Most lenders today will want to know every detail of your financial life. If something looks odd, or doesn’t make sense they will want to have some sort of explanation. This means that you will have to write letter explaining everything. For instance they may want to know why a credit card issuers pulled your credit three months ago when you were trying to apply for store credit, or why you changed jobs a few months ago or why you have moved from job to job over the last couple years. It’s best to write them and explain everything in full detail and move on. They do this simply to verify your financial stability and it is usually something that is requested from time to time.
Once a Servicer is notified that a borrower is conditionally approved for mortgage assistance from a HFA, they must not refer the mortgage to foreclosure or schedule or conduct the foreclosure sale for 45 days. (Foreclosure actions are suspended unless the HFA notifies the Servicer the borrower has been determined ineligible for assistance.) Servicers must suspend the foreclosure referral or sale for a longer period of time if it is required by state law. Servicers may also postpone a foreclosure referral or sale exceeding  45 days if needed to facilitate the processing of mortgage assistance and receipt of funds, provided the Servicer follows up with the HFA on a regular basis to determine:
• Be ready to move fast. A well-located house in good condition and priced right will sell quickly; it can even be the first day it goes on the market. A buyer needs to be ready to commit if they find a home they like because they risk the chance of losing it if they don’t. One of the things First Ohio Home Finance is known for is how quickly they work for their customers.
Conventional loans require a home buyer to make a 20 percent down payment and many home buyers don’t have enough cash on hand to make that down payment therefore they are required to pay for mortgage insurance as part of their monthly payment. This insurance protects lenders if a borrower should default on the loan. Until late 2014, Fannie Mae and Freddie Mac required down payments of at least 10 percent. This requirement pushed many home buyers into Federal Housing Administration loans or FHA loans, which have a 3.5 percent minimum down payment. The problem is that FHA premiums are costlier than private mortgage insurance. But in 2015, qualified buyers will be able to get Fannie and Freddie backed mortgages with down payments as little as 3 percent. These premiums will be dependent on credit scores and the size of the down payment. Private mortgage insurance premiums are generally more affordable than FHA premiums.
When you apply for a mortgage, you'll need to document your income, employment situation, identity, and more, so it can be a good idea to start gathering the necessary documentation before you walk into a lender's office. This isn't an exhaustive list, but you should locate your last couple of tax returns, bank and brokerage statements, pay stubs, W-2s, driver's license, Social Security card, marriage license (if applicable), and contact numbers for your employer's HR department. Here's a more comprehensive list that can help you determine what you'll need.

The good news for today’s FHA borrowers is that roughly 3,000 zip codes got a 7-percent hike in FHA loan limits this year. Now homebuyers can borrow up to $314,827, an increase from last year’s $294,515. In more costly areas, loan limits rose to $726,525 from $679,650. These higher limits offer buyers access to a bigger piece of the market, especially as home prices continue to climb upwards.


The amortization chart below (courtesy of the Federal Reserve) shows how the proportion of your payment that is credited to the principal of your loan increases each year, while the proportion credited to the interest decreases each year. In the later years of your mortgage, more of your payment will be applied to principal, helping you build equity faster.
Everyone should make sure their credit score is as high as it possibly can be. If you high credit card balances, pay them below 15% of the credit limit. Dispute negative account information with the credit bureaus. Contact your creditors and negotiate a pay for delete. If you have a friend or family member with a credit card in good standing have them add you as an authorized user.

The good news for today’s FHA borrowers is that roughly 3,000 zip codes got a 7-percent hike in FHA loan limits this year. Now homebuyers can borrow up to $314,827, an increase from last year’s $294,515. In more costly areas, loan limits rose to $726,525 from $679,650. These higher limits offer buyers access to a bigger piece of the market, especially as home prices continue to climb upwards.

Typically, you'll need a minimum of a 620 FICO score to qualify for a conventional mortgage, and it can be difficult to qualify with a score that's near the minimum if your other qualifications aren't stellar. Another option is the FHA mortgage, which is designed for borrowers with qualifications that don't meet the standards of conventional lenders. The downside is that FHA loans can be significantly more expensive, but they can be great resources for people who otherwise wouldn't be able to qualify for a mortgage.
Most lenders today will want to know every detail of your financial life. If something looks odd, or doesn’t make sense they will want to have some sort of explanation. This means that you will have to write letter explaining everything. For instance they may want to know why a credit card issuers pulled your credit three months ago when you were trying to apply for store credit, or why you changed jobs a few months ago or why you have moved from job to job over the last couple years. It’s best to write them and explain everything in full detail and move on. They do this simply to verify your financial stability and it is usually something that is requested from time to time.

The Federal Housing Authority gives mortgage assistance to anyone with a FHA loan. You can refinance your mortgage without going through a lot of difficult begging or bureaucratic red tape. They let you reduce your mortgage rates and skip a month's payment without a third-party appraisal. In order to qualify for this, you need to a) not have any late payments on your current loan, b) have a decent credit score and c) wait a minimum of six months between streamlining processes. Refinancing doesn't always reduce your rates - it just lowers them to the current rates. Always make sure you're getting a good deal before deciding to streamline or refinance.

Fixed Rate - Fixed rate mortgages have the same "fixed" interest rate for the entire loan. The interest rate never changes. You can get fixed rate mortgages for different lengths of time. The most common lengths are 10 years, 15 years, and 30 years. The shorter the period of time, the faster you pay off the house, but also the higher the monthly payment.
It’s easy to get carried away planning for the year ahead. But take a moment to put your goals and your numbers in perspective, especially when budgeting your monthly mortgage. This can apply to both refinancing and buying a house. “Standard guidelines call for keeping housing expenses below 35 percent of total income,” Kevin Gallegos, consumer finance expert at Freedom Debt Relief, says. “Some experts are revising that number down to 28 percent.”
Hybrid Adjustable Rate Mortgages (ARMs): Mortgages that have fixed payments for a few years, and then turn into adjustable loans. Some are called 2/28 or 3/27 hybrid ARMs: the first number refers to the years the loan has a fixed rate and the second number refers to the years the loan has an adjustable rate. Others are 5/1 or 3/1 hybrid ARMs: the first number refers to the years the loan has a fixed rate, and the second number refers to how often the rate changes. In a 3/1 hybrid ARM, for example, the interest rate is fixed for three years, then adjusts every year thereafter.
Some people don’t know the first thing about getting a mortgage loan. They hear reports of dropping interest rates and lower home prices and hastily decide to jump into home ownership. But the process of getting a home loan differs from getting a car loan or renting an apartment, and applicants who don’t recognize these key differences are often disappointed when a lender denies their mortgage loan application.

Down payment minimums vary and depend on various factors, such as the type of loan and the lender. Each lender establishes its own criteria for down payments, but on average, you’ll need at least a 3.5% down payment. Aim for a higher down payment if you have the means. A 20% down payment not only knocks down your mortgage balance, it also alleviates private mortgage insurance or PMI. Lenders attach this extra insurance to properties without 20% equity, and paying PMI increases the monthly mortgage payment. Get rid of PMI payments and you can enjoy lower, more affordable mortgage payments.

In simple terms, a mortgage is a loan in which your house functions as the collateral. The bank or mortgage lender loans you a large chunk of money (typically 80 percent of the price of the home), which you must pay back -- with interest -- over a set period of time. If you fail to pay back the loan, the lender can take your home through a legal process known as foreclosure.

The prices for mortgage-backed bonds, and by extension, the mortgage rate a lender offers, are constantly responding to economic factors. In a strong economy, the rise in inflation (i.e., the general price level of goods and services) speeds up as greater demand increases competition for financing, goods, services and labor. This drives mortgage rates higher. A slow-down or recession causes mortgage rates to fall. The U.S. stock market is considered a leading indicator of economic activity. If it tanks, demand for investment shrinks and mortgage rates drop. Conversely, rates rise when the stock market is strong. When there is high unemployment, the economy is relatively weak and mortgage rates tend to fall. If jobs are easy to find, the economy is strong, and rates rise. Like the stock market, rising foreign markets indicate a strengthening world economy and higher rates. When foreign markets tumble, it puts downward pressure on interest rates.
Deed in Lieu of Foreclosure: You voluntarily transfer your property title to the servicers (with the servicer’s agreement) in exchange for cancellation of the remainder of your debt. Though you lose the home, a deed in lieu of foreclosure can be less damaging to your credit than a foreclosure. You will lose any equity in the property, although under the Mortgage Forgiveness Debt Relief Act of 2007, the forgiven debt on your primary residence may be excluded from income when calculating the federal taxes you owe. However, it still must be reported on your federal tax return. For more information, contact the IRS. A deed in lieu of foreclosure may not be an option for you if other loans or obligations are secured by your home.
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A third option – usually reserved for affluent home buyers or those with irregular incomes – is an interest-only mortgage. As the name implies, this type of loan gives you the option to pay only interest for the first few years, and it’s attractive to first-time homeowners because of the low payments during their lower earning years. It may also be the right choice if you expect to own the home for a relatively short time and intend to sell before the bigger monthly payments begin.
Mortgage forbearance programs are offered by numerous lenders, including Bank of America, JP Morgan, Citibank, and Wells Fargo. Forbearance allows borrowers a temporary suspension of their monthly mortgage payments. So a homeowner will have time to explore their options, receive counseling, or modify their loan during this timeframe. In addition, a foreclosure on your home will not occur during the forbearance period. Learn more on mortgage forbearance.
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