25
Nov
By support
Home Mortgage Tips

Refinancing Your Mortgage? Know These Key Terms Before You Sign Your Paperwork

Refinancing Your Mortgage? Know These Key Terms Before You Sign Your PaperworkWhen it comes to your mortgage, there are a lot of key terms that are important for every homebuyer to know, and this is no less true than when it comes to refinancing your most important investment. Instead of leaving what’s unknown up to chance, it’s important to be aware of exactly what you’re looking at so you can get the best mortgage product available. If you’re currently considering refinancing and don’t want to get snared by unknown terminology, here are some terms you’ll need to watch out for.

Cash-Out Refinance

This type of refinance is a transaction where the home’s mortgage amount is higher than the existing mortgage amount, and cash-out refers to the extraction of equity from the homeowner’s home. While this type of refinancing can be a means of tapping into extra cash to help you with monthly expenses, it also means that the cash you take out of your equity will be added to the balance you already owe on your home.

Rate-and-Term Refinance

This type of mortgage transaction involves the refinancing of an existing mortgage so that you can take advantage of a different interest rate. While this type of change will not alter the amount of your home loan, it will adjust the interest which means that your monthly payments may be lowered and your may have a shorter amortization period due to overall reduced costs. These types of loans can often come with lower interest rates than cash-out refinances.

Streamline Refinancing

This type of refinancing is offered by the Federal Housing Administration (FHA) and the Department of Veterans Affairs, and it is also offered by certain financial institutions. While this type of refinancing has its own set of stipulations, it is directed at those who want to take advantage of low interest rates or get out of an adjustable rate mortgage (ARM). While you may need to have a financial appraisal done in order to qualify for this option, it’s also possible that this will not be required to qualify.

There are a lot of key terms that go along with having a mortgage and refinancing it, but if you’re considering your options it’s very important to know what all of them mean so you can be sure you’re making the best decision. If you’re currently considering refinancing your home and need helpful advice, contact your trusted mortgage professional for more information.

22
Nov
By support
Home Mortgage Tips

First-time Home Buyers: Here’s a Quick and Easy Guide to Your First Mortgage

First-time Home Buyers: Here's a Quick and Easy Guide to Your First MortgageDelving into the real estate market for the first time can be a very intimidating thing with all of the mortgage and housing options available. Whether it’s market conditions or the amount you should be spending, there are a number of factors you’ll need to be aware of. If you’re just starting out and not sure where to begin, here are some points to consider that will set you on the right path.

Is It The Right Time To Buy?

Many people try to time the market, but the right time to buy a home is when it works for you. If you have a solid down payment and you’re truly prepared for home ownership, it’s probably the right time to start looking. While a good home and low interest rates can certainly push you in this direction, if it’s not quite the right time, hold off until it’s right for you.

What’s Your Payment Plan?

It’s easy for a first-time buyer to be taken in by their dream home, but it’s important to be clear on all the costs associated with home ownership like property tax, insurance, maintenance and other fees that will bump up the monthly payment. If you can formulate a budget that includes all of your monthly costs and is feasible in the long term, you’re good to go.

What Documentation Is Required?

Having your personal documentation in order and available will be one of the most important steps in your application, but there are a number of things you’ll need. Beyond recent paystubs, tax returns and bank statements, you’ll also need your credit report, so take a look over it to ensure that it’s correct and displays your financial history in a positive light.

Starting the Search

You may be ready to move as soon as you start looking, but buying your first home can be a rather lengthy process. Instead of being sucked in by too much house or taking the first home that appeals to you, ensure that you have a good sense of the size, neighborhood and style of house you want so you can get out there and find the home that works for you.

There are a lot of things to consider when it comes to buying your first home, but by being ready to invest and having your finances in order you’ll be well on your way. If you’re currently in the market for a home, contact your trusted mortgage professionals for more information.

15
Nov
By support
Home Mortgage Tips

Applying for a Mortgage? 3 Easy Ways to Make the Process Easier — and Reduce Your Stress

Applying for a Mortgage? 3 Easy Ways to Make the Process Easier -- and Reduce Your StressThere are more than enough details involved in getting a mortgage and moving into your own home that you’ll want to know how to make the process as seamless as possible beforehand. However, there’s a chance you might not be aware of the things you can do to make it a little easier on yourself. If you’re currently looking for a home and are wondering how to streamline the approval process, here are some things to do before applying to minimize mortgage-related stress.

Get Electronic Documentation

In order to get approved for your mortgage application, you’ll need to provide documentation that will likely include bank statements, federal tax returns and recent paystubs, but providing or acquiring all of these documents in paper form can require a lot of drudgery. Instead of paper, get your documentation together and ensure it’s in electronic form so it can be easily accessed or sent from anywhere. This means you’ll have it on hand as soon as it’s needed.

Choose A House You Can Afford

As a potential homebuyer on the market, it’s easy to be swayed by your dream home, but if your dream home doesn’t come with an acceptable price tag, it’s important to move on to the next best opportunity. It can be very easy to be invested enough in a particular home that you can convince yourself you’ll budget for it, but the market can shift and this can push your monthly payment from difficult to not-doable. Choosing a home at an affordable cost will not only improve your chances of approval, it will also minimize your stress after the move-in date.

Have Your Down Payment Ready

It may be all well and good to know that your down payment money is in the bank, but it’s important that it’s in the appropriate account at least 3 months prior to your application submission so you can ensure you’ll be seen as financially sound. While it’s great to have money held in investments and RRSPs, it’s important that this down payment money is kept in an easily accessible account where it can be withdrawn without any time delays or financial losses.

There are many different steps and small details associated with obtaining a mortgage, but by having your electronic documentation and down payment ready, you’ll be well on your way to an approval. If you’re currently on the market for a home, contact your trusted mortgage professional for more information.