Top Mortgage Blogs From 2017
This week we’re highlighting the best mortgage blogs from this year!
If you’ve missed out or have been living under a rock for a few weeks, this is actually the 3rd of 5 “best of” articles you’ll find here on Rochester’s Real Estate Blog!
Below you’re going to find some incredible recaps of home financing and mortgage blogs that have been published during 2017. The authors of these articles are some of the best writers in the mortgage and real estate industries.
If you’re not following these writers, well, you should be! Of course, if you find any of these topics or articles helpful, show some love and give them a share or two.
Top Reasons Why Home Buyers Can’t Qualify For A Mortgage
“Why Can’t I Get A Mortgage?” is an extremely common question in the mortgage and real estate industries. It’s unfortunate, but not every prospective buyer is going to be able to qualify for a home loan.
There are dozens of reasons why home buyers are unable to qualify for a mortgage. Many of the reasons are pretty repetitive and can be avoided with the proper knowledge.
For example, one of the top reasons a potential buyer cannot get a mortgage is because they have a poor credit score. There are mortgage guidelines that must be met and one of them is a minimum credit score.
Great news is that buyers who’re aware of these common reasons are able to either avoid them or understand that they don’t necessarily mean they’ll NEVER be able to get a mortgage.
In this article from Rochester’s Real Estate Blog, find out the top reasons home buyers can’t qualify for a mortgage!
Should I Go With A Mortgage Broker Or A Bank?
A common question Realtors get from buyers and home owners looking to refinance is “should I go with a mortgage broker or a bank?” When buying a home, having a good lender on your team is almost as important as having a great Realtor. The mortgage process can be confusing for many people so working with a mortgage professional you can trust, who can clearly explain the process, keep you up to date and be accessible is critical.
For this article, Realtor in Seattle Conor MacEvilly teamed up with mortgage expert Luke Skar of Inlanta Mortgage to help explain the difference between the two main sources for mortgages. They cover the differences between mortgage brokers and banks, the pros and cons of each one and just as importantly, how to find a good lender.
In the simplest terms the main difference is that a bank has its own lending criteria and offers loans by using its own funds. In contrast, a mortgage broker is a middleman. The broker works with multiple wholesale lenders in an effort to get the best mortgage for their client.
As with everything, there are pros and cons as to which one you go with. For example, if you use a bank for your loan you may already have a pre-existing relationship with them and they sometimes offer very competitive interest rates. However, on the downside, banks will have a limited number of mortgage products, they tend to be more conservative plus they will not be as responsive as a broker. Have you tried calling a bank on a Saturday night to get a pre-approval letter?
For mortgage brokers, they will have access to multiple wholesale lenders and can shop around for the best rate for you, they will have access to different types of loans such as VA, FHA and rehab 203K loans. Also, you will usually have much easier access to a broker compared to a bank lender and they tend to be more responsive. However, fees for the loans can be higher than a bank and it’s likely that your loan will be sold on the secondary market after closing. You have no control over who you loan gets sold to.
Either way, it’s always wise to shop around and compare interest rates and just as importantly, compare how much in fees you might have to pay to get a particular loan.
Potential FHA Mortgage Quirks
Anita Clark, a Real Estate agent in Bonaire GA who has been serving the residential real estate needs of consumers in middle GA for the past decade, provides some informative thoughts on potential FHA mortgage quirks. Here are some of Anita’s thoughts on the subject.
Thank Kyle you for the opportunity to share with your readers a few things they need to understand about FHA mortgages. While this type of loan is a good option for many real estate consumers, I believe there are several quirks all buyers should know about and understand if they are considering an FHA loan. For instance, if the borrower puts less than 20% as a down payment, with this type of loan the mortgage insurance is applied for the life of the loan or until/if the property is refinanced.
Other considerations include the ability to utilize a non-occupying co-borrower without that individual needing to live in the home. These are sometimes referred to as kiddle condo loans as they are popular with parents who purchase properties for their kids to live in while in college. There are several “rules” that apply so always check with your lender to ensure this is a good option for your needs.
Did you know if you file a Chapter 13 bankruptcy, you can immediately apply for an FHA loan? If you have filed a Chapter 7 bankruptcy, the wait is only 2 years. While the effects of a bankruptcy will certainly disrupt your life, it is important to understand it may not totally hinder your ability to qualify for a home loan a lot sooner than you think.
A couple of other quirks with FHA loans including stricter appraisal requirements and potential self-employment restrictions. Most of the important appraisal requirements deal with how the appraisal is conducted. Check with your agent to determine how the latest guidelines apply to your situation. For those who are self-employed, you will need to provide business tax returns for the last 2 years. You only need to own 25% of the company so have your documents in order when you sit down with your lender.
For many consumers, these FHA scenarios will not be a factor, but they are worth researching if you are considering this type of mortgage. As always, your agent should be able to point you in the right direction and your loan officer will be able to answer any FHA loan questions and provide guidance for filling out the mortgage application. Happy house hunting!
How To Buy A Home With A VA Loan
The popularity of the VA loan has increased in the last three years with a record number of military veterans, active-duty military, and their eligible spouses obtaining VA loans to purchase a primary residence, especially millennials.
This article provides 14 insights for Veterans to save money and minimize their out of pocket investment, save on the interest rate and closing costs, and structure the purchase contract. This fantastic article has detailed some nuances that aren’t as talked about such as second tier entitlement, residual income, and purchasing a multifamily.
A government VA loan has excellent advantages with no down payment requirement, more flexible credit underwriting, and more flexible debt to income ratios. Some investors will allow a borrower to build an alternative credit report if they have zero credit by using a 12 month rental history and utility bills.
There is also information regarding VA condo eligibility and where to check to see if a condo building is VA approved. With a reusable entitlement, 0 down payment requirements, and more flexible credit underwriting, the VA loan has optimal advantages worth learning more about.
If you’re wondering if a VA loan is the right fit for you, check out this article from Joy Bender that gives some excellent insight into buying a home with a VA loan!
Mortgage Options For First Time Home Buyers
This mortgage article comes from our friends at uphomes in Charlotte, North Carolina and it relates specifically to mortgage options for first time home buyers.
One of the best parts of being a first time home buyer is all the options, benefits and programs available to you. Every state offers different first time home buying options as well as some national programs that you will see listed in the article by Ryan Fitzgerald at uphomes.
Buying a home for the first time is both nerve-racking and overwhelming. It’s one of the largest purchases you will ever make. This is why it makes so much sense to pay attention to the mortgage options that are available to you as a first time home buyer. Being an educated buyer pays dividends towards the final result (both the mortgage and the home you end up with).
If you are buying a home for the first time this is a great article to learn more about the mortgage programs that are available to you. In many cases, first time home buyers will be able to buy a home with zero dollars down, sometimes even receiving money back at the closing table.
In this article, you will also find great information as it relates to first time home buyers, mortgage options available and an easy to follow 10-step guide infographic to help you in buying a home!
Getting A Home Loan After A Foreclosure
The housing collapse resulted in a record number of foreclosures. Some of the homeowners were victims of predatory lending practices. Others may have been caught up in the “sky is the limit” mentality. That “sky is the limit” lead to many buyers getting into more home they can afford. It lead to investors snapping up too many homes even as the market started to slow.
Many of these former homeowners would love to get back into owning a home, but how? In this blog, Debbie Drummond gives some tips for those who have gone through foreclosure.
For starters, there is a waiting period before you can get approved after a foreclosure is filed. The waiting period will vary based on the type of loan and the lender. The waiting period starts at the time the foreclosure is completed rather than filed.
So what does a buyer do while they’re stuck in the waiting period? There are several steps they can take to prepare for applying for a new mortgage. These include improving credit and balancing your debt to income ratio. Try and re-establish a few credit cards but make sure they’re paid on time and not charged up to the limits.
Buyers should also save for a down payment while waiting. Save more money for closing costs, moving expenses and an emergency fund.
The goal is to have everything in order as you approach the end of the waiting period. Once the waiting period is up, then it’s time to shop around for a lender who is willing to work with you. As Drummond says, “don’t give up if the first one doesn’t work out”.
It takes time and effort to get back into owning a home after foreclosure. A good real estate agent can be a great resource as you go through the process. While it can be frustrating to get back into a home after foreclosure, it can be rewarding.
14 Ways To Lose A Mortgage Approval
Getting a mortgage goes with the territory of buying a home for most folks. When it comes to procuring a mortgage lots of buyers make mistakes. Many of these blunder could easily be avoided. Unfortunately, not ever buyer has an exceptional mortgage broker or real estate agent advising them what they should and shouldn’t do.
In one of his most memorable posts of 2017 Bill Gassett put together and exceptional article about how you can lose your mortgage approval. Bill provides 14 ways a mortgage can be revoked when buyers make stupid financial moves.
One of the more common blunders every real estate agent has probably heard at one time or another is a buyer going out and making a large purchase while buying a house. The buyer not realizing it can screw up their mortgage approval, goes out and buys a new car. Can you say dumb!
Another common mistake is moving money around without being able to document where it came from. While these are two common examples, Bill has twelve more buyers should be leery of.
The moral of the story is buyers need to educate themselves on the complete mortgage process. Your job as a buyer doesn’t end once you fill out the application and give your paperwork to the lender. You need to remain vigilant with your finances up until you close on the home!
10 Common Causes For Mortgage Delays
60% of them are related to being slow with something or another. It’s so important that when buying a home, you find out from the lender all the documentation they’ll need upfront. This way you’ll have all that initial mortgage stuff done, a pre-approval in hand, and be ready to make an offer as soon as the perfect home comes along.
Delays on the mortgage process SUCK, but they can also put your hard earned money at risk. If you find the perfect home and get it under contract, and then your mortgage runs into a delay, you run the risk of not being able to close by the closing deadline, and potentially forfeit your earnest money deposit to the seller. Talk about a double whammy of crappiness!
Not only could a delay cost you your dream home, but also the earnest money you put down on it. What is the moral of the story for home buyers? Educate yourself on these potential causes of mortgage delays, and then talk with your mortgage lender right from the start to make sure you can avoid all of them.
A good mortgage lender will be able to help you avoid these delays, and close your home purchase quickly. If you aren’t sure which mortgage lender to work with, ask your real estate agent for a referral. As long as you chose a great Realtor, they wouldn’t recommend anyone who they didn’t feel was exceptional. Happy house hunting!
VA Mortgage Facts
Qualified veterans looking to purchase a home will find a lot of valuable info in the article from Luke Skar. Luke summarizes the most important VA mortgage facts to help expectant homeowners better understand the loan.
The article covers several details about the loan that make it appealing to people that are either currently serving in the military or reserves or for those that have completed their service. Items such as no down payment requirement, mortgage insurance and previous credit issues are all discussed at length.
Luke also does his best to debunk some myths that still exist about buying a home, especially the untruths that abound about VA mortgage loans. Some would-be buyers think that the following items are true:
- A VA mortgage is intended only for a traditional, stick built home
- The VA mortgage may only be used to buy a new home
- VA mortgages are too expensive compared to other mortgage loans
- Only modest loan amounts are considered for a VA mortgage
- Veterans have a tough time getting approved for the loan
- A qualified veteran can only use the VA mortgage one time for the purchase of a home
Thankfully, all of these are myths. Luke provides details about these, and many other myths, and explains why they are not true.
There is one other main point brought out by Luke in this article that does not get enough attention. VA mortgage loans are very low risk, both for the borrower and the lender. The VA mortgage program historically has the lowest number of borrowers who fail to repay the loan in contrast to other types of home loans. This proves that the underwriting guidelines designed to insure the veteran can make the home payment as well as still have funds to cover their other bills and hobbies actually work to the betterment of the veteran.
The Most Common Mortgage Myths To Be Aware Of
Myths exist in almost everything. It’s not surprising that there is even a television show debunking popular Myths called “MythBusters.”
When talking about mortgages and home financing, there are some myths as well! For example, many people believe that a pre-approval and pre-qualification are the same thing. NOPE, this is a common mortgage myth!
In this article, you’re going to learn about common mortgage myths. Buyers who understand that these 11 things are myths give themselves a huge advantage.
Believing these 11 mortgage myths can really make the process of obtaining a home loan miserable, frustrating, and potentially unsuccessful!
The above article recaps are just the tip of the iceberg! The actual articles associated with the recaps are excellent reads and it’s highly recommended you take the time to check them out!
Next week, in the 4th of 5 “best of” series, we’ll be highlighting the best home improvement and remodeling articles! Be sure to come back and check it out, it will be well worth your time.
Previous Year End Real Estate Roundups
- Incredible Real Estate Blog Articles From 2016
- Best Blog Articles For Real Estate – 2015 Edition
- Top Real Estate Blogs From 2014
About the authors: The above article “The Best Mortgage Blogs From 2017 | Advice For Home Financing” was written by Kyle Hiscock of the Hiscock Sold Team at RE/MAX Realty Group. With over 35 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise.
We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.
© 2017, Kyle Hiscock. All rights reserved.