Category: Loan Agreements

By Rony Walker

Who doesn’t dislike rejection? We all live in fear of rejection – be it from parents, teachers, or friends. However, rejection becomes particularly painful and burdensome when it’s issued by a loan officer. So, give your application for home mortgage refinance the best chance to be accepted!

Application Anxiety

Filling out applications is an aspect of everyday modern living, but the Internet has made it much easier and faster. Whether we are applying to for a job, college admittance, a credit card, an auto loan, or a membership in the Big Ugly Chicken Flying Club, we apply with the hopes of being accepted. This also holds true when we submit an application for home mortgage refinance. To avoid receiving our application with a big red “DENIED” stamp across it, it is wise to know all about the application requirement itself.

Application Arrangement

Many lenders today offer online applications for a variety of loans. Usually, an application for home mortgage refinance will request for the following information.

* Employment information can include information, such as the applicant’s position, monthly income, and duration of employment.

* When you file your application for home mortgage refinance, you will also be asked to provide the approximate loan amount, the terms of repayment sought, the type of residence and property type, and the quantity of units.

* Housing expenses on an application for home mortgage refinance can include such expenditures as monthly rent payments, homeowner’s insurance, first and second mortgage, mortgage insurance, and property taxes.

* Liabilities that applicants list could include taxes, credit line, mortgage, installments, and revolving credit. Under a revolving credit, credit is repeatedly made available after repayment has been made.

* Assets reported can consist of the value of cash deposits, savings and checking accounts, automobiles, and life insurance.

* Personal information requested can include your name, birth date, number of dependents, educational level, contact information, and co-applicant’s information, should you have one.

Application Advice

When completing an application for home mortgage refinance, you should also consider some general approaches in the application process. These tips could help you avoid being denied a mortgage. First, as the saying goes, “honesty is the best policy.” Ensure that all data on your application is true, to the best of your knowledge. Lenders will probably do some additional checking on your mortgage and credit history after you have submitted your application. Furthermore, take the general approach that a monthly payment is more important than an interest rate. After turning on your TV in the middle of the afternoon, mortgage lenders’ commercials seem to tell us otherwise. But remember one simple mantra: sodas, sneakers, and houses are bought with money — not rates!

Rejection is part of life, so we must learn to deal with it. However, it need not be a part of your application for home mortgage refinance. Don’t let it be one.

About the Author: Wondering how to go about your

application for home mortgage refinance

? Learn more about refinancing,

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when you visit WhatAboutLoans.com today!

Source:

isnare.com

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By Dale Ronewicz

Buying a Home for the first time can be a little ‘nerve racking’. Mortgage terminology that brokers use everyday can leave you scratching your head or shaking your head pretending that you know what they’re talking about. Here are some mortgage terms and definitions that you’ll be hearing when shopping for a first time home buyer loan:

Adjustable-rate loans, also known as variable-rate loans, usually offer a lower initial interest rate than fixed-rate loans. The interest rate fluctuates over the life of the loan based on market conditions, but the loan agreement generally sets maximum and minimum rates. When interest rates rise, generally so do your loan payments; and when interest rates fall, your monthly payments may be lowered.

Annual percentage rate (APR) is the cost of credit expressed as a yearly rate. The APR includes the interest rate, points, broker fees, and certain other credit charges that the borrower is required to pay.

Conventional loans are mortgage loans other than those insured or guaranteed by a government agency such as the FHA (Federal Housing Administration), the VA (Veterans Administration), or the Rural Development Services (formerly know as Farmers Home Administration, or FmHA).

Escrow is the holding of money or documents by a neutral third party prior to closing. It can also be an account held by the lender (or servicer) into which a homeowner pays money for taxes and insurance.

Fixed-rate loans generally have repayment terms of 15, 20, or 30 years. Both the interest rate and the monthly payments (for principal and interest) stay the same during the life of the loan.

The interest rate is the cost of borrowing money expressed as a percentage rate. Interest rates can change because of market conditions. Loan origination fees are fees charged by the lender for processing the loan and are often expressed as a percentage of the loan amount.

Lock-in refers to a written agreement guaranteeing a home buyer a specific interest rate on a home loan provided that the loan is closed within a certain period of time, such as 60 or 90 days. Often the agreement also specifies the number of points to be paid at closing.

A mortgage is a document signed by a borrower when a home loan is made that gives the lender a right to take possession of the property if the borrower fails to pay off the loan.

Overages are the difference between the lowest available price and any higher price that the home buyer agrees to pay for the loan. Loan officers and brokers are often allowed to keep some or all of this difference as extra compensation.

Points are fees paid to the lender for the loan. One point equals 1 percent of the loan amount. Points are usually paid in cash at closing. In some cases, the money needed to pay points can be borrowed, but doing so will increase the loan amount and the total costs.

Thrift institution is a general term for savings banks and savings and loan associations.

Transaction, settlement, or closing costs may include application fees; title examination, abstract of title, title insurance, and property survey fees; fees for preparing deeds, mortgages, and settlement documents; attorneys’ fees; recording fees; and notary, appraisal, and credit report fees.

Under the Real Estate Settlement Procedures Act, the borrower receives a good faith estimate of closing costs at the time of application or within three days of application. The good faith estimate lists each expected cost either as an amount or a range.

When shopping for a first time home buyer loan make sure you shop around and find a broker or a loan officer that’s responsive to your needs. And don’t be afraid to ask question. Remember, it’s the questions you don’t ask that could keep you from saving money.

About the Author: Mortgage Terminology for the First Time Home Buyer was written by Dale Ronewicz. For more information on Home Finance please visit: american-lenders.org (this link must be active on your site to use this article)

Source: isnare.com

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