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