Archive

Posts Tagged ‘san diego mortgage’

Mortgage Refinancing

January 14th, 2010
No comments

Mortgage refinancing – what you need to know before going in for San Diego mortgage refinancing Mortgage refinancing is getting your mortgage loan financed once again all over again. You may have it refinanced either by the same loan provider or you may even opt for another financier altogether. This process should be undertaken after weighing each and available option. This surely is an extremely time consuming and a very tedious task. Collection, compilation and rationalization of data that is relevant are an uphill task and not one, which is possible without expertise and skill. Surely, not many can perform such task meticulously. For your rate search we offer to help you compare mortgage rates offered by various credit institutions all across the nation. You might no longer be able to bear to pay more for the same amount of mortgage loan taken. when others around you are paying far less. Thoughts of the circumstances that compelled you to settle for your current loan at steep rates continue to haunt you. If your current monthly payments have made you think that you have made a very expensive mistake, you might be wondering if ever things can work out straight or be amended at least. Considering the case of several people like you, the concept of mortgage refinancing was developed. It has worked wonders for many and if you are careful with it, it too can act as a boon and give you reason enough to rejoice! A word of caution and most necessary advice is that you should be extremely watchful and knowledgeable enough before you lock your San Diego Ca mortgage refinancing option. Many of you may already be aware of this option, but lack of proper knowledge may be holding you back from entering into one. For all of you here on our site, we offer you all the information that you need to know before going in for mortgage refinancing. Best mortgage rates is another option and point of reference at our site, which you should definitely visit to be able to find out the top deals as far as rates of mortgage loans in San Diego California are concerned. We update these rates twice daily to make certain that you receive the most recent information. A detailed chart displaying the type of rate, the duration, name of the provider and the mortgage rate can be seen on this page. There are various types of rates such as closed variable, open variable, closed fixed and open fixed. For instance, if you prefer the variable closed rates type you simply elect that option and you shall find there the entire list of credit suppliers as well as the rate and term of mortgage loan offered by them. You can then compare the offer details by each lender by selecting the ones that seem most feasible to you. All this is definitely going to make your decision of San Diego Ca mortgage refinancing one that actually allows you to save money every month! Source: Mortgage loan refinancing Published At: Isnare Free Articles Directory http://www.isnare.com Permanent Link: http://www.isnare.com/?aid=469578&ca=Finances

Share and Enjoy:
  • Digg
  • del.icio.us
  • Reddit
  • Google Bookmarks
  • Twitter
  • Technorati
  • Diigo
  • Faves
  • Mixx
  • Propeller
  • SphereIt
  • Wikio
  • Sphinn

Uncategorized , , , , , , , , , , ,

Questions Lenders Ask You

November 19th, 2009
2 comments

What should you expect to be asked when you try to qualify for a San Diego mortgage loan?

Questions to Expect From Mortgage LendersData Provided By Know what to expect before you apply.

Your mortgage lender will want to know a lot about you before approving your loan application, and justifiably so; they and their underwriters want to be assured that you meet their minimum level of creditworthiness before lending you money.
Areas of questioning.

Here are the general areas of questioning you can expect from a lender: 
1. Employment and income 
2. Outstanding debts 
3. Cash reserves and assets 
4. Down payment 
5. Loan purpose 
6. Property use 
7. Property type
 
Employment and income
Where do you work?
How much do you make?
How long have you been at your job?
How is your income derived — steady salary or irregular income? If it’s the latter, you may need to provide more details to obtain a favorable interest rate.
Outstanding debts
What recurring debts do you have?
How much do you pay a month for auto loans?
Credit cards? How much of your monthly pretax income do these debts consume?
Cash reserves and assets
How much money do you have in the bank?
How much will be left after you pay your down payment and closing costs?
Down payment
How much money are you putting down?
Is this your own money?
If not, is it a gift from your parents?
A nonprofit agency grant?
Loan purpose
Is this San Diego ca mortgage for a home buy or refinance?
If it’s a refinance, do you want to take cash out at closing to pay off other debts? If so, how much?
Property use
Do you plan to live in the house?
Is it investment property?
Property type
A condominium?
A duplex?
The following responses tend to work in your favor:
Steady employment (two or more years) with the same employer or in same line of work.
Low debt: no recent major buys (such as automobiles) and a debt-to-income ratio of 36 percent or less.
Loan is for straight home purchase (or rate-and-term refinance).
Property is detached single-family home to be used as primary residence.
Down payment of at least 5 percent of sales price with your own money.
You’ll have at least two months’ worth of mortgage payments in the bank after closing.
These responses tend to work against you:
Self-employed or contract worker.
High debt: credit cards maxed out, total debt-to-income ratio more than 36 percent.
Property is a duplex or condominium, to be used as a vacation home or rental.
No cash left after home buy and closing costs.
Down payment is 3 percent or less of buy price and money is borrowed.
Source: Move.com

Share and Enjoy:
  • Digg
  • del.icio.us
  • Reddit
  • Google Bookmarks
  • Twitter
  • Technorati
  • Diigo
  • Faves
  • Mixx
  • Propeller
  • SphereIt
  • Wikio
  • Sphinn

Uncategorized , , , , , , , , , ,

Qualify For A San Diego Mortgage

November 1st, 2009
No comments

Qualifying for a Mortgage

Sponsored By
Here’s the formula bank lenders use to determine how much mortgage you can afford?
 
 Don’t start house hunting until you seriously consider how much you can afford to pay. A little advance planning will save you time and money later, because you won’t bid on unattainable houses or apply for mortgage loans that are out of your ballpark.
How much house can you afford?
You may hear an old formula that says you can afford a house worth about three times your total (gross) annual income. Don’t rely on this formula, however — it’s much safer to look at your own budget, figuring out how much you have to spare, and what the monthly payments on your new house will be (not just the mortgage — factor in taxes, insurance, maintenance, and more).
Lenders have traditionally wanted you to make all monthly payments using no more than 28 to 44 percent of your monthly income. In other words, if your monthly income is $2,000, the lender would want you to pay no more than $880 (.44 x $2,000) toward all your debts.
These traditions are, however, becoming less rigid — now, if you have an excellent credit record, a lender might allow you to go more deeply into debt. But you’ll need to use your own common sense, and make sure you leave yourself some money with which to buy furniture, cope with a job layoff, or simply enjoy life.
For a sneak peak at how much of a mortgage you’ll be able to qualify for, see Nolo’s calculator on qualifying for mortgages.
 
Check your credit history
When reviewing loan applications and making financing decisions, lenders typically request that the credit bureaus reporting your file — Equifax, Experian, or TransUnion — provide your credit risk score (also known as your FICO score). This seemingly mysterious number represents a statistical summary of the information in your credit report, including things like your history of paying bills on time and the level of your outstanding debts.
 
Higher FICO Credit Scores mean you can qualify for a larger San Diego Ca Mortgage loan.
 
The higher your credit score, the easier it will be to get a loan. If you routinely pay your bills late, expect a lower score, in which case a lender may either reject your loan application or insist on a very large down payment or high interest rate (to lower its risk).
Because your credit history has such an important effect on the type and amount of mortgage loan you’ll be offered, check your credit report and clean up your file if necessary — before, not after, you apply for a mortgage.
Loan preapproval vs. loan prequalification
Once you’ve done the basic calculations and completed a financial statement, you can ask a lender or loan broker for a prequalification letter saying that a mortgage loan approval for a specified amount is likely based on your income and credit history. Prequalifying lets you determine exactly how much you’ll be able to borrow and how much you’ll need for a down payment and closing costs.
Unless you’re in a very slow real estate market however, with lots more sellers than buyers, you will want to do more than prequalify for a San Diego Ca Mortgage loan: You will want to be preapproved — that is, guaranteed — for a specific loan amount. This means a lender has already checked your credit and evaluated your financial situation, rather than simply relied on your own statements. Preapproval means that the lender would actually fund the loan, pending an appraisal of the property, title report, and purchase contract.
For more information on deciding how much of a loan you can safely take on and successfully qualifying for the loan, see Nolo’s Essential Guide to Buying Your First Home, by Ilona Bray, Alayna Schroeder and Marcia Stewart.
 
Note: By qualifying a mortgage you will be in a much better negotiating position when it comes time to make an offer on your new home.  Mike Kench
Share and Enjoy:
  • Digg
  • del.icio.us
  • Reddit
  • Google Bookmarks
  • Twitter
  • Technorati
  • Diigo
  • Faves
  • Mixx
  • Propeller
  • SphereIt
  • Wikio
  • Sphinn

Uncategorized , , , , , , , , , , , , , ,

How To Get Rid OF PMI Insurance

October 30th, 2009
No comments
Are You Sick & Tired Of Paying PMI Insurance?
 
No Fear!  there is a way to legally get rid of that PMI payment.
 
How to ask a mortgage company to cancel your private mortgage insurance By Ilona Bray – (Nolo).com
 
Private mortgage insurance (PMI) protects the lender if you default on your mortgage payments and your house isn’t worth enough to entirely repay the lender through a foreclosure sale. Lenders often require PMI for loans where the down payment is less than 20%. They add the cost to your mortgage payment each month. PMI can usually be canceled after your home’s value has risen enough to give you 20 to 25% equity in your house.
 
When you can get your PMI canceled?
 
Start trying to get your PMI cancelled as soon as you suspect that your equity in your home or its value has gone up significantly. The most obvious way for equity to increase is because you’ve made a lot of San Diego Ca mortgage payments. Your equity may also increase because your home’s value has gone up due to a rise in local home values or because you’ve remodeled. Such value-based rises in equity are harder to prove to your lender, and some lenders require you to wait a minimum time (around two years) before they will approve cancellation of PMI on this basis.
 
Did you choose to pay a higher interest rate on your mortgage in order to avoid PMI premiums? If so, don’t expect your lender to lower your payments after your equity has increased. Your interest rate is permanent, even if the lender used the extra money to purchase PMI to cover your loan. Your best course of action is probably to refinance.
 
How to get your PMI canceled.
 
The exact rules for canceling PMI are largely in the hands of your lender — or, to be more accurate, in the hands of the company from whom your lender buys the insurance (though you’ll never deal with that company directly).
Some baseline rules about cancellation were established by the federal “Homeowners’ Protection Act,” which applies to people who bought their homes after July 29, 1999. The Act says that you can ask that your PMI be canceled when you’ve paid down your mortgage to 80% of the loan, and that the lender must automatically cancel your PMI when you’ve hit 78%.
Here are the usual procedures for getting a lender to drop your PMI policy.
  • Contact your lender to find out the appropriate PMI cancellation procedures.It’s best to write a letter to your San Diego Ca mortgage lender, formally requesting guidelines.
  • Get your home appraised by a professional to find out its current market value.Your lender may require an appraisal even if you’re asking for a cancellation based on your many payments, since the lender needs reassurance that the home hasn’t declined in value. Although you’ll normally pay the appraiser’s bill, it’s best to use one whom your lender recommends and whose findings the lender will therefore respect. (Note: Your tax assessment may show an entirely different value from the appraiser’s — don’t be concerned, tax assessments often lag behind, and the tax assessor won’t see the appraiser’s report, thank goodness.)
  • Calculate your “loan to value” (LTV) ratio using the results of the appraisal.This is a simple calculation — just divide your loan amount by your home’s value, to get a figure that should be in decimal points. If, for example, your loan is $200,000 and your home is appraised at $250,000, your LTV ratio is .8, or 80%.
  • Compare your“loan to value” (LTV) ratio to that required by the lender. Most lenders require that your LTV ratio be 80% or lower before they will cancel your PMI. Note: Some lenders express the percentage in reverse, requiring at least 20% equity in the property, for example. When your LTV ratio reaches 78% based on the original value of your home, remember that the Homeowners’ Protection Act may require your lender to cancel your PMI without your asking. If the loan to value ratio is at the percentage required by your lender, follow the lender’s stated procedures for requesting a PMI cancellation.
If your lender refuses to cancel the PMI
Most lenders recognize that there’s little point in requiring PMI after it’s clear that you’re making your mortgage payments on time and that you have enough “equity” in your property to cover the loan if the lender has to foreclose. Nevertheless, many home buyers find their lenders to be frustratingly slow to wake up and cancel the coverage. The fact that they’ll have to spend time reviewing your file for no immediate gain and that the insurance company may also drag its feet are probably contributing factors.
If your lender refuses, or is slow to act on your PMI cancellation request, write polite but firm letters requesting action. Such letters are important not only to prod the lender into motion, but to serve as evidence if you’re later forced to take the lender to court. If court action becomes your best option, small claims court can be a good avenue, and you won’t need a lawyer to accompany you. For more information, including how to write polite but forceful demand letters, see Everybody’s Guide to Small Claims Court, by Ralph Warner (Nolo).Com
Share and Enjoy:
  • Digg
  • del.icio.us
  • Reddit
  • Google Bookmarks
  • Twitter
  • Technorati
  • Diigo
  • Faves
  • Mixx
  • Propeller
  • SphereIt
  • Wikio
  • Sphinn

Uncategorized , , , , , , ,

How To Make A Real Estate Offer

October 28th, 2009
No comments

Make an Offer in Writing

This is the time to think carefully about what you want and what you can afford. If your offer is accepted, it becomes a legally binding contract. Make sure you don’t include anything in the offer that you’re not totally comfortable with doing.

Make sure you put everything in writing. Offers usually include items like:

  • Proposed purchase price
    Remember, the seller may counter-offer with a higher purchase price – consider that when you decide on your proposed purchase price.
  • Concessions
    This includes things you’d like the seller to help pay for, like closing costs.
  • Conveyances
    This covers any personal property to be included in the sale, like the washer and dryer or the refrigerator.
  • Home inspection contingencies
    Make sure you’re prepared if the home inspection report shows major problems. Know what you will ask the seller to fix prior to buying the home and what you will ask a reduction in price for to account for the cost of repairs that you will do yourself.
  • Earnest money
    Earnest money is a deposit you offer to show you’re serious about purchasing the house. Earnest money is usually held in escrow and applied to your closing costs at settlement. If you fail to meet the terms of your contract, you may lose this deposit.
  • Acceptance
    This covers how long the seller has to respond to your offer before the offer is no longer binding.
  • Mediation and arbitration
    These are legal methods for handling contract disagreements between you and the property seller. These methods are not necessarily beneficial to you, and you do not need to agree to them.

When the Offer Becomes a Contract

Once the seller accepts your offer, the offer becomes a contract. What’s in a contract varies from state to state, depends on the state where the house resides, but some common things you’ll find include:

  • Legal description
    This describes the property you are buying in terms of its dimensions relative to a fixed point (like a road) or in relation to a recorded subdivision plat or declaration of condominium. It often includes the street address of the property.
  • Selling price and deposit
    This is the price you and the buyer agreed upon, as well as the amount of earnest money you’ll pay when you sign the contract.
  • Mortgage contingency
    A contingency protects you by stating that the sale depends on a lender approving you for a specific San Diego Ca mortgage, rate, and term.
  • Closing date and location
    The closing date (also called the settlement) can be several weeks to several months away to meet the seller’s and your needs.
  • Conveyances
    Double check these conveyances to make sure that the items are there and are what you and the seller agreed on in the offer.
  • Home inspection
    If you’ve made the contract contingent on a home inspection, this will set an inspection date and provide an explanation of what will happen if the inspection identifies any problems.
  • Possession date
    This is the date you can move in. It’s usually the closing day or very soon after it.
  • Property insurance
    This details the home insurance policy that will cover the property until the closing date. This can be the buyer’s or seller’s policy.
  • Property disclosures
    This includes legal notification of any required information concerning the property. For example, it could contain copies of the documents from the homeowners’ association. This section would also outline any problems with the property that must be disclosed.  
  • Source Freddie Mac
Share and Enjoy:
  • Digg
  • del.icio.us
  • Reddit
  • Google Bookmarks
  • Twitter
  • Technorati
  • Diigo
  • Faves
  • Mixx
  • Propeller
  • SphereIt
  • Wikio
  • Sphinn

Uncategorized , , , , , , , , , , , ,