Tips for an Effortless Mortgage Pre-Approval

Before you start shopping for a home, it’s essential to get pre-approved by a mortgage lender to get a concrete idea of the loan amount, interest rates, and available loan programs. A pre-approval is different from a pre-qualification. The pre-approval process involves gathering information (income and asset documents along with a credit report) to confirm you are pre-qualified, whereas pre-qualification does not include the same paperwork.

Before making an offer on a home, real estate agents will verify the potential buyer has completed a full pre-approval with a reputable lender. Before you start the pre-approval process, ensure you have the necessary paperwork compiled and be ready to fill out the loan application.

Residential History
Most lenders will ask for your residential history, which includes addresses where you have lived over the past two years, as well as the contact information of your previous landlords.

Personal Assets
Statements from your checking, savings, and other bank accounts two months before the application date will be required. Additionally, other asset statements (past two months), including certificates of deposit, individual retirement accounts, stocks, bonds, and other securities, should be disclosed. Cash on hand is not acceptable; a clear paper trail will be required for large deposits. Any real estate holdings (property address, current market value) need to be disclosed to the lender, along with a copy of the mortgage and homeowner’s insurance statement and the most recent HOA payment if applicable.

Employment and Income History
Crucial to the pre-approval process, these documents prove the borrower’s ability to repay the loan. It is ideal to work in the same industry for the past two years; your most recent paystubs, along with a W-2 form, are necessary as well. If the borrower is self-employed or works on commission, they will have to provide the last two years of income tax returns, profit and loss statements, balance sheets, along with employment verification.

Personal Debt
Borrowers’ credit reports will be examined to understand their monthly debt, which is a factor in terms of how much they can afford. New monthly debts or those that might not show up on a credit report (auto or student loans, credit card statements, etc.) are also required.

Down Payment
Limited budgets can be accommodated with mortgage programs for those without enough monetary funds to cover a down payment. Down payment assistance (gifts) can be given from family members; they must complete a gift letter to confirm, however.

EB Mortgage is a locally owned mortgage company with experts in new home purchase, refinancing, and commercial loans. Our wholesale rates can’t be beaten. We offer more products, more options, and more solutions. Our “3C” Process is simple: complete our pre-approval request, consider options based on your requirements, and choose the offer that suits your needs best. Call us at 866-246-0516 or e-mail contact@ebwmtg.com today.

Written by the digital marketing staff at Creative Programs & Systems: www.cpsmi.com.

Locking vs Floating a Mortgage

The age-old question of “Lock or Float?” is typical in the mortgage industry. Mortgage brokers get asked this question frequently by first-time home buyers. The answer to this question will determine the mortgage rate borrowers ultimately receive.

Interest rates dictate monthly payments for up to 30 years (without refinancing), so this option should not be taken lightly. When you apply for a mortgage, you will be given the option to either lock or float your interest rate. Read on to discover some differences between the two.

Lock

  • Interest rate won’t change as long as you fund your loan prior to the expiration
  • Guaranteeing yourself a specific interest rate that will remain
  • Doesn’t obligate you to go through with the loan but promises a specific rate
  • Refinancing is best because the schedule for closing the loan depends on the lender
  • Doesn’t work as well for borrowers who are buying a home

Float

  • Rates might rise and fall until you finally lock in your interest
  • Ability to take advantage of a lower rate if it comes up, but you must be vigilant
  • Better choice for home buyers
  • Ensure you know exactly what the float rate will be based on

The mortgage experts at EB Mortgage can advise you on which move to make. Contact us to learn more.

EB Mortgage is a locally-owned mortgage company with experts in new home purchase, refinancing, and commercial loans. Our wholesale rates can’t be beaten. We offer more products, more options, and more solutions. Our “3C” Process is simple: complete our pre-approval request, consider options based on your requirements, and choose the offer that suits your needs best. Call us at 866-246-0516 or e-mail contact@ebwmtg.com today.

Written by the digital marketing staff at Creative Programs & Systems: www.cpsmi.com.

The Biggest Advantage of Homeownership

Home is where your heart – and your wealth – is. The benefits of homeownership are vast; there are numerous financial aspects, but the wealth creation is the most significant. Forming household wealth begins with homeownership.

According to Freddie Mac, “Homeownership has cemented its role as a part of the American Dream, providing families with a place that is their own and an avenue for building wealth over time. This ‘wealth’ is built, in large part, through the creation of equity. Building equity through your monthly principal payments and appreciation is a critical part of homeownership that can help you create financial stability.” For the majority of households that transition into homeownership, the most recent data reinforces that housing is one of the largest positive factors of wealth creation.

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Five Reasons to Sell Your House This Spring

When selling a house, most homeowners are looking for a speedy and profitable deal. If you are waiting for the most lucrative time as a seller, the market is ready for you this spring! Here are five reasons why it’s the perfect time to sell your house.

  1. Homebuyers are in high demand:

Buyer demand is strong right now, and there are many active buyers in the housing market. Showings are up 51.5 percent compared to 2020, according to ShowingTime, which tracks the average number of buyer showings on residential properties. Daniil Cherkasskiy, Chief Analytics Officer at ShowingTime, said, “As anticipated, demand for real estate remains elevated and continues to be affected by low levels of inventory. On average, each home is getting 50 percent or more requests this year compared to January of last year. As we head into the busy season, it’s likely we’ll push into even more extreme territory until the supply starts catching up with demand.”

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Five Fun Mortgage Facts

The process of obtaining a mortgage can be daunting and time-consuming. However, for the amount of work involved – the reward in getting your mortgage pays off in the end. We’ve compiled a few fun facts about the mortgage process to give yourself a break from the daily grind. Read on!

‘Till Death Do Us Part
The word “mortgage” originates from the old French words “mort,” meaning dead, and “gage,” or pledge. Your “dead-pledge” will cease to exist (read: die) once you pay it off, hence the name.

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DACA Recipients now Eligible for FHA Loans

The Federal Housing Administration (FHA) announced a new opportunity for those protected under the Deferred Action for Childhood Arrivals (DACA) program. Since January 19, 2021, those individuals can apply for mortgages backed by the FHA. A previous stipulation barred “non-US citizens without lawful residency” from applying for FHA-insured mortgages; the new opportunity for these DACA members reverses that regulation.

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EB Mortgage Site Goes Live

EB Mortgage has a new website! We launched in February 2021 and we’ll keep you up-to-date with the latest news, tips/tricks, updates, and information on our blog. We are a wholesale mortgage company providing our clients with a new home purchase, refinance, and commercial loan options. With our low rates, we have more products, more options, and more solutions.

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