The mortgage loan process can be very overwhelming if you don’t know what to expect. It’s an intense process that takes a very close look into your finances. Fortunately, the process isn’t a secret. If you know what’s going to happen ahead of time, you can be prepared with all the necessary documents and information. The loan process and move ahead smoothly and in a few weeks, you’ll be moving into your new home.
At the start of the mortgage application process, you’ll complete a paper application that requests some basic information about you, your income, employment, monthly expenses, and the house you want to buy. The lender will ask a lot of questions about your current financial condition. These questions are aimed to figure out how much you can afford to pay for a mortgage each month. [More]
One of the ways lenders are helping homeowners keep their homes is through loan modification. This is a process in which the terms of your mortgage loan are modified to make your payments easier. It’s not refinancing because you don’t get a new loan, but the goal is to reduce your payments so you can afford them.
The Federal government has a Home Affordable Modification program in which lenders can voluntarily participate. If you meet certain criteria, you may be able to take advantage of the program. [More]
When you apply for a mortgage loan, a large factor up for lender consideration is the applicant’s income and job stability. You may think it is a wise choice to take that higher income-earning job before you buy a new home but you’d be wrong.
Switching employers or becoming an entrepreneur before or during your mortgage loan application and process could be detrimental to your approval from lenders. Mortgage underwrites look differently upon applicants who make a job change because essentially it changes income levels, which may prove to be a larger risk for defaults. [More]
Ahh…retirement. It’s a time most working people look forward to, especially toward the end of their careers. A comfortable retirement requires you to take care of your finances ahead of time. That may mean paying off your mortgage loan before you go into retirement.
Advantages of Paying Your Mortgage Pre-Retirement
You can never know how much money you need to have in retirement because you don’t know how long you’ll live. If you can manage to pay off your mortgage before you retire, you’ll have one less expense to worry about once you retire. And since a mortgage is a pretty big expense, you’ll have taken a lot off your plate. [More]
A reverse mortgage can be used as a source of income during retirement. It’s like a home equity loan, only the money doesn’t have to be repaid except in certain circumstances. You remain the owner of your home and the reverse mortgage lender sends you money.
How to Qualify
To qualify for a reverse mortgage, you must be at least 62 years old. The house that you get the reverse mortgage for must be your primary residence, meaning that’s where you live most the year. If you pass away, sell the home, or permanently move somewhere else, that’s when the reverse mortgage loan becomes due. At the time of death, your heirs or your estate will be responsible for paying back the reverse mortgage. [More]