5 Key Questions to Ask your Mortgage Lending Company

Buying a home and taking a mortgage is once in a lifetime thing for most people and therefore, you need to make sure that you are working with the right mortgage loan company. Choosing one of the best online mortgage lenders will require a lot of research and asking the right questions. But, most people are not generally aware of these right questions.

So, here we give you 5 key questions to ask all shortlisted mortgage lending companies before finalizing one.

1.       What can I expect?
This question covers the basic overview of the entire process. How things will move forward and the overall steps of the process.

2.       What Paperwork will be needed?

The next thing to ask is what documents will be required for the process. Most lenders will typically ask for two years of W-2s, two recent pay slips, and two recent bank statements. It is also a good idea to keep your tax return statements handy, especially if you are self employed.

3.       When will you close?

Get an idea of by what date or in how many days will the process be over and you’ll get the keys to your new home. At All Western Mortgages, we pride ourselves on the efficiency of our process and get you the keys to your new home as quickly as possible.

4.       How often will I receive the updates?

Ask your loan expert the modes of communication and the frequency of them. Effective Communication is extremely important for the fulfillment of the mortgage process.

5.       How can I avoid delays?

Ask your home loan expert about the dos and don’ts that you must keep in mind while the mortgage process is underway.

The satisfactory answers to these questions and effective communication will help you find the right home loan expert/lending company. So, pick up your phone and call AllWestern Mortgage at 702-850-2790 and fire away your questions. Our home loan experts are waiting for your call.

How to Cope With the Rising Interest Rates on Adjustable Rate Mortgage

An adjustable rate mortgage is a great option if you are looking for lowest mortgage rates in the initial years of the loan, but there is always a risk of rate hikes with them. A significant increase in the mortgage rates can lead to Payment Shock and this is quite common with the ARMs as the interest rate on them keeps fluctuating yearly. ARMs have an initial fixed rate period of up to 7 years and once this period gets over, the rate resets annually as per the condition of the market. It can move either up or down and if it moves up, the mortgage payments can skyrocket. But fear not. Here are some ways to cope with the payment shock of ARMs.

1. Know The Rate Caps: ARMs are always accompanied by an interest rate cap that limits their fluctuation. There are two types of rate caps. The first one limit how much the rate can increase from one year to the next and the second one limits the rate increase over the life of the loan. Before you take an adjustable rate mortgage, find out about the rate caps and in order to avoid payment shock, ask your lender to calculate the payments of worst case scenario. Thus, you’ll have an idea of what to expect.

2. Refinance: ARMs are most suitable for people who don’t plan to live in the same house for more than a few years and are planning to move out before their first rate adjustment. However, if you do plan to stick around for long then refinancing your ARM to a Fixed Rate Mortgage is the best way to avoid payment shock.

3. Loan Modification: If you are struggling to meet your mortgage payments due to rate hikes and have missed a couple of them, your lender may modify the terms of your loan. This might include switching to a fixed rate loan without refinancing or lowering your monthly payment to avoid foreclosure.

4. Get Rid of PMI: You can ask your lender to remove the Private Mortgage Insurance from your loan in order to cope with the unrealistically high payments.

However, ARMs are not all that bad. They offer lower initial rates than fixed rate mortgages and there is always a chance of interest rates going down rather than going up.

If you are feeling the burden of payment shock or have any further questions regarding ARMs, feel free to call All Western Mortgage at 702-850-2790 or just visit http://www.awmlending.com/loans-adjustable.php

How to Figure Out the Right Time to Refinance Your Mortgage

All Western Mortgage

Before we tell you how to figure out the right time to refinance, you must be aware of the reasons of refinance. Here they are:

•    Rate and Term Refinance: The most common reasons for which people refinance is to either shorten their loan term or reduce their rate of interest.

•    Cash-out Refinance: Cash-out refinance means taking a new mortgage amounting to more than you are currently owed. You can take the difference as cash for any major expenditure like paying off existing debts, wedding etc.

•    Changing the type of loan: The other reason, for which people refinance, is to change their loan type. It can be for converting an Adjustable Rate mortgage to a Fixed-Rate one, vice versa, for eliminating the insurance of an FHA loan etc.

In order to figure out whether it is a good time to refinance, you can use All Western Mortgage’s home refinance calculator.

Refinancing basically means replacing your existing mortgage with a new one and that requires you to pay the closing costs all over again. The closing costs can amount to thousands of dollars and thus, the savings from refinancing must be greater than the costs. To decide whether a mortgage refinance makes sense or not, calculate the breakeven point (time taken by the refinance to pay for itself) by using All Western Mortgage’s loan refinance calculator. If you plan on keeping the house for less than the break-even time, refinancing doesn’t make sense.

mortgage refinance calculator

mortgage refinance calculator

All Western Mortgage’s mortgage refinance calculator accurately tells you the amount of your new monthly installment, monthly savings, the difference between the overall amount of interest that you’ll pay under current and new mortgage plans, amount of interest you’ll save, number of months it’d take to break even the closing costs, and net refinance savings.

Adjustable Rate Mortgage Loans (ARMs)

Unlike fixed rate loans, the interest rate on ARMs changes from year to year. The most prevalent type of ARM is Hybrid ARMs.
http://www.awmlending.com/loans-adjustable.php

View more on edocr

The Mortgage Loan Process and Roles of Various Parties

Most would-be homeowners dread the cumbersome mortgage loan process that is necessary for realizing their dream of buying a home. But, the mortgage loan process doesn't necessarily need to be difficult. As soon as you fill All Western Mortgage's short mortgage application form, our Loan Originator will work closely with you till the time of closing of your loan.

View more on edocr

Benefits of Adjustable Rate Mortgage

Another major benefit of hybrid ARMs is that for the initial years, the rate of interest that remains fixed is less than the interest rate offered by FRMs, which allows you to save thousands of dollars in that time period. http://www.awmlending.com/loans-adjustable.php

View more on edocr

Pros and Cons of Fixed rate loans

View more on edocr

For more help in understanding FRM loans, you can contact All Western Mortgage at 702-850-2790 or visit our website – www.awmlending.com. We offer 10 year, 15 year, 20 year, 25 year, and 30 year fixed loan options.
http://www.awmlending.com/loans-fixed.php

All Western Mortgage’s mortgage tools

However, you can easily calculate the amount you’ll be paying as installments on the basis of loan amount, rate of interest and term of the loan by using All Western Mortgage’s easy-to-use and free of cost mortgage tools.
http://www.awmlending.com/mortgage-tools.php

View more on edocr

All Western Mortgage | Fixed-rate mortgage loan

The monthly payments you’ll make will depend upon the principal amount of the loan, interest rate and duration of the loan. You can use All Western Mortgage’s different mortgage calculators to calculate the monthly installments for different scenarios. http://www.awmlending.com/loans-fixed.php

View more on edocr

Federal Housing Administration Loans

All Western Mortgage is an FHA approved mortgage lending company which will be happy to provide you a loan that suits your financial needs. Call us on 702-850-2790 or visit our website - http://www.awmlending.com/loans-FHA.php for more info.

View more on edocr

Biweekly Mortgage Calculator

However, some lenders hold off the biweekly payments until they receive both the payments of the month. If this is the case with your lender, then it will not help your cause. In order to avail the full benefits of the biweekly payments, you must have a lender that credits the half of the payment as soon as he receives it from you.
http://www.awmlending.com/calculators-biweekly.php

View more on edocr

Monthly Mortgage Payment Calculator

Include other expenses in your budget: Mortgage calculators will typically show you how much you’ll be paying as principal and interest each month, but they don’t take property taxes and homeowner’s insurance into account. While you may not be paying for these two expenses monthly, it is a good idea to take these expenses into account and set aside funds for them on a monthly basis.

http://www.awmlending.com/calculators-standard.php

All Western Mortgage | Mortgage Affordability Calculator

The best way to establish your mortgage affordability is to look at your monthly take-home income and then compare it with all your monthly expenses. All Western Mortgage’s mortgage affordability calculator efficiently takes all these factors into account to accurately predict how much income you will require to afford a particular mortgage loan. You can check it out here - http://www.awmlending.com/calculators-affordability.php

View more on edocr

Mortgage Purchase | Understand PMI

Mortgage Purchase | Understand PMI

You are considered as a high risk borrower if your down payment is below 20% and in such a scenario, you’ll require a Private Mortgage Insurance (PMI). The cost of PMI will be borne by you and therefore, save up enough money to at least make 20% down payment. http://www.awmlending.com/mortgage-purchase.php

Converting the loan type from Adjustable Rate to Fixed Rate and vice versa

Converting the loan type from Adjustable Rate to Fixed Rate and vice versa

ARMs generally start off by offering lower rates as compared to fixed rate mortgages. But later on after periodic adjustments, the interest rate often gets increased more than the Fixed Rate. In such a scenario, a mortgage refinance company can help you in converting your ARM into Fixed Rate Mortgage loan. This results in lower interest rates along with eliminating the concerns for future hikes. Similarly, in a falling rate environment, converting your Fixed Rate interest mortgage into ARM is also a sound financial strategy. http://www.awmlending.com/mortgage-refinance.php

Simple Steps for Mortgage Application

It includes the name, address and contact details of your employer, your position and designation with the organization, years of service, type of business etc. If you have been in the current company for less than 2 years, you’ll have to fill in the details of your previous employment as well.

http://www.awmlending.com/

View more on edocr

Pros & Cons of getting a Mortgage Loan onlne

Less time consuming: It is a no brainer actually that online mortgage process is less time consuming as compared to the traditional process. http://www.awmlending.com/

View more on edocr

Are you Looking for the Best Mortgage Deals?

Meet the actual person behind your loan process: Whoever you have trusted enough to guide you through your loan process must be experienced and qualified. It can be a broker, bank employee, loan officer or a private lender. Make sure you meet the person and check his qualifications and expertise yourself. http://www.awmlending.com/

How to Look for the Right Mortgage Banker?

Talk to your family, friends and co-workers to find out who they’ve worked with in the past and with whom they’ve had a great experience. If you get the reference of a quality expert, ensure that he works with a recognized institution and has a good reputation. http://www.awmlending.com/

Mortgage Loans that require No or Low Down-Payments

Buying a home has become relatively easier nowadays than it was a couple of decades back and potential buyers with little money for down payment can now also buy their dream house. The Federal Housing Administration insures home mortgage loans with low down-payments, whereas The Department of Veteran Affairs (VA) and Department of Agriculture (USDA) facilitate home loans with no down-payments. http://www.awmlending.com/

Mortgage Loans that require No or Low Down-Payments

More presentations from All Western Mortgage