When you apply for a mortgage, one of the first documents your loan officer will ask for is your bank statements. The main purpose of checking and reviewing all these document is make sure that you actually have the funds and means to pay your house payment without defaulting. [Read more…]
You have decided it’s time to sell your home, but have not yet paid off your Kansas City home loan. Even if you have not paid off your Kansas City home loan, you can still sell. However, you will still have to pay off what you owe. Before selling, make sure you:
Inform Your Lender
If you have not paid off your Kansas City home loan and plan to sell, inform your lender first. Mortgage contracts often have what’s called a “due on sale” clause that protects the lender when a home that has not been paid off is sold. [Read more…]
When potential homeowners receive their Good Faith Estimate, they should look out for common junk fees. A junk fee is any charge that serves no purpose other than to create additional revenue for the lender. Being able to identify these fees can save borrowers hundreds to thousands of dollars.
Your GFE Provides a List of Fees
When you apply for a home loan in KC, your lender is required to provide you with a Good Faith Estimate, or GFE. This document shows the loan terms and an itemized list of the settlement fees your lender intends to charge you for providing and closing your loan.
Fees should be clearly stated on your GFE. However, keep in mind that the GFE is only an estimate for the fees associated with your possible home loan in KC. Fees that are listed include, but are not limited to: [Read more…]
Before you decide on the location for your new home, you need to ensure that it won’t affect your ability to obtain a home loan in Kansas City. Federal services or loan providers both offer home financing, but there are a few restrictions on whether or not you can obtain it:
- Loan limit
- Flood zones
- Property is below minimum standards
Ask your loan officer to give you detailed requirements and stipulations for using a government backed loan to purchase a home.
Monetary limits for different home loans in Kansas City vary depending on the location of your chosen property. Depending on where your desired property is located, the loan amount may be outside of the conforming range. If so, the price of the home is too high and you aren’t eligible for traditional financing. [Read more…]
If your property is underwater, there are options available to help relieve the burden:
While refinancing your KC home loan on an underwater property is not impossible, there are eligibility limitations. There are some programs available to refinance an underwater property like:
- Streamline refinance
- Home Affordable Refinance Program (HARP)
- Single Family Guaranteed Refinance Pilot
If you are unable to refinance your Kansas City home loan, your home may be an underwater property. Whether you call it “upside down” or “negative equity,” an underwater property is when you owe more on your home than it is actually worth.
Homeowners typically cannot refinance or sell their home unless they have the funds for closing costs and any other out-of-pocket expenses. For example, if you take out a loan for $200,000 and your home is valued at $150,000, you will owe the difference of $50,000.
How Do Underwater Properties Happen?
Your property can become underwater if:
- Your Kansas City home loan repayments are late
- You took out a “no money down” mortgage
- Real estate values drop in your area
If you’ve recently made the decision to buy a home, you may have already started looking at properties. However, before you choose your home loan in KC, it’s important to decide the best place for you to live.
This choice is mostly based on your lifestyle and where you see yourself in the future. When choosing a location for your home, take into consideration:
- Commute time
- Quality of life
- Resale value
Buying and owning your own home is the American dream. In order to accomplish this, it requires a personal and financial life plan. Purchasing a home is a large investment and the decision to buy should not be taken lightly.
Simply having the money for a down payment is not a reason to purchase a house. You should be both financially and emotionally prepared when applying for a home loan in Kansas City. Before you purchase a home, you must figure out if it is right for you. Here are some questions to ask yourself:
- What are my present and future plans?
- Do I need to get pre-approved?
- What does it takes to buy a home?
You have gone to your local mortgage company to apply for a KC home loan, only to find that you have been rejected, either on the spot or later on without reason. Perhaps you were even discouraged from applying and ushered out the door. If that is the case, you may have been a victim of mortgage discrimination.
Mortgage discrimination is when a lender refuses someone a loan based on:
- Marital status
The Equal Credit Opportunity Act (ECOA) and the Fair Housing Act (FHA) helps protect against discrimination, but unfortunately cannot stop every case from happening. Thankfully, there are steps you can take to recognize and counter it. [Read more…]
You want to apply for a Kansas City home loan and know that you must have an acceptable credit score in order to do so. However, you’re unsure how credit scores work or how they even apply to Kansas City home loans. What is a FICO score? Why are there three different scores on your credit report and which one do you need?
Thankfully, understanding the credit score basics isn’t difficult when you have the right information.
How Do Credit Scores Affect Mortgage Opportunities?
A good credit score shows lenders that you are a trustworthy and financially responsible person. The higher your credit score, the easier it is to get a good mortgage with lower mortgage rates. Before you get your first Kansas City home loan, be sure to practice good credit building habits. If your Kansas City home loan application was rejected, you can improve your credit score before applying again. [Read more…]