Saturday, January 21, 2012
Our client is planning to purchase their first home and has submitted an application looking for the best home equity loan rates that are available. They live in Cleveland Ohio and currently rent a condo. They both have steady jobs which makes them excellent candidates for a home equity loan. From an income perspective , they have sufficient income to carry the principal and interest and taxes for the home they plan to buy.
We applaud them for taking it slow and not over committing themselves or becoming house bound due to the payments. They have also planned for the move and for the additional expenses that they know they will have with a home of their own.
There credit rating is also very good. They have made sure that all bills have been paid on time. They never have missed a payment. They might qualify for a lower interest rate if their down payment was larger, however they may be eligible for a high ratio mortgage. Many banks are looking for consumers to have as a minimum of 10% of the value of the home to put down as a down payment. For this couple and this home they are looking at it would mean that they should come up with at least $14,ooo as a down payment. Some how they will need to find another $4000 to be able to qualify for a 90% home equity loan.
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Saturday, January 7, 2012
This applicant would like to be approved for their first home equity mortgage loan for a relatively small mortgage amount of $70,000. They live in Lorain Ohio and they both have stable government jobs which they have worked at for the past 10 years. They currently rent and are coming to the end of their current lease and would like to become home owners for the first time. They have placed a conditional offer on a home which is well within their level of affordability.
This couple is similar to many couples who make an offer on a home and then risk losing the home due to lack of pre-approved financing. Consumers should be aware that they can be pre-approved for a mortgage which would allow them to place firm offers on a home and not risk losing the home to someone else who already has financing approval. Many people risk disappointment every year due to this simple reason alone.
Financially this client can easily afford the purchase of this home and in fact, the mortgage payments on this home equity mortgage loan plus taxes are probably less than the rent that they are currently paying. Of course they will now have to spend some money on upkeep, however they should be financially well ahead and have the enjoyment of owning their own place.
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Saturday, December 24, 2011
This client is looking for home loans for people with bad credit in Youngstown Ohio. They are newly married and are hoping to purchase their first home together. They both work and together they make approximately $80k, which is more than enough to carry the home loan they have applied for. They are being cautious and avoiding the trap of being house bound by the mortgage payments or losing their home if one of the partners loses their jobs or is laid off temporarily.
The client who has applied actually has a bad credit rating which makes it more difficult for him to find a bank who will lend him the money to purchase this home. On the other hand his wife has an excellent credit rating and it might have been a better strategy if she had applied instead. Either one of them makes enough to carry the home loan by themselves so if his spouse had applied instead, there would be no problem being approved for this home loan.
Our client works in the auto industry and as everyone knows they went through a bad time with many lay offs during the down turn in the economy. His bad credit rating stems from these layoffs and his failure to pay his credit cards on a monthly basis. He is now working, has repaid his balances on the credit cards, which will help his credit rating in the long term. The client may want to consider saving some money as an emergency fund in case he is faced with another lay off sometime in the future. He will be able to continue with all debt payments and maintain his credit rating.
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Saturday, December 10, 2011
This client would like approval for refinancing his existing mortgage using a Heloc mortgage loan for the amount of $75,000 and they live in Canton Ohio. The $75,000 will be used to refinancing the remaining balance on their mortgage which is only $25,000 and the remainder will be used as needed to cover the cost of remodeling their home. They plan to do their own remodeling and use the funds as needed to cover the cost of materials.
For those people who may not be aware, a Heloc mortgage is a “home equity line of credit” which allows the client to borrow at any time up to the approved limit, or repay as much as they wish including 100% of the balance. They must commit to paying the interest on the mortgage each and every month and must never be in arrears in terms of the interest payments.
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Saturday, November 26, 2011
This client is in an excellent position to be approved for an interest only mortgage loan due to his excellent credit rating, his income and due to the fact that he is only applying for a relatively small mortgage loan. He lives and works in the city of Parma Ohio. He has a small car loan and no other debts including credit cards and mortgage. While he did not indicate if his wife works or has income, his income alone is sufficient to carry this loan application should it be approved by the bank.
Many banks have limits on interest only loans depending on the type of loan they approve. Non secured loans are limited to smaller amounts and higher interest rates. This client has indicated that this loan would be a mortgage against his home which means it would be secured and would enjoy a much better interest rate as a result. There is also more flexibility on the amount borrowed as well. For illustration purposes, there are three alternatives considered for this client. The first one is as requested – a secured interest only mortgage loan at 3.99% with current payments of interest only at around $98/ month. This will vary depending on the current prevailing interest rates.
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Saturday, November 12, 2011
This applicant in Dayton , Ohio, although a potential first time home owner is really approaching the purchase of a home with everything well thought out and specifically not over extending himself as many people have. He is looking to borrow $95,000 using an FHA Mortgage Loan which he admits he does not know a lot about. His agent or a friend has mentioned this to him as something that might help him qualify.
First, let us clear up any doubt about he and his wife qualifying for a mortgage loan. They have sufficient income to afford this home on a 15 year or 30 year mortgage. They have no debt, although they do have two older cars which they may have to replace sometime in the near future. There jobs are solid and although they do not make a lot of money they are working and have some security, especially in his job as a city garbage collector. The only area of weakness is the low down payment, but this couple should have no problem qualifying for a mortgage.
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Saturday, October 29, 2011
This client is looking for an online mortgage loan of $125,000 to allow him to purchase a home in Akron Ohio. They are first time home buyers, and they have $15,000 as a down payment on the home which is priced at $140,000. The first thing we suggest is that they negotiate with the seller to try and obtain a lower price for the home to save some money and allow them to take out a smaller mortgage. There is no need to purchase at the listing price in today’s market.
Based on their income, this couple should have no problem qualifying for this online mortgage loan. In addition they have a reasonable down payment and they have savings to fall back on should their jobs disappear or they get sick and cannot work for some period. They are doing all of the right things when it comes to sound financial planning and we have no doubt that they will continue on this path and become happy successful home owners.
One word of caution and this applies really to anyone purchasing a home for the first time. There are always unexpected expenses. Furniture, window coverings, landscaping and new things around the home that they feel they must have or need to have. We suggest that they plan this carefully and that they may also have to dig into their savings slightly to pay for some of the unforeseen things that they will need to buy.
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This client has applied for a new home loan and is planning on living in Toledo Ohio. They are currently living in an apartment, having been transferred into the area after having sold their home in another city. They have $120,000 as a down payment which is a hefty amount for a down payment and places then in an excellent position from a new home loan application perspective.
We noticed that when he filled in the questionnaire , they indicated that they needed a $150,000 mortgage, however when they did the calculations at the bottom of the page, they indicated they needed financing for $250,000. Either way ,this client has the income level to support the monthly payments at the higher mortgage level, however he will need to resubmit the application so that all parties are clear about the amount of the new home loan that is actually required. It is probably a simple mistake, however for legal purposes they will need this clarified.
The home they are considering is vacant and move in ready, so they are looking for a fast approval. Unfortunately they are also looking for competitive rates and terms and do not want to pay for the appraisal. There is usually some room to negotiate, however negotiations can take time, especially if proposals go back and forth several times. There may be a conflict with their desire to move in quickly vs. the time it takes to negotiate acceptable terms and interest rates. This is a choice they will have to make. The bank would also obviously want them as a customer, however they also need to cover their costs.
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