Tag Archives: Mortgages

Your Bank Says You Don’t Qualify for a Mortgage Loan. Now What?

denied mortgage loanWhen it comes to getting mortgage loan approval, most people don’t realize that there are two types of lenders: Those who say “You don’t qualify.” And those who say “You don’t qualify – yet.”

“That really is true, and there are a few reasons for it,” according to Rick Piette, owner of Premier Mortgage Lending based in Las Vegas. “In our experience – and we’ve had a lot of it over the years in Southern Nevada – it not only depends on the kind of lender you go to, but also how committed they are to you, your loan, and your personal situation.”

One of the main reasons that borrowers may run into the “You don’t qualify” type of lender is because they chose a bank or mortgage banker to apply for their loan. According to Piette, because these lenders only sell their own loan products – if a buyer doesn’t qualify under their specific guidelines, there simply are no other options.

“But with a mortgage broker like Premier, there are many other home loan opportunities to explore,” he explains. “The reason for that is that with a broker, a buyer still only fills out one loan application – but the broker can use that single loan app to shop around with many lenders – and find the best fit for each client.

“The truth is, not everyone’s employment or financial history will fit into the stricter guidelines of a bank’s loan requirements. But that doesn’t have to mean a ‘thumbs-down’ to getting a mortgage loan. Many other lenders have programs designed just for buyers with unique situations. That’s where a mortgage broker’s connections can make all the difference – by knowing the different loans that are on the market what options are available for their customers.”

As Piette explains, “It may take some creative thinking to find alternatives if the first path doesn’t work out, but that’s one of the reasons Premier Mortgage is so good at what we do. We’ll keep at it until a solution is found – so if a client doesn’t get loan approval the first time, that doesn’t mean it’s the end of the road.

“Our loan officers will work with a client often for as long as it takes. That could mean finding a different loan, working with them over time to help them raise their credit score, or helping to provide tips on exactly how to change their financial situation to that it will fit into a specific loan’s parameters.

“We’ve worked with thousands of homebuyers in Southern Nevada, and we’re proud that we can offer the best rates and no costs with our “No Fee” loan. But we also created our “Another Chance Nevada” loan program to help those who have a foreclosure in their history – or even if they just closed on a short sale yesterday. But there are also many home loan options that lie between those two extremes, and Premier Mortgage Lending helps borrowers find the one that works best for them.”

The important thing to remember is that Premier Mortgage isn’t big on saying just “no.” “We know the mortgage business better than that,” Piette adds. “And in our experience, there’s almost always a way to help a customer get into a home of their own.”

For those looking to purchase a home in Southern Nevada, get additional information about Premier’s “Another Chance Nevada” financing program by visiting their website at www.AnotherChanceNevada.com. Or, to schedule an appointment to discuss what mortgage loan options are available for your personal situation, call (702) 485-6600, or apply online at www.premiermortgagelending.com.

Premier Mortgage Lending, NMLS #393282, is located at 701 N. Green Valley Pkwy., Suite 125, Henderson, 89074. The full-service lender is a member of the Las Vegas, Henderson, 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.

8 ways the government is trying to help homeowners

Foreclosing your home is a long process and contrary to popular belief, there are ways to avoid foreclosure. Lenders don’t want to foreclose on a property, they want to keep the homeowners in their homes. The Obama Administration has implemented a number of programs under the Making Home Affordable plan. These programs seek to assist homeowners who are at risk of foreclosure or are struggling to make monthly mortgage payments.

Refinancing your Mortgage

Refinancing your mortgage can help to lower mortgage payments to a more sustainable level. Refinancing your mortgage can secure a lower rate, longer term or a different type of loan.

1) Home Affordable Modification Program (HAMP): HAMP sets out to lower mortgage payments to 31% of your income before tax to make mortgage payments more affordable for the homeowner. This program is for those homeowners who are still employed but struggling financially to keep on top of their mortgage payments.

2) Principal Reduction Alternative (PRA): If your home is worth significantly less than what you owe on your mortgage, PRA sets out to encourage lenders to reduce the amount you owe.

3) Home Affordable Refinance Program (HARP): HARP is set up for those who are current on their mortgage payments but are not eligible for traditional refinancing due to a decline in the value of their home. The program sets out to help homeowners get a new, more affordable, more stable mortgage.

Underwater Mortgages

With the decline in value within the real estate market, many people are finding they now owe more on their mortgages than their home is worth. Along with the HARP & PRA programs, homeowners with underwater mortgages can apply for the Treasury/FHA Second Lien Program (FHA2LP).

4) Treasury/FHA Second Lien Program (FHA2LP): FHA2LP is for those who have 2 mortgages with different lenders, with one agreeing to participate in FHA Short Refinance. If that is the case then FHA2LP sets out to have your second mortgage provider do the same resulting in a maximum mortgage debt after the refinance of 115% of your home’s current value.

Unemployed Homeowners

Many homeowners have been made unemployed since the recession. Their struggle to maintain their mortgage payments have led to thousands of people foreclosing on their homes. Now the MHA has set out to ensure unemployed homeowners are given the chance to search for employment and keep their mortgage and home.

5) Home Affordable Unemployment Plan (HAUP): For those unemployed, HAUP will reduce your mortgage payments to 31 percent of your income or suspend them altogether for 12 months or more, depending on your situation.

6) FHA Forbearance for Unemployed Homeowners: The Federal Housing Administration (FHA) requirements now require servicers to extend the forbearance period for unemployed homeowners to 12 months.

Getting out of your mortgage

Some homeowners find they reach the point where they need to get out of their mortgage due to prolonging unemployment and crippling financial situations. The MHA will allow you to get out of your mortgage through the Home Affordable Foreclosure Alternatives and even offer the opportunity to buy your home back.

7) Home Affordable Foreclosure Alternatives (HAFA): Those who find their mortgage payments unaffordable and are looking to move to more affordable housing may be eligible for short sale or deed-in-lieu of foreclosure through HAFA SM. In a short sale, the mortgage company lets you sell your house for an amount that falls “short” of the amount you still owe. In a DIL, the mortgage company lets you give the title back, transferring ownership back to them.

8) Redemption: After your home has been sold at a foreclosure sale there is a period of time when you can still reclaim your home. In order to do this you will need to pay the outstanding mortgage balance and all costs incurred during the foreclosure process. 

Another Chance Nevada

Those that find themselves foreclosing on their property often think that they cannot get another mortgage. However Premier Mortgage Lending offers a Second Chance Loan Program which helps those wanting to purchase a home do so with their access to both private money and institutional portfolio lending. Through their extensive access to both private money and institutional portfolio lending they are able to help you to secure financing even with a recent history of foreclosure or short sale.

 

 

Mortgage rates for 15-year fixed-rate loans have reached an all time low

Today brings great news to homebuyers needing mortgage financing as rates for 15-year fixed-rate loans have reached an all time low. This news is a breath of fresh air for today’s homebuying market after the recent recession and subsequent increase in foreclosure rates.

Mortgage rates are not only falling for 15-year fixed-rate loans, they are falling for all mortgage types. However, more people will opt for a 15-year fixed-rate loan, due to the lower balance held a shorter-term loan. The balance on a shorter-term loan is less than the balance on a 30-year fixed loan by an average of $75,000.

A mortgage with a shorter term “provides more protection against a downturn in home prices, since a 15-year loan builds equity more quickly,” according to Keith Gumbinger, Vice President of mortgage information service, HSH Associates.

Bankrate.com analyst Polyana da Costa notes that he wouldn’t be surprised if mortgage rates go even lower.

Premier Mortgage Lending is excited for our customers who will now find it easier to get back in the real estate market with these attractive rates.

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