Owning a second or vacation home is a dream for many, but getting a mortgage to buy one can be a challenge. The requirements can be significantly more stringent than those for a mortgage to buy a primary residence. An alternative possibility: tapping the equity in your current home instead.
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What's keeping you from applying for a mortgage? Maybe you're worried that your three-digit credit score isn't high enough or that you have too much debt. Maybe you're worried that mortgage lenders will require a large down payment that you won't be able to afford.
When it comes to fear of missing out, or FOMO, keeping an eye on Instagram, Facebook and other social media to see what your friends are doing may not cause as much anxiety as watching mortgage rates change daily and decide if you should jump in.
Worried that lenders won't approve you for a mortgage because of an iffy credit score or an irregular income stream? You might be a candidate for a non-qualified mortgage, a loan tailored to consumers considered riskier borrowers by lenders.
A reverse mortgage is an odd duck as far as loans go. While a “forward” mortgage lets homeowners build equity over time as they pay down their loan, a reverse mortgage is the opposite. It gives older homeowners regular payments to supplement their income in exchange for giving up the equity in their home.
Struggling to pay off your credit cards or other debts? Are the high-interest rates attached to this debt causing it to soar each month? If you have enough equity in your home, and you can afford what might be a slightly larger mortgage payment each month, a cash-out refinance might be the answer.
Sometimes you’ve got to spend money to make money. That adage often holds true in investing or starting a business, and can also be valid when owning a home after you’ve gone through all of the trouble of getting a home loan.
You’re ready to apply for a mortgage loan and begin the hunt for your dream home. Now you have to decide between the two main providers of mortgage financing: mortgage brokers or mortgage lenders, the latter including both banks and other direct lenders.
If you’re the owner of a historic home, you may not be able to say that George Washington slept there, but you should at least be able to find some sort of interesting story you can tell about the house after you’ve secured a home loan.
Applying for a mortgage, and closing one, can be a tedious process. Lenders must scan your credit reports and study your credit score. You’ll have to provide copies of such documents as your most recent pay stubs, bank statements and tax returns to verify your income. And the odds are high that you’ll have to either meet in person or have several telephone calls or online chats with a mortgage loan officer.
Falling interest rates can be reason enough to refinance a mortgage loan. So can improving your credit score, even by just 50 points by simply paying all of your bills on time for a year. Raising a credit score only 20 points can lower a monthly mortgage and save thousands on interest paid over the life of a home loan.
There’s plenty to like about VA loans, the mortgage product insured by the U.S. Department of Veterans Affairs and available to current and former members of the U.S. military. The biggest draw of a VA loan? You can qualify for one without providing any down payment dollars, something that makes this product especially attractive to first-time homebuyers or borrowers without a stuffed bank account.