Getting a mortgage can be very frustrating. You find the right house, you fill out that long loan application, you collect all the required paperwork, you fax even more paperwork and speak your loan consultant multiple times during the entire process but yet somehow your loan is not approved. You have a lot of questions but you do not get any answers from anyone.

Why is this happening?

Now, more than ever, mortgage companies are becoming more restrictive when it comes to loaning money to potential home owners. The biggest reason why mortgage companies have become tighter is because the two financial juggernauts that purchase mortgages, Fannie Mae and Freddie Mac, need government financial assistance.

When the two biggest mortgage companies need financial bailouts, it starts a trickle down effect. Fannie Mae and Freddie Mac become more restrictive with their mortgage purchases. Mortgage companies that sell their mortgages to Fannie Mae and Freddie Mac will become more restrictive with the loan applications they approve.

How can I ensure my loan closes?

The United States Government is very concerned about the financial stability of Fannie Mae and Freddie Mac. If these two companies fail, the entire mortgage industry will collapse. The financial bailout will ensure that money will still be widely available to people who want to purchase a home or refinance their existing home loan. When looking to refinance or purchase a home, here are the some smart moves you can do to ensure your loan closes.

First and foremost you should shop for a mortgage loan. The company you used in the past may not be in business. Ironically, shopping for a mortgage meant getting the lowest possible rate. Now, shopping for a mortgage will mean finding a mortgage company that can get your loan closed. The byproduct of shopping for a mortgage is that you will be able to determine what the average rate and mortgage closing costs should be for your mortgage loans. You will also have backup mortgage companies in the event your first mortgage company can’t get your loan closed.

You also might want to consider local credit unions and banks. In the past they had higher rates than most mortgage companies but the downturn in the mortgage industry led to credit unions and banks offering competitive rates. You will still need to qualify for a loan and they may have stricter loan guidelines but by getting a loan at your credit union or bank, they may offer lower fees on your mortgage loan. They may also offer you even reduced fees on savings and checking accounts and other financial services.

Despite the problems that are facing Fannie Mae and Freddie Mac, the government bailout will ensure that these two companies will continue to purchase mortgages from mortgage companies. The mortgage economy is also a small fraction of the overall wealth of the United States so there is still plenty of money available for borrowers. You can still get a loan but the smart thing to do right now is to seek as many alternatives for financing you will ensure that your loan will indeed close.

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These days more and more individuals are going for refinancing home loans. This is fast turn a worldwide phenomenon. One doesn’t need to go far to search the cause for this. Rate of interest change and at this time they appear to be at an unsurpassed low. This offers an attractive alternative to the home owners.

The reasonable thing to carry out in such situation is to go in for home refinancing plan and loans. There are even the government policies along with programs which are friendlier and more inexpensively viable. This is the perfect instance to have a look at your home loans and to consider refinancing home loans. Prior to you go in for home refinance loans do go through the following points.

Period of continued living in your house

Don’t even think refinancing home loans prior to you settle on how long you’re going to remain in the home. In case your stay is limited to something less than three years then it makes no sense to avail a home loan refinanced. The closing cost of the mortgage could be more compared to the savings that you would make. Consequently there would be no benefit of refinancing a home loan. Alternatively, if you’re going to stay in the house for a longer phase. If you stay for five years then the benefits of refinancing a home loan would be enormous. The financial incentives obtainable make this a much profitable proposition. And it makes sense to get the benefits on hand and step in for refinancing home loans.

Clarity of goals

Be pretty certain in your mind that is the purpose to refinance home loan. Is your plan to lower the monthly payments together with the rate of interest? That would absolutely add up as it eases the monthly budget as well. You even got the alternative of converting equity into hard cash and having more cash liquidity. Through a new research you could modify the adjustable mortgage rate to a fixed one as well. It could be any of these causes however what is essential is that one needs to know regarding it and talk through clarity as choose on the plan. The mortgage loan professional would direct you regarding the right refinancing loan along with the terms and conditions. If you’re clear on these two positions then you could go in for the refinancing home loan of your choice and the one so as to suits you most. It needs to be arranged in that you could enclose on the ever-changing rate of interest ratios and the one that suits you the most.

However if you find difficult to deal there are mortgage loan professionals who would assist you throughout the process and would do a cost benefit analysis to additional identify as refinancing your home makes sense for you. It’s better if you collect multiple quotes through various lenders as it would help you in making decision. And through that you’re able to compare the lenders and could go with the best deal.

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It may be no surprise that mortgage regulations are getting tighter, but if you’re in the market for a mortgage to purchase a new home, you need to know what those regulations are. Educate yourself about what it takes to get approved for a mortgage and find out exactly how much you can get approved for before deciding on that dream home that might be out of your range.

The New Minimums and Maximums of Mortgage Regulations

Getting approved for a home loan isn’t just about how much you can afford. There are a slew of other factors involved that affect whether or not you’ll get that mortgage, and many of those factors come with minimums on what you need and maximums on what you can get.

Your Credit Score and Income

One of the most important numbers when it comes to mortgage loan approval is your credit score, and the minimum number for that score is now 580. If you’re credit score is below that number, think about improving your credit before applying for a mortgage. You’ll also face not only higher minimums for income, but also increased maximums on your debt level. When that debt to income ratio is rather high, chances of getting approved for your mortgage become slim.

Fannie Mae Loan Limits

Fannie Mae has mortgage loan limits for all of its conventional mortgages. The 2008 loan limits went into effect on January 1, 2008, and are as follows: the single family residence loan limit is $417,000, the two-family loan limit is $533,850, the three-family loan limit is $645,300, and the four-family loan limit is $801,950. If you are looking for a home in Hawaii, Alaska, the U.S. Virgin Islands, or Guam, be aware that the loan limits are higher and you should check with your lender.

Past Bankruptcy and Foreclosure

If you’ve owned a home before, but it didn’t end well, you need to understand what your options are for getting a new mortgage.

If it’s a Chapter 13 bankruptcy that mars your credit, you will need 2 years from the date of the bankruptcy discharge. If it was a Chapter 13 dismissal instead of a discharge, or any other type of bankruptcy, you’ll need to wait 4 years before your credit can be re-established.

Foreclosures require even more time: 5 years have to elapse before you’ll be considered for a new loan.

If you haven’t experienced either, but you have been delinquent on a mortgage for more than 60 days in the past 6 months, you’ll be considered a risk and will have trouble getting approved for a new loan.

Risk Factors and Other Approval Guidelines

The new mortgage approval guidelines don’t stop there. Any mortgage that’s considered a high risk is going to have trouble getting approved. That includes interest-only ARMS (adjustable rate mortgages), and maybe somewhat surprisingly, a mortgage for a condo. Yes, you read that right. If you want a loan for a condo as opposed to a single family detached home, you will be considered a higher risk.

Also, when the loan to value ratio on a mortgage is greater than 85%, private mortgage insurance (PMI) is not going to lower your risk factor anymore. However, on a slightly different note, if you’re self-employed, you’ll actually be considered less of a risk than you would have been in the past. Another new guideline to be aware of is that an authorized user on your credit card who has a better credit score than yours will no longer factor into your credit rating.

Expanded Approval Loans May Be An Option

Maybe you no longer qualify for a conventional mortgage, but if you come very close, then you may be able to qualify for an Expanded Approval loan from Fannie Mae. Don’t get this type of loan confused with a subprime loan; there are still strict guidelines for approval. You will pay higher interest rates than a conventional loan, and if you have to pay PMI, those rates can be high as well.

Even though getting approved for a mortgage is harder than it used to be just a few months ago, don’t set aside your dream of owning a home. Make an effort to understand the new guidelines and take the time to improve the areas of your application that you can. It may take a little longer than you originally hoped, but it can still lead you to mortgage approval for your new home.

For more articles on avoiding bankruptcy, visit http://www.bills.com/mortgage-regulations-changes/

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BY SUEVON LEE Staff Writer An Ocala man who posed as a mortgage broker and submitted falsified loan documents to a now-fallen national mortgage home lender has been ordered to serve an 8-year prison sentence.

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A consumer financial protection agency in the Federal Reserve is an oxymoron. Wall Street and the big banks crashed the financial system with abusive mortgage loans, have gouged consumers with outrageous overdraft fees and feasted on rip-off credit card charges.

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By the time you finish reading this page, you’ll will feel you are ready for buying a house. Discover the 6 basic steps to your piece of the American Dream.

The right of home ownership is an integral part of the American dream but thankfully, does not have to remain merely a dream. Like most dreams, desire is important and is the first ingredient. If you have the desire to own a home, you have already satisfied the most important step to home ownership.

Because your home is a financial asset, the desire for equity appreciation over time is certainly part of the dream. Besides gaining equity during some real estate cycles, pride of home ownership and financial security result from buying a house. These benefits are basic to our American heritage and are ingrained in our society. Our constitution providing freedom for home ownership, strengthens our country and makes us proud.

As much as we may like to avoid questions regarding our personal finances, buying a home is mostly determined by your current and expected prospects of financial ability and stability. Let’s figure out if buying a house is right for you by reviewing some basic items.

#1 The first question regards income. Income should be consistent and dependable. A steady income refers to your income’s consistency. The more consistent your income the better. The reliability of your income mostly refers to its predictability. What is the likelihood of your income continuing into the future?

#2 We all understand that your job supplies the money. So the second question to determining if you are prepared to buy a home is related to job history. You’ll move quickly past the employment issue if you have been in the same line of work for over two years.

Tip: When a lender is looking at a loan application they are going to examine each of these aspects of your financial life. Popular misconceptions are that lenders are looking for reasons to deny you but in truth, lending is how these mortgage institutions make money. So don’t feel intruded upon. Instead seek the guidance of a reputable mortgage lender to help guide you through this process.

#3 How you handle debt is extremely important to your financial health and is the third question to address if you are preparing to buy a home. Making payments on time is probably the single most important factor that lenders look for in a prospective home buyer. Make a conscious decision today to begin paying your obligations timely. Going past the due dates of your bills damages your credit rating but you can alter this behavior today.

#4 The amount of money owed is the fourth consideration for home buyers. In plain and simple language do you carry too much debt? Some people have large car payments plus high balances on credit cards. Other debts may include boat and recreation vehicles, installment payments for jewelry, furniture, and other items. Credit is easy to get but when qualifying to buy a house the volume of debt can obstruct your ability to get the house you dream about.

Tip: Zero down payment programs became the staple of home loan programs the last ten years. But due to the recent mortgage crisis, these products are not going to be as available.

#5 So the fifth question to ask yourself regards saving for a down payment. For those who have saved for the cost of buying a home including a down payment, they are a step ahead. It is never too late to begin a gradual savings plan toward a buying a house.

#6 The last issue is one some people don’t think of but is also important to your overall financial life. Can you afford to make monthly payments plus the additional cost related to owning a home? Some of the expenses that occur are home owners insurance, property taxes, yard maintenance, physical upkeep, and various maintenance systems such as electrical, plumbing, heating and air conditioning.

Don’t allow doubt to extinguish your hopes of home ownership by taking the next step. Contact a mortgage lender to go over these questions. Understanding your options will increase your opportunity of of home ownership. A reputable and experienced mortgage lender can help you zero in on the most important issues that you may need to address.

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Buying a home for the first time can be confusing. There are so many things to consider and so many things that must be done the right way before you sign your name on the dotted line. Understanding the steps of the mortgage and home buying process can make it much easier to navigate. Here’s a brief guide to what first time home buyers need to know about the mortgage process.

Before you look for a home:

Decide if you’re financially ready to buy a home. When you compare rents side by side with mortgage payments, buying a home may seem like a great bargain, but it’s important to consider all the costs that come along with owning a home.
Learn about the different mortgages available and figure out which is best for you. T
Get your financial information together. In order to be approved for a mortgage, you’ll need to document your income, your assets, your employment, your residence and your existing debt.
Get pre-approved. A pre-approval letter will give you a firm idea of your prospective price range for a new home, and it will tell your real estate agent and home sellers that you are serious about buying a home and financially capable of managing it. Pre-approval is a more formal and in-depth process than pre-qualification. A pre-approval letter is a formal certificate from a lender saying that you are qualified for a mortgage up to a certain amount. While it is not an agreement to give you a mortgage, it is one step closer to having the cash in hand to buy a house.
Find a real estate agent. Your real estate agent will work in your best interest and help guide you through the rest of the process.

Once you find your house:

Work with your agent to determine a fair offer price. A written offer will include the price you’ll pay, any conditions that must be met, amount of earnest money, complete legal description of the house, down payment and financing details.

Earnest money is included with your offer to show the seller that you are serious. If your offer is accepted, the earnest money becomes part of the down payment. If your offer is rejected, the earnest money is returned to you. If you pull out of the agreement for reasons other than those stated in the offer, you’ll forfeit the earnest money.
Once your offer is accepted, make a formal application for a mortgage. At this point, you will usually have to pay a mortgage application fee. If your mortgage is approved, it generally locks in the mortgage rate you are offered for 30 to 90 days.
Your lender will arrange for a home appraisal to determine that the house is worth the amount you are asking to borrow in order to purchase it.
You or the lender will order a home inspection, which is not the same as a home appraisal. A home inspection will point up any problems with the home that may have been missed by a casual inspection.

Insurance Policies that You Will Need

Get home owners insurance and provide proof of coverage to your lender.
Private mortgage insurance is a policy that will pay off your mortgage if you should default on the loan under specific circumstances. Most lenders require that you carry PMI if you make a down payment of less than 20%. Generally, the cost of PMI is added to the amount financed.
Title insurance is a policy that guarantees a clear title to the house. When you purchase title insurance, the insurance company will do their own title search. If any issues of ownership related to title arise after you have taken over the house, the insurance company will pay all legal and other costs related to the title issue.

Closing on Your New Home

Your lender will let you know in advance how much the closing cost will be. This is generally a “good faith estimate”, and may vary slightly from the actual amount when all costs are totaled.
You will be expected to bring valid identification and certified funds or a cashier’s check for the amount of the closing costs.
The closing costs will include any loan fees, prepayment of interest (points), copying fees and administrative fees charged by the lender.
You will have a chance to read over all the documents concerning your mortgage and your home. The closing attorney will give you concise explanations of each document that you are asked to sign, but you have the right to read each one over yourself as well.
Once all the papers are signed, you will endorse the check to the closing attorney, and receive the documents that make the home yours. The closing attorney will see to the disbursement of funds – paying off any remaining mortgage, payment to the current owners, and any other associated costs.

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Buying term life insurance for your family is a great gift that you can offer them by allowing them to continue to live in your beautiful new home, even if you should happen to pass away unexpectedly before the mortgage is paid off.

Buying a home for your family can be an extremely tedious, stressful and lengthy process. Your emotions will run the full spectrum from fear and anxiety to total elation, and you will probably find yourself wondering if it’s the right decision, or if you really can afford it. You’ll probably sit in anticipation, waiting for problems, cancellations, but then escrow will finally close and you find yourself relieved beyond words because you finally are the proud owner of your own home. In these joyous moments, it is difficult to think about the potential of a tragedy, but thinking about term life insurance is an unfortunate but necessary part of every family’s financial planning plan.

Term Life Insurance is the Best Protection

Term life insurance policies are straight forward in nature. You buy a specific face value of insurance with a certain time period of coverage. There are several factors that contribute to the face value of your term life insurance quote. The traditional rule of thumb for purchasing term life insurance is usually to aim for between five and ten times whatever your annual salary is, but your debt and yearly expenses should also come into play. Length of time that your term life insurance rate is set for will also differ. This is typically based on the age of your children, and how much income you anticipate to have once they are grown and self-sufficient. Take both the loan amount and the time frame into consideration when choosing a term life insurance policy if you want to best protect your family should you pass away unexpectedly before they can take care of themselves. Check out http://www.equote.com/li/life-insurance.html for more information about term life insurance.

When it comes to buying term life insurance for new homeowners, the most important consideration is whether or not your life insurance payout will be enough to pay off your mortgage as well as to support your family until they can support themselves. Even if your spouse decides to take on the monthly mortgage payments for tax purposes, will the insurance benefit offered to him or her be enough to sustain them completely for the rest of the time on the home loan?

3 Key Term Life Insurance Tips

1) All term life insurance policies are developed to be the most cost effective but you should still shop around because there are deals out there.

2) Shop around and obtain as many term life insurance quotes as you can to ensure that you are getting the best price and the best coverage to protect your family in the event of your death. You may find the exact same coverage in several different carriers, but may be cheaper in some states and much more expensive in others. A great place to start searching for term life insurance quotes is at http://www.equote.com/li/term-life-insurance-quote.html.

3) Make sure you are getting the right kind of term life insurance. Because there are three different forms and each is a little different and offers a different level of benefits at different monthly rates.

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When buying a Miami condo, or any real estate property for that matter, it pays to have a professional middleman between you and the lender; a mortgage broker is that person. These professionals act as liaison between the buyer and the lender. They have a useful network of lenders that can help you narrow down the search and find the right financing for your intended purchase. Still not convinced? Here are good reasons why you need a mortgage broker.

They are focused in helping you find the right mortgage. 

Especially for first-time Miami condo buyers, a mortgage broker is an invaluable asset in the hunt for the right mortgage. The main goal of mortgage brokers is to help you get the home loan you need for your purchase. Furthermore, these professional have extensive knowledge in the mortgage business, which you can’t sometimes get with the lenders loan officers. If you need any specialized type of financing for your property, mortgage brokers can definitely help you find it. 

The key in hiring mortgage broker is to know each of their specialties. If you’re a first-time homebuyer, almost any kind of broker can help you deal with the difficulties of getting approved for a loan. If you need refinancing, however, there are certainly several mortgage brokers who specialize in mortgage adjustments or modifications – just the sort of service you need. 

Their services are affordable. 

If you’re looking for several options for financing your Miami condo, mortgage brokers can help you. Aside from aiding you in gathering the needed documentation for you application, they can also easily access their network of lenders to find the right one you need. 

Buyers with sound financial health and good credit are considered low risk and lenders are quick to bid for their business. This sometimes creates confusion for the buyer. With a mortgage broker in your army of real estate professionals, however, the choice will be easier. And you only need to pay them 1% of the origination fee of your loan. 

They will focus on your interest. 

Settling on traditional lenders is sometimes disadvantageous because they tend to promote the best interest of the bank. What you need for your Miami condo purchase is to hire a mortgage broker who will have your best interest at heart and ensure that you’ll get to close on the loan. Besides, they can only be paid once your loan has been approved. 

Mark Michael Ferrer 
Miami Condos

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A good mortgage broker can do a lot for you if you’re looking for a mortgage or if you’re looking to refinance. A mortgage broker is usually going to work with several lenders to give you the best interest rate possible, with the lowest fees. This is especially important to you, for example, if you have a less than perfect credit history, but it’s a good idea to get a mortgage broker no matter who you are, even if you have a good credit rating. It’s almost always true that a mortgage broker can find you a better deal than if you simply went to your neighborhood bank, for example.

Should use an online mortgage broker?

Oftentimes, an online mortgage broker can give you lower rate quotes that a mortgage broker who is only available off-line. It’s always a good idea to research online before you decide to go with a mortgage broker, regardless of which type you use.

What does the process of working with a mortgage broker entail?

When you work with a mortgage broker, you’ll first receive an initial quote by the broker as to the fees and rates you’ll pay. When you are looking for a broker, you should also make sure to ask him or her what fee they charge, since that’s going to be added to the loan amount and other fees you’ll garner with this process. A more in depth process will follow, whereby your own history will be taken when you fill out an application, so that you can get an exact quote once this information is known.

What’s great about working with a broker online is that you won’t have to be pressured to fill out an application by the broker that you are talking with. Instead, you can get the initial information from broker, and then the broker will wait for you to take the next step, instead of pressuring you to fill out an application right away. You’ll generally first get a general quote from the mortgage broker, and then you’ll receive rates via e-mail or phone call. You can look at these rates at your leisure, and won’t have to be pressured to choose.

A mortgage broker also provides you other advantages, such that he or she will know about any tax credits, financing options for first-time homeowners, and other information you may not know about on your own. This is especially beneficial because it will absolutely guarantee that you’ll get the best mortgage and will pay the lowest rates possible.

In short, you can’t go wrong if you hire a mortgage broker. It’s true that you’ll pay the mortgage broker a fee to work for you, but you’ll recoup the cost of that fee and more through the money you save with better interest rates, tax credits you may not know about, and first-time home buyer options, just to name a few things a broker can help you with. And even if you’ve purchased a home before, there’s a lot that’s new out there, with the housing crisis, and the changing landscape when it comes to mortgage acquisition. So hire a mortgage broker and make sure you get the best deal you can for the dream home you want.

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Unless you happen to be paying cash for your new home, you’ll need a mortgage loan in order to finance it instead. There are lots of ways to go when getting a mortgage, but two of the most common is to either use a bank loan officer or a mortgage broker, and let’s discuss the pros and cons of each.

A bank loan officer is essentially an employee for that particular bank. Their job is to review applications for loans that are made with the bank, and only except the ones that fall within the bank’s guidelines for approval. The advantages of using a bank loan officer when securing a mortgage is that if you tend to do a lot of your financial business with the bank, and they know you well, you may find you can get very good terms and easy approval to boot.

A mortgage broker on the other hand is an independent agent that usually represents several lending institutions at once. They are not employee of any of these companies, but they are representatives of them instead. Their job is to find you the best mortgage among the various companies that they represent, and they will be paid a fee for bringing the lending institution and the customer together.

A mortgage broker may not be nearly as familiar with your overall financial situation as your local bank is, and so you may have to provide them with quite a bit more paperwork and documentation than your bank would require, assuming that you bank has a familiar relationship with you.

A mortgage broker will be able to access your credit history just once and then send the details of your loan application to more than one company at a time and let the lenders compete in order to get the best terms and rates possible. This can be an advantage on your credit history report, as having your credit report accessed too often in a short period of time can actually harm your credit score overall.

The real advantage to using a mortgage broker though is found when your bank or credit union decides not to extend you a mortgage loan for some reason. Most often you will be able to still get the mortgage that you want by going through a mortgage broker instead, although you may have to pay a higher interest rate and fees in order to do so.

Keep in mind that any mortgage broker will be paid commission based on the amounts of profit that the lending institution will make, and so be careful of being charged in interest rate that is too high and unnecessary fees in the mortgage contract.

As you can see, very often your most favorable terms and rates can be found by going through your own bank or credit union. However, if that is not an alternative, a mortgage broker can be a very effective solution for getting mortgage approval instead.

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