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.

Top 6 Mortgage Lenders For Borrowers with Bad Credit

bad credit lenders-150x150Poor credit scores have typically led to credit companies slamming the door. Of course this is attributed to the fact that your payment capacity is in doubt. However, the good news is that you can take a mortgage loan or mortgage refinance from a mortgage company even with your bad credit.

Potential borrowers may worry about the inability to prove a regular flow of income and a poor payment history. Bury your anxiety today and approach a mortgage company for bad credit straightway.

Benefits Of Bad Credit Mortgages

It is not easy to imagine that bad credit mortgages offer some benefits but you’ll be surprised the privileges you could enjoy. These include:

  • Flexible monthly payments. Bad credit lenders are very compassionate. They allow you to take a mortgage loan at the terms and conditions of repayment which you select yourself.
  • Lower interest rates. This may sound ridiculous but it is absolutely true. Given the current economic crunch, there are very few borrowers who meet the rough requirements of good credit mortgagors. And as such, bad credit mortgagors offer their loans at competitive low and affordable interest rates.
  • Cash for alternative uses. Bad credit mortgages can help you consolidate all your debts so that you have extra cash for other uses. The extra cash can be used to clear all other debts you have as you remit lower monthly payments which you can manage. This will definitely improve your credit score.
  • Rewards. There are several banks and mortgagors who may reward you as a result of your improved cash management. This arises, for instance, when you make several payments on time. Your lender may decide to decrease the interest rate as a reward.

Lenders Offering Loans for Bad Credit Borrowers

1. First Magnus Financial Corp. It was founded in 1996 in Tucson, Arizona. Other than offering you bad credit mortgages at very competitive rates, the company also allows you to use any extra cash from your mortgage deal. You can use this extra cash to buy a car, make improvements, go on holiday, and consolidate your debts among others.

2. Premier Mortgage Funding Inc. Headquartered in Maryland, it provides several mortgage products and services to its lenders. It doesn’t matter whether you don’t have a proven income record or you have a poor payment history. Premier Mortgage Funding Inc. provides you with a mortgage loan under very flexible monthly payments. These will improve your credit rating and enable you to qualify for more credit.

3. First Horizon Home Loan Corporation. Formerly known as FT Mortgage Companies, it changed its name in March 2000. The company is a leader in providing commercial lending products for individuals and institutions since its foundation in 1995. This company designs a well-secured mortgage loan to suit your current financial situation. It enables you to become a homeowner under very friendly credit terms which enable you to pay periodically as you build equity on your home.

4. GMAC Mortgage LLC. The application process for your first time mortgage, second mortgage or refinance mortgage is simple and fast. Founded in 1985 with its headquarters in Fort Washington, it offers VA and FHA loans. Once you submit all the required documents, you complete the application within less than 10 minutes and receive the loan application within a few days. These mortgage loans are offered at very affordable rates with low interest rates.

5. Primary Residential Mortgage Inc. They began operations in 1998 with a handful of employees but the current staff has increased to 1,500. They have more than 200 branches in 49 States. The company offers a variety of loan options with a quick turnaround time for both locked-rate mortgages and preapproved mortgages. It offers mortgages at compellingly competitive rates to borrowers with a bad credit rating. Currently, it has more than 1 million loans outstanding.

6. Bank of America. It is the 5th largest bank with more than 57 million customers. With loan origination figures exceeding $100 million, it provides several forms of mortgage loans varying across the board. You can apply for your bad credit mortgage loan online today and have it approved online.

It is not uncommon to find people with a bad credit report totally stressed and knocking at a counselor’s office day in day out. However, you can get out of this painful financial quagmire by checking the mortgage terms of each of the above lending institutions. Whether you are short on cash for college education or you want to refinance but your credit score is badly damaged, you can apply for a mortgage today!

Top 10 Questions to Ask Your Lender

Model House and a MortgageThe most important step in the home buying process is choosing the right lender. Working with a good lender will guarantee that your home purchase will be successful and relatively hassle free. The quality of service will not only make a difference in how good you are treated, but also in how much money you save. When choosing a mortgage lender, you shouldn’t focus only on interest rates and closing costs, but also on customer service, fees and understanding what your rights are. That is why you should always be prepared before meeting with a lender. Knowing what questions to ask can make the difference between you getting a good deal or a bad deal, and will save you a lot of trouble in the long run. Before you get started, get pre-qualified or pre-approved for loans to make securing a loan an easier process.

How to Find a Good Lender

Before starting your search for a mortgage lender, make sure that you know your budget and the type of loan that you are looking for. Once you have all that figured out, you can start shopping around and comparing lenders. Here are a few things to consider:

  • Reputation. There are plenty of mortgage companies available nowadays. Some of them are big and with a long history, and some are smaller and fairly new. Just because you never heard of a mortgage company doesn’t mean you should automatically dismiss it. Whether it is a well-known or a less known company, you should always do your homework. Check their ratings and feedback with the Better Business Bureau (BBB) and the local Chamber of Commerce, and try to find out as much as possible about them.
  • Customer Service. After choosing a lender, you are going to be working with them for a long time, from when you first apply for the mortgage loan until the closing, and beyond. You should feel comfortable working with your lender, and they should be available to answer all your questions and concerns. If you feel pressured into signing a contract before you are ready, you should look for another lender.
  • Product Selection. Before applying for a mortgage loan you should have an idea of what types of mortgage loans you are considering, especially length-wise. Top lenders offer the most popular mortgage products and will work with you to determine what your best choice would be.

What to Ask Your Lender

Once you have found a few lenders that you are considering working with, make sure you ask them these 10 questions before committing to one of them. If you don’t like the answers that you receive, keep looking until you find a lender that you feel more comfortable with.

  1. Which type of loan is the best for me? A good lender will look into your financial situation before recommending a mortgage loan. Then he or she will explain the differences between each type of loan, and work with you to make sure you choose the one that best suits your budget. 
  2. What will my interest rate be? Depending on what type of loan you choose, your interest rate might be fixed, adjustable, or a combination of both. Keep in mind that the interest rate on a fixed rate mortgage loan will remain the same throughout the life of the loan, unlike the interest rate on an adjustable rate mortgage loan which can increase or decrease multiple times until the loan is paid off.
  3. What will the closing costs and fees for the loan be? Lenders are required by law to provide a good faith estimate which will include a list of fees and costs associated with the loan, such as the appraisal fee, taxes, credit report, the loan application fee and more. Some of these fees can be reduced, or even waived or refunded, so make sure you speak to your lender about that, too.
  4. How much will my down payment be? Some loans require that you pay a 20 percent down payment, but there are others that require a lower percent. The amount that you put down affects how much you can borrow, your interest rate, and the monthly payment, but the down payment mostly depends on your budget. 
  5. What are the qualifying guidelines? Once you choose a type of loan, you should find out if you qualify for it. The qualifying guidelines can relate to your credit score, income, employment status, or properties that you own. Certain programs, such as ones for first time home buyers, offer easier qualifying guidelines.
  6. What documents do I need to provide? Depending on the lender, you will have to provide documents such as proof of assets and income, federal tax returns, a list of credit cards and loans, and others. It’s a good idea to start gathering these documents early, because some of them may take a little while to get a hold of.
  7. How long will it take to process my application? It usually takes between 45 to 60 days for the loan application to be processed. This depends on how quickly the lender can appraise the property and verify your credit report, employment status and bank accounts. You should get loan pre-approval to make things easier. 
  8. How much will my monthly payment be? The amount that you’re going to be paying each moth depends on the type of loan, the interest rates, and the down payment. The lender can switch things around so that your monthly payment will be something that will fit your budget. You should keep in mind that a lower monthly payment doesn’t also mean a lower overall cost of the loan. 
  9. Will I be able to lock the interest rate? The interest rate can fluctuate by a lot between the time you apply for the loan and the closing. Locking the rate will ensure that the interest rate doesn’t increase by the time the loan is closed. It is also important to ask your lender if there is a fee associated with locking the rate. Look here for a list of the top fixed rate mortgage lenders
  10. Is there a prepayment penalty? Prepayment penalties are no longer allowed in some states, but it’s always a good idea to make sure before signing anything. If you think there is a chance you might want to pay off the loan before its due date, find out if there is a prepayment penalty and decide if you are comfortable with it.

Don’t take your mortgage lender choice for granted. Asking these questions will not only help you find out more about different lenders, but it will also show them that you are informed and willing to do research and shop around before committing.

Top 10 Adjustable Rate Mortgage Lenders

adjustable rate mortgage-150x150An adjustable rate mortgage is a type of loan that features an interest rate which may adjust during the course of the loan, based on a market index. In contrast to a fixed rate mortgage, where the interest rate remains unchanged for the duration of the loan, the interest rate on an adjustable rate mortgage may rise or fall, according to changes in interest rates in the marketplace. The main reason to consider an adjustable rate mortgage over a fixed rate mortgage is that you could end up paying a lower monthly payment. This type of loan may start out with a low interest rate, but your interest rate could raise in the future. Knowing what to expect from an adjustable rate mortgage and which lender you should choose is crucial.

 Adjustable Rate Mortgage Lenders- What to Pay Attention to

  • Interest rates. Adjustable rate mortgage loans have a smaller interest rate at the beginning of the repayment period, but that interest rate will be adjusted over time. Depending on changes in the market and in the economy, the interest rate could go lower or higher, meaning your overall cost of the loan will either decrease or increase.
  • Caps. While an adjustable rate can be a risky choice due to the fact that the interest rate can rise significantly, there is a way in which you can manage that risk. By adding restrictions, called “caps”, to how much the interest rate on your mortgage can adjust, you will limit the risk that your monthly payment will become a burden.
  • Attention to detail. Mortgages have many details that must be taken into consideration by the lender before you should be asked to sign a contract. Overlooking even a small detail can be very costly to the borrower, so avoid adjustable mortgage lenders who try to rush you into signing anything before every little detail is analyzed.
  • Customer service. A trustworthy lender will sit with you and tailor an adjustable rate mortgage that will fit your financial situation and your needs. He will also explain the course of action, what fees you will have to pay, and keep you informed once you have started the mortgage process.

Before choosing an adjustable rate lender, make sure that you have researched them thoroughly. You can be sure that they are going to research you before giving you a mortgage loan, so doing the same will ensure that you will be getting the best deal possible and save you a lot of trouble in the long run. Here is a list of the top 10 adjustable rate mortgage lenders that constantly strive to offer quality service to their customers:

 Top 10 Adjustable Rate Mortgage Lenders

  1. Wells Fargo. The largest bank in the U.S. by market capitalization, the fourth largest by assets, and the second largest in mortgages, deposits, and debit cards, Wells Fargo has approximately 2,000 mortgage branches in the United States. One out of three home loans originates from Wells Fargo.
  2. U.S. Bank. Owned by parent company U.S. Bancorp, the fifth largest bank in the United States employs more than 63,000 people, and has over 15 million customers. U.S. Bank provides financial services to individuals, businesses, government institutions and nonprofit organizations.
  3. HSBC. British company HSBC started offering its financial services in the United States after acquiring the Republic National Bank of New York in 1999 for 10.3 billion dollars. HSBC started offering mortgage loans online or by the phone to the U.S. public in 2005.
  4. SunTrust Banks. One of the leading financial services holding companies in the United States, SunTrust has more than 1,600 branches and around 3,000 ATMs across the Southern states. The bank was formed by the merger of SunBanks, Inc. from Florida and the Trust Company of Georgia in 1985.
  5. TD Bank. Founded in 1852 in Portland, Maine, TD Bank is a U.S. bank that offers banking, mortgage and investment banking services. It currently serves the following states: Connecticut, New Jersey, Delaware, District of Columbia, New York, Florida, Rhode Island, Maine, Massachusetts, Maryland, Vermont, New Hampshire, North Carolina, Pennsylvania, South Carolina, Virginia, and Washington.
  6. First National Bank of Omaha. A subsidiary of First National of Nebraska, the biggest privately owned bank in the United States, First National Bank of Omaha and its 5,000 employees serve the following states: Illinois, Nebraska, Colorado, Iowa, Texas and Kansas.
  7. Zions Bank. Owned by Zions Bancorporation, Zions Bank owns 106 branches and has 2,700 employees in Utah and Idaho.  Zions bank was founded in 1873 and was acquired by Keystone Insurance and Investment Company in 1960.
  8. Bank of the West. Founded in 1874, Bank of the West is a subsidiary of the French group BNP Paribas and it serves most states in the Midwest and Western U.S.
  9. Commerce Bank. The largest independent bank in the lower Midwest, Commerce Bank is a subsidiary of Commerce Bancshares, Inc. Commerce Bank offers financial services to businesses and individuals in Illinois, Missouri, Oklahoma, Kansas and Colorado.
  10. North American Savings Bank. With over 1 billion dollars in assets, North American Savings Bank offers retail financial services to customers in the United States since 1927. North American Savings Bank is one of the leading mortgage lenders in the country, with over 8 billion dollars in home loans since 2008.

Choosing between a fixed rate and an adjustable rate mortgage can be quite difficult, so discussing your concerns with a top mortgage lender is recommended. They will take all the factors, such as your financial situation and future plans, into consideration and come up with the best choice for you. An adjustable rate mortgage may look very tempting at first due to its low interest rate, but always remember that there is a chance that the interest rate will raise in the future.