Here’s a Quick Way to Move Past Being Denied- Find Another Lender!

Heres a Quick Way to Move Past Being Denied- Find Another Lender- 150x150Settling on the first lender that you come across is never a good idea. Only by shopping around can you find mortgage loans with lower interest rates and attractive terms. You will have to look at all the characteristics of the mortgage loan in order to find the one that suits you best or you may end up spending more than you have to.

Looking at mortgage offers and finding a lender which can give you the best interest rate and terms on a mortgage loan is important when trying to become a home owner. But even more important is finding a lender who is willing to give you a mortgage loan, especially if you have a low credit score. Every lender has its own qualification requirements, which can differ greatly from one lender to another. Factors such as your credit score, debt, income, and the area in which the property is located in all have a large influence on whether you are going to be approved for a mortgage loan and how much you are going to have to pay.

Lenders may advertise low interest rates and lenient approval standards, but you will probably have an unpleasant surprise once you apply for a mortgage and find out that the advertised rates are reserved for those with perfect credit scores and high incomes.

Why Will Some Lenders Deny your Mortgage Application?

Most mortgage loans already have their requirements established by the government agency that is backing the loan. Government-backed loans are associated with these agencies: Fannie Mae, Freddie Mac, the Federal Housing Administration (FHA), and the United States Department of Veterans Affairs (VA). The fact that the loans are backed by these government organizations is not considered enough of a guarantee by lenders, so they have their own, stricter requirements.

One of the loan requirements that can result in a mortgage application denial is your credit score. The Federal Housing Administration can guarantee mortgage loans for buyers with credit scores as low as 500, but most lenders will deny all applicants who have a credit score that’s lower than 600. Also, most lenders have special requirements for those who don’t have a perfect credit score. For example, borrowers with a credit score that is under 680 may be required to provide additional documentation related to their financial situation.

In order to qualify for the FHA Streamline Refinance, you must pay your mortgage on time for 12 months without missing a payment. But the lender who will refinance the loan will have additional requirements, such as checking your credit score and income.

Fortunately, not all lenders have the same requirements, which means that you can easily be approved by a different lender, or even get better terms on your mortgage. Generally, smaller lenders and credit unions seem to be more flexible than large lenders, especially if you give them reason to believe that you are not a high default risk, even if some aspects of your financial situation are not in good shape. Mortgage brokers can also help you find a mortgage loan if you think you can’t do it on your own. They charge a fairly large fee, but it may be worth it, especially if you have a strong feeling that most lenders will deny your application.

Top 10 Loan Modification Lenders

Top 10 Loan Modification Lenders-150x150Many Americans have been affected by the recent economic crisis. Millions of homes have gone into foreclosure, and millions of families have lost their homes. If you are at risk for losing your home, the good news is that there is something you can do about it, but it largely depends on your ability to get back on the right track financially. If your lender agrees to a mortgage loan modification, you have a good chance for saving your home from foreclosure, and avoid the nightmare of losing your home.

Mortgage lenders are not required to agree to a loan modification, so it is up to you to prove to them that your own financial crisis is only temporary, and that you will be able to start making payments on your mortgage again. Not all lenders are created the same, so here is a list of the top 10 loan modification lenders:

Top 10 Lenders

1. Wells Fargo & Company: As of March of 2013, Wells Fargo, whose vision is “We want to satisfy all our customers’ financial needs and help them succeed financially”, is the best ranked financial institution in market value in the country.

  • The company has its headquarters in San Francisco, but serves its U.S. and international customers through their 9,000 stores, their website and their 12,000 ATMs. Wells Fargo offers their 70 million clients worldwide services such as banking, mortgage and insurance, and is an industry leader in the U.S., being the first ranked retail mortgage lender and mortgage servicer in the country.

2. JP Morgan Chase:  One of the largest financial services company in the world, JP Morgan Chase started its business more than 200 years ago.

  • The firm has assets of $2.4 trillion, and operates in the Unites States, as well as internationally, in more than 60 countries.
  • Some of the services offered to the U.S. customers include credit cards, home finance, education finance, retirement, auto finance and investing.

3. Citigroup: Citigroup opened its doors for the first time in 1812. It only had 1 branch and 22 employees. Today, it is one of the best-known financial institutions, operating in 160 countries and territories, and employing more than 260,000 people.

  • Since 2007, Citigroup, through Citi Mortgage, has helped over 1 million people to avoid foreclosure. The company also launched its Road to Recovery program, to support afflicted U.S. homeowners.

4. Ocwen Financial Corporation: With an experience of more than 20 years, Ocwen is the leading high-risk loan servicer in the country.

  • Ocwen is based in Dunwoody, Georgia, but has offices in other cities across the country, too, and has a license to service loans in all U.S. states and territories.
  • Since February 1, 2013, GMAC Mortgage transferred part of its loans to Ocwen.

5. Bank of America: This multinational financial corporation is one of the country’s largest bank holding companies. Along with its competitors, Wells Fargo, JP Morgan Chase and Citigroup, Bank of America is one of the Big Four banks in the U.S.

  • Bank of America and its subsidiaries, Merrill Lynch and U.S. Trust, offer its clients a wide range of services, such as consumer banking, mortgage, corporate banking, credit cards and wealth management.

6. U.S. Bank: The 5th largest bank in America, U.S. Bank, has assets totaling more than $355 billion. The company offers financial services to consumers in more than 25 U.S. states, and has operations in Europe and Canada, as well.

  • U.S. Bank was ranked first in customer satisfaction three years in a row (2010-2012), and over the years has received numerous rankings and awards.

7. PNC Bank: PNC Bank is the main subsidiary of PNC Financial. The firm is headquartered in downtown Pittsburg, PA, and has over 50,000 employees.

  • PNC is one of the country’s top mortgage lenders, with a loan portfolio of $122 billion. The company has over 90 mortgage offices in the U.S. and 2,800 Retail Banking stores, where its customers are served by knowledgeable mortgage professionals.

8. SunTrust Bank: This financial firm was established in Atlanta, Georgia, and operates in several states in Southeastern U.S.

  • As of March 2013, SunTrust has $173 billion in assets, and approximately 30,000 employees, who work together to offers quality financial services to U.S. clients. Some of the bank’s offerings are mortgage banking, credit and deposit services, retail banking, as well as insurance, asset management and mutual funds.

9. Provident Funding: Provident was founded in 1992, and is the country’s second largest private mortgage firm.

  • The company is licensed in 47 U.S. states, has a $60 billion loan servicing portfolio and more than 280,000 clients.
  • Freddie Mac’s “Top 25” ranked Provident the best servicer for default management, and it also named the mortgage company “Hall of Fame Servicer”.

10. Branch Banking & Trust Company (BB&T): Headquartered in Winston-Salem, NC, BB&T operates in 12 states, has over 1,800 branches and more than 30,000 employees.

  • BB&T received many awards, and is recognized by J.D. Power and Associates for outstanding customer satisfaction.

Having an open line of communication with your lender is very important, and will help you to easier reach an agreement with them. Lenders are not obligated to give you a mortgage loan modification, but being upfront and honest with them will certainly increase your chances of saving your home from foreclosure, and painlessly get back on your feet financially.

Shopping for a Mortgage Loan? Learn How to Compare Mortgage Lenders

If You’re Shopping for a Mortgage Loan, Learn How to Compare Mortgage Lenders- 150x150Becoming a homeowner is something that many people aspire to. Owning a home offers you more security in your life, and it’s something that you can be proud of. But home buying is one of the largest investments most people will make in their life time, so doing it right is very important. When shopping for a mortgage, you must do a ton of research, which will help you find what you are looking for and possibly save you a significant amount of money.

Not all lenders are created equal, which means that, if you just do business with the first one that crossed your path, you won’t have anything to compare him with. Also, more importantly, some lenders can give out loans that better suit your needs, but others will present you with various options that will not work to your advantage. It is imperative to know how to compare mortgage lenders, and is the only way to avoid turning your life into a nightmare.

How to Compare Mortgage Lenders

Finding the right mortgage lender for you can only be done by shopping around and comparing several lenders. When looking at various mortgage loans from various lenders, the first thing that will get your attention is the interest rate. Comparing mortgage lenders based solely on the interest rate is wrong, as there are many other factors that make up a loan. The interest rate has a huge impact on how much the mortgage loan will cost you, but these other factors are not to be taken lightly. Here are a few steps that you should take when comparing mortgage loans from different mortgage lenders:

  1. Research several mortgage lenders in the area. You can do the research online, by calling their offices, or by visiting their locations to talk to one of the officers and pick up brochures. Remember that the interest rate is not the only thing you should look for when shopping for a mortgage loan. Some lenders may offer lower than usual interest rates, but that doesn’t mean that you’ll be paying that interest rate for the duration of the loan.
  2. Make sure that you are comparing the same type of loans. It’s important to understand that interest rates change daily, so you should compare rates on a specific date. Also, make sure that you are not comparing the interest rates on loans with different terms. Comparing rates on a 30-year to rates on a 15-year loan will not help with your decision, as this is like comparing apples to oranges.
  3. Compare each lender’s closing fees and points charged. Remember that each origination point represents 1 percent of the purchase price. Also, you can pay for more mortgage points in order to have your interest rate reduced. Points are not the only expense that you will have when taking out a mortgage loan. There are also closing costs, such as the appraisal fee, the title fee and many others, that you should take into consideration, as they can make your closing costs very high.
  4. Find out if there is a prepayment penalty on the loan. If there is a penalty for paying off your mortgage loan too early and you’re unsure of your plans for the next few years, then maybe you should keep looking. The prepayment penalty will make selling or refinancing your home in the near future very difficult and expensive.
  5. Find out how much your down payment will have to be. Most lenders require a 20 percent down payment, but how much you will be able to pay will influence the amount of money that you will be paying for the duration of the loan. This means that, depending on the amount that you will be able to come up with as a down payment, you will save money, or spend more.

Finding a good mortgage deal is influenced by several factors, and not only the quoted interest rate. Closing costs and other fees can rack up quickly and turn what you thought was the perfect mortgage loan for you into a nightmare. A mortgage loan is something that you will have to pay over the next fifteen or thirty years, so properly researching each lender and what they offer will guarantee that you will find a mortgage loan that suits you and your budget.

How to Find the Best Refinance Mortgage Rates

Best Refinance Mortgage RatesWith mortgage interest rates at near all-time lows, now could be the perfect time for you to consider refinancing your mortgage. Unfortunately, even if most factors point towards an increase in mortgage refinancing, low appraisals and strict lending rules make it difficult for borrowers to refinance, even with good credit scores and significant assets.

Low interest rates have always been attractive to borrowers. The average interest rate on a 30-year mortgage is under 4 percent right now, at the lowest level in the past 60 years. Before refinancing, you must be aware that a low rate is not the only factor that will decide if you will save money. Low mortgage rates usually come with bigger closing costs, and adjustable-rate mortgages come with a low initial rate that can increase a lot over time.

Tips on Getting the Best Rates

While predicting mortgage refinance rates is difficult, you can take a few steps to make sure that you’re receiving the lowest refinance rates available:

  • Boost your credit score. The first thing that you need to do before refinancing is to try to increase your credit score. You’re entitled to one free credit score report per year. Always make sure that all the information in the report is accurate, and correct it if it’s not, by contacting the issuing agency. A credit score of 740 and above is generally perfect for getting the best refinance rates.
  • Shop for the best mortgage lenders. It’s more convenient to just refinance with your bank, but only by shopping around you will be able to find the best refinance mortgage rates. The difference between the best and the worst rate can be as high as 1 percent. When looking for quotes, try bankers, mortgage brokers, credit unions, local and national lenders, and make sure you keep an eye on mortgage rates comparison websites.
  • Look at fees, not just rates. Low rates usually mean high fees. Question all of the lender’s fees and look out for any unnecessary administrative, processing or courier fees. You’ll only know the true cost of your mortgage after you take everything, from photocopying costs to legal fees, into consideration.
  • Having a good relationship with a lender. This can make a difference regarding the interest rates that are offered to you. A great payment record and a high credit score could guarantee you the best interest rate that the lender can offer. On the other hand, borrowers with spotty payment records will be offered less than advantageous interest rates.

Tips on Getting the Best RatesEven if interest rates are very low right now, getting the lowest rate possible depends on many elements. Before refinancing, you should take into consideration factors like how likely it is for you to move in the near future, your financial situation, and your financial history. In order to receive the best refinance mortgage rates, you need to understand the process and have everything in order financially.