Filed under: Gateway Funding Recommendations
It seems that getting started with the process of purchasing a home can turn out to be quite a challenge for some individuals. Getting started on buying a home can be quite straightforward if you break down the process into parts and use the help of Gateway Funding. The mortgage bankers at Gateway Funding are professionals and their long existence the mortgage field itself speaks volumes. Gateway Funding will always make sure that their clients aware of the best offers and the variety home loan options available.
Think about whether it’s the right time to get a house; you may be tired of renting a home. While it’s quite understandable that you will come to a point in your life when you feel like renting is like throwing money away. Before looking at houses for sale, it is important that you first know how purchasing a home will affect your life.
Being financially unready for buying a home will limit your ability to make standard payments or will often mean that you won’t qualify for a mortgage. Being emotionally unprepared for the demands of paying the mortgage can also be stressful. If your goal is to buy a property, then you should be familiar with approximately how much money you’ll need to come up with for the down payment. Furthermore, paying off your credit card debt and keeping your balances low will be a good way to prepare for the monthly mortgage payments. Contact Gateway Funding to discuss a variety of home loan options.
Getting pre-approved for a mortgage with the help of Gateway Funding is very important; it’s going to be terribly difficult for you to work with sellers if you do not have a pre-approval letter attached to your purchase offer. Getting pre-approved for a loan means that you qualify for a loan and that your credit report has already been checked and your work status has already been confirmed by Gateway Funding.
Gateway Funding also recommends hiring a real estate agent. Your agent will take you thru the home buying process. This is an important step that you shouldn’t forget to take. Now you have a property agent working with you, you’ll be in a position to sort through houses that you want to look at so you can find one that you can afford to buy. An agent’s role is to help point you to the right home, as well as to help prepare the required paperwork. Let your agent do his or her job and you’ll find the home purchasing process will be less complicated and more controllable.
Filed under: Gateway Funding Home Loans
If you have low income and are looking to get approved for a home mortgage loan, there are many programs available at Gateway Funding Inc to help you get approved. Whether you are looking to purchase a new home or to refinance your existing home, with the following low income home loan mortgage programs, almost anyone can fulfill their dream of becoming a home owner.
The Federal Housing Administration (FHA) home mortgage loan -
FHA is the federal agency within the US Department of Housing and Urban Development (HUD) whose primary objective is to provide an opportunity to become home owners to those with low income explains Gateway Funding Inc. To facilitate this, the FHA program offers potential borrowers two options:
- the “single family package”: which provides mortgage lending programs to those looking to buy property comprising of between one and four units.
- the “multi-family package”: which provides home loans to those looking to buy property comprising of between five or more units.
Keep-in-mind; however, that the FHA program does require that potential applicants be able to make a down-payment says Gateway Funding Inc. In most cases this amounts to 3% of the purchase price. Countering this, however, is that the FHA mortgage loan program normally offers interest rates below market rate, which over a prolonged period of time could end up saving you lots of money.
Veterans Administration (VA) home loan mortgage – VA home loans operate in very much the same way as FHA loans do, the big difference is that they are provided to veterans only says a Gateway Funding Inc associate. The most important document in a VA home loan application is your veteran’s certificate of eligibility. But, assuming you have this, you would need no money down. Interest rates tend to be lower than market rate with VA loans. Finally, those applying for VA home loans can find out automatically if their application has been approved.
FHA & VA home loans are great ways to get into a home loan if you have low income and meet the qualifications.
Filed under: Gateway Funding VA Loans
VA home loans are similar to conventional loans, but offer greater benefits according to Gateway Funding Inc. This type of financing is only available to veterans and servicemen and women who are currently in the military. A knowledgeable VA loan specialist from Gateway Funding Inc is a good resource for homeowners who want to find out whether this type of financing is the right type of loan for his or her needs.
VA Loans Have Fewer Requirements
Unlike conventional loans that typically require a down payment of at least five percent (although most are actually higher), this type of loan does not require any down payment. Borrowers can be relieved to know that they will not have to put down a large sum of money on a new house and can instead save the money or use it for other expenses.
In addition to having no down payment, VA mortgages also do not require any mortgage insurance says a Gateway Funding Inc mortgage officer. Without mortgage insurance, borrowers will have a lower monthly mortgage payment and more money that they can use for home repairs or maintenance, debt repayment, or personal expenses.
VA Loan Refinancing Allows for High Loan Amount
Unlike conventional loans, VA mortgages offer a streamlined refinance which features quick and efficient loan processing and does not require a new appraisal. When changing their rate or term, borrowers can borrow up to 100 percent of the appraised value. Although they cannot receive cash back with the streamline refinance, borrowers can cash out up to a 90 percent of their home’s value with a cash-out refinance according to Gateway Funding Inc. Often, borrowers are able to lower their VA loan rate by refinancing, even when the purpose of the refinance is to receive cash back.
VA Loans Have Low Interest Rates and Lenient Credit Requirements
Although interest rates vary due to a constantly fluctuating market, VA home financing tends to have low rates compared with conventional home financing. Unlike other loans that have strict credit requirements and base their mortgage rates primarily on a borrower’s credit history, VA loan rates are determined more by the market than by a borrower’s credit.
An applicant’s credit history will not affect their ability to receive a low interest rate. Because of the more lenient eligibility requirements, more potential borrowers can be eligible for this type of financing than for other types of home loans. One requirement of the VA is that borrowers have no delinquent payments for at least the twelve months before their loan is approved.
Why a VA Loan Could be the Right Loan for You
Although conventional loans are not government guaranteed, VA home loans are guaranteed by the Department of Veteran Affairs at no cost to the borrower. This allows the VA lenders like Gateway Funding Inc to offer low mortgage rates.
This type of home financing offers numerous benefits that homeowners may not be able to receive with a conventional loan. These loans do not require a down payment or mortgage insurance and they tend to have lower rates than other types of home loans. With current interest rates so low, now is a great time to consider a VA loan.
Filed under: Gateway Funding Home Mortgages, Gateway Funding Recommendations
Buying a home is one of the biggest decisions you will make in your life explains Gateway Funding. Homeownership is better when you compare buying to renting a home. When you buy a home, you need to calculate the monthly payment you can afford. The monthly payment that you can afford depends on the income you make, your credit score, the current monthly expenses you have, the amount you put as down payment and the interest rate you will get.
Your income can be calculated by adding the borrower’s salary, co-borrower’s salary, taxable interest, investment dividends and other income. If you earn tips, bonuses or commission, enter them in the other income category in the worksheet. You need to consider if your future income will increase, decrease or will remain at the same level says Gateway Funding.
Your monthly expenses can be calculated by adding the utilities bill, car payment, insurance, medical expenses, clothing expenses, taxes, entertainment/purchases and child support. You need to consider if your future expenses will increase, decrease or will remain at the same level.
Your savings can help you pay for your down payment and closing costs on the home. You can calculate your savings by adding the money in your savings account, checking account, retirement fund contributions, stocks, mutual fund investments and other savings. Consult with a financial advisor before you consider using your savings for the down payment of your home recommends Gateway Funding Inc.
Your debt to income ratio is important to the lender. You need to have a low debt to income ratio. You can calculate your debt by adding your credit card debt, car loans, school loans, alimony, child support and other personal debt.
Income + Savings – (Expenses + Debt) = Net worth. By calculating your net worth, you will know if you can afford the principal, interest, tax and insurance (PITI) and private mortgage insurance payments on the home you want to buy. Your monthly expenses + PITI will be your monthly expenses when you buy a home. Generally, 28% of your income should be the payment on your home.
Your credit score is another important factor in buying your home explains Gateway Funding Inc. Lenders want to see a high credit score before they give you a loan. The interest rate you will get depends on your credit score and credit rating. It is important that you consult with a credit counselor to understand your credit rating.
Filed under: Gateway Funding Recommendations
With the rapid economic development of the nation, the earning and hence the purchasing capacity of the present day youth is gradually increasing according to Gateway Funding. In fact, the number of first time home buyers is gradually increasing day by day. If you are one of them, take a look at the following first time home buyers tips from Gateway Funding.
- Since you are a first time home buyer, you would be dreaming of buying a dream house. So, in reality to find your dream house, you might need more than the time you expect to hunt for it. Searching for about 30 homes before you buy one would not be too impractical in your case. So, do not get upset if you have not yet spotted the right one. Take time to decide before you invest recommends Gateway Funding Inc.
- Check the plumbing and the electrical works. They are very important as the quality of your home depends much on them. In case of any leakage or any formation of accidental pocket, inform your seller.
- Even though the aesthetic beauty of the home would attract you, do not forget to make sure that the home is structurally sound. You may appoint a professional to check it.
- Suppose, you find the home to be well structured and well planned but the color turns you off, you should still go for it as you are always open to the option of changing the coloring.
- Fix your budget. Here comes the very important part. Determine the amount that you would be investing to buy the property. In case you are taking a home loan estimate the EMI. Before you step in to buy home, ensure you at least have saved up to 5% of your total down payment says Gateway Funding.
Since you are a first time home buyer, it would be best to work with a real estate agent. He, with the aid of his years of experience and proficiency would be able to serve with the best possible living options. Gateway Funding will also be helpful with the process of obtaining a loan.
Filed under: Gateway Funding Recommendations
If you’re thinking about refinancing you may be hesitating because you are intimidated by the process.. However, these hurdles can be easily overcome with a little research and preparation and by speaking with your Gateway Funding Mortgage Officer.
Here are some of the things to be ready for, and some tips on how you can prepare yourself to go through the refinance process with ease:
1) Credit Score – Know your credit score and work to improve it before you refinance recommends Gateway Funding Inc. If your credit score has dropped since you got your mortgage it could have a drastic impact on your interest rate, or whether you’ll be able to refinance at all.
2) Appraisal – Your current home value is a key component of the refinance process. Homeowners looking to refinance are often worried that their home will appraise for a lower value than they expected. It’s important that you do your homework so you aren’t solely relying on the information provided by the appraiser. More appraisers are working in areas they aren’t familiar with and that often means they are going to undervalue the property.
3) Condos – Condo owners can be faced with additional challenges when they are looking to refinance. If there are multiple foreclosures or short sales in a building it becomes very difficult to get a good appraisal for a property. However, even with a poor appraisal, a condo owner still could have equity in their home and be able to qualify for a refinance.
It’s important to work with a Gateway Funding home loan expert that you trust when you are looking to refinance. The right person can help you navigate through the refinance process and help you find the option that works for you. Now is a great time to refinance to benefit from low interest rates. Refinancing and locking in a lower rate can easily save you thousands in the long run.
Filed under: Gateway Funding Home Mortgages
A lot of home buyers and potential home buyers fear having to face foreclosure. Foreclosure becomes reality when a home buyer is beginning to have struggles with keeping up with mortgage payments. In order to avoid this kind of scenario, you need to be always prepared and make sure you prevent being on that kind of situation any way you can. Here are a few tips from Gateway Funding Diversified Mortgage Services on what you can do to avoid being in that situation as well as what you can do if you think you are beginning come to that unfortunate circumstance:
1) Have an audit of your monthly bills. Check what you do not really use and get rid of that subscription recommends Gateway Funding Inc. IF you only use it occasionally then check if you can lower your subscription plan; this way you can save some money. One example would be your television cable plan, or internet plan and other subscriptions.
2) After checking your monthly bills, check also your credit card bills. Reduce your credit card consumption and limit the amount that you would consume using your credit card. If you can temporarily not use it so that you can just keep paying it without any added new bills on it, and then little by little your monthly credit card bill will decrease.
3) In everything you do, try to be aware and save money. Instead of buying your lunch just pack some food. The moment that you have saved a decent amount of money, try to pay your mortgage loan with some extra to knock off a chunk of the principle says a Gateway Funding loan officer. If you start saving money and do this once in a while, then you’ll have a good chance of not having mortgage problems in the future.
4) If you really need to have additional money, because even if you stretch your finances and save all you can but it is still not enough; then the only thing that you can do to solve this is to increase your productivity explains Gateway Funding. Look for some part time jobs or some weekend jobs which will pay you decently and will make sure that you can provide the finances that you lack. You do not want to waste your time and energy and have additional jobs that will still not give you enough money for your bills, however, make sure that the money you need is realistic and not that big amount. Your second or third job should be just to give you the final push on have enough money to pay everything you need to pay and at the same time have a few extra for your savings.
5) Make sure that you do what you can to be on time with your payments. The reason why you need to do that is if ever you know that you will have problems with payments in the near future you can talk with your lender with some bargaining points. You can inform your lender that you are seeing payment difficulty in the coming months and ask for any alternative payment plans or a temporary agreement. You can tell them that you have a good payment record and even if they check you can inform them that you are never late with your payments. You will be surprised how accommodating Gateway Funding lenders are to their customers, especially with their good paying customers.
Filed under: Gateway Funding Home Loans
Americans are tapping their equity from their homes for decades by disposing of home equity loans, equity lines of credit or refinancing. In the sixties, it had been inappropriate for neighbors to talk about a second mortgage, as a result of it meant that you simply mismanaged your cash and also the implications were perpetually centered on money trouble. Times have changed, as a result of over sixty percent of homes purchased today embrace a second mortgage within the sales transaction according to Gateway Funding.
If you’re a homeowner, you have probably received solicitations constantly to apply for a home equity loan or refinancing your second mortgage. Home equity loans will be economical tools for financing home enhancements and consolidating credit card debt. Home equity lines of credit can improve cash flow, and provide flexibility for investing. Having an equity line of credit secured to your property, can provide a safety web of cash reserves for family emergencies, or sudden investment opportunities explains Gateway Funding Inc.
We have a tendency to suggest getting approved for a home equity loan when you need it least. Usually investments have a little window of opportunity, and when you get approved for a second mortgage, and finally close escrow, the opportunity could be gone.
There are 3 Gateway Funding second mortgages that are worth considering.
1. Customary Fixed Rate Second Mortgage- This can be your ancient lump add second loan that options a fastened interest rate and reimbursement terms that vary between 15-thirty years. Sometimes these loans have a three year pre-payment penalty that can be bought out in most cases if requested earlier to the loan closing. These secnd mortgages are counseled for consolidating debt or serving to with the down payment of a second home says Gateway Funding. With these loans, every payment you make will go towards paying down the principal and the interest.
2. Home Equity Line of Credit- This second mortgage may be a revolving line of credit similar to a credit card, but interest is deductible to a hundred percent of your homes’ value. The best factor concerning home equity lines is that you only pay interest after you access cash. If you never take that road, then you never have a payment due. Home equity lines have variable interest rates and the payments start out low with as a result of, only the interest is due every month throughout the initial ten-year draw period explains Gateway Funding Inc. This is a very popular short-term finance vehicle for home improvement projects and construction. Once the project is completed individuals can usually refinance the loan into a fixed rate mortgage loan. We have a tendency to recommend this sort of home equity financing for establishing reserves in cases of emergency or investment opportunity. (one hundred% combined loan to price)
3. Home Equity Loan Hybrid- This home equity loan boasts of a fastened interest rate with the power to make interest solely payments for the draw period that’s typically 5 or 10 years. These home equity loans have mounted interest for the lifetime of the loan; however they allow you to make a minimum payment of simply the interest if you choose. The hybrid equity loans typically require high credit scores; however ask your Gateway Funding loan officer regarding the underwriting tips, because the program criteria might change.
In summary, don’t wait until the last minute to induce approved for a home equity loan. Talk to your Gateway Funding loan officer, and discuss whether or not you may be doing a full documentation loan, or stated income loan. This will confirm whether or not you’ll need to submit your W2’s and pay-stubs together with your loan application. Discuss the interest rates and closing prices for each home equity loan option.
Posted on December 14th, 2010 by admin
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