Monthly Archives: August 2018

//August
17 08, 2018

What is Verification of Income and Assets?

August 17th, 2018|Tips & Advice|

When you apply for a mortgage, your lender will request a vast amount of paperwork from you. This will include looking at your income, assets and existing debt, and your credit-worthiness. While it might seem a bit overwhelming to provide all this documentation, it benefits you in long run so you won’t end up with a monthly mortgage payment that you can’t afford.

What Is a Verification of Income?

When a loan officers asks for a verification of your income, they’re confirming if you have the funds to pay your monthly mortgage payment. You shouldn’t borrow more than you have the means to pay back, and your monthly mortgage payments are no exception.

Mortgage Verification Requirements

In order to confirm your income, a mortgage lender will ask for a few documents:

  • Two years of W-2s
  • Two years of tax returns (federal and income)
  • Two most recent pay stubs

In addition, you should have written history of your most recent checking account statements, current savings account statements, monthly debt obligations, statements from any other loans you may have such as personal, student, auto, and your most recent credit card statements.

How Does Your Lender Verify Your Income for a Mortgage?

Your lender might also contact your employer to confirm your employment. This lets the lender verify that the information on your W-2s and paystubs is recent and accurate.

What Is Verification of Assets?

Just like mortgage lenders will want to verify that you have the means to make your monthly mortgage payments, they’ll also want to ensure that you’ll be able to pay the principal, interest, taxes and insurance in case of a financial emergency.

This […]

10 08, 2018

Handling Your Mortgage During Divorce

August 10th, 2018|Tips & Advice|

Divorce can be a chaotic and sensitive situation. It can also have a huge impact on your finances. One of the biggest assets couples share is their home mortgage. Managing your mortgage properly in the divorce will help you and your ex go your separate ways on the right foot financially. Depending on how the property was financed and titled, options are available. The more quarrelsome the divorce, the harder it can be to agree on what to do with your house and mortgage. Here are possible approaches and outcomes to consider.

Refinance

If you don’t want to move out of your home and can afford the mortgage, the simplest option could be to refinance the mortgage and leave only one person’s name on the loan. In order to do this, they will need to qualify for the refinance with just their income. After the refinance closes, only the person whose name is on the mortgage would be responsible for making the monthly payments. You could then take the name of the person who won’t be making the mortgage payments off the title of the home. If needed, use a cash-out refinance to pay out the portion of equity due the other person involved.

Sell The House

Selling the home is another option. You and your spouse would agree to place the home on the market and then split the profits when it sells. You would still need to determine how mortgage payments are paid before the sale closes. This may not be the best option if you owe more than the home is worth or if the market is weak. In this case, if you can agree with your ex to rent out the property and […]

3 08, 2018

4 Tips To Get The Best Refinance Rate

August 3rd, 2018|Refinance|

Home Buying Calculations

When mortgage rates are low, you can reduce your monthly mortgage payment by refinancing to a lower interest rate. If you can lower your current interest rate by a half percent, it could be worthwhile to exchange your existing home loan for a new one. Here’s how to get the best refinance rate.

Take Your Credit Seriously

Make sure you are paying bills on time, especially your mortgage payment, in the months leading up to your application for a refinance loan. That way you’ll have the best possible credit score. The better your credit score, the lower your interest rate. Also, don’t open or close any other credit accounts during this time. This could lower your credit score. Paying off large portions of debt will help raise your score, as well. If you can reduce that debt-to-income ratio, you can score a lower interest rate.

Shop Around For Different Rates

Start gathering rate quotes with your current mortgage lender. That financial institution has an interest in keeping your business and might offer you an appealing rate. Then, research lenders in your area. This includes smaller banks and credit unions. Sometimes, a lender that is trying to grow in your area will offer a good deal on your rate to win you over as a customer. Also, check lenders specializing in the type of property you own. Some lenders specialize in high-rise condos or beach communities and might offer you a better rate because they are more comfortable with your property. Ask lenders about fees and closing costs so you can determine whether your refi will actually save you money in the long run.

Consider A Shorter Loan Term

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