home mortgage loans

Harold asked:


My parents are giving me their current house and building a new one. The house needs some improvements (Kitchen, Bath, Carpets, etc) what is the best loan to get? I currently rent so I don’t have a mortgage. Do I get a home equity loan, first mortgage, home improvement loan? Please help.

EDWARD

Julian Lim asked:


Applying for a home mortgage loan can be a real mine field. Find out about the things that may disqualify you for that mortgage loan.

There are several things that you will have to provide proof to any lender before you will be approved for any home mortgage loan that you apply for. The 5 things that can shoot you down are: Inadequate Income, Too Many Outstanding Debts, Poor Credit, Improper Documentation and Lack of Information.

Inadequate Income

Your income, or lack of enough of it, is one of the determining factors that a lender will use when approving any home mortgage loan. From the lender’s standpoint, if you are barely making enough to make ends meet currently, you will not be able to afford the mortgage payments and they are likely to end up having to foreclose on the property.

Too Many Outstanding Debts

This can also cause you to be turned down for a mortgage. When a lender sees that you have a lot of credit card debt, too many open lines of credit or owe too much on current loans, they might turn you down based on this. If you cannot afford to pay your current debts, you are going to be considered a bad credit risk.

Poor or Bad Credit

This is one of the fastest ways to get denied a home mortgage loan for. Any lender who sees too many late and/or missed payments on debts, charge-offs or recently opened lines of credit will take a second look at the buyer’s other information to decide if they are a good credit risk or not. Foreclosures and bankruptcies on your credit report are not good either. The only thing worse than having poor or bad Credit is having no credit at all! All of these will either disqualify you altogether or cause you to have to pay a higher interest rate, more points and make a larger down payment.

Improper Documentation

This one simply refers to the paperwork that you need to give to the lender when you apply for and during the processing of your home mortgage loan. You will be denied a mortgage if any of your personal or financial documents prove to be false. This refers to your Birth Certificate, Credit Reports, Income/Employment Information or any other information that you provide the lender. Providing false information may lead you to have to deal with serious legal charges. This is not saying that people have totally gotten away with buying property with stolen money, credit information or false/stolen identities, as that has happened. Most lenders go to great lengths to verify that all information given to them is correct and accurate.

Lack of Information

This is another really quick way to be denied for a home mortgage loan. If you either do not give the lender enough information to work with or simply refuse to do so, you will get turned down due to not enough information. This is referring to personal, financial, employment, familial and any other information that the lender needs to be able to make the best possible decision about your credit-worthiness or lack of.



BRANDEN

candiceinks asked:


My husband and I were late on our mortgage payment last year and requested a loan modification. We had tried to resume making payments while they were supposedly processing our loan modification. They always return them. We call them every day, attempting to contact the person that is supposed to be working on our loan. Our mortgage company (Countrywide) has not contacted us in any way and always says that the person working on our loan is not available. Because of their now six months of not working on the loan modification they assured us was going through last year, we are showing seriously delinquent on our loan and getting more behind our mortgage all the time. Can we make a lump sum payment to bring everything current and write on the check that if they cash the check they are agreeing also to remove the delinquencies? Is that legal and binding? Thank you!

DON

Grimface1 asked:


I am current on my mortgage and I have never missed a payment. I have read that If I am behind the lender is more willing to work with me. Are those loan modification companies offering to assit with your loan modification legit?

ERIK