What Are The Perks Of Opting For A Mortgage Loan?

Generally, people assume that when they opt for a mortgage loan, they will need to pay a considerable amount every month in the form of interest, which is not the real story. Every day, thousands of people opt for the mortgage loans for the numerous benefits that it possesses. When you are trying to invest in a real estate business, you need to learn about the market thoroughly that will help you to understand the benefits of mortgage and also take the precautionary measures that will prevent you from spending extra.

And if you are new to mortgage broking and have no idea how it works, then working with a professional mortgage broker would be the ideal choice for you. They can help you to learn about the various benefits associated with mortgage broking. But with the ever-changing market, it is becoming a daunting task to choose the right one among them.

Benefits of hiring Mortgage Broker Near Me

There are endless reasons which imply why you should opt for a mortgage broker even if you know anything about mortgage broking. So, to help you understand the concept of mortgage broking, we have listed some of the essential points that will assist you in getting a better result.

Numerous individuals take mortgage loans to meet costs and buy high esteem things. A mortgage loan is an unbound loan made by a person from a bank to meet crisis prerequisites. It is liberated, which means the borrower does not advance any guarantee while availing the loan. In this way, a loan officer can't sell off any collateral claimed by the borrower in case of failure of payment. A mortgage loan accompanies a moderately high rate of interest in comparison with a home or car loans. The credit is conceded based on business and financial records, pay level, reimbursement limit, and so forth.

Reasons to avail Mortgage Loans 

Mortgage loans are loans granted for individual and commercial purposes but primarily for investing in real estate. Mortgage loans are progressed based on the borrower's record of loan repayment and capacity to reimburse of the loan from the individual's wages. Compensation is ordinarily through settled sum portions over a fixed term. A mortgage loan is also known as a consumer loan. To understand mortgage loans, you need to learn about its features.

Here are the five most essential reasons as to why you should consider the various online channels for the availability of a mortgage loan.

• Enhanced Safety and Security – The safety and the security of the transactions are safer and secure through Mortgage Loans Pittsburgh PA, and this is a good enough reason for the choice of this platform.


•Availability of Various Offers and Benefits – There are many offers and benefits that you can get from this platform—the discounts on the interest rates and also available and more accessible to you over the online forum.

• Easy Accessibility of the Financial Services – The flexibility is a significant advantage. As you can apply for and avail the loans from any part of the world, provided that you fulfill all the various terms to the loan

• Quicker Process – The process of the transaction is way quicker, and this can come to the great benefit for the person avail the VA Home Loan. The faster the process, the better it is in a tight and urgent scenario.

• Better Reimbursement Options – There are many repayment options available over the online domain of mortgage loans. This is one more significant aspect of benefit that you can avail through the online area of customer loans.

These are the various reasons as to why you should choose the online channels for the availability of the mortgage loan. They avail to you significant advantages like the quicker process as well as, the better and enhanced flexibility of the financial procedure. In this way, a loan officer can't sell off any collateral claimed by the borrower in case of failure of payment.

A mortgage loan accompanies a moderately high rate of interest in comparison with a home or car loans. The credit is conceded based on business and financial records, pay level, reimbursement limit, and so forth. You can avail of other benefits as well as the better and improved security factor of the entire process.

So, if you are looking forward to acquiring a considerable sum of money that is not covered under your considerate loan, then mortgage loans are the right choice for you.

Latitude Financial
550 State Rd Suite 103, Bensalem Township, PA 19020, United States
+1 215-600-1810
https://latitudemortgage.com

What You Should Know Before Refinancing Your Mortgage

Refinancing a mortgage is a process in which you get a new loan to pay off a previous one. This is available to borrowers who want to close their variable loans and open a new loan with fixed interest rates. This is a great option for new home buyers as well as for those who are experienced in home buying. A refinanced loan is a better alternative to individuals with good credit history.

To know more about your eligibility in approaching the refinancing of your mortgage, you should consult with an experienced Mortgage Broker Southampton PA has. A seasoned mortgage broker will help you to collect useful information before settling on refinancing. Because refinancing is for reducing loan interest rates, a lack of information regarding the process may lead to unnecessary expenditure or even result in loss.

Below are a few basic facts that can help get you started with your research on refinancing. 

What is considered refinancing?

Refinancing is the process in which you obtain a new mortgage whilst still paying back the previous mortgage. This is done to reduce monthly payments, lower interest rates, allow you to take cash-out and can help you change mortgage companies if need be.

The Advantages following Refinancing

• Reduced interest rates: The major benefit of refinancing is reduced interest rates. When people work for a long period of time, they gain the financial stability to pay their bills promptly. This helps to boost your credit score. With an increased credit score, many are eligible to borrow loans with reduced interest rates. This is one of the main reasons why more and more people opt to refinance their mortgages. While you can get a loan at a low-interest rate, refinancing saves you hundreds of dollars each month, which will eventually reflect in your savings.

• The ability to take cash out for large purchases: The next major reason behind refinancing mortgages is to have the ability to take out cash for a large purchase. For example, when a person wants to buy a car or to pay their pilling credit card debt, then they can take equity out of their home. This equity allows them to make a large purchase.

There are also different types of financing based on your situation and needs. You may not know much information regarding the type of refinancing mortgages that are best suitable for you. Trust the experts at Latitude Financial to discuss your case and pick the option that would be best suited for you. A Bucks County Mortgage Broker will be the best person to guide you to make the right decision when it comes to refinancing your mortgage.

Types of refinancing

There are two main types of refinancing mortgage options available:

1.   Cash-out refinance mortgage

2.   Rate and term refinancing mortgage

● Cash-out refinances mortgage: With this type of financing, you are able to take money out of the equity of your home. When you find that your home equity has built up to a great amount, you can use it for huge expenses, such as: to pay medical bills, pay education fees for children, or even pay heavy credit card debt. You can also pay for major home improvement projects such as repairing the roof of your house, renovating the interiors of your house, etc. If these capabilities are something you’re looking for, you can opt for cash-out refinance mortgages.

● Rate and term refinance mortgage: With this refinancing model, you can shift to a loan that offers lower interest rates. You can also choose a loan program where you have to pay fixed rates, which can offer you stability.

If you want to pay off your loan early, you can opt for higher monthly payment loans, which will lower your rate of interest, and you can repay the loan early. On the other hand, if you want to shift to low monthly repayment rates, then you’ll want to look for a loan that offers an extended period for repayment with less of a monthly payment.

When is the best time for refinancing my mortgage?

Most banks and lenders want the borrower to continue with their previous loan for at least 12 months from the time of sanction. But variation with the rules is possible with a reliable mortgage broker. Search for “Mortgage Broker Near Me” and get in touch with Latitude Financial’s experienced mortgage brokers who can help you navigate through rules, secure processing, and find discounts offered by lenders.

Settling on refinancing

Refinancing your mortgage is a crucial decision that requires in-depth knowledge. The process may intimidate first time home buyers, as some parts really require the experience of an expert.

To get the best suggestions on refinancing, it is always good to consult the experts. Latitude Financial can arrange a free-of-cost consultation with their top mortgage brokers who can suggest the best possible options for you.

Latitude Financial

550 State Road, Suite 103, Bensalem, PA 19020

215-600-1810

https://latitudemortgage.com/

2020 Updated Details On USDA Loan Eligibility, Income Limits, And Mortgage Rates

The United States Department of Agriculture (USDA) has intended to grant loans to new homeowners who are considered low-income and are interested in living in a rural area. Previously known as farm loans, USDA-approved loans promote rural living outside of the metropolitan city of Philadelphia. Consequently, these loans are only available in certain areas of Pennsylvania.

USDA eligibility

The eligibility criteria for the USDA are based on a combination of factors, such as geographical location, household size, income per family, income credit score, etc.
Let us examine the eligibility criteria in detail:

● Monthly housing costs should be proportionate to gross monthly income at a 29% ratio.

● A minimum credit score of 640 is required to be qualified for the USDA Mortgage Philadelphia offers. Proof of a monthly income is required in order to prove the financial aptitude of the homeowner, as it shows that they are able to fulfill monthly housing expenses and other debts.

● Household income of the family can only be up to 115% of the median income of the area.

● The property must be in a rural area as marked by the authorities of the USDA.

Low rates and No Down Payment

The USDA loan is a special initiative to encourage new home buyers to buy a house in rural areas. Since USDA loans are guaranteed against loss by the US Department of Agriculture, they are a great option that comes with little risk.

Popularity for USDA approved loans has increased because of low-interest rates, especially in comparison to conventional mortgage loans. There are also many other factors that contribute to the popularity of the USDA home loan, such as:

● The low amount of risk

● The fact that they are easily attainable from USDA approved lenders

● The USDA having lower mortgage rates than FHA loans, VA loans, and other types of loans

● A reduced mortgage insurance premium of 0.35% annually

● Its availability for first time home buyers and repeated home buyers alike

● A fast closing date, usually within 45 days

USDA Insurance

As the USDA loan is framed to help low-income groups own houses, it offers affordable insurance rates, which are much lower than other mortgage loan insurances. The requirement of the USDA loan insurance are as follows:

● The borrower needs to pay an upfront fee of 1.00% of the loan size at the time of closing.

● The borrower needs to pay 0.35% of the remaining principal each year as an insurance premium.

However, it is possible to pay less than 1.00% of the upfront fee at closing. The buyer can add the upfront fee amount to his/her loan amount to lower the burden of paying a large upfront down payment. For example, if a person is granted a USDA loan amount of $100,000, and does not want to pay an upfront fee:

The buyer’s upfront mortgage insurance cost will be $1,000, and in addition to that, a sum of $29.17 will be added in addition to their monthly mortgage insurance premium.

Because of these capabilities, the USDA loan has gained popularity among rural home buyers with limited financial capabilities.

USDA Borrower’s Income Requirement

The USDA loan has been made easy for borrowers. Because of such low investment risks, the USDA approved lenders are reluctant to accept many loans under this program. Therefore, lots of paperwork and criteria are required to get USDA home loans.

There are also several strict rules when it comes to the income of the borrower. Experienced Philadelphia Mortgage Brokers can help you with the application and approval process. They can take care of all the required paperwork and tell you many valuable details about any particular type of loan along the way.

As the USDA loan is framed to help the low-income group to get homeownership in the rural and sub-urban areas, requirements limit things like the number of members in a family, the place where the property is, etc. The required loan amount also changes depending on the area and also fluctuates with the number of home members and their annual income.

● For 1-4 members the annual income limit is $86,650.

● For 5-8 members the yearly income limit is $114,650.

However, the income cap per household changes with the addition of a new house, and again, with the location. So, for example, in 2019, in California, the USDA income limit for 1-4 members’ family is currently $212,550, and that for 5-8 members in a family is $280,550, respectively.

Contact a Mortgage Broker

There are still many important details and an abundance of knowledge about USDA home loans that would be helpful to know. There are factors such as the place of the property, the total annual income of the family, and more. Get in contact with an experienced Levittown PA Mortgage Broker at Latitude Financial to discuss your home buying needs in detail. They will help you to buy loans at the best possible rates and will also help you with paperwork and other groundwork related to home loan approval.

Latitude Financial

550 State Road, Suite 103, Bensalem, PA 19020

215-600-1810

https://latitudemortgage.com/

What Is An FHA Loan? How it is different from Other Types of Loans

Federal Housing Administration (FHA) loans are also known as FHA insured loans. FHA insured loans are a type of federal assistance that allows lower-income Americans to borrow money for the purchase of a home that they would not otherwise be able to afford.

One of the unique features of an FHA Philadelphia loan is that it requires a lower credit score and lower down payment compared to other loans.

What Makes An FHA Loan Different?

• FHA loans are specially designed for low to medium-income earners.
• FHA loans require lower to moderate credit scores without much financial backup.
• FHA loans require a minimum of 3.5℅ down payment.
• There is a limit to the amount an FHA loans Bensalem PA business can offer you.

What Are The Requirements of An FHA loan?

The FHA insures single and multi-family housing loans in the USA. Searching online for“how to get FHA Loans Near Me” or “what are the prerequisites for an FHA loan approval” is a great first step. Here is a list of the requirements one needs to know to get approved:

• FICO® score at least 580 = 3.5% down payment.

• FICO® score between 500 and 579 = 10% down payment.

• MIP (Mortgage Insurance Premium) is required.

• Debt-to-Income Ratio < 43%.

• The home must be the borrower's primary residence.

• The borrower must have steady income and proof of employment.

Apart from these, there are specific special provisions of an FHA loan that must be addressed. These include:

• The FHA Approved bank will evaluate your qualifications for FHA loans.

• The bank will also look at your work history for the past two years as well as payments like rent and bills.

• Bankruptcy does not disqualify a borrower from getting an FHA-insured mortgage, as long as the borrower has re-established good credit.

• The lower your down payment and credit score are, the higher the interest rates will be.

• The Lender must be FHA approved, and there must be a steady income history.

• He/she must be a legal resident of the USA and must be of legal age to undergo paperwork.

• In a normal conventional loan process, the buyer needs to address out-of-pocket expenses and payments. However, with FHA loans some of these expenses are covered by the Lender on your behalf.

FHA loans are quite beneficial for anyone with low to medium income looking to buy their  dreamhouse. Contact Latitude Financial and get an FHA loan without any hassle. The process is quick and easy

Few Tips For Instant Approval Of Your Mortgage Loan

Mortgage loans are used to buy real estate property purchasers for raising funds or for buying another real estate property. The fundamental rule surrounding mortgage loan is that you need to put any of your pre-owned property in a lien to get your loan secured. And this whole process of mortgage loan is known as mortgage origination. It defines that a legal mechanism has been applied to the loan, which will allow the lender to cease the property of the borrower in the event he/she has defaulted or fails to abide by the terms set by the lender.

The word ‘mortgage’ was first used during the Middle Ages in Britain and was also known as death pledge. It referred that when the obligation gets fulfilled, the property is foreclosed. Mortgage can also be defined as security provided by the borrower as collateral for the loan.
Mortgage borrowers can be individuals as well as businesses. When it comes to an individual borrower, their homes are mortgaged, whereas, in businesses, their commercial properties are mortgaged. An experienced Bucks County Mortgage Broker can help you in getting right type of loan, in reasonable interest rates.


And when you require a sum of amount for investing in a property, but the mortgage amount is not enough, you will need to opt for the Jumbo loans. In several countries, you will require a jumbo loan when the property you are planning to buy costs more than $510, 400. When it comes to Jumbo loans, the amount of down payment is much higher, and so is the requirement of credit score.

Definition of Jumbo loan

A jumbo loan can be defined as a mortgage that is used for financing the properties which are too expensive and cannot be covered by a conforming loan. The highest amount that can be acquired by a conforming loan is $510, 400. But, in the event the price of the property is more than that, then the borrower will need to opt for the confirming loan.

Jumbo loans are also known as the non-confirming conventional mortgages, and they are much riskier than the conforming loans because the Jumbo loans are not protected. In the event, the borrower defaults, then there is no way the lender can defend itself.

The Jumbo loans come with either adjustable rate or fixed interest rate, and they also come with a wide range of terms.

Requirements for availing Jumbo loans

The criteria for Jumbo loans are much strict because the loans are riskier as well as significant for the Best Mortgage Brokers In Philadelphia. A few requirements that you will need to avail Jumbo loans are:

• A proper credit score

When you are applying for a Jumbo loan, the lender will ask for a FICO score of more than 700 and even 720 in some cases.

• Debt-to-income ration

While verifying your documents for approving the jumbo loans, your debt-to-income ratio will also be considered to make sure that you don't get drowned in debt. And if you have a huge cash reserve, then they might be considerate about your DTI. On average, the mortgage broker asks for a DTI of more than 45%.

• Documentation

In order to state your financial health, you will be asked for documentation, which might be more than the conforming loan. You must be ready to hand over your entire tax returns, 1099s, as well as the W-2s along with the information and bank statements of your investment accounts.

• Cash reserves

The chances of getting your Jumbo loan will get higher if you have a lump sum cash reserve. Most of the time, the lender will ask the borrower to show and prove their cash reserve, which should be more than enough to cover a year's mortgage payments.

• Appraisals

In some cases, the lender may ask for second appraisals for the homes that they are planning to purchase.

Conforming loans vs. Jumbo loans

The primary difference between Jumbo loans and Conforming loans is the amount of the loan. And the amount of the loan affects the interest rate, the down payments, and various other factors.

Since the loan amount of the Jumbo Loan Near Me are higher than the conforming loans and aren't secured as well, the lender will ask for a huge amount of down payment as a security purpose. Apart from the down payments, in Jumbo loans, then closing fees and costs are higher as well.

The conforming loan limit varies by county and is dependent on the real estate market. In a high-cost area, the conforming loan limit is much higher than the low-cost areas.

You can connect with Latitude Financials’ mortgage brokers to know all significant details. They shall help you in getting right kind of loan, for right type of property and in reasonable interest rates.

Latitude Financial

550 State Road, Suite 103, Bensalem, PA 19020

215-600-1810

https://latitudemortgage.com/

Follow the Detailed Process for a USDA Loan Application

Most people in the USA are not fortunate enough to own a home. To make it possible even for the low-income groups, the government has introduced the USDA loan facility. This acts as a normal home loan in the USA, but with few relaxations which allow owning a home to even those who otherwise would not have thought to own a house ever.

Mortgage brokers play an essential role in such a scenario. Search for 'Mortgage Broker Near Me' and get in touch with the best brokers in town.

As the government guarantees the homebuyer for the loan, here are a few basic step-by-step processes for the USDA loan application.

• Prequalification with a USDA-approved lender

• Application for pre-approval of loan

• Find a property which is covered under a USDA loan program

• The signing of a purchase agreement for the property

• Processing and underwriting of loan formalities

• Closure of the loan process

However, here is a complete sketch of the prerequisites for a USDA Mortgage Philadelphia loan grant, which is designed to facilitate home buyers.

• Prequalification with a USDA-approved lender- The primary step towards getting a USDA loan is to find a USDA-approved lender. Homebuyers can get in touch with lenders who solely deals with rural and suburban loan programs as it will yield them huge benefits.

The next approach after finding a suitable lender is to prequalify the loan process. The simple task involves understanding if a homebuyer at all qualifies for the program. If so, a general estimate of his affordability is judged by a lender.

A lender may ask a few questions to understand the financial limitations of the homeowner. He will also point out the type of home the buyer is eligible for according to his income and credit affordability. There are many other essential things discussed during this process, such as the lender may raise concerns and let the home buyer know regarding any financial threat he might face as he chose a property.

• Application for pre-approval of the loan- There is a vast difference between prequalifying ad pre-approval of a USDA loan. In the case of prequalifying, the lender judge on the estimated loan eligibility of a homeowner. However, in the case of pre-approval, the lender will judge your loan amount eligibility on actual figures. He will verify documents that reflect information about the income and finances of the homeowner.

Fetching pre-approval is a challenging process for home buying under the USDA program. However, the lenders often look for pre-approved homebuyers which make their application even more firm. If the procedure seems demanding for you, seek help from established Levittown Mortgage brokers. They will assist you and do all the needful for your pre-approval of the loan.

• Find a property that is covered under a USDA loan program- As you have settled with your pre-approval, it is time to find a property which is eligible under the USDA program. A Levittown PA Mortgage Broker who has extensive experience in USDA approved property will be of great help.

According to the USDA guidelines, a property must be located in a rural or suburban area. Almost 97% of the total state land is covered under the USDA program. However, an appropriate real estate agent can put more details together.

• The signing of a purchase agreement for the property- after finding your dream property, the home buyer will negotiate the price of the house with the help of a real estate agent. Once the buyer and the seller signs on the purchase agreement, the lender will apply for a USDA loan appraisal. This is done to safeguard the rights of the home buyer. During this appraisal process, it is checked whether the home is in a move-in condition or not. In case there are some issues that restrict the buyer from moving in, then it is solved before the closure of the loan.

• Processing and underwriting of loan formalities- As the signature on purchase agreement is done, an underwriter reviews all the information and documents as surfaced by the home buyer to make sure all the documents and information provided to apply for the USDA loan are truthful.

It can be a time-taking affair as it required two-step underwriting, firstly from the lender's point and secondly by the USDA. Once this process is completed, the home buyer is just a step away from the final closure of the USDA loan.

• Closure of loan process- As the lender and the USDA signs on the home buyer's loan file, the process of seeking roles comes to final closure. At closing, the homebuyer is entitled to sign on all the required paper works and understand the loan repayment process and finally take charge of his new home.

While a USDA loan is just like any other mortgage loan, it is likely to be a time taking process. However, the timeline for closure depends on the buyer's financial condition, credits, selected property, and mainly his real estate agent. Latitude Financial can actually help to accelerate the process and cut down the loan application time. We have an excellent team of mortgage brokers to assist our customers.

Latitude Financial

550 State Road, Suite 103, Bensalem, PA 19020

215-600-1810

https://latitudemortgage.com/

USDA Loans - Check your eligibility, benefits, and more

If you are interested in investing for a home in the rural or suburban area, with minimal investment and down payment, then you need the USDA Loans PA uses most. USDA Loans are supported by the U.S Department of Agriculture and are designed to cater to people living in low to moderate-income households. 

USDA loans offer competitive interest rates, affordable payment solutions, and 100% financing on your property. For many homebuyers, this is an ideal option.

Who is Eligible for USDA Loans?

The USDA loans program is designed for potential homeowners who can either buy or build a home. It also caters to the needs of existing homeowners who need to rebuild or renovate their homes in rural or suburban areas. Although many programs serve the same purpose, this loan option is specially designed for those people with low or moderate-income.

USDA borrowers must be citizens of the U.S. or can be non-citizens who are legally permitted to borrow loans.

A borrower is eligible based on the following criteria:

● Has a minimum FICO score of 640

● U.S Citizen or permanent resident

● Seeking eligible property in a rural or suburban area

● Meets applicable household income limits for the area. You can check income eligibility with a USDA Loans Philadelphia broker. 

● Seeking to refinance the loan

● Monthly payment is 29% or less of monthly income. 

Types of USDA Loan Programs

The USDA home loan programs are divided into three categories: Loan Guarantees, Direct Loans, and Home Improvement loans and grants. 

These loans offer many benefits. 

● No down payment 

USDA loans give you the option of buying a home at 100 percent finance. This applies to both first-time and repeat homebuyers, and is great for first-time buyers. By contrast, borrowers are mandatorily required to supply a minimum of 3.5 percent for an FHA Loan and 5% for conventional loans.

●   Competitive interest rates

When you search “USDA Loans Near Me,” you will notice that many conventional financing options have higher interest rates. USDA loans are different. Also, the interest rates do not vary as per the credit score or down payment. 

●   Flexible credit guidelines 

Most lenders look for a 660-credit score as a minimum. However, you will need something closer to 720 for a reduced interest rate in conventional programs. With USDA loans, you need to have a score of 640 or higher to be qualified. Borrowers who have minimal credit scores can be eligible for USDA loans using their manual underwriting.

●   Low monthly mortgage insurance

With a conventional loan, you need to pay private mortgage insurance if you do not possess 20% of down payment. USDA loans do not have private mortgage insurance. Instead, they have two fees - upfront guarantees and annual fees. The upfront fee is 1 percent of your total financed amount, while the annual fee is 0.35 percent.

●   Can own another property

It is applicable in certain circumstances. A customer can apply for a USDA loan and own additional property. A previous USDA loan cannot finance this additional property.

●   Favorable loan terms

The USDA loan is available for fixed durations like 30 years and 15 years. 

●   No pre-payment penalty

While working with a bank, you may get penalized for paying too early. With USDA loans, you have the flexibility to pay it earlier without any issue of penalty.

So don't worry about your dream house. The process is simplified with USDA loans. Do your research and see if you are eligible for USDA loans. Remember: applying for a mortgage requires extensive documentation. Get in touch with mortgage experts at Latitude Financial today.

Visit  Us:

Latitude Financial

550 State Road, Suite 103, Bensalem, PA 19020

Contact Us: 215-600-1810