There are many factors to consider when getting approved for a home loan in to purchase a property or when refinancing an existing mortgage.
Since every borrower’s income, employment, down payment, equity or credit scenario is unique, the task of shopping for the perfect loan mortgage lender can become overwhelming, even for seasoned real estate professionals.
Joe Tishkoff with Skyline Financial can be reached at 1-877-800-4JOE to if you have questions about home loans.
Mortgage Approval Process
For a mortgage approval to buy or refinance, banks may take into consideration your credit score and history, income and employment status, bank cash reserves and a handful other supporting documentation depending on your mortgage program, down payment or equity.
Fortunately for you, getting started with the pre-approval or rate quote process is as simple as calling Joe!
Understanding Your Credit Scores
Credit scores and borrowing history are important components in qualifying for a mortgage loan in for both a purchase or streamlined refinance. Each mortgage program has its own criteria for eligibility based on credit.
There are many government programs that are more liberal with a borrower’s current or recent credit history, and the CFPB has made it easier to correct inaccuracies that have been reported about you. Either way, it helps to have an idea of your score ahead of time so that you can protect your identity.
Home Loan Programs
There are still many home loan programs available for first-time home buyers, Veterans, conventional refinance options for underwater homeowners and renovation loans for upgrading properties.
The mortgage approval process above goes hand-in-hand with the type of loan program you may be eligible for in California when purchasing or refinancing. Skyline Financial will be able to find a mortgage program that fits your financial needs.
Understanding Mortgage Payments
One of the more frustrating experiences with getting a mortgage is the dealing with the anxiety about what the final mortgage payment will be with everything included.
In addition to your mortgage principal and interest payment, which is simply calculated using the interest rate, there is also hazard insurance, mortgage insurance premiums, funding fees, HOA dues… and the list could go on. Make sure you get a full printout of your “Complete” monthly mortgage payment liability when shopping rates.
Shopping Interest Rates
Since mortgage rates can change several times a day, most banks require a full credit application to be submitted prior to locking in a loan rate.
Several factors influence the way interest rates move, and the decision to lock your loan ultimately relies on the relationship and trust you have with the mortgage professional working on your file. However, there are several important questions you can ask a lender when shopping for the best mortgage rate to determine whether or not they understand the market.
Mortgage Closing Process
With the right home buying and mortgage team on your site, closing on your Westlake Village home loan should be a smooth transition from initial application to final documents.
This is the final step where you sign for your new mortgage and accept responsibility for the monthly payment schedule. Details involved include closing costs, title insurance, hazard insurance and verifying any assets needed for closing.
Refinancing your home loan can be a very similar process as obtaining a purchase loan. However, there are many options created to “streamline” the process, depending on your equity, credit scores and current mortgage program.
Determining the net benefit of refinancing involves analyzing your goals and budget and weighing the costs against your potential savings. Cashing out equity to consolidate debt or to pay for living expenses are also reasons to refinance.
This is designed to give helpful tips on the mortgage process, and is not intended to give legal advice. This is not a prequalification, preapproval, loan approval or commitment to lend. Information is deemed reliable, but not guaranteed.