26
Apr
By First Rate Financial Group
Mortgage

Exploring Homebuyer Assistance Programs: Assessing the Options Available

Exploring Homebuyer Assistance Programs: Assessing the Options AvailableThe traditional rule of thumb is that you should put down 20 percent of the cost of the house if you decide to become a homeowner. Unfortunately, the thought of saving 20 percent of the price of a home for a down payment can be daunting for people who are trying to buy a house for the first time. If you purchase a house worth $250,000, this means that you would have to save up $50,000 to put down. Fortunately, there are multiple down payment assistance programs that can make it easier for people to afford a home. 

The Traditional First-Time Homebuyer Assistance Programs

If you are purchasing a home for the first time, you might be able to purchase a house for as little as 3.5 percent down. This comes in the form of an FHA loan. Even though there is a chance you might be asked to pay private mortgage insurance, the idea of putting 3.5 percent down immediately makes a house look more affordable. 

Programs For Repeat Homebuyers

Even though there are plenty of programs available for first-time home buyers, there are options available for repeat home buyers as well. For example, between 35 and 40 percent of all down payment assistance programs have been designed for repeat home buyers. This means that regardless of where you are at on your journey, there might be programs that can make it easier for you to afford a home. 

Programs Are Available For Public Servants

If you work in a service profession, there might be programs specifically designed to help you afford a home. For example, there is a specific program called Teacher Next Door that makes it easier for teachers to afford a home. If you are a first responder, veteran, or active-duty soldier, there are specific programs designed to make it easier for you to afford a home as well.

Explore All Options Available

Ultimately, these are just a few of the many examples of programs that are available that can make it easier for you to afford a home. Even if you do not have the money to put down 20 percent, there are programs that could make it easier for you to purchase a house. 

 

20
Apr
By First Rate Financial Group
Mortgage

A Checklist Of Documents You Need To Refinance Your Mortgage

A Checklist Of Documents You Need To Refinance Your MortgageIf you want to save money on your mortgage, you might think about refinancing. Before you can complete the refinancing process, there are several documents you need to have. Make sure you have all of these documents organized before you go through the refinancing process.

Basic Personal Information

You need to have documents that prove your basic personal information. This includes your name, current address, and phone number. There are plenty of documents you can use to prove this information, and your current lender probably already has this on file if you are using the same lender to go through the refinancing process. 

Income and Debt Documents

You also need to have documents that verify all of your current income or debt. If you are a wage-earner, you should have at least one recent pay stub. You should also have tax returns and W2 forms from the past two years.

Make sure you have recent asset or bank statements as well. This could include retirement accounts, checking accounts, savings accounts, and investment accounts. You will probably need the most recent quarterly statement for monthly statements going back at least two months. 

Any Additional Letters and Documents

There are several other letters or documents you might need as well. If you receive alimony payments or child support, you will need to have divorce decrees verifying this information.

If there are any questions about your credit history or gaps in your employment, you will need to have letters explaining these issues. That way, the lender will be reassured that you can repay the home loan. If you receive pension payments or social security payments, you should have an award letter specifying the size of the payments and how long they are going to be paid.

You also need to have a deed showing that you are the rightful owner of the home and a document showing that you have an active homeowners insurance policy with appropriate coverage.

Get Your Documents Organized for the Refinancing Process

Once you have all of these documents, you should be ready for the refinancing process. You should work with a professional who can walk you through this process from start to finish. 

 

19
Apr
By First Rate Financial Group
Home Mortgage Tips

Til’ Debt Do Us Part: How to Get a Mortgage If One Spouse Has A Poor Credit Score

Til' Debt Do Us Part: How to Get a Mortgage If One Spouse Has A Terrible Credit ScoreA poor credit history is a reality for many people, but it can be particularly daunting when it comes to investing in a house. Fortunately, if you or yours have experienced bad credit doesn’t mean that you should be penalized in the future. If your spouse has struggled with bad credit in the past but you’re both preparing to move forward and invest in a home, here are some tips for getting it together financially.

Face The Music

Many people who have bad credit are too scared to take a look at their credit report and broach it honestly, but it’s important to come to terms with the problem so that it can be fixed. Instead of ignoring it, get a copy of the credit report and review it for any errors so that you can update these if needed and be aware of the issues impacting your credit score. While there may not be any inaccuracies on the report, knowing what you’re dealing with will give you a point to start from.

Make Your Payments

At some point, most people have missed a credit card or bill payment, but the first step involved in improving your finances and your credit is ensuring your spouse is paying their bills on time. While this won’t require paying the complete balance each month, it’s important to pay the minimum balance before the due date, and stick with it! It may seem like a small step, but over time it will improve credit and say a lot to mortgage lenders!

Save Up For Down Payment

20% is the amount that’s often suggested when it comes to a down payment, but if your spouse has terrible credit, it may be worth your while to save up more. It goes without saying that having good credit for both yourself and your spouse is important in getting approved for a mortgage, but by having extra for your down payment and paying your bills on time, you may be successful at convincing lenders you’re a solid bet.

It can be a lot more difficult to get your mortgage approved if your spouse has bad credit, but there are steps you can take to improve your financial outlook and give lenders a better impression. If you’re planning on investing in a home in the near future, contact your trusted mortgage professionals for more information.