How to Shop for the Best Mortgage Loan

Shopping for a mortgage loan can be overwhelming. Whether you are purchasing a new home, refinancing your existing mortgage, taking out a 2nd mortgage, or applying for a home equity loan, you need to do your homework first.

When comparison shopping for a mortgage loan you need to collect information from a variety of lenders including interest rates, annual percentage rates, terms, and lender fees. Ask your mortgage lender or broker for a detailed list of these items for each loan you are considering.



You can easily locate this information on the Internet without going through a third party.

Compare mortgage loans of equal term lengths. It does not make sense comparing a 15 year mortgage to a 30 year mortgage unless you want to see the difference in your monthly payment amount. Look at the interest rates: does the mortgage come with fixed rates or adjustable interest rates? What is the term length of the mortgage? Will you be required to pay points up from to qualify for the loan? Are you going to be required to purchase Private Mortgage Insurance?

One of the items the lender should provide you is the Annual Percentage Rate for each loan offer.



This figure factors in all fees and expenses for the loan and is a helpful way to compare the cost of borrowing from one mortgage lender to the next.

In addition to interest rate you should look at fees. Mortgages that do not have prepayment penalties are better offers than those that do. Mortgage lenders that require Private Mortgage Insurance should be avoided as this could add hundreds of dollars to your monthly payment amount.



Other favorable terms to look for are loans that do not require escrow for taxes and insurance. Good escrow companies are difficult to find and selecting a lender that does not require escrow could save you a lot of aggravation and headaches.

As you can see a good mortgage offer contains much more than favorable interest rates.

To learn more about spotting a good mortgage offer when you see one, sign up for a free mortgage help guide. It is helpful to learn mortgage terminology and how the mortgage industry works prior to shopping for a mortgage loan.



If you skip this important step, how will you recognize a good deal when you find it?

Louie Latour has twenty years of experience in the mortgage industry as a mortgage broker.

savannah mortgage refinance

He is the owner of Mortgages Refinance Advisor, a mortgage help site devoted to saving homeowners money with a free guidebook Mortgage Refinance: What You Need to Know.

Sign up for your free guide today at: http://www.



refiadvisor.com

Wachovia Loan Modification Agreement Help - Tips For Speedy Mortgage Loan Approval For Wachovia

Wachovia loan modification program is offered to those customers who are unable to pay their home loan on time. Many homeowners found that obtaining a loan modification agreement is certainly difficult. They must modify their loan as it will reduce their interest rate with affordable monthly payments.



They are advised to know the requirements of the lender to get their application approved quickly. As every company has their own guidelines, so customer must follow the guidelines properly and fill the form after reading it thoroughly.



This will not lead to rejection of their loan modification.



You can speed up your loan modification approval by these simple steps:



· The most important step is to prepare a convincing hardship letter. The letter must include all the situations and steps you have taken to correct it.



· All the information you provide to the agency should be correct and complete properly. Incorrect and incomplete information may lead to denial of your loan application.



· You must prepare a file for the mortgage company containing all the information that you know they will need.



It should be organized properly that will help the company to read easily.



· This will include information like Bank statements, credit history and property value employment history.



· You are expected to tell all that is asked. Hesitation will always leave a doubt in the lender's mind. Make sure that all the information you provide is true. You must know that Wachovia will get all the information and documentation that you provided verified by professionals.



· You should call to the concerned person on regular basis to check the status of your loan modification.



It is important to ensure that your file is not lying under table. Do not think that you are disturbing them because it is their duty and your right to ask them.

Mortgage Loan Success Is In The Details

Finance is one of those areas where the details matter. Small tweaks can save or cost you a boatload of money. This is never more the case then when we talk about mortgage loans where a small tip can save you tens of thousands of dollars.



The stated income loan is called the liar's loan. Why? Well, you don't have to provide any supporting documents to back up your claim. If you can't legitimately qualify for a loan, there is probably a good reason. Don't use this one.



When you apply for a mortgage, you are going to have to provide supporting documentation.



Ask the lender for a list before hand. If you can't find something, ask the lender if you can submit something else in substitution.



The mortgage industry is based on markets, which means the rates on loans change each day. This can cause a problem. If you get pre-approved for a loan on the first day of the month, but don't close to the end of the month, the rate on your loan can change!



The interest rate is the cost to borrow the money from the entity financing you. The APR is that cost plus all other fees.



The APR represents a better picture of what you are paying out, but represented as a percentage.



A great way to get sellers to give you a better deal is to have them pay down the interest rate on your mortgage. The trick to this approach is to agree to a price close to what they are asking for the home, but with the pay down included in it.



Mortgage professionals are in the business of making money, so don't forget that when loan terms are discussed. Get them in writing if you want to be able to rely on them.



Anything else is unenforceable. Mortgages are large debts, so don't risk anything.



To avoid paying PMI - private mortgage insurance - try taking out two loans to buy the home. The first should be for 80 percent. The second should be for the remainder minus whatever you are going to put down in cash. This avoids PMI.



Before applying for a mortgage, many will address their credit. There are a few billion credit repair companies and many are less than stellar.



One way to know is the payment. If a credit repair company tries to charge you before fixing your credit, terminate them.



The lender has indicated that you will qualify for a bigger loan with bigger payments than you're comfortable with. Listen to your inner voice. Buy something you feel you can afford. Don't overspend and sweat monthly payments.



When it comes to mortgage programs, the government has a good thing going. There are all kinds of programs designed to get you into a home.



Make sure to canvas them to see if you qualify for any. If you do, you can save a bundle!



Searching for your perfect home is rewarding. Nobody has ever said the same thing about searching for the perfect mortgage. That being said, a person that understands the process is going to suffer less than one that does not.

Mortgage Loans For Non-Residents

The crumbling of the sub-prime market has had far reaching effects on the economy. We have all seen how housing prices have declined, down payment requirements have increased, and mortgage underwriting has grown more stringent. Nowhere is this more evident than in the millions of non-residents and foreign nationals seeking to purchase a home in Texas, or anywhere in the United States.



Up until late last year, there were a number of banks that catered to this community of non-citizens who simply didn't have the right visa to meet the qualifications for traditional mortgage financing.



Today, mortgage loans for non-citizens are far more difficult to find. Few banks offer them and there is no single source a borrower can seek in order to find a lender that does offer such a program. This group of disadvantaged buyers includes investors, seasonal workers, and full-time workers that are often in a better position to borrow than many citizens who are first time home buyers if they could only secure financing.



To be fair, many non-citizens are able to purchase real estate using traditional FHA, FNMA and FHLMC conforming mortgage loans.



Though the requirements vary from lender to lender, eligible borrowers typically include Permanent Resident Aliens (i.e. green card holders) and certain Non-Permanent Resident Aliens with approved visa classifications, such as diplomats, government and international organization workers, professional employees whose company's main office is outside the U.S., and workers operating under a trade treaty. In most cases, spouses and dependents of these visa classes will also meet these qualifications.



Nevertheless, there is still a large segment of the non-permanent resident population that falls through the cracks.



There is some relief for non-permanent resident aliens. A few programs are available that offer home mortgage loans to these borrowers under certain conditions. Most often, the borrower must hold a valid IRS Individual Taxpayer Identification Number (ITIN), or an ITIN Letter, along with a valid government-issued photo ID which might include their passport, visa, or matricula card.



In addition, the borrower must have filed federal income tax returns for at least two years and be able to demonstrate consistent earnings and acceptable creditworthiness. Credit may be in the form of non-traditional credit or even a credit report from their native country where credit was established.



The rates, terms, and down payment requirements are significantly different from traditional government guaranteed programs like FHA and VA home mortgage programs. First, a non-permanent resident should expect to contribute a much larger down payment, often 30% or more.



Second, fixed rates are very difficult to secure, so the borrower should expect a 3/1 or 5/1 adjustable rate mortgage with a higher initial rate. Often, by the time of the first rate adjustment, these borrowers are in a much better position to secure traditional mortgage financing at more competitive rates. Potential borrowers should check with a local mortgage lender that offers these products for additional requirements, rates, and terms.



Ultimately, immigrant residents of Texas and across the United States can find home mortgage loans if they look in the right places and demonstrate the stability, creditworthiness, income, and equity that any lender is looking for in a borrower.