Freezing your credit won't hurt your score, but it will keep an identity thief from opening new accounts in your name which is a good thing. Keep in mind when purchasing a home or refinancing you will need to "Un-Freeze" your reports with the credit bureaus.
When a mortgage lender pulls your credit they will be alerted that there's a freeze on your credit report and you will need to contact that particular company (Trans Union, Experian, Equifax), and each company has a process so ensure you check.
Below are the 3 different Credit Bureaus that you may have a Freeze on:
You may request a lift of your freeze from Trans Union online, by mail, or by phone.
By phone: You will need to have your SSN, DOB, Security Freeze Pin, lift type, start date and end dates. It can take up to 15 minutes to process this request.
By mail: Complete the Lift Section of the Security Freeze Form that is sent to you after you've requested the freeze, mail it back to the address at the bottom of the form. It can take up to 3 business days from the date of receipt to process this request.
Note: If you're in the state of Colorado and are requesting a lift, you must ask for a "Global Lift." This does not require third parties to have a PIN to access your credit file.
You may request a lift of your freeze from Experian online or by phone
For either, you will need to provide your identification information and PIN. Experian will then provide you with a PIN to give to third parties that need to retrieve your report.
You may request a lift of your freeze from Equifax online or by phone
For either, you will need to provide your 10-digit security freeze confirmation PIN provided in your confirmation letter, date range and the name of the specific credit grantor/report user you woul like to receive your report.
Buying a new home (or refinancing your current home) is a process that requires quite a bit of paperwork. Thankfully, all of the paperwork isn’t thrown at you at once, instead it comes in stages. At each milestone of the loan process (beginning with disclosures and ending with your final loan docs), there is a different wave of documents that you’ll have to read and sign. Depending on your loan terms and any unexpected findings during processing you may even have to sign some documents twice (or as many times as loan terms change). In this article, I’ll provide you with the names and descriptions of a few documents to keep in mind. The following documents are arguably the most important documents that you will encounter during the closing of your mortgage loan.
The Loan Estimate
The Loan Estimate, or LE for short, is a form that you’ll receive after applying for your home loan. You will receive a Loan Estimate from your mortgage lender no later than three days after completing your application. The Loan estimate shows the terms of the loan program you’re applying for, estimated payments based off your desired loan amount, and it shows your closing costs. If you’ve done a mortgage loan before (prior to October 2015), the LE replaces what you formerly knew as the GFE, or Good Faith Estimate. Your loan estimate is designed to clearly explain the cost of closing a loan.
The Closing Disclosure
The Closing Disclosure, or CD for short, is a form that is very similar to the Loan Estimate. The CD has updated fees and loan terms and shows not only what you will pay to close your loan as the borrower, but it also shows what every other party is doing financially. If your lender is giving any kind of credit towards your loan it will show on the CD. The CD also reflects when loan fees will be paid, either before closing, at closing, or by a third party. After you sign your initial Closing Disclosure you have 3 days to ask any questions or change your mind before your final loan docs are drawn up. Every financial transaction that will take place during the closing of your loan will show up on the CD, read it carefully!
The Note
The Note in mortgage is the contract you sign at closing that details the amount of your loan, the interest rate, the payment due date, any penalties for late fees and other important financial info regarding your loan. This is the document that marks your home as collateral with your lender. If you were to default on your loan, having signed your Note puts you in a breach of contract and it’s what banks will refer to if you can’t or don’t pay your mortgage. Signing your Note is your promise to pay. Similar to how a car dealer holds the title to your vehicle until you have paid it off, the bank that is lending your home loan holds your Note until your mortgage is paid. Once it’s paid off, you’ll receive a copy (if not the original note) marked “Paid in Full”.
The mortgage loan process can be lengthy and requires a lot of reading and signing on your behalf. It’s important to be familiar with the documents that require the most attention. Proper knowledge and preparation is the key to keeping yourself from getting lost in the mortgage sauce.
When doing your research always be sure to consult great sources. Check out the sources for this article below!
https://www.consumerfinance.gov/askcfpb/1995/what-is-a-loan-estimate.html
https://www.consumerfinance.gov/askcfpb/1983/what-is-a-closing-disclosure.html
https://www.quickenloans.com/blog/whats-closing-disclosure-important
https://www.quickenloans.com/mortgage-glossary/mortgage-note
https://www.thebalance.com/definition-of-deed-of-trust-1798782
WHITNEY RUSH, VALLEY WEST MORTGAGE
Buying a house is not something you should do without some good financial knowledge and advice. Your first mortgage should be thoroughly thought out and well planned. Now that you’re thinking of purchasing a home, use the next 12-18 months or so to prepare yourself.
Houses are not cheap. In order to pay for one, you’ll have to get a home loan and pay it off in monthly installments. How much you’ll have to pay is dependent upon your mortgage lender and your credit score. You credit can take a while to build and even longer to repair if it’s damaged, so start working on it early. See an article by Megan Ortiz on how to Establish, Raise, and Maintain your credit score HERE . Get into the habit of paying everything on time even if it doesn’t go on your credit report. Make a detailed list or a spreadsheet of all of your financial responsibilities from utility bills to student loans. If you practice good habits, eventually they will become second nature. Be meticulous about getting things paid on time or early if you can. Practice makes perfect.
Loan officers are going to calculate your debt to income ratio, so the less debt you have the better. Things like car notes and credit card payments will be looked at and taken into consideration before a lender will agree to give you a loan. If the total amount of the debt you already have plus the debt you will have after being given a home loan will exceed 43% of your total income, you’re going to have a tough time getting someone to lend to you. So be sure to calculate your debt and pay it down to the lowest amount possible.
Before even looking at homes, it’s a good idea to sit down and chit chat with a loan officer. Let him or her know your intentions, what kind of home you wish to buy and how much you’re willing to spend. He should be able to run some numbers for you and give you a breakdown of how much you can afford and how much his company would be willing to lend to you, including rates and such.You want to feel comfortable doing business with your chosen mortgage company so ask as many questions as necessary. Any loan officer that isn’t willing to take his time with you and answer your questions isn’t worth your time.
Start keeping your tax returns, pay stubs, and banks statements in a safe and secure place. In this digital age, it’s easy to order your financial documents from the IRS or from your bank, so be sure to acquire and retain a few copies somewhere at home, as these are documents that you will have to provide to your mortgage company when they are processing your loan.
As we all know, getting a new home is exciting and I’m sure you’ll be busting at the seams with new decorative ideas for your home. However, keep in mind the hefty amounts of money that have to be spent just to purchase the home (closing costs, down payments, etc.). Don’t go spending all of your extra money, preparing for a new home and then end up without a home to put all of your stuff in because your credit report came back indicating that you don’t know how to handle money.
In order to qualify for a loan, you must have a solid work history. The reason why? Because no one is going to want to lend to you if they don’t know that you have the means to repay them. Having a job is good, keeping a job is even better. Another thing is the type of pay you receive. If you’re on salary where you work, you’re more than likely in a career based job, which means you’ve probably been in your position for a while and you aren’t likely to leave that company any time soon. If you’re on an hourly job, and you haven’t been there for a solid 18-24 months you may have a harder time convincing your loan officer that you aren’t going to default on your loan.
The biggest tip that I can give you is to be prepared. Acquiring a new home is a big step, and it’s not one that should be taken lightly. If you aren’t financially ready to buy a new home, take these few steps to get yourself ready. There is nothing more joyous than owning your own home, you deserve it!
WHITNEY RUSH, VALLEY WEST MORTGAGE
An amount that you borrow and agree to repay under specific terms.
Usually a formal agreement, loans involve two parties: the borrower and the lender.
The contract specifies the terms and conditions of the loan, and once you sign, you are legally obligated to adhere to it.
Before pursuing and taking out a loan, learn how they work and how you can borrow smartly, safely and at the lowest possible cost.
These are the essentials on how loans work:
There are two basic types of loans: secured and unsecured.
Secured loans are collateralize by money in a separate account, the property you purchase or other assets, such as your home or vehicle. If you don't repay as agreed, the lender can claim the collateral to pay off the debt. Because of this guarantee, the lender's level of risk is low.
Common loan types include:
Some types of loans are more involved than others. For example, you may have to submit extensive paperwork in underwriting for mortgages or business loans. But the overall process is fairly consistent with all loan types.
Applying: Some lenders offer prequalification or preapproval, but to actually obtain a loan, you'll ultimately need to fill out an application. A loan application will ask for personal information, typically your name, date of birth, Social Security number, address, phone number and email address. You'll typically need to include income and employment details. Some loan types may require details about your assets (cash in savings and investment accounts, as well as any property) and liabilities (your financial obligations).
Qualifying: Once your application is received, the lender will assess it for approval. This is also known as underwriting. With most loans, this is when a lender will check your credit report and score. At this point, the lender will decide whether you're approved for the loan and if so, what terms you qualify for, such as the loan amount and annual percentage rate. For some loans, like mortgages, loan processing and underwriting may include appraisal, inspection and other steps to gather more information about the property or your financial status.
Disbursement: If you qualify for the loan, the funds will be disbursed to you or a designated recipient, such as a title company for mortgages. Disbursement may also be referred to as loan closing. Disbursement time can vary widely depending on loan type and individual lenders. Online lenders may offer access to funds within 24 hours with an electronic deposit. Disbursement for other loans can take longer. For example, it can take two weeks to two months for a private student loan to be sent to you or your college. Whenever and wherever the money lands, it becomes your debt once it's disbursed.
Paying the balance: The payment amount and due date will be listed on the agreement you signed. A portion of your payment will go toward financing, and the rest will be applied to the principal. If the lender uses the simple interest method, interest will be calculated on the outstanding balance due. If you increase the payment, interest fees will decrease along with your debt. On the other hand, if the lender computes interest prior to, the interest for the term of the loan is already factored in, so you won't reduce interest if you pay the loan early.
The lender may report activity on the loan to the three credit reporting agencies: Experian, TransUnion and Equifax. Paying on time can improve your credit rating and save you money by avoiding late fees.
Refinancing: You might want to change your loan's terms at some point – for example, getting a lower interest rate or extending your loan's repayment term. Refinancing is essentially getting a new loan to pay off an older one, ideally with better terms.
Remember that, as a borrower, you have the power to choose which loan type works best for you. Research the best terms that you can qualify for, then borrow prudently.
Looking to purchase a home? Give Us A Call Today! (702) 696-9900 or (888) 931-9444
Resource: U.S.News
Buying a home can be a challenging experience for first-timers. Here are some mortgage tips to help get you started.
It's quite common to put 20% down, but many lenders will now permit a much lesser percentage, and first-time buyers programs allow as little as 3% down. Putting down less than 20% could mean higher costs and paying for mortgage insurance, even a small down payment amount can still be hefty.
Check out the various loan programs:
Loan Terms:
Making a much higher down payment will mean having a lower monthly mortgage payment.
Many states offer assistance programs for first-time home buyers with perks such as down payment assistance, closing cost assistance, tax credits and discounted interest rates.
You will need to now what's actually within your price range. Find your debt-to-income.
Your credit score (FICO) will be one of the key factors in whether you're approved, and it will help determine your interest rate and loan terms. Speak to an expert about any disputes you may have on your report.
We recommend comparing at least 3 lenders before making a decision. This could save you more money.
As you get closer to buying a home, it’s smart to get a preapproval, where the lender thoroughly examines your finances and confirms in writing how much it's willing to lend you, and under what terms. Having a preapproval letter in hand makes you look much more serious to a seller and can give you an upper hand over buyers who haven’t taken this step.
In a competitive real estate market with limited inventory, it’s likely you’ll bid on houses that get multiple offers so having a preapproval letter will increase your purchasing power.
We know with any purchase process gathering all of the necessary documents can be quite hassle even for the most organized. All lenders want and need detailed information about your finances to determine if you quality for a home loan.
We've provided a basic list that can help assist with this daunting task. Keep in mind each situation is uniquely different so if you don't know what you need ask your lender.
Lenders want to know that you'll be able to repay the loan. Depending on your income history and size of loan, you may have to show additional documentation
Your debt can seriously impact your debt-to-income ratio which can be Up to 57% FHA Up to 50% for Conventional across the board*
*May fluctuate*
Having assets just in case unexpected expenses occur after you close on the house is a factor in the home buying process.
If you received money towards the down payment as a gift, you may be required to provide documentation/letter stating it was a gift and not a loan.
Bank Statements, investment records, retirement accounts, real estate, auto titles, and any other investments require that you provide documentation.
This can include a signed 4506-T form, that allows your lender to get a transcript of your tax returns from the IRS.
If you have filed bankruptcy in the past several years, you may be asked for your bankruptcy discharge papers.
Documentation that you're involved in any lawsuits or co-sign on any loans
If you're renting out your current home a lease agreement and income received may need to be provided.
If you're a renter with a private landlord, 12 months of cleared checks on time may be required or a form confirming on-time rent.
The mortgage industry is striving to make this process more streamline by offering services that are more automated and user friendly.
Visit Valley West Mortgage for our Online Application and our Secure Document Uploading.
We all know things happen that are out of our control. An unexpected medical bill or a car emergency. These types of situations can throw off your whole budget and cause you to worry about missing a mortgage payment or several payments. Do you know what to do?
Always be prepared to tell the why you can't make your monthly payments and whether or not this is temporary or permanent and also provide them with other details about your income expenses. In some cases, your mortgage servicer may have programs in place to help you avoid that dreadful word, foreclosure.
It's free and can help you find a counselor near you. They can assist to help you figure out if you qualify for help and help you further understand any assistance your mortgage company may have offered you.
In general, not paying your mortgage will be reported by your lender to the three major credit bureaus and they will lower your credit score. In addition, after a grace period (generally a week to 15 days after the payment due date), a late fee will be added on to the payment you failed to make.**
When you're going through a situation like this, it is imperative to watch out for scams. Never pay anyone to help you to avoid foreclosure. They might tell you they'll save your home foreclosure when they're really just taking your money.
If and when this ever happens make sure you're in contact with your mortgage servicer. They're more likely to work with you if you let them know before you miss a payment.some lenders being willing to offer informal forgiveness or being willing to hold off on late fees or reporting to credit agencies, in some cases people can qualify for forbearance programs. These are formal programs where people facing financial problems can miss a payment or make a lower payment for a period of time while they sort out financial problems.**
* Servicer- The company you make your payments to.
**Depends on the mortgage servicers discretion.
Visit Valley West Mortgage for our Online Application and our Secure Document Uploading.
Just over a quarter of a million veterans live in Nevada as of 2018 and we’ve got a list of major benefits that you may not know about that includes a veteran home in Boulder City.
We offer A $0 down payment mortgage option available to Veterans, Service Members and select military spouses. These loans are guaranteed by the U.S Department of Veteran Affairs.
Contact Us Today! (702) 696-9900
Our experienced team is ready to get you your dream home!!
Available to any veteran with wartime service. The exemption may be applied to either a veteran’s vehicle privilege tax or real property tax. You’ll need to take your DD214 or discharge papers to your local assessor’s office.
Available for any veteran with a service-connected disability of 60 percent or more. The amount available varies between $6,250 to $20,000 of the assessed value, depending on the percentage of disability and the year filed. Must have an honorable discharge. Benefits can be passed to the widow or widower of a disabled veteran. This may be applied to vehicle or personal tax.
Veterans receive preference points when testing for open and open non-promotional examinations for state jobs. Must have an honorable discharge.
National Guard: The University of Nevada system may grant a waiver of tuition and laboratory fees for any active member of the Nevada National Guard.
Children and Surviving Spouses (National Guard)
The University of Nevada system may grant a waiver of tuition and laboratory fees for any child or surviving spouse of a Nevada National Guard member killed in the line of duty.
A child may use the waiver for 10 years after they attain the age of 18 years. A surviving spouse may use the waiver for 10 years after the member's date of death.
Grant-In-Aid for the Family of a Member Killed in the Line-Of-Duty
Dependents of an active duty member killed in the line of duty while permanently stationed in Nevada may be eligible for a financial grant that does not require repayment.
Hunting & Fishing: Disabled Veteran
The State of Nevada Wildlife Division issues discounted hunting & fishing licenses to any honorably separated veteran who has a service-connected disability of 50% or more.
Hunting & Fishing: Active Duty
The State of Nevada Wildlife Division will issue a discounted combination license to Nevada residents stationed outside of Nevada and home on leave.
State Parks
Honorably discharged Nevada veterans with a permanent disability of 10 percent or more can get a pass for free entrance to all state parks, camping, and boat launch facilities. There is a low annual renewal fee.
Remember if you’re in the market to purchase your dream home let us know!
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VA | FHA | Conventional | Reverse | Refinance & More
Income flexibility help to meet the diverse needs of today’s home buyers by expanding access to creditworthy, low- to moderate-income borrowers. The non-occupant borrower income flexibility allows a parent, or anyone else willing and financially able, to be a borrower on the loan.
Example: A millennial couple is buying their first home, and his mother would like to help. She is willing and able to be a borrower on the mortgage loan, but she will not live in the home. Because the borrower’s mother will be an actual borrower on the mortgage loan, her income and liabilities are considered from a qualifying perspective and will be included in the combined debt-to income (DTI) ratio.
If you search the internet for 'home buying' you'll find an abundance of tips and tricks but they're all pretty much the same.
The end result is you purchasing your dream home so we're here to help you through the process from start to finish.
There are 4 categories:
(A) Conventional that conform to standards require as little as 3% down. 20% down no PMI required
(B) FHA (Federal Housing Administration) permit as little as 3.5% FICO Score of 580 or higher
(C) VA requires no down payment, no minimum credit score. May pay a VA funding fee.
We're here to help you along the way. When you're ready to purchase let us know!
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