TexasLending.com offers a number of home purchase loan programs for people with all types of credit. In today’s post, the mortgage experts offer information on the home loan process.
Q: What types of home loans are available from TexasLending.com?
TexasLending.com: We offer a full suite of home loan options including difficult-to-place loans, VA loans, jumbo loans, FHA loans, and perfect credit loans. Our mortgage experts are available to help you decide which product is right for your own unique situation.
Q: How does the mortgage loan process work?
TexasLending.com: Many buyers come to us confused or even a bit intimidated by the process. Rest assured, we will be there every step of the way. It begins by speaking to one of our mortgage consultants and filling out an easy online application to request preapproval. After the initial approval phase, the application is processed, a down payment is collected, and the loan goes into the underwriting stage. Closing can be scheduled once all of these steps are complete.
Creditworthiness (among other things) is largely determined by your FICO score. But, how does this number really play a role in people’s lives? The team at Texas Lending explains in this brief Q & A.
Q: Does a higher credit score really equal lower interest rates?
Texas Lending: Most of the time, yes. Those with a credit score above 700 often get the best rate for everything from car loans to mortgages. Even a percentage or two can really add up. For instance, a person buying a home valued at $300,000 with a traditional 30-year fixed mortgage will pay nearly $100,000 less for that home over the life of the loan if their credit score qualifies them for the current lowest interest rate.
Texas Lending mortgage professionals share the excitement with each first-time buyer whose dreams they help finance. The Texas-based lender says there are a few vital pieces of information that may get overlooked – and that can turn a celebration into cause for concern. Here, the experts list the top four checklist items new homeowners often fail to consider.
1. Expenses beyond the mortgage.
Many first time buyers don’t consider the added expenses of homeownership when planning their budget. Texas Lending cautions that items like added fuel costs for a different commute, utilities, and HOA fees can add up quickly.
Texas Lending offers numerous loan programs to fit a variety of needs. In this short interview, the Consumer’s Choice Award-winning mortgage company answers questions about equity loan products and availability.
Q: What is a home equity loan?
Texas Lending: An equity loan is a financial product that allows a homeowner to use the equity in his or her home as cash to pay off higher interest debt, make home improvements, or possibly purchase additional property while remaining in the primary residence.
Buying a home can be a daunting process, acknowledge the experts at TexasLending.com. Here, the award-winning mortgage brokerage team helps ease fears by offering a quick rundown of the process for first time buyers.
Q: What different types of loans are available from TexasLending.com?
TexasLending.com: We offer a wide range of loans to meet each individual buyer’s needs. We can help those with perfect credit, bad credit, and everything in between. Our mortgage experts will walk a new (or experienced!) buyer through every step of the process for FHA, conventional, jumbo, and VA loans.
Experts agree that 20% of a home’s purchase price should be a substantial down payment, but that can be a challenging number to come up with at closing. Here, the team at TexasLending.com offers advice for those planning to purchase their piece of the American Dream.
1. Start saving early.
According to TexasLending.com, it’s never too early to plan ahead. Even if your home ownership plans won’t begin to form for another decade or so, you can take available cash and invest it now. A diverse stock portfolio – about 50% stocks and 50% bonds – can help reduce the risk of loss while earning a tidy return.
The mortgage experts at Texas Lending say to expect lower interest rates, higher rental fees, and higher home prices throughout 2016.
Q: How much are interest rates anticipated to drop this year?
Texas Lending: In light of the upcoming election this administration will do its best to work with Federal reserve to keep interests rates low to fan the flames of the economy and sway the vote in the direction of incumbent candidates and their parties. Also with world economies stalling the US dollar will continue to be the place for bond holders to invest until a marked event signals a reason for them to move to another currency.
Dallas-area residential real estate jumped nearly 10% between December 2014 and December 2015, according to the mortgage experts at Texas Lending. This represents the largest gain in nearly two years.
Dallas-area home prices saw one of the five largest gains in the country, reports the mortgage specialists at Texas Lending. According to the Case-Shiller Home Price Index, local home price increases were nearly double the nationwide average gains of 5.4% with Dallas real estate jumping 9.6%. Only four major cities had percentage changes more impressive than Dallas, Portland (11.4%), San Francisco (10.3%), Denver (10.2%), and Seattle (9.9%). San Diego, #6 on the list, came in a full 2.4% below Dallas, reporting gains of just over 7%.
Credit card debt isn’t something anyone really wants, acknowledge the home finance experts at TexasLending.com, but it happens. Here, the online mortgage company shares three secrets to getting out of debt and raising a waning credit score.
1. Understand credit utilization.
The experts at TexasLending.com explain that credit scores are not the only valuation lenders consider when deciding on whether to underwrite a mortgage. Credit utilization is the percentage of available credit a borrower is currently using. Most lenders offer the best rates to those currently taking advantage of less than 30% of their available credit, reports TexasLending.com.
While working for yourself is the American Dream, freelance workers actually have a much tougher time procuring a mortgage. Here, the experts at TexasLending.com offer advice on how to prepare for homeownership without a pay stub.
Q: I work from home and don’t get a W2, or even a 1099. How do I prove my income to a mortgage lender?
TexasLending.com: That can be difficult but as long as you’ve filed your taxes properly for at least the last two years, you should be fine. Most underwriters require at least two years of returns, a copy of your Schedule C, and possibly bank statements to confirm your earnings before making a loan decision. If you don’t receive a 1099, you may also need to show proof of payment history.