Mistakes to avoid when refinancing your home

imagesAre you looking to refinance your home? You may be eligible to lower your monthly payments and reduce the time it will take to pay off your home loan, but you need to make sure you aren’t making silly mistakes that will end up costing you money. Here is a list of mistakes the average person makes when trying to refinance their home, don’t catch yourself                                                                             stuck in a spot and you can’t recover.

 Four Mistakes people make when refinancing their home:

 1. Not Considering Multiple Quotes
We know that looking for different lenders and gathering different loan quotes is not the most exciting activity you could be doing in your free time but it could be the most beneficial. Taking the first rate that you are quoted when looking to refinance can lock you into a deal that isn’t the lowest rate and that you don’t understand.

2. Overestimating Income
Before you estimate your self-employment income, run it through not one, but multiple prequalification calculators. This will allow you to estimate your earnings and if they are enough for you to get approved.

3. Not Understanding your Homeowner Rights
As with most things in life, it is usually possible that your refinanced mortgage can be “returned”. If the borrower has second thoughts after a refinancing agreement they usually have 3 days to void the deal before it closes. It should be used as a last resort but it is an option. Remember that preventing getting into a bad refinancing deal is much easier than trying to get out of one.

4. Assuming the Value of your Home hasn’t dropped
Optimism is a gift that many people live by, but in this case can be a curse. The value of your home has dropped since you have lived there; it is a hard truth to be faced. When you are considering refinancing check online for different estimates of values for your home. This allows you to determine an appropriate value for appraisal when you try to refinance.

Premier Mortgage Lending wants to help you in as many ways as possible to not get caught in these mistakes and offers a vast array of loan programs so we’ll be able to determine and pick the loan that’s right for you. Here are a couple articles that go into more detail with more mistakes that people make when trying to refinance a mortgage.

http://www.dailyfinance.com/2014/01/31/home-refinancing-costly-mistakes/
http://www.foxbusiness.com/personal-finance/2011/09/28/5-dumb-refinance-mistakes/

For additional information or to schedule an appointment for mortgage prequalification, call Premier Mortgage Lending at 485-6600 or visitwww.AnotherChanceNevada.com.

Premier Mortgage Lending, NMLS #393282, is located at 8689 W. Sahara Ave., Suite 100, Las Vegas, 89117. The full-service lender is a member of the Las Vegas and Boulder City Chamber of Commerce, Better Business Bureau and Southern Nevada Home Builders Association, as well as an affiliate member of the Greater Las Vegas Association of Realtors.

Buying a Home After a Short Sale or Foreclosure

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Southern Nevadans learned that options to buy another home after a short sale or foreclosure abound aplenty during “Purchasing a Home After Foreclosure or Short Sale: Opening the Door to the Facts,” presented last week by Premier Mortgage Lending at Clark County Library.

During the complimentary seminar, Rick Piette of Las Vegas-based Premier Mortgage Lending provided an overview of the current Las Vegas Valley housing market, discussed the considerations of whether to purchase a home, and described current lending programs and eligibility requirements after a short sale or foreclosure.

“I often hear two questions from those who have had a short sale or foreclosure: ‘When can I buy a home again?’ and ‘Is now a good time for me to buy a home?’” Piette explained. “There are just no simple answers. Buying a home is a very personal choice, a family choice, and one that only you can make for yourself. Only by getting current information about the market and all of your options can you make an educated choice.”

Piette explained to the crowd that purchasing a home is both a lifestyle consideration as well as a financial one.

“For some, renting makes sense if they cannot qualify for or afford a mortgage, if they only plan to live here for a short time, or if they don’t feel comfortable being responsible for the upkeep of a home,” Piette said.

“Others, though, prefer living in a home that they own and feel a pride of ownership. They like feeling free to redesign and change up their home to their own tastes and needs without getting pre-approval from a landlord. Homeownership also provides feelings of security and comfort in knowing that the home is yours and you don’t have to worry that your rent will increase, your lease won’t be renewed, or where you’re living will go into foreclosure.”

More concrete is the buying vs. renting financial comparison.

“Financially, you need to figure out the types of mortgage for which can qualify and the costs associated with each kind. Do you have the required down payment? Can you afford the mortgage payments? How do these costs compare with that of renting an identical home?” he said. “For some, whether you buy a home is as simple as dollars and cents.”

New lending programs have emerged that reduce the “wait time” to purchase another home after a short sale or foreclosure. According to Piette, the typical “wait time” in a conventional mortgage is at least two or three years after a short sale and seven years after a foreclosure. Among these is the Back to Work – Extenuating Circumstances program and Another Chance Nevada.

“Last year, the new ‘Back to Work’ FHA-insured program began which can reduce the wait after a short sale to just a year. This program is designed for people whose short sale was the result of an ‘economic event’ like the loss of a job or the reduction of at least 20 percent of your household income, and you have to be able to prove that you’re fully ‘recovered’ from that event,” Piette. Among the requirements is that the borrower has financially “recovered” from that economic event by showing 12 months of timely payments and meets HUD requirements for an FHA-insured mortgage.

“The ‘Back to Work’ program can be a bit confusing and the only way that you can really find out if you qualify is to meet with a full-service lender like Premier Mortgage Lending and go through the qualification process,” Piette said.

“A more straightforward program, with more clear-cut requirements, that cuts the wait to buying a home after a short sale or foreclosure to just a day is Another Chance Nevada. We at Premier Mortgage Lending began this privately funded program a couple of years ago and only offer it to Nevadans.”

Through Another Chance Nevada, private and institutional portfolio lenders offer 15- or 30-year, fixed-rate loans at interest rates typically higher than traditional mortgage rates. At least a 20 percent down payment is required, which can come from personal funds or be obtained as a gift from family members. Borrowers may close within 30 days from the time of loan approval. The loan may be refinanced at any time without penalty.

Hundreds of Southern Nevadans have used an Another Chance Nevada loan on the purchase of a re-sale or a new home. The lender is currently working with Beazer Homes, D.R. Horton, Dunhill Homes, Harmony Homes, KB Home, Pardee Homes, Pulte Homes and Del Webb, Richmond American Homes, Ryland Homes, and William Lyon Homes.

The first step to determining one’s mortgage program is to meet with a full-service lender and go through the mortgage prequalification process.

For additional information or to schedule an appointment for mortgage prequalification, call Premier Mortgage Lending at 485-6600 or visit www.AnotherChanceNevada.com.

Premier Mortgage Lending, NMLS #393282, is located at 8689 W. Sahara Ave., Suite 100, Las Vegas, 89117. The full-service lender is a member of the Las Vegas and Boulder City Chamber of Commerce, Better Business Bureau and Southern Nevada Home Builders Association, as well as an affiliate member of the Greater Las Vegas Association of Realtors.

Tips for Mortgage Borrowing

When looking into mortgages it is important to shop around. You need to know what you can afford and you need to be able to compare different loans that will work best for you. Understanding mortgage-borrowing options can be difficult so we put together six tips to help get you started.

1. Practicing Good Financing
Keeping track of your finances will help you to reinforce your credentials to a lender. Making clear notes of you expenses, banking activities and taxes will help to keep you aware of where your money is going and coming from.

2. Locking in Rates
Rates will likely increase in 2014 so it is important to find a rate as soon as you can and make sure it is locked in. Any unexpected increases could cause problems.

3. Refinance if You Can
Many people missed the chance to refinance their houses in 2013 but if you are still paying 5% or more of interest you might have a chance. It never hurts to talk with someone to know all of your options.

4. Learn Your Rights
With new mortgage laws this year, if you are late on a payment or you’re having issues with you mortgage, make sure you know your rights as a borrower.

5. Care for Your Credit
Your credit score could be the reason you pay a higher interest rate when you buy a home. Check your history before your loan closes so you are positive of your costs.

6. Overspending Will Only Hurt You
Make sure at the end of each month you still have enough money to live on. Don’t panic and think you have to buy a home now and get a mortgage you can’t afford. Wait until your finances are stable and the timing is right for you and your family.

For additional information or to schedule an appointment for mortgage prequalification, call Premier Mortgage Lending at 485-6600 or visitwww.AnotherChanceNevada.com

Premier Mortgage Lending, NMLS #393282, is located at 8689 W. Sahara Ave., Suite 100, Las Vegas, 89117. The full-service lender is a member of the Las Vegas and Boulder City Chamber of Commerce, Better Business Bureau and Southern Nevada Home Builders Association, as well as an affiliate member of the Greater Las Vegas Association of Realtors.