Tag Archives: Mortgage

Impress Your Lender and Secure a Home Loan with 2 Tricks

approved mortgage application formWith the total mortgage debt rising to a jaw-dropping $8.8 trillion, lenders have every reason to tighten the application process, notes a mortgage broker in Utah. The amount works to slightly less than half the total value of the entire US economy.

However, this should not serve to deter your dreams of owning the roof over your head — far from it. It should give you the impetus to increase your chances of getting an approval.

1. Demonstrate a commitment

Part of the reason lenders remain in business and turn a profit is the ability to weed out unsuitable applicants. They must look after their interests, and this entails putting a stop to bad credit. A lack of preparation when applying for a mortgage is easy to spot, and it increases your chances of rejection.

Low credit scores, lack of deposit, maxed-out credit cards and poor financial history will sell you out. All these point to someone not in command of their finances, and it puts lenders on edge. Should you by any chance get a loan, you will have to pay a higher interest rate as well as private mortgage insurance.

2. Stay in your lane

While it is okay to dream big, you need to tone this down when looking to buy a house, especially on shaky financial standings. Lavish houses carry a huge price tag, and that requires taking a huge home loan. While sympathetic to your dream, a lender will most likely decline the loan.

See, buying a home is largely a game of numbers. If you can’t afford it, then you can’t play. No one will advance you a loan while it is evident that you can’t repay it. To avoid such a situation, pick a house that is within your financial abilities.

Lenders are quite cautious when it comes to approving mortgage loans to people looking to buy a house. You stand a better chance of success by giving them a reason to view you as low risk.

What Makes Reverse Mortgages a Valuable Option

MortgageBuild home equity, and you increase ownership of the property. When you make key improvements to your home, ones that raise its market value, you build equity. When you make larger payments toward your mortgage, you also build equity. What happens when you don’t have the cash for home improvements and mortgage payments because of retirement?

You explore the option of a reverse mortgage.

A Loan for Senior Homeowners

When short on cash, older homeowners can consider taking out a reverse mortgage loan. It’s a loan that allows seniors, age 62 and above, to convert equity into cash. If you need cash to renovate your home or to pay off debts, you can use a reverse mortgage loan to meet your urgent, financial needs.

You can get the mortgage proceeds in several ways. Primary Residential Mortgage, Inc. shares that borrowers can receive the loan through a line of credit, term payment, tenure payment, or lump sum.

Other than age, the requirements for getting a reverse mortgage loan include using the home as your primary residence and no delinquent federal debt.

The beauty of a reverse mortgage is that you don’t have to pay a monthly mortgage, unlike traditional loans.

How Do You Pay?

You only pay back the loan when you move to another property, or when you pass away. If you have children and they want to take possession of the property, they can pay the reverse mortgage. If, however, they don’t have the money to pay back the loan, then they can sell your house to repay it.

Assuming you built enough equity that the value of your home exceeds the loan balance, then your children can pocket the difference. If your loan balance exceeds the value of your home, your children only pay back what the property is worth. No more, no less.

Home equity can do more than allowing you to build ownership of the property. With reverse mortgage solutions, you can also turn equity into cash. But before you take out a loan, carefully select a good mortgage company. Learn more about the terms. And make an informed decision.

Credit Unions: Better Option for Home Loans

loans in Ogden
Different types of financial institutions primarily offer almost the same financial services. The difference lies in the way they provide services. Credit unions are better options if you’re looking to loan money to have that much-needed home improvement.

And why are credit unions better?

Competitive Rates

Credit unions offer competitive rates on savings and charge low rates on loans. Consumer favors the reasonable standards, making them a better option over other financial services. The Federal Reserve maintains federal fund rate at a nearly one to zero, leaving no ground for financial institutions to gain more. However, credit unions have managed to offer their customers favorable rates.


Other financial institutions may deny you a loan due to questionable credit history. You stand a better chance with credit unions if you’re planning to loan for a home improvement. Credit unions, especially in Ogden, have competitive rates with lesser stress, making it easier for you to have your loan approved.

Simplified Products

Home based credit unions offer simplified products easier to comprehend. They offer two options for a product, and they avoid accounts with unique features that frequently cause confusion.

Not for profit model

Unlike other financial organizations, credit unions don’t need to maximize profits, allowing them not to charge higher interest rates. The unions are authorized to make profits, which are later distributed to shareholders as a dividend. Credit companies opt to make fewer profits through lower charges as the shareholders are still the ones to benefit from cheaper services.

People helping each other

Credit unions are based on the motto of people helping people. They’re owned by the members they serve. The members are part of a credit union community, hence the unity. The ownership has made services provided to be good making their customer care services to be rated the highest in the industry.

Many people have managed to achieve their dream home through credit unions. You might think about jumping in to the bandwagon and reaping the benefits of getting services from a financial institution that you partly own.

What You Need to Know about Getting a Mortgage

Getting a Mortgage

Getting a MortgageA mortgage is a loan to finance the purchase of an asset such as a house or a vehicle. No matter what type of mortgage you apply for, the lending party will need you to meet a specific list of requirements to qualify for the loan. The same is true when you want to refinance a mortgage in Utah.

Loan Requirements

Back when the only options for home financing were banks, the qualifications and requirements for approval were strict. If you don’t have an excellent credit record, a high-salary job, money for down payment or a strong relationship with your local bank, the chances of your loan application getting approved were either slim to none.

Mortgage approval these days is not as difficult as it was before, owing mainly from varied options and lenders. Still, the lender must still evaluate your current employment situation and income. According to City Creek Mortgage, they typically investigate your credit history, current assets and debts before they approve your loan.

Remedies for Unpaid Debts

When you agree to mortgage, you are promising to repay the loan plus the interest and other costs associated with that loan. For example, if you own a house, the lender could use this as collateral for the loan, depending on the amount.

If you fail to pay the debt – called defaulting – the lender has the right to take the property and sell it to repay the money you owe. This is also known as foreclosure and is usually the last resort of lenders for unpaid debts.

To refinance a mortgage in Utah, you will pay off an existing loan and replace it with a newer one. You can go with this option to take advantage of a lower interest rate or a chance to use the home equity to finance a more expensive purchase.

Whatever your decision, you need to consult with trusted mortgage planners in Utah to guide you. As with most financial matters, performing such transactions without knowledge or half-hearted research can spell disaster.