The Loan Approval Process
Applying for a mortgage loan sometimes bring out the paranoia in the most compulsive and consistent bill payers. Lenders want your business, so they will work with you to help realize your dream of owning a home.
You should have nothing to worry about if you have a consistent record of paying your bills promptly. If you have late payments but no serious credit problems, you may have to provide the lender with a written explanation of why certain payments were late. If the reason for the tardy payments is reasonable, your loan will probably go through. Unless you have had serious difficulties meeting your financial obligations, your mortgage broker should be able to help you work out minor credit problems. For credit problems that are more serious, you should sit down with a mortgage broker before you begin house hunting to see how to put your best foot forward.
For professional advice on all aspects of mortgage financing, contact Paul Banas at 633-5888 or visit his office at 27 N. Long Street, Williamsville, NY 14221. Registered Broker NY State Banking Dept. 3rd Party Loans. Independent Mortgage Broker.
Avoiding Foreclosure
Smart financial moves can help you offset unexpected drops in your income that could result in the loss of your home. When your income drops, selling your home is one option to consider. This may not be a viable alternative, however, if the real estate market is soft.
Contact a mortgage broker to help you negotiate with your lender. If the lender still owns the mortgage, they may be able to help you keep your home. Discuss the possibility of temporary negative amortization. This type of loan restructuring adjusts your payment below the interest due. You agree to pay an amount that you can afford for a fixed period of time. This payment arrangement allows the balance of the loan to increase (rather than decrease) because the difference between your reduced payment and the interest due is to the principal.
Refinancing at lower rate of interest offers many people a way to lower their monthly payment. You may have to pay the initial costs of closing the new loan, but the financial break you get each month may be worth it.
For professional advice on all aspects of mortgage financing, contact Paul Banas at 633-5888 or visit his office at 27 N. Long Street, Williamsville, NY 14221. Registered Broker NY State Banking Dept. 3rd Party Loans. Independent Mortgage Broker.
Small Down Payments Are Ok
Many people are reluctant to buy a house with a 90 percent (or more) mortgage, but there are advantages to a highly-leveraged purchase.
If you make a small down payment & the property goes up in value, you will profit because the average annual appreciation may more than offset the mortgage payments. Mortgage tax deductions will increase the percentage of return on your investment. If you pay cash for a property, the appreciated market value will be a lower percentage of return on your investment, with smaller or no income tax and loan fee deductions. Such a leveraged purchase leaves your money free for other investments and emergencies. If the property decreases in value, the leveraged owner loses to the extent of the down payment.
Buying a home with a low down payment was never easier. Annual home market appreciation rates average between 3 and 5 percent nationally for desirable locations. Buyers who can pay cash should consider all of their possibilities before putting all of their money into a home or condo.
For professional advice on all aspects of mortgage financing, contact Paul Banas at 633-5888 or visit his office at 27 N. Long Street, Williamsville, NY 14221. Registered Broker NY State Banking Dept. 3rd Party Loans. Independent Mortgage Broker.
