Credit Ratings Now Crucial to Mortgage Loan Approval

The economic crisis has flushed out the bad lending approval process and lenders will now have to screen more carefully before approving mortgage loan applications. Instead of being able to lend money for the purchase of your new home even if you have bad credit, lenders will now be forced to evaluate your credit rating more strictly.

Consumers will be burdened with the harrowing responsibility of ensuring their credit is in tip top shape, and many don't know where to begin with this task. Your mortgage broker can tell you how you'll need to spiff up your credit, but you need to start working now, not when you're ready to go and buy your next house.

You can say goodbye to "no mortgage refinancing payment" mortgage mortgage refinancing - they're a thing of the past. In the current economy, mortgage lenders will require consumers to have a down payment as well as good credit.

In the past, sellers were able to help with the down payment by funneling the money through a non-profit organization that was set up for this exact purpose. This system is no longer going to be used. This practice is what's been known as "seller assisted financing."

At the closing of your home, you'll need more money to put down. One hundred percent financing has been erased from mortgage lending practices. Your credit score will play a big part in how much of a down payment you have to have.

The better your credit, the less money you have to put down on your home up front. The worse off your credit rating is, the higher the down payment. Loans for people with extremely bad credit are either going to not exist at all, or be very hard to find.

The average amount that will be required for a down payment on a home now will be 3% for those with good credit to 10% for those with bad credit. Consider this a deterrent for people trying to get into a home that costs more than they can truly afford. With bad credit, you would need $20,000 cash up front to get into a $200,000 home, which usually isn't possible for anyone in a bad credit situation in the first place.

Have you ever seen those ads that claim you don't need proof of income to buy a home? This is the biggest purchase of your life and they don't even need to know how much you make! Not anymore - proof of income will be a staple in current and future mortgage loan deals.

You'll need to pony up tax forms, paycheck stubs, and bank account statements before a lender approves your mortgage loan. This means self employed men and women could have a harder time getting a loan. It's also going to be hard for people whose income fluctuates.

Cleaning up your credit will be crucial to helping you get into a home. Shoot for a FICO score of 740 or better and none of the above rules will prove to be a hardship for you. You'll want at least decent credit to get a better interest rate.

If you need help fast-tracking your credit cleanup, visit http://www.debtcredittips.com and start the repair process today so that you're not stuck renting for the next several months (or years)!

A Borrower's Guide to the Mortgage Loan Process

For many people borrowing money for their next home, the mortgage process can seem like anything but straight forward and easy to understand. Some people feel powerless while their credit history, employment status, and financial standing is scrutinized by banking institutions to determine if a mortgage loan will be granted or not. What really happens behind the scenes refinancing mortgage the mortgage approval process is actually something that borrower's should not be wary about. Once people understand the risk that is involved with lending hundreds of thousands of dollars, the while process can seem very forgiving. So what happens after you complete a loan application with your bank or mortgage brokerage?

After you take an application, the loan officer will consult with you about what type of loan program is right for your situation. Once that loan program is determined, more often than not, the application is uploaded to an electronic approval system that compares the items in your application to qualifying criteria that the loan you have chosen requires. If you meet the standards for the loan approval by showing an acceptable debt to income ratio, down payment, assets, etc., an automated pre-approval is generated. Assuming you have abided by all laws, and provided a truthful application, all you need to is provide the information the loan system or lender requires. These might include:

W2's

Tax Returns

Pay Stubs

Bank Statements

In the case of a home purchase, you will need to provide a fully executed purchase contract and with almost all loans, an appraisal of the subject property. Once the above items have been collected, your application along with applicable loan disclosures are submitted to an underwriting department. A preliminary title report of the property will be ordered and proof of property insurance is required to be submitted as well.

Underwriting can take as little as a day and as long as a couple weeks. This is where people get nervous. What could possibly be taking so long? Well, it might be suspenseful, but the fact of the mortgage refinancing is that there are several other people trying to get home financing as well. You just need to wait in line with the rest of them. Once your loan file gets into the hands of an underwriter, it's typically no more than a few hours before your file is out of their hands and a conditional loan approval is granted. Of course, your file could be suspended or denied, but we'll assume all is well for this guide.

Once the conditional loan approval is granted, you now have to provide more documentation that the underwriter needs to grant a final approval. The might want more items like an updated pay stub, a letter of explanation for something on your credit report, a written verification of employment from your employer, etc. Once again, when you provide this documentation and submit it to your loan officer, it might take another day or more for the underwriter to review the items. This again adds to the length of time it takes for an approval and the associated suspense you might feel.

After you have provided everything that has been asked for by the underwriter, you will get a bona fide loan approval. Your loan documents can be ordered and sent to the title or escrow company for settlement, and you can be that much closer to completing your mortgage transaction.

Once you have signed the loan documentation, you signed loan package will go back to the lender for review. If anything is missing, the lender will ask for it and it is up to your loan officer or the title/escrow company to make sure everything is submitted for funding. Funding is when the loan money is actually disbursed by the lender. You're done!

If there's one thing borrower's should know when refinancing or purchasing a home, it is that the whole thing usually takes time. There are several entities involved in the transaction that add to the mortgage process and its seemingly grueling duration. There is the lender, the loan officer, the borrower, the title company/escrow company, and insurance company. Only after everyone has completed their job is your next loan a done deal. Keep these things in mind and accept the fact that the process is drawn out by nature, and you can calmly proceed through your next mortgage loan transaction with confidence.

BeatMyBroker.com helps people understand the mortgage process and find the best mortgage rates available.

Low Mortgage Rates in a Buyer's Market

It's no secret that the Canadian real estate has been in a steady decline since the latter part of 2008. Canada's economic downturn was led, in part, by the United States' record foreclosure rates as borrowers defaulted on their mortgages. The general slowdown of the economy has somewhat scared away the largest category of buyers in the real estate market - first time homebuyers. In early 2009, home sales and property values continue to decline. In fact, house prices are forecasted to fall by another 10 to 20 percent. Many Canadians are realizing the opportunity created by lower home prices and lower mortgage rates.

A Buyer's Market

The days of bidding wars are decidedly over - at least for now. The decrease in real estate prices has greatly improved affordability, making it more likely for buyers to find what they are looking for at more affordable prices. Simply put, the lower prices of homes on the market are giving buyers more bang for their buck. The softening of prices isn't the only factor contributing to a buyers' market in Canadian real estate; the increase in listings and availability of homes is giving homebuyers more choice. The anticipated impact of a stimulus package both in Canada and in the United States also contributes to a more favorable buyers' market. Economic recovery will lead to a turnaround of the housing market as well. Most sector groups predict that the Canadian real estate market will rebound in 2010 as the general economy turns around. This creates further opportunity for Canadians to do well on any given real estate deal. Buyers could reasonably expect to purchase a home at record low rates this year and see a substantial increase in the value of that home over the next few years.

Because of more favorable conditions created by lower prices on homes and more available options, a growing number of Canadians claim they plan to buy a home over the next two years. An online poll by Ipsos Reid earlier this year refinancing mortgage that 65 percent believe it is a buyers' market now. About one third of those polled who intend to buy a home over the next two years cited favorable housing prices as their main motivation.

Miniscule Mortgage Rates

Mortgage rates in Canada are the lowest they have been for almost 20 years. At 5.5 percent or lower, mortgage rates are more than 15 points under their 30-year peak, which was 21.8% in 1981. Variable rate mortgages are currently carrying interest rates as low as refinancing mortgage Some are even able to negotiate a lower interest rate than the one posted.

This greater affordability of mortgages is further contributing to Canada's "buyers' market." Though the credit crunch has not necessarily forced mortgage lenders to revise their lending criteria, it has brought about stricter application of existing guidelines. While the stricter scrutiny of mortgage applicants has made it more difficult to approve "grey-area" borrowers, it has made creditworthy mortgage seekers a hot commodity. People with stable income, exceptional credit and/or substantial assets (collateral material) are being courted by competing mortgage lending institutions.

A Word of Advice

Though it may seem like the perfect time to take advantage of Canada's current "buyers' market," there are many factors to consider that may not have existed in previous eras. If you're thinking about purchasing a home, consider the following:

* Security of your career and/or job

* Sum of cash for substantial down payment

* Cash reserves for resulting expenses

* Maintaining balance of liquidity

If after considering these and other factors, you determine that you're a good candidate to buy - you may end up with a great deal.

Compare Canadian Mortgage rates site offers mortgage comparisons in Canada from banks, mortgage brokers and other lenders. When doing research for a mortgage in Canada, use our mortgage calculator Canada.

Wells Fargo Loan Modification - Things to Know Before You Apply

Stuck in an unaffordable mortgage and wondering how you can qualify for a Wells Fargo Loan Modification? You are not alone-thousands of borrowers are trying to get approved for a Wells Fargo loan modification program that will lower their monthly payment so they can afford to stay in their home. Unfortunately, not all homeowners will qualify for this help, so it is very important to know a few tips that the professionals know so you can increase your mortgage refinancing of getting the help you need and deserve.

Here are a few INSIDER TIPS that can help you when you apply for a Wells Fargo loan modification:

1. You must prove to the lender that you have suffered a financial hardship and thru no fault of your own can no longer afford the current mortgage payment. An acceptable hardship can be any number of circumstances, however the most common include a divorce or separation, job loss or income decrease, military service, adjustable rate mortgage payment increase, death of family member, or medical bills or illness. A successful borrower will provide a convincing and compelling hardship letter that explains to Wells Fargo your current situation, but also mortgage refinancing them how you plan to rectify it and your intention to remain committed to home ownership. Get help to compose an acceptable hardship letter by following an outline and a letter template to assist you.
2. Back up your story with proof of your hardship. For example, if you were ill, provide copies of the medical bills. If you were laid off, a letter from your employer. This will demonstrate that the delinquency was out of your control and you are doing your best to deal with an unexpected situation.
3. Work out a new family budget that eliminates all unnecessary expenses and then decide what a truly affordable mortgage payment would be. This is your "target" payment and the goal when working on your Wells Fargo loan modification. The new lower payment needs to fit within the lenders guidelines and meet a certain debt ratio requirement. Learn how to calculate your ideal payment so that it is affordable and meets the lenders guidelines for approval.
4. Carefully complete the required loan modification forms so that you clearly demonstrate that while the current payment is a hardship, the new lower modified mortgage payment will be affordable and sustainable. This can be tricky, but make it simple to do by providing a Current and a Proposed Financial Statement completed properly.
5. Now, put it all together into an accurate and professional Wells Fargo loan modification application by following an easy submission checklist.

The first step in getting a lower mortgage payment with a Wells Fargo loan modification is to learn and understand what the bank needs to see from you in order to grant approval. It is pretty hard to qualify for something that you do not even know the requirements for, right? Homeowners who follow a few simple steps can greatly increase their chances of success. So take the time to learn and prepare before you submit your Wells Fargo loan modification application and you will soon be on the path to secure home ownership again.

You can get the help you need to understand the loan modification process by ordering and downloading The Complete Loan Modification Guide. This is a low cost, easy to read handbook that will provide you with everything you need to prepare a professional and acceptable loan modification application. You are provided with all of the necessary forms and given detailed directions on how to complete them properly. The Complete Loan Modification Guide will take you step by step through calculating your debt ratio, completing the financial statements, writing your hardship letter and then putting it all together to submit to your lender. Get started today on the path to secure home ownership, order and download The Complete Loan Modification Guide.

For more information about mortgage loan modification, please visit us at: http://www.myloanmodificationcenter.com

What's Your Mortgage Have to Do With Your Credit Score?

The mortgage rate you pay, whether you're shopping for a new home or looking to refinance your existing mortgage, is almost entirely based on your credit score. Otherwise, it refinancing mortgage just be a matter mortgage refinancing how much the lender can get away with charging you without you noticing.

Today, after the mortgage and credit crisis, banks are being pressured to be more cautious with who they approve for mortgages. That means your credit score is even more important than it used to be. In the past a score around a 680 would allow you to get very competitive rates. Today, however, a 760 credit score may not even qualify to get approved for a loan.

Stop and ask yourself a question. When was the last time you checked your credit score. If you haven't reviewed this information in a while, you may be surprised to see some big changes. That's because the credit rating system recently went through some changes in the way that it calculates your score. Some of those changes hurt some people while it helped other people increase their score.

Knowing this information before you try to secure a new mortgage may not only save you some embarrassment, but it can help you get better rates. By knowing where you stand on the credit scoring scale and compare to the national average, you can protect yourself from getting ripped off by high interest rates. While one or two percentage points in your interest mortgage may not seem like a lot of money, it could add up to hundreds of thousands of dollars over the course of your mortgage. Just because banks are being stricter doesn't mean you have to get robbed clean.

See how your personal credit score compares to everyone else.

Look it up for free at at http://www.thecreditfix.info

100% Mortgage Financing - Yes, it is Available!

100% financing is still available in the mortgage market. I know, you listen to all the financial doom and gloom from the media and you would think every lender just locked their doors and went home. It's not a good situation but it is not as bad as the media wants you to think.

Remember, it is also an election year and every election year, both political parties talk about how bad the economy is until we believe them. Then one is elected and they save the day, ... and the economy. Don't ya just love it!!

Here is a news flash. People are still buying homes. Yes, mortgages are available and everyone should realize that this is the best time to invest, refinancing mortgage purchase a home. (When the price is low.) Have you ever heard the term "A Buyers Market"? That is what we have here.

History shows that Real Estate sales and our economy run in cycles. Back in the late 70's and 80's it was a 4-5 year cycle. You could graph it. Then, when the sub-prime loans were forced on lenders (mid to late 90's) by government regulation the cycle changed. They became longer and were more intense until it all caught up with us and here we are, like it or not.

I don't like it either but more than that I am tired of the finger pointing and blaming, and dreading, and media hype. I don't believe a "bail out" is the answer but obviously, it is not my choice or yours, or we the people's choice. Our elected officials will make the decision and base it on "no stronger ground" than what you and I would base our own opinion on.

All right all ready! So do it, what ever it is, ... so We The People can get over it and move on. We have been through worse times and we will survive and prosper. I think it is in the DNA of the USA. (sorry, that was mortgage refinancing bad) We survive in spite of the people we have elected to office.

If you must have 100 Percent financing it is available, ... just not in the form of previous no-doc, no-verification sub-prime loans. You have several options. FHA, VA, Rural Development, or special products based on perfect credit and stability. The USDA Rural Development product is one that few remember or know about.

USDA Rural Development has two mortgage programs: Direct and Guarantee. The Direct program is a mortgage provided directly though the rural development office and your income can only be 80% of the median income for that area.

The Guarantee program on the other hand is provided by USDA approved lenders and Broker originators. It is a guarantee program, there is no subsidy or recapture, and the income restrictions allow up to 115% of the median income after special adjustments.

This is a 100% LTV mortgage based on the APPRAISED value, not the purchase price. The credit guidelines are very flexible and the guidelines have no minimum buyer commitment and no maximum for seller concessions. Note: some lender policies may be stricter in this area. USDA will always respect the lenders prerogative.

OK, so let all of us get over the failure of our market, roll up our sleeves and move on to a brighter future. Remember, NOW is the best time to purchase, during a buyers market!

Author: Connie Sanders has been in the real estate and mortgage industry for many years and believes this program is stronger than FHA. Read more about the underwriting guidelines for the 100% rural housing mortgage at: http://www.rural-development-mortgage-guidelines.com

Refinancing Companies Online - What Are the Advantages of Refinancing Online?

Many refinancing companies have moved refinancing mortgage more refinancing mortgage just having an online presence. Instead, they have placed a great emphasis on winning market share in this valuable arena. There are many reasons for this; however, the simplest is the reduction in costs needed to do online business and to get a foothold in with customers who are becoming more tech savvy with each year. However, here, we will take a look at a few reasons why you, the homeowner, may want to refinance online:

1. Speed.
The ability to do a refinancing through email and online means less paperwork and manpower is needed. The reduction of "red tape" translates into a more streamlined process which means you can get approved much faster and not spend your time with unnecessary steps.

2. Convenience.
One advantage of working online is that you do not have to leave your home and can do all the appropriate steps from the comfort of your home computer. This can be very helpful for those who are disabled or have busy schedules where going to a brick and mortar store would be an inconvenience and a potential hardship. In addition, issues like parking and travel time are completely avoided. Instead, filling out the forms online and sending them through email and other systems makes for a easier process.

3. Improved Safety Standards.
A concern for many people doing business online is the increased risk of identity theft. Although this fear is a real one, many online refinancing companies work hard to help protect your information. Changes made here have improved steadily as additional safety and security measures have been put in place to safeguard this information from tampering or theft. This increased security means customers can breathe easier in doing their refinancing over the internet.

4. Lower interest rates are possible.
Many times, companies will compete like bidding companies trying to offer you the lowest interest rates to get your business. They can afford to do this because of the reduced costs they have with online refinancing loans compared to more traditional ones. This is one major reason why many people opt for refinancing online with certain online refinancing companies.

Because of these advantages and others, more and more people are choosing to opt for online refinancing companies.

For more information on Refinancing Companies, visit the previous link or http://www.homeloansandrefinancing.com to get some solid tips and information on various home loans and refinancing options.