgages rise rapidly once the introductory period expires. The end is often tragic for the homeowner.

In order to know if the mortgage you are entertaining truly has a low rate you must read all the details. Ascertain whether the interest rate is fixed or if it adjusts. If it does adjust, then you must know when it does and what calculation is used to figure out how much. You will not be able to know the exact amount of your future mortgage payment, but you will be able to come up with a good approximation.

The best low interest rates are those which come with fixed rate mortgages. This way you know you are able to have the low rate for the life of the loan. To get a low rate fixed rate requires good credit and usually at least a 20% down payment. Currently, the appraisal also matters greatly and must justify the purchase price. For those able to get one, a low interest rate fixed rate is the way to go.

Some scenarios fit well with adjustable low rate mortgages. One is if you know you are only going to own the property for a short duration. If you are sure you will be selling the property before the first reset, then an adjustable rate can be a smart move. However, if there is any doubt about the length of your ownership then a fixed rate is the way to go.

Low interest mortgage loans are out there. However, you must do your research to ensure you are truly getting a low rate. Some rates quoted up front are not as they appear. You need to drill down to the details and fine print to make sure you understand exactly what you are signing. The extra homework can save you thousands of dollars.



Brittany

e.sillery asked:


I filed bankruptcy about 4 years ago and my credit has been raising slowly. I pulled my credit report and found two medical collections against me that were not mine. I contacted the proper people and they agreed to remove them. Only one was removed and I have been trying for 6 months to get the other off. I have a letter stating they both were to be removed, but when applying for a mortgage online they pull my credit report and see a collection against me.
My debt to income ratio is pretty low so I sould qualify for a home purchase loan, but I have been turned down by my credit union.
Who offers home loans for people with credit problems?

Jackie

Heather C asked:


When you apply for a mortgage do lenders look at your total outstanding balance on a car loan or your monthly payment for the loan? I ask because we have a $465 payment and are wondering if we should refinance or trade the car in for something else in order to bring down the monthly payment as we are getting ready to apply for a mortgage.

Chad