Mortgage Refinance Archives

Why Was My Mortgage Was Declined In Underwriting

Saturday, August 14th, 2010 at 11:40 am  
Comments (1)

Nothing is more frustrating then receiving word you have a declined mortgage refinance loan. Not being able to secure financing can make all the plans that you had seem to go right down the drain. But knowing the common reasons for loan denial can go a long way in helping to stop the potential problem before it starts.

Why Home Loans Are Declined

Home loans are declined because the underwriters at the lenders have decided your loan either did not fit into their lending guidelines or you were to risky a borrower. The underwriters act as a wall of protection for the lender so if something does not make sense to them they may either ask for clarification or deny the loan.

Common Reason For Loan Denial

One of the most common reasons mortgages get turned down is from borrowers giving false or inaccurate information. Many times this is done by accident. Even when done by mistake it is hard for underwriters to look past false information as it appears to look like potential fraud.

Wrong income levels are often stated on loan applications. The best way to avoid this is to go by last years income on your W-2. If you have had a raise and are hourly figure 40 hours a week as your base salary. Wrong income is the quickest way to get your loan terminated in underwriting.

Property values are another common reason mortgages get turned down in underwriting. People may tell their loan officer their home is worth a certain amount only to find out it is worth much less then they thought This is especially true today with the recent drop in real estate values in many parts of the country.

A credit score drop is also another common reason for losing your loan. One of the biggest mistakes people can make is to have multiple mortgage companies pulling their credit. While a few credit pulls will not hurt you having more then 4-5 credit pulls can start to damage your score. To avoid this stick with three reputable mortgage companies and get quotes from each one.

Questions To Ask Your Milwaukee Mortgage Company When You Refinance Your Mortgage

Saturday, August 14th, 2010 at 11:37 am  
Comments (28)

If you are shopping for a new home in Milwaukee or need to refinance your current mortgage for a lower rate or to consolidate debt you need to know how to go about finding a good company to help you get your home loan in Milwaukee. This article will cover a few basic questions you can ask your mortgage lender to make sure you find honest and reliable Milwaukee mortgage companies.

Questions To Ask Your Milwaukee Mortgage Broker

How Long Have You Been A Lender- This is a good question to ask because a lot of new people get into the mortgage lending business all the time and many of them are not properly trained. If the person is fairly new ask them how many loans they have closed and if they have support within their company. Take note of their reaction to your question, the last thing you would want to do is turn something as important as a home loan over to an inexperienced loan officer.

What Are The Closing Cost and What Do They Include- Closing costs quotes will vary widely between Milwaukee mortgage lenders because they all include and exclude different fees. The total closing cost usually do not include things like property tax escrow or pre paid interest. However a good honest mortgage company will quote these to you and figure them into the final amount.

Will You Be at The Closing- This is a big one because if the Wisconsin mortgage broker does not go to their loan closings chances are they maybe trying to switch you or try some tricks. Although they may have legitimate reasons most good brokers and lenders attend their closings to answer any questions the client may have about their loan.

Is My Interest Rate Locked- Locking the interest rate secures the rate you were quoted for a period of normally 30 days. Many Milwaukee mortgage companies lock rates at document signing but many do not. By not locking they are hoping that rates go down to give you a better deal or that the commission from the lender goes up for the rate you are getting. Either way is risky if the market changes so if you want the rate you were quoted, demand it be locked and ask for a rate lock confirmation letter.

Avoid mistakes while refinancing or buying a home for the first time

Friday, December 4th, 2009 at 11:42 pm  
Comments (79)

Avoid mistakes while refinancing or buying a home for the first time

Author: Peter Gomes

It is often difficult for a first-time homebuyer to get a favorable mortgage loan. This may happen due to an unsatisfactory credit record or the borrower is not able to make the required down payment. However, you can take out a home refinance loan after you’ve stayed in the property for some years and built up some equity on it. It is advisable that you avoid mistakes regardless of whether you take out a refinance loan or obtain a mortgage for the first time.

4 Mistakes to avoid while obtaining a refinance loan

Go through the following lines to know how to avoid making mistakes while taking out a home refinance loan.

  1. Not assessing the Good Faith Estimate: Always review the Good Faith Estimate in order to know about the breakdown of your total mortgage cost. Check out whether it is matching with what the lender has told you verbally.

  1. Focusing only on the interest rate: Though the interest rate is an important factor to consider, yet you should also take into consideration some other factors (such as, points, loan origination fees, required credit score, etc.) while taking out a home refinance loan.

  1. Signing documents without reviewing properly: You should never put your signature on any document without reviewing it properly.

  1. Not shopping around properly: It is quite important to shop around for rates before taking out a refinance loan. If you shop around, then there’s a higher chance of getting favorable rates on a home refinance loan.

2 Mistakes to avoid as a first-time homebuyer

You should avoid the following mistakes as a first-time homebuyer.

  1. Not getting pre-approval: It is quite important to get mortgage pre-approval before shopping around for a home loan. It will be relatively easier for you to shop around if you know the amount of home loan that you can qualify for.

  1. Not aware of closing costs: Make sure you enquire about the closing costs while taking out a mortgage. It will help you to plan your finances accordingly in order to save money for closing costs.

Apart from above, you should also shop around so that you get favorable terms and conditions on your home loan.

Good Tips For Refinancing Adjustable Mortgages

Thursday, November 5th, 2009 at 5:16 pm  
Comments (25)

Need To Refinance An ARM  Home Loan Soon?

Even though there has been a huge amount of foreclosures in the nation there is still more yet to come. While some can be traced to job loss or other problems many of them can be traced to the ARM home loan. These loans once the fixed rate expires will leave home owners with higher payments that can sometimes jump hundreds of dollars or more. It is in the best interest of these home owners to start thinking about refinancing ARM mortgage loans that are about to reset!

Refinancing Tips For People With Adjustable Mortgages

Get It Done ASAP- In todays tight credit and lending markets many would be borrowers are finding that they do not qualify for a new mortgage. Unfortunately many of them find out when they need the loan the most, right before it resets. To avoid this potential problem you need to give yourself at least 3 months time to shop for and apply for a loan, this will give you enough time to fix any problems that could arise. This is especially important if you have to do any credit repair or need time to pay down bills or other credit damaging obligations.

Get Stability In Your Life- Unless you know you will need to refinance in a few years or that you will be moving and selling your home you should not get another ARM home loan. Instead switch over to a fixed rate loan, this will give you the same payment and also let you avoid the predicament you are now in. And when you do the math you really do not save that much with an adjustable loan, especially when you consider that you will need to pay closing costs within three to five years!

Shop Around- This goes right back to giving yourself enough time to do things right, with enough time you will be able to shop around at local banks, mortgage companies and credit unions.Just remember to compare all aspects of the offers you receive, look at interest rates, closing costs and other fees being charged, and remember to get all quotes in writing by asking for a good faith estimate!