Lenders will generally pull your credit at least twice -- when you originally apply and shortly before closing (as happened in my situation). If there are any significant differences between the two, such as a new account or a significantly higher debt balance, it could lead to delays and could even disqualify you for the mortgage. Be safe -- just leave your credit alone until you've signed your closing documents.
To qualify you for a conventional loan, your lender will consider whether you have stable and reliable income. It may require copies of paystubs, W-2s, income tax returns and other documentation to make an assessment. Frequently changing jobs will not necessarily disqualify you for a conventional mortgage, if you can show that you’ve earned a consistent and predictable income.
The Home Affordable Foreclosure Alternatives (HAFA) program is for borrowers who, although eligible for the government Home Affordable Modification Program (HAMP), are not able to secure a permanent loan modification or cannot avoid foreclosure. HAFA provides protection and money to eligible borrowers who decide to do a Short Sale or a Deed-in-Lieu of Foreclosure.
A lender offers you a mortgage interest rate based upon a number of factors, but by far the most important is the secondary market for mortgages. Banks typically sell their mortgages to aggregators like Fannie Mae and Freddie Mac, which are government-sponsored enterprises that buy and repackage mortgages. Aggregators issue mortgage-backed bonds to investors in the secondary market. The daily fluctuations of supply and demand affect the interest rates investors require to buy these bonds. As the economy strengthens, investors require a higher interest rate on bonds because of growing competition for their investment dollars. Banks peg their mortgage interest rates to the daily interest rate on mortgage-backed bonds in the secondary market.
To qualify you for a conventional loan, your lender will consider whether you have stable and reliable income. It may require copies of paystubs, W-2s, income tax returns and other documentation to make an assessment. Frequently changing jobs will not necessarily disqualify you for a conventional mortgage, if you can show that you’ve earned a consistent and predictable income.
Keep Your Home California defines “cash out” as monies disbursed to the borrower, or paid to a third party for the benefit of the borrower (e.g., debt consolidation, home improvement, tuition, etc.), when the combined amount of those disbursements exceeds 1% of the new loan amount. Reasonable and customary costs associated with refinancing (e.g., appraisal, processing feeds, title insurance, origination fees, etc.) may be financed in the loan and are not considered “cash out.”
In today’s competitive market, many buyers skip this important step when they start looking for a home. A pre-approval allows you to confirm how large of a loan you can qualify for based on several factors. It also positions you to make a serious offer when you find the home you want to buy. For a pre-approval, the lender verifies the buyer’s application information through income and asset documents provided by you or retrieved directly by the mortgage company. Many lenders can also provide a “prequalification” online, based on unverified information provided by the buyer. However, most sellers don’t give much value to a letter that doesn’t state the information has been validated. The most important thing is to take the time to provide what is needed for a thorough pre-approval process.

Loans that are backed by the federal government (i.e., the Federal Housing Administration (FHA), Veterans Affairs (VA) and the United States Department of Agriculture (USDA) are designed to make buying homes more affordable and typically offer low down payments. Because conventional loans are not guaranteed by the federal government if the buyer defaults, they’re a higher risk for the banks, credit unions and other lenders that offer them. Conventional loans require larger down payments than most federally backed loans, but may offer lower interest rates and the flexibility to negotiate fees – usually resulting in a lower monthly payment.
How much you can afford. Lenders will be happy to tell you how much they’re willing to lend you, but that’s not actually a good indication of how much house you can afford. Check out our affordability calculator to get an idea of where you stand before you start looking for houses. Remember that your monthly payment will be more than just principal and interest. It will also include homeowner’s insurance, property taxes and, potentially, mortgage insurance (depending on your loan program and down payment). You’ll also need to factor in utilities and maintenance.
If you're interested in buying real estate in the US, the most important point to remember is that the mortgage lending market is extremely competitive. The overall interest rates are similar to those found in many European countries, but there is a lot of competition between different banks and brokers. That's why it's vital to shop around before you settle on a lender.

A married couple may decide to get a reverse mortgage but leave one spouse off the HECM. If the borrowing spouse dies or moves out permanently, a non-borrowing spouse can continue to live in the home as long as he or she is listed in the HECM documents as such. The surviving spouse must maintain the home and pay taxes and insurance as long as he or she continues to live in the home, and will not receive any of the reverse mortgage proceeds.
In addition, Countrywide will be spending billions of dollars to modify mortgages as a result of a lawsuit they settled with the federal government. Many state governments sued the lender for all of the questionable home loans that they issued to uninformed borrowers, and the funds to the settlement will go directly to helping homeowners. Find more details on the free mortgage modification from Countrywide.
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