Interest only loans might have lost some of their popularity, but many lenders still offer them. In today’s economy, borrowers look for the least expensive option, of which the interest only loan often wins. The ability to pay strictly the interest on a loan is very intriguing to many borrowers, but in the end it could end up causing financial destruction. Mortgage guidelines … [Read more...] about Interest Only Loans: Are they Beneficial?
Applying for a mortgage means that the underwriters are going to evaluate many different aspects of your financial life including your income, employment stability, assets, payment history and overall credit score. When your income is evaluated, it will need to appear steady. If you are a temporary employee, this could be concerning. How can temporary or contract work income … [Read more...] about Temporary Work: Is it Possible to get a Mortgage?
When you are looking for a mortgage to purchase a home, you might hear the term payment shock be thrown around. This is especially common for first-time home buyers, but has seen higher use with an increased number of borrowers entering the housing market after losing a home in recent years. Payment shock is a large increase in your monthly obligations, putting you at risk for … [Read more...] about Will Payment Shock Prevent you from Getting a Mortgage?
Lenders want to know a lot about your work history when you apply for a mortgage. In fact, they will go back at least 24 months inquiring about where you worked as well as your income. If you have any gaps in your employment during that time you will have to explain them. You will also have to explain any changes in your employment and/or income that occurred. If you have … [Read more...] about How Lenders Look at Job History on a Mortgage Application
The housing crisis is constantly being blamed for the “bad” loans or the “liar” loans as the No Income, No Asset or Stated Income/Asset loans were called. But today they are making a slow comeback. These loans are not going to be as easy to obtain as they were a few years back, but they are being made available by many lenders, mostly the lenders that can no longer afford to … [Read more...] about Stated Income Loans: Are they Really Back?