What are the benefits of Mortgage Refinancing? Shares Valley West Mortgage, a 2022 ThreeBestRated® award-winning Mortgage lender company from Las Vegas, Nevada
If you’ve got a mortgage, it’s certainly bound to be one of your significant financial commitments. Professionals like Vatche Saatdjian, President/CEO of Valley West Mortgage, expect mortgage rates to rise slightly due to inflation, and Fed tightening, and also believe the market will continue to expand this year, although at a slower pace (thanks to the pandemic). This means it might be a good time to refinance your mortgage and save some money.
In this era of pandemic(and economic uncertainty), refinancing your mortgage can give you respite by lessening the monthly payments and interest rates, saving you money over time. Refinancing can be tricky, especially if you’re unclear about what to expect.
What is Mortgage Refinancing?
Mortgage refinancing (refi) is when you take out a new loan to substitute your current one. You’ll have a new mortgage with potentially different terms but keep your existing house. You go through similar procedures for getting a new home like applying for a loan, underwriting, home appraisal, and closing. The only difference is you keep your present home(instead of looking for a new one).
Benefits of Mortgage Refinancing
Vatche Saatdjian, President/CEO of Valley West Mortgage (a 2022 ThreeBestRated® award-winning Mortgage company), says," depending on what kind of mortgage you’re paying and what sort you’re refinancing it into, the benefits of refinancing your mortgage might include:
● a lower annual percentage rate(APR)
● a lower monthly payment
● a shorter payoff term
● the ability to cash out your equity for other uses
● Consolidated debt
Once you’re determined to refinance, it’s time to crunch some digits. While refinancing your mortgage sounds great on paper, it may not always put you in a better place. It’s best to consider the pros and cons, considering your financial situation.
Availing the services of a mortgage lender like Valley West Mortgage can help you decide on the best mortgage. With Valley West Mortgage, you can make confident and informed financial decisions.
About Valley West Mortgage
Established in 2004, Valley West Mortgage is a leading mortgage lender from Las Vegas, NV, licensed to operate in 25+ states. They strive to offer the best value, service, and loan products to match your financial goals. Valley West provides Debt Consolidation, VA, Fixed and Adjustable Rate, Conventional, Purchase, Reverse Mortgage & Refinance Loans to people across the nation.
Valley West is a ThreeBestRated® Mortgage company that has helped finance the dreams of thousands of families and individuals for the past 17+ years. They offer a straightforward approach to home purchasing and refinancing mortgage solutions, guaranteeing you transparency throughout the entire process. Valley West offers mortgage solutions with competitive rates and commitment to customers (They always put the customers’ needs first).
On the Award
On winning the 2022 ThreeBestRated® award for one of the best Mortage companies in Las
Vegas, Vatche Saatdjian says,” I am ecstatic to be showcased by ThreeBestRated®. We
work very hard every day to impact people’s lives positively and consider it an honor that
ThreeBestRated® recognizes us for our dedication to the mortgage community.”
Work with Valley West Mortgage – a team of dedicated professionals that always look out for your best interest and get a mortgage loan tailor-made for you.
The post What are the benefits of Mortgage Refinancing? Shares Valley West Mortgage, a 2022 ThreeBestRated® award-winning Mortgage lender company from Las Vegas, Nevada first appeared on PRUnderground.
Things are moving so quickly in the market with the coronavirus being at the forefront, everyone is feeling hardship across the board.
FHA Loans provides mortgage insurance on loans made by FHA-approved lenders throughout the United States and its territories. It is one of the largest insurers of mortgages in the world, insuring more than 46 million mortgages since its inception in 1934 and it's the only government agency that operates from its self-generated income.
Self-generated income which means the Mortgage insurance premiums that is collected from borrowers via lenders are used to operate the program.
FICO scores tells the lender what type of credit risk you are and what your interest rate should be to reflect that risk by utilizing a FICO formula.
The most commonalty used :
Equifax Beacon 5.0
Experian/Fair Isaac Risk Model v2
TransUnion FICO Risk Score 04
We’re seeing what’s “good” for rates can be bad for lenders, and what’s “good” for the market can be bad for home buyers. This tug of war has caused servicers to implement drastic measures to keep up; includes raising the minimum FICO. If you have questions or concerns please contact your lender right away.
Don't Be Overwhelmed With Paperwork
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.
Proof of income
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
- Photo ID
- Social Security Number
- Contact Information for your insurance agent
- Previous year's W-2 Form (1099 if contract basis) (1040 form)
- Bank Statements (Be prepared to show proof of any cash deposits made into your account)
- Your most recent pay stubs
- Profit and Loss if self-employed
- Earnings outside of regular job (Child Support or Alimony) -Divorce Decree
- Employment contract showing vesting schedule
- Credit Report (Lender will generally pull this)
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*
- Debt Payments and Balances for credit cards, student loans, mortgages, car loans, credit inquiries or any other fixed debt obligations
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?
Contact Your Mortgage Servicer
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.
Calling a HUD- approved housing counselor
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.
Failure to Communicate/Pay
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.
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:
Down Payment Tips
- 20% is a common down payment. We can go as low as 0% Down Payment on approved conditions
- Putting down less than 20% may mean higher costs for PMI (Private Mortgage Insurance)
- Explore mortgage options: 30 year fixed, 20 year or 15 year-fixed
(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.
Local Assistance Programs
- Down Payment Assistance Program- Qualify up to $20,000 towards closing costs and fees. (Call Us For More Information)
- Determine how much you can afford
- Check your credit and pause any new activity (Credit Karma, Credit Sesame or 1 free credit report a year from all 3 credit reporting)
- Avoid opening any new accounts such as credit cards or auto loans until your home loan closes.
- Compare rates from at least 3 lenders (Contact Us Today for a No Obligation Free Rate Quote)
- Getting PREAPPROVED!
- Higher the right buyer's agent
- Research nearby schools (This can affect home value)
- Look at the Local Safety and Crime Statistics
- Map the nearest hospital, pharmacy, grocery store and other amenities that are important to you.
- Take a drive through the neighborhoods on various days to get a feel for everyday living
It's All About the Budget Not The Bass
- Look at properties that cost than the amount you were approved for.
- Approval amount doesn't account for monthly expenses or problems.
- Shop with a firm budget
- Have fun going to Open Houses!
Mistakes to Avoid
- Not budgeting in closing costs which can run between 2% and 5% of your loan amount.
- Not Comparing prices for homeowners insurance, home inspections and title searches.
- Not saving enough for after move-in expenses
- Buying a home for today and not tomorrow
- Passing up the chance to negotiate
- Not knowing the limits of a home inspection
- Not buying adequate homeowners insurance
We're here to help you along the way. When you're ready to purchase let us know!
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