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Gateway Funding Determine Whether You are Eligible to Obtain a Mortgage Perhaps you are like many others, who live paycheck to paycheck. So what is the first thing you should do if you are serious about buying a new home? Of course, understanding your credit score and where it falls against the National average and against lender requirements is very important.Credit can be complicated so seeking advice in this matter isn’t a bad idea. After getting a good look at your credit and addressing any issuesit is wise to find a mortgage specialist to help you come up with a plan. Here in this article, we will be going through the preliminary steps for getting pre-qualified or pre-approved for a mortgage loan. Steps to get pre-qualify: - Speak to your mortgage specialist and thoroughly go through your income, employment history, credit profile, including liabilities and assets available for the transaction. This process should be repeated for any borrowers on to be included on the loan. Discussany concerns or potential issuesso that the lender can best understand your financial position and borrowing capability. - The pre-qualification processis not an official bank approval but should be taken seriously. Giving inaccurate or partial information will only delay the processin the long run. Prequalification is generally viewed as a good estimate regarding what the borrower can afford in a loan amount. With a prequalification in hand you may begin to seriously look at houses that fall in the range listed in the prequalification. - Going through the pre-qualification processtells you how expensive a home you can afford. It is a good tool to use to help you decide how much money you are comfortable borrowing and it will allow you to see what types of properties fall within your price range. Steps for pre-approval: - The pre-approval processis comparatively more formal than pre-qualification process. During the pre-approval process, the lender checks your credit, verifies your financialand employment information and confirms your capability to qualify for a mortgage. - A pre-approval increasesyour chancesto make an offer when you find a property that you like. Another benefit of getting pre-approved is that sellers are generally more willing to accept offers from pre-approved buyers, who have proven their ability to purchase a house. There are a variety of loan programs out there to meet the needs of every borrower’s unique situation. When shopping for mortgages, specific loan requirements and personal priorities play important roles in decision making.


Read This before Refinancing Your Mortgage Loans Mortgage Bankers Association reports, refinancing applications represented approximately 80%of overall mortgage applications by September 2010. The downfall of mortgage interest rates is spotted as the main reason for most of the people to restructure their finance. However, mortgage refinancing purely depends on everyone’s individual circumstancesthan on the weekly financial updates. Whenever it comes to mortgage refinancing, there are few things to consider. Home equity: Equity in your home is the first and foremost basic qualification required to refinance. But the present downfall of home values across the country have pushed many of the home owners into acute stress, owing more to their mortgage lender than their home’s current market value. Especially this situation is very prevalent in America whereas in other countries, the homeowners have comparatively low equity. Refinancing with little or no equity is almost impossible with conventional lenders. The best solution is to discussyour current needs and current lender requirements with your chosen mortgage specialist to make sure you can find a good match. Home owners with 10-15%equity have more chancesto qualify for a new loan easily. Debt to Income ratio: Having a mortgage loan already will not easily help you to be eligible for a new one. Rather there are some other criteria also like stable job history, high income and considerable value of savings which are the true factors that will help you in qualifying or the loan. Usually lenders have a maximum of 28%-31%of your gross monthly income going towards the monthly housing payments. However, the overall debt to income should be 36%or less. With certain positive factors, some lenders may even allow up to 40%.In order to qualify for refinancing, you need to pay off the debts in advance. Credit score: Having a good credit score is not a gateway to get loans easily. Some consumers may wonder becauseeven with good credit score they will not always qualify for the lowest interest rates. But the lenders have tightened the rules and regulations for loan approvals. Lenders want to see a credit score of at least 720 or higher in order to qualify for the lowest mortgage interest rates. Borrowers with lower scores may still obtain a new loan, but the interest rates may be slightly higher. Compare rates with terms: If your objective is to reduce your monthly payments as much as possible, you will want a loan


with the lowest interest rate for the longest term. If you want to pay less interest over the length of the loan, you should go for the lowest interest rate at the shortest term. Borrowers who want to pay off their loan as fast as possible should look for a mortgage with the shortest term at payments they can afford.

With Home Affordable Modification Plans (HAMP) You Can Rescue Your Dearest Homes from Foreclosure

Loan modification programs are one way to try and avoid foreclosure. Reducing overall mortgage costs and saving your home from foreclosure is the ultimate objective of government loan modification programs. To be sure that this program is a good fit for your situation, you should gather information and review the rules and regulations before starting the process. The fact is that most of the distressed home owners are not aware of the loan modification programs available to them. Anyone who is eligible to apply for a loan modification can possibly benefit by the lender amending any one the three following features: - Reduction of principal loan balance - Reduction in mortgage rate - Increased loan amortization period To be eligible for this $75 billion Obamastimulus home loan modification program, you need to satisfy certain requirements which are stipulated by the rules and regulations of the government plan. Also the documentation which is required to submit along with your loan modification application might be harder than it sounds. That is where expert legal advice becomesinevitable and plays an important role. In order to qualify for the loan modification, you will need to provide documentation of your financial hardship and the circumstancesregarding your imminent risk of default; this is called a hardship letter. You will also need to provide a detailed accounting of your monthly income and expenses.Make sure to review all documents so that you submit a complete, accurate and legible loan modification package. Follow your application systematically and you can get the loan modification help you need from your lender. Homeowners, who are approved based on the initial criteria, are eligible to modify their loan permanently to an affordable lower interest rate and an affordable lower monthly payment. Borrowers must complete an application to include financial statement, hardship letter and provide proof of their income.


The mortgage modification attorneys can help you get a clear understanding of the guidelines of the Home modification program. They can also actively assist you in preparation of the paperwork which is required to be submitted. In the event that you do not qualify for Home Affordable Modification Plan (HAMP), there is another possible option. You can explore your eligibility for the HARPwhich can help some people refinance. Gateway Funding Diversified Mortgage Services, L.P. is a full service mortgage banker offering a diverse product portfolio. They have written many informative articles on home loans and refinance as well.

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Perhaps you are like many others, who live paycheck to paycheck. So what is the first thing you should do if you are serious about buying a...

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