Mortgage Archives – Page 196 of 231 – Fred Gruber

06

Jul

Home Mortgage Tips

Budgeting 101: How to Plan Your Budget Around Your Monthly Mortgage Payments

Budgeting 101: How to Plan Your Budget Around Your Monthly Mortgage Payments If you’ve decided to invest in a home, you might be wondering how to make all of the expenses work. From the groceries to your mode of transportation, all of those little things can quickly add up. Fortunately, it’s easy enough to ensure you have the money each month by carefully calculating your expenses and ensuring there’s a little wiggle room in case of leaner times. Here are the details on how to begin with your mortgage budgeting plan.

Calculate Your Monthly Payment

Whether you’ve just purchased a home or are trying to determine if your dream home is right for you, it’s very important to establish approximately what your monthly payment will be. It’s critical to have a mortgage cost that is sustainable, so add up your mortgage payment, home insurance, property taxes and any other required payments. While this should give you a ballpark figure, you’ll want to ensure you add a bit of extra room in case your taxes or interest rate should rise.

Determine Your Necessary Expenses

It’s easy to be idealistic and assume that you’ll be able to come up with the money for your dream home, but it’s very important to keep your feet on the ground and be realistic about your budget. Once you’ve determined your payment, calculate the average amount for your utilities, transportation costs and any debt you have. You’ll also want to add in groceries, toiletries, and extras like gym passes, meals or entertainment. By adding up your monthly payment and your expenses, you should be able to determine if a house is realistic for you.

Leave A Little Extra

If your expenses and your home costs add up to balance out, that’s great, but don’t forget to leave a little extra room in your budget for the other things you’ll need. While you’ll want to ensure you’re saving money for the future, if you have any short-term life goals like a travel destination or going back to school you’ll need to save for those. Also, the unexpected can occur at any time so you’ll want to have some cash stashed away for the times when the car breaks down or there’s a medical issue.

When investing in a home, you’ll need to feel confident that you can make your monthly mortgage payment and still have enough left over to pay your expenses and savings for down the road. If you’re currently preparing to buy, contact your trusted mortgage professionals for more information.

30

Jun

By support

Home Mortgage Tips

A Quick Look at Reverse Mortgages: The Golden Ticket to Enjoying Your Golden Years

A Quick Look at Reverse Mortgages: The Golden Ticket to Enjoying Your Golden Years With a high volume of millennials set to enter the real estate market this year, it may seem like all the available options out there were created to snag new home buyers. However, there are products available on the market that cater to those who are in their golden years too. If you’re older than 62 and are currently weighing the options with your mortgage, here are the basics on reverse mortgages and why they might positively benefit you.

The Scoop On Reverse Mortgages

It may seem like this mortgage option hasn’t been around that long, but it was actually created in 2009 following the recession. Known as the Home Equity Conversion Mortgage for Purchase (HECM), this product is specifically directed at those who are retired or close to retirement that want to tap into the equity in their home. This option is only beneficial for those who plan on staying in their home long term, the loan is paid off at the time the homeowner moves out or passes on.

What Are The Requirements?

Because a reverse mortgage enables the homeowner to tap into the equity they’ve already paid into their home, there are many requirements involved in using this type of mortgage product. In addition to being 62 or older, the homeowner will have to have a high amount of equity in their home. They will also have to prove that they have the financial ability to make their monthly payments, in addition to being able to pay the insurance and property taxes on the property. The homeowner will also have to comply with the requirements set out by the Federal Housing Administration.

Is It The Right Choice?

Like any mortgage product, it’s important to determine before choosing this mortgage product that it’s right for you. While a reverse mortgage gives the benefit of providing access to cash and allows you to put your money elsewhere, it can end up costing more down the road since interest will continue to accrue on the principal amount owing. Before diving in, ensure that you do the calculations and consult with a professional to ensure it’s going to be a financial benefit in the end.

A reverse mortgage can be a great means of accessing cash for homeowners who are 62 or older, but it’s important to weigh all the financial aspects before making a final decision. If you’re currently looking into your mortgage options, contact your trusted mortgage professionals for more information.

27

Jun

By support

Home Mortgage Tips

Want a Quick Mortgage Approval? Come Prepared With These 5 Key Items

Want a Quick Mortgage Approval? Come Prepared With These 5 Key Items Whether you’re finally prepared to get into the real estate market or you want to know how you can make a deal quick, there are a few necessary documents you’ll need to prove your reliability to a mortgage lender. If you’re wondering what will be involved in getting the application approval you’re looking for, here are the documents you’ll want to have on hand when the time comes.

Previous Tax Returns

In order to ensure the earnings information you’ve provided to the lender, you’ll have to have your tax returns for the two years prior to your mortgage application. In addition, you may also be required to provide your W-2s as backup documentation.

Bank Statements

To make sure you’re a solid bet who will be able to make your down payment, you’ll need to present bank statements to ensure you have a cushion in the case that interest rates increase. If you do get money gifted to you for your down payment, you’ll need a letter to prove you’re not indebted to the provider.

Recent Paystubs

It can be much more difficult to get approved for a mortgage if you have a patchy work history or happen to be self-employed, so you’ll need 2 months of recent pay stubs to prove consistent employment. The paystubs provided should also be an accurate reflection of the salary you’ve provided on your application to ensure no discrepancies.

Investment Statements

It’s certainly a good sign to the lender if you have a healthy balance in your checking and savings accounts, but you’ll also need to provide any statements for mutual funds and other investments. While they may not be necessary to prove financial soundness, they will help with approval if you have a lot of money squirreled away.

A Listing Of Debts

While it may be the least popular of the pile, a lender will also want to know about any outstanding debts like auto loans, credit card payments or student loans. It may be tempting to forego these documents, but it will give the lender a good sense of your honesty and your ability to manage your mortgage.

Mortgage approval may seem like a time-consuming process with no certain end, but by having the appropriate documentation and being upfront about your debts, you may be able to speed up the timeframe. If you’re currently perusing your mortgage options, contact one of our mortgage professionals for the inside scoop.