Changing Jobs

December 28th, 2021 Posted by florida mortgage 0 thoughts on “Changing Jobs”

With what is going on in the world today, if you catch my drift, many people are deciding to change jobs. There are many different reasons for people to do this. If it is important to you and makes sense for your family, we are behind you one hundred percent! We would like to recommend that if you are in the process of applying for a mortgage, to wait to change your job either before you apply for your home loan. If you change your job while you are in the process of purchasing a home, you may find yourself in a tough situation. When applying for a home loan, your job status is always checked…is your job reliable, stable, and likely that you will continue with it in the future? Also, it would cause less issues if your change of job is an upward move with more money, benefits, etc. If it seems like your new job is not helping you gain anything, your loan application may have some red flags on it.

 

In most situations, you need a minimum of two years at a job. If you are there for less than two years, your employment history will be looked into further. For example, how frequently you change jobs, if you are unemployed for long periods of time, etc. Some mortgage lenders will look at some jobs as unacceptable and possibly jeopardize you getting approved for a mortgage. These types of jobs would be a job in a completely different field, or switching from a W-2 employee to a 1099 employee, to name a couple.

 

We know that there are unforeseen circumstances that happen and there may be no other option but to change your job, but if you can avoid changing jobs while in the middle of a mortgage application, we highly recommend it. It would make everything go much smoother!

Cash-Out Refinance

December 21st, 2021 Posted by florida mortgage 0 thoughts on “Cash-Out Refinance”

Did you know that you were able to use a cash-out refinance to pay off debt? If you did not before, you do now! This reasoning is the most common reason that people decide to consolidate their debt. Within the last year, equity rose to just about thirty percent! Not only that, but mortgage rates are still low as well. This would be the time to do this. You would be decreasing your monthly payments but increasing your cash flow. If this sounds like something you would benefit from, we would highly suggest you take a look into it further.

 

When you apply for a cash-out refinance, it is similar to when you applied for your original mortgage. You will have to have an appraisal of your house done, provide your credit score, credit reports, bank statements, tax documents, etc. If you remember back to when you first applied for your mortgage, there is a whole number of documents that will be requested! And just like when you applied for the original mortgage, you will have to have a closing done and pay for closing costs. If you decide to do a debt consolidation cash-out refinance, the debts you wanted to be paid, will be paid. If you have money remaining after this, you will receive a wire transfer or a check for you to deposit into your bank. Escrow is who would provide the wire transfer or check.

 

Before you go through all of this, make sure it makes sense for you. Figure out exactly how much debt you are in and how much of it you want to be paid. Then figure out how much money you will be earning throughout the refinance option. If you will be making just a small dent to your debt, is this option the best idea for you? We do not want to discourage you from doing this, but we want to make sure it makes sense and will be worth it in the long run.

Loan for Downpayment

December 14th, 2021 Posted by florida mortgage 0 thoughts on “Loan for Downpayment”

If you cannot afford a down payment or closing costs, we have good news for you, in case you were not aware! There is a loan called the Community Seconds loan that is available, if you qualify, that will help you finance your down payment, closing costs, and in some cases, home renovations. How amazing is this? This means you do not have to pay for anything upfront! Again, this is only if you qualify. Basically, it is a second home loan. This loan would be a whole lot smaller than the loan for your entire house.

 

When it comes to making payments on a Community Seconds mortgage, there are quite a few different ways and options you have to do so. One option is to make monthly fixed payments, right alongside your regular loan. You would make these payments until this second loan is fully repaid. Another option is to defer payment for your second loan for a certain period of time. Once that period of time is over, you would make fixed monthly payments until the loan is completely repaid. A third option is available where you do not have to make any payments at all! However, if you decide to sell the home or refinance, that is when you would have to pay the loan back. There is a fourth option that is sometimes offered where you do not have to repay the loan if you stay in the home for a certain amount of years. As with everything, the terms and situations are different depending on the repayment plan discussed upon qualifying for the Community Seconds loan. They are different depending on the location and program.

 

Fannie Mae is where this type of loan is offered through. It is a conventional loan that they have set up to work in conjunction with an adjustable-rate or fixed-rate conventional mortgage. If this type of loan is something you are interested in, we suggest you look into it further. Not many people are aware of it and it could greatly benefit someone who might need some extra assistance.

Salaries and Budgets

December 7th, 2021 Posted by florida mortgage 0 thoughts on “Salaries and Budgets”

We keep getting questions e-mailed over to us or called in – “if I make ___ amount per year, what is my budget to buy a home?” Unfortunately, there is no easy answer for you! If you have stuck around here for a while now, you probably already know the answer…it takes more than just a salary to come up with a price range for how much of a home you could afford. While your yearly salary does play a role, it is not everything. There are many other factors that play a role in it. To name a few, the following factors play a part: your credit score, how much of a down payment you can afford, and your debt-to-income ratio. If your salary is up there but the funds you have available for your down payment is very low, your budget will likely be different if your down payment was significant.

 

There are quite a few online resources available where you can calculate a general estimate of how much of a mortgage you could afford. Be sure you have accurate estimates when questions are asked like your credit score, etc. Most of these online resources will also indicate your expected monthly payment as well.

 

When you are talking about your monthly payment, do not forget to take into consideration your principal, interest, taxes, insurance, and even homeowner’s association fees if applicable. Some of these online resources do not take those factors into consideration and they are important so you know what to expect to pay. When using a mortgage calculator, see if it includes taxes, insurance, interest rate, etc. You want it to include as much as possible so there will not be any surprises. And obviously you can speak to a lender as well to get even more of an accurate number based on your salary and other factors.

Single Parents Can Qualify!

November 28th, 2021 Posted by florida mortgage 0 thoughts on “Single Parents Can Qualify!”

 

More good news for you! There are home loan options for single parents! While there is not a specific home loan for a single parent, there are many programs out there that will likely meet the needs of a single parent. With being a single parent, you only have one income so money is a lot tighter and may be more complicated. Programs are out there that can give you funds toward a down payment, for example. Do not let being a single parent keep you from looking into purchasing a home!

We do know that there are some single parents out there where money is not an issue or even a thought. For those that fall into this category, you will likely be able to put 20% into a down payment and you would get approved for a conventional mortgage.

Unfortunately, we do recognize that not all single parents will fall into this category. Most will not. But do not be discouraged! You still have the ability to be a homeowner. Most lenders will want to make sure you can afford mortgage payments comfortably – along with any out of the ordinary circumstances that may occur from owning a home. Lenders will also want to make sure your debt-to-income ratio is low so you can afford your mortgage payments. Lenders will also look into your credit score and most programs have different minimum credit score requirements.

There are a handful of programs and loans out there that may be flexible or having options for no down payments. All programs will be a little different so you need to find out how much you can afford as a down payment, what your debt-to-income ratio is, and your credit score. Once you know at least these three items, you can look into options that are available and see what you fit into. It also depends what state you are trying to purchase a home in.

We hope after reading this that you are no longer discouraged! It is possible, if you are a single parent, to qualify for a mortgage!

Home Loans Available to All

November 21st, 2021 Posted by florida mortgage 0 thoughts on “Home Loans Available to All”

Just because you may fall into a low income bracket, does not mean you will not get approved for a mortgage! Do not make any assumptions when it comes to this. Your income is only one part of qualifying for a mortgage – not all of it. And it certainly is not the most important qualifier for a mortgage! What truly matters most is your future mortgage payments and if you can afford them. Your debt-to-income ratio is what is much more important. If your debt-to-income ratio is low, you will likely qualify for many different loans as the person will likely be able to make their mortgage payments.

Would you believe that there really is no minimum income for any mortgage? Again, if someones debt-to-income ratio is low and both down payment and closing costs can be met, someone would not be denied a mortgage if their income was low…even as low as $10,000 per year! We hope that this is giving you hope if you thought the likelihood of you getting a loan due to low income was low…it is not! 

There are many options available for people into this type of category. These loan types and programs may not be well known or conventional, but there are many programs out there! For example, there is a program available to help law enforcement, teachers, firefighters, and emergency medical technicians! This program is called the Good Neighbor Next Door and is not widely known. This is just another example of making sure you look into all possible programs and resources available! There are even some assistance programs out there that will help someone with their down payment.

If you are still unsure if you will get approved and you want a peace of mind, get pre-approved for a mortgage! This will give you a price range on a house you can purchase. If you need help researching available options for you, please reach out. We would be thrilled to help!

VA Loans

November 14th, 2021 Posted by florida mortgage 0 thoughts on “VA Loans”

 

Can you believe that approximately 76% of veterans are not using their VA loan benefits? Crazy, right? For the most part, VA home loans are the best mortgage options out there. Not only do they not require a down payment, but any on-going costs associated are very low. This type of loan is the most affordable. If you have served in the U.S. military, we highly recommend you look into utilizing these benefits! With only 24% of veterans using this loan, there is a lot of money able to be utilized. Unfortunately there are many veterans out there who are not aware of these types of benefits and what is available to them. Some veterans do not want to go through the process because appraisals on the homes usually take longer than regular loans. Some people do no that the patience to wait. But we would recommend you give it a try! There are so many benefits.

There are also a great deal of real estate agents and private people selling their home who are unaware how VA loans work. We would recommend you communicate with someone who is knowledgeable about the topic so you are fully prepared and aware of what is and is not required. Unfortunately, because of this, not all veterans even know they qualify!

More benefits of purchasing a home with a VA loan include: lower interest rates, lower credit requirements, no private mortgage insurance required, and your loan will be backed by the government! Again, we highly recommend you take a look into this if you are a veteran. Something else you may not be aware of is that you can actually refinance to a VA loan if you qualify! How incredible is that?

If you think you may qualify, please take a look into seeing if you qualify. Not only can it not hurt but it may save you money!

Investment Property or Second Home

November 7th, 2021 Posted by florida mortgage 0 thoughts on “Investment Property or Second Home”

There are a couple of options you have if you plan to use a cash-out refinance. You can purchase an investment property or a second home. It depends what your goals are. It also depends what you have time for! Having an investment property can take up a lot of your time.

Not everyone will qualify for a cash-out refinance. And not everyone will have enough equity in their current home. So there are a couple of things you need to be aware of and look into! If you qualify for a cash-out refinance, you can use up to 80% of the equity in the home you currently own and use those funds for a new home. The great part is that you would be able to take advance of lower interests rates too. This is one of the best ways to put your equity into good use!

Just like all loans, each lender has different rules and options. But there are a few rules that are pretty standard. For example, you will have to have at least 20% equity in your primary home in order to qualify. It is also standard that your credit score will need to be a minimum of 620. (In other loan options, your minimum credit score can be lower.) There is also a standard for your debt-to-income ratio – it must be 50% or less. Again, with other loan options, this is not the case. Like other loan options, you will need to provide proof of your income and employment.

If you are in a rush to obtain a cash-out refinance loan, you usually have to have your primary loan for at least six months. This will change per lender and loan type, but for any of them, it will not be less than that six month period.

Do you have any goals when it comes to owning a second home as a vacation property or investment property? We would love to help you reach those goals!

Closing Costs

October 28th, 2021 Posted by florida mortgage 0 thoughts on “Closing Costs”

Some of you have reached out to us and wondering about closing costs on a refinance. After all, factoring in the closing cost is a large part of the decision as to whether or not refinancing makes practical sense or not. An expensive closing cost for a refinancing option is likely to discourage homeowners. Thankful, this type of negotiating is possible!

To begin with, as we have suggested before, it is important to compare the different lenders and what they offer. Each lender has different options – which includes different interest rates, fees, and closing costs. So when you are shopping around or different rates, shop around for approximate closing costs too!

Did you know that some lenders have no closing costs? The closing cost will be mixed into the cost of the loan so you are actually paying for the closing cost with the rest of your payment. And believe it or not, but there are some lenders who will waive your closing cost completely. However, these lenders will likely charge you a higher interest rate so be sure to keep that in mind.

Another tip we have for you is to ask the lenders you speak with if there are any fees that can either be discounted or waived. In todays society, it never hurts to ask! And the answers you get might surprise you. There may also be some incentives or even rebates that are available to you. The mortgage market right now is very competitive so you may be surprised in the answer you get. There are also other fees that are negotiable. These fees include: loan application, loan origination, underwriting, homeowners insurance, and title insurance. Be open with potential lenders and ask questions!

Refinancing – Part Two

October 21st, 2021 Posted by florida mortgage 0 thoughts on “Refinancing – Part Two”

Okay so you made your pro/con list and you have decided that refinancing is the right move for you! Time to get the paperwork ready! Did you know that the top reason for mortgage closings to get delayed is due to paperwork? Well, now you do. This is why we recommend you get as much paperwork prepared and ready once you make the decision to refinance.

To start with, get your income and tax documents together. This will consist of a minimum of the last two years of your W-2’s and your most recent pay stub. If you work for yourself, you will need to gather the last two years of your tax returns. You will also need to provide your most recent bank statements, investment accounts, savings accounts, and retirement accounts if applicable. If you earn commission that does not appear on your paystub (if applicable) or your bank statement, you will need to gather that as well. Be sure to also gather any 1099’s you may have if this applies to you. Also, keep in mind that if you have earned any income from rental properties you may have, that will need to be reported as well.

Now on to your debts! Any debts you may have that is not on your credit report will need to be prepared as well. This includes any child support payments, alimony payments, or any debt settlements you may have with private parties. 

In most cases, you will not need an appraisal to refinance…but there are others where this is something that will need to be submitted. To be ahead fo the game, we would recommend you prepare your home as if you do need an appraisal. If not, no big deal. Making your house ready for appraisal includes mowing your lawn, caring for your plants, painting your home, etc. Make sure that anything that may need to be fixed gets fixed. For instance, if your bathroom sink does not work properly, make sure to get it fixed before the day of your appraisal arrives.

We want to remind you to also make sure you do not purchase any expense items before you start your refinance! If you do this, you debt-to-income ratio will be altered and your credit score may be lowered.

If you have any other questions or need any other tips, please get in touch with us. We are here to help!