Mortgages by Jeremiah Phillips

Here are 6 tips to help get your application approved sooner rather than later.
 

Tip #1. Do Your Legwork Ahead Of Time – Understand the basics of refinancing and what various terms mean before you apply.  You should also know what the prevailing rates are and whether you want to pay points to “buy down” your rate to a lower level.  Once you have that information, decide whether you want a fixed-rate loan, an adjustable or some type of modified product (which remains fixed for three to seven years before becoming adjustable).  If you decide on a fixed-rate, determine whether you want a 15-, 20-, 25- or 30- year loan.  Keep in mind, the shorter the loan, the faster you build equity and the less overall interest you pay.
 

Tip #2. Don’t Try To Figure Out Where The “Interest Rate” Curve Will Go – For one thing, it’s impossible. Nobody knows in advance how low interest rates might go, or when they’ll start to climb. Rather than trying to predict the unpredictable, just get locked in a program that works for you.
 Besides, waiting for rates to fall is usually counterproductive.  Not only might rates rise, your indecision is a sign that you’re not really serious about refinancing.  This could drop your application back to the bottom of the pile.

 Tip #3. Are There Really Any Shortcuts – Many lenders have an incentive to get your loan approved sooner.  So ask your current and prospective lenders if they have any programs to get you to the finish line quicker.  Among the possibilities:
     
 ·         Loan modification – These programs basically lower the rate on your existing loan without changing the length of the loan. Loan modifications aren’t available to most borrowers, since their loans have already been sold on the secondary market and can’t be changed.  But it never hurts to ask your current lender if such a program is available.
 ·         Streamlining – Some lenders offer a quick refinancing for current customers.  You typically pay a slightly higher rate for the convenience and speed.
 Tip #4. Use A Mortgage Professional – If you have troubled credit, an unusual financial situation or are just overwhelmed by the process, it can pay to have an advocate who knows the system to help you sort through your options.  That’s the role a good mortgage professional can play.
 Mortgage professionals do business with many different lenders and often have an inside track that can help speed up the process.  In addition, mortgage professionals can offer more personalized service and are there through the entire loan process. To find one, ask your friends and neighbors for a referral.
 Tip #5. Have Your Paperwork Ready – Here’s what most lenders will ask for when refinancing your home.
 One month of pay stubs
Your most recent W-2 forms
Last year’s tax return (or tax returns for the past two years if self-employed or employed at your current job for less than 2 years)
Bank and brokerage statements for the last month
Mortgage statement
Statements for any home equity loans or lines of credit
Homeowners insurance statement
Past commission statement(s) if you’re in sales
Smart borrowers will provide even more information, particularly if they’re self-employed or have any kinks in their finances. For example, instead of one year’s worth of tax returns, you should provide 1040s for two or three years, as well as pay stubs for two months and statements from your 401(k) and other retirement accounts.
  Tip #6. Follow Up And Follow Through – If you really want to expedite the process, you should fax, overnight or hand-carry any paperwork that’s requested.  Don’t wait for the regular mail and don’t delay responding to a request for more information.  Even short delays will send the wrong message to the underwriter.  If you don’t return your documents for a week, it conveys to the lender you’re not as excited about this loan as somebody who gets their documents back the next day.
 Keep the heat on by calling or e-mailing your loan officer every few days until your loan is approved.  Be polite and friendly, but make it clear you want the process to go as quickly as possible – remember, the squeaky wheel that gets the grease.
 
**Rates Have Dipped!  If you are thinking of refinancing call us today for a free rate quote.
  If you do not have time to speak with me today please feel free to fill out this Secure Online Mortgage Application to help jump start your loan process…  
    

FHA Mortgage Limits go through the roof!! If you have been waiting they are here!!!

Here are the New Jersey Limits as of today:

 

The one thing that sticks out to everyone is Falling Interest Rates… With all the termoil in the mortage industry rates are doing very well.  A lot of people are now qualifying for rates in the 5′s…  That includes some FHA canidates.

With the changes in the mortgage industry there are currently things that affect the rate you will receive that have not been around before.  Credit score hits are the #1 thing that are determining you to get the lowest rate, but not the only thing.  If your rate is over 6.5% or an adjustable now is the time to see what you qualify for to get that mortgage payment down to a rate and payment you will not have to touch for a very long time…