Monthly Archives: July 2014
There’s nothing more frustrating than placing an offer on a property, entering the final stages before closing, and then having your loan financing application denied. It can require a tremendous amount of backtracking and work in order to ensure that you don’t miss out on the house you love. Here’s a closer look at four common reasons why home loan applications are denied, and what you can do to avoid these problems.
- Bad credit: In most cases, a home loan rejection comes down to your credit history. You can avoid this scenario by taking several steps. Know what your current credit report looks like and what your credit score numbers are before you enter the process. Clean up any errors and pay off any debts or other red flags. If you have issues in your past or specific concerns, discuss these with your loan officer before you apply. She can help you find a loan program or a lender that’s the right match for your history and current circumstances.
- Inconsistent information: Another red flag that sometimes leads to a loan rejection is inconsistent information on your application. If these concerns arise, find out where the discrepancies are and what documentation would be needed to address it. In many cases, discrepancies can be addressed with additional employment or income verification documents.
- A change in job status: Unfortunate things happen, and sometimes your job circumstances can change suddenly. If your home application is rejected due to a change in employment status, it’s important to make sure that the lender understands the circumstances. Were you able to immediately secure reemployment? Do you have the financial reserves to see you through? A sudden change in job status is one of the trickier situations to navigate. But it’s not impossible, provided you’re able to show documentation on how you’ll manage the challenges.
- Property appraisal value: In some cases, the issue isn’t with your application but rather due to the appraised value of the home. If the loan amount being asked for is larger than the bank is comfortable with after having the home appraised, your application may be denied. It’s possible to address this by increasing the amount of your down payment and lowering the total amount of the loan being requested.
Are you looking for the right lender for purchasing a home in Las Vegas, or dealing with a loan application rejection? Having the right loan officer on your side can help you navigate this process successfully. Contact Sydnee Johnson today to discuss your needs and available options for financing.
For most families, paying the mortgage each month is a top priority. Depending on when you purchased your home, you may be locked into an interest rate or monthly payment structure that’s much higher than today’s competitive rates. In other situations, life circumstances may have forced you to take out a second mortgage or put you in a position where you’re looking at options to lower your payments. Sometimes, fortunate events such as a big raise have you thinking about paying off your loan ahead of schedule. Whatever your circumstances, refinancing your mortgage can be a smart step. Here are some aspects to discuss with a qualified lender.
Can you lower your interest rate?
Interest rates fluctuate over time, and can add hundreds of dollars each month to your mortgage payment. If today’s rates are lower than what you’re paying, it may be time to consider a refinance. Discuss your interest rate, points, and current payment with a lender to learn whether you can qualify for a better rate. Reducing your interest rate can lower your monthly payment, increase the speed at which you can pay off your loan, and reduce the amount of interest you pay off over the life of your mortgage.
Could refinancing reduce your overall monthly expenses?
Refinancing a home loan can reduce your monthly expenses in a couple of ways. One way is by decreasing your interest rate and mortgage payment. For many families, the mortgage is their largest single expense each month. In other cases, if you have installment debt such as credit cards or personal loans, your total monthly payments can vary widely based on interest rates. Refinancing your home may allow you to tap into your existing equity and withdraw the cash needed to pay off your other debts. By consolidating, you can simplify your financial life and get on the road to better financial health.
Could refinancing allow you to pay off your mortgage faster?
Many home owners consider refinancing simply for the reason that they want to own their home outright as soon as possible. The financial freedom that comes with paying off your mortgage is substantial. Sometimes this is accomplished by lowering interest rates, which enable more money each month to be applied toward the principal. In other cases, it’s about changing the type of financing vehicle from one form to another such as an ARM to a fixed rate mortgage. Another option is to change a 30-year mortgage to a 15- or 20-year one. The ability to anticipate and accelerate your payment schedule is often the key to paying off your loan faster.
Are you in the Las Vegas area and considering refinancing your home? Contact Sydnee Johnson to arrange for a personalized consultation to discuss your unique situation, goals, and learn more about how refinancing can help you today.
Las Vegas is one of the country’s best areas to live, with numerous entertainment, dining, and outdoor adventure locations within easy reach. As a result, many of the brave men and women that have served our nation are choosing to relocate to the area permanently once they are out of the service. If you’re a military member or family and you’re wondering what you need to know about VA home loans, here’s a quick primer.
What is a VA home loan?
In 1944, the Department of Veterans’ Affairs created a home loan program that helps service members and veterans achieve their dreams of home ownership. Since the program was created, millions of service members and their families have taken advantage of this important benefit. Contrary to popular belief, the VA doesn’t offer home loans directly. Instead, they guarantee up to a quarter of the amount borrowed in the case that the home buyer defaults. This has created a network of VA approved lenders that offer low interest rates and some of the most competitive borrowing terms on the market today.
What are the benefits of a VA loan?
The VA home loan program offers veterans a number of benefits. These include the ability to finance up to 100% of the purchase price; in other words, to buy a home without requiring any down payment. VA loans come with less strict underwriting requirements; it’s been estimated that 80% of VA loan recipients wouldn’t qualify for a traditional loan. VA loans don’t carry prepayment penalties, don’t require that members pay Private Mortgage Insurance (PMI) which can add hundreds per month to payments, and they streamline the refinancing process. As a result, many veterans find that they’re able to buy homes they would otherwise never have been able to afford.
How to get started with a VA loan?
The first step is determining if you’re eligible for a VA loan. Service members, veterans and surviving spouses of deceased military personnel may be eligible. A number of factors, including length of service and discharge status, play an important role. The next step is obtaining a certificate of eligibility (which is called a COE by the Department of Veterans’ Affairs). More details on how to apply are available at the VA website. Once you’ve obtained your COE, you’re ready to begin the process and can work with a lender of your choice.
Are you a veteran or service member that’s purchasing a home in Las Vegas and needs help navigating the mortgage process? Contact Sydnee Johnson to arrange for a personalized consultation today.
The last few years have been difficult financially for most individuals and families. Issues ranging from long-term unemployment to the housing bubble that affected many cities have left individuals with previously stellar credit with blemishes and lower credit scores. While the issues range from late payments to foreclosures or short sales, thanks to the recent economic improvements many people are getting back on their feet. If you’re one of those individuals, you’re probably wondering – are there mortgage options that can help you reach your dream of home ownership even if you’ve had credit troubles in the recent past?
The good news: second chance loans
The answer is yes. While traditional banks or credit unions may be hesitant to make a home loan to someone with a recent foreclosure or job loss, there are a number of alternatives to consider. Money is available from private individuals and institutions with more flexible lending portfolios. Initial interest rates may be higher than the industry average, but this may be your key to rebuilding stellar credit. Speaking to an experienced mortgage lender with connections that include second chance loan providers is the first step toward understanding your options.
You’re more than a number
Second chance loan providers understand that you’re more than just your credit score. In addition to your credit history, these lenders dig deep to understand what happened to get you off track and what steps you’ve taken to get your life back on an even keel. They look closely at factors such as whether you’ve become reemployed, whether you’ve paid down debts, how your recent payment history looks, and other factors. Understanding the story behind what happened and what steps you’ve taken to improve your current situation provides a better foundation for making important credit decisions.
Keep an open mind
Many individuals that have faced recent financial difficulties have talked themselves out of their second chance at home ownership. It’s easy to assume that no one will place their trust in you, but it’s important to remember that it’s not true. Everyone faces financial hardships at one time or another. If you’ve made honest efforts to rebuild your financial life and you’re headed in the right direction, home ownership may well be within your reach.
Are you a Las Vegas area resident that would like to learn more about second chance loan options? Contact Sydnee Johnson today to arrange for a personalized consultation to discuss your unique situation, goals, and learn more about whether alternative mortgage vehicles might be right for you.