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Welcome Karen Milner
We are excited to announce that Karen Milner has joined the United Mortgage family in Texas! She brings with her over 28 years of finance experience and works diligently to provide a stress-free loan process for her clients and partners. Karen’s main focus is to inspire hope and deliver her client’s home-buying dream with an unparalleled lending experience. She is a wonderful addition to our team.
Please join us in welcoming Karen! To contact her for your lending needs, visit: umloans.com/karen-milner
Welcome Ginger Duhon
We are thrilled to announce that Ginger Duhon has joined our team in Kansas City area! Ginger has been in the mortgage and real estate industries for over 25 years. She uses her experience in all aspects of the business to help her customers find the best solution for their needs. She is committed to serving her clients and partners with honesty, integrity and hard work. If you would like to contact Ginger for your mortgage needs, visit umloans.com/ginger-duhon
Did you know that United Mortgage can assist Spanish-speaking clients?
We are happy to announce that the team at United Mortgage now has bilingual support! Spanish-speaking clients are able to utilize the many benefits United Mortgage offers – ultra competitive rates, closing on-time guarantee and more! Refer your clients today.
No Credit and Can Still Buy a House – Say What?
It is possible for a borrower to purchase a home without having any credit. It is more than just no credit scores; but truly no history of any good or bad credit. The borrower must simply have 12 months of good rental history that wasn’t paid by cash, in addition to two other accounts, such as: utility bills, cell phone bills, etc. We can help the borrower get the proper documentation for these, and then we get their trade lines established. This takes a couple of weeks, but once complete, we can pre-approve them for an FHA loan to purchase their first home. Please contact us for more details.
Renovation Loans Aren’t What They Used To Be
Renovation loans have had a bad reputation. You had to use certain inspectors and contractors and they took a long time to get done – among other issues. United Mortgage now has 3 loans that can help your buyers. The FHA 203k, Conv Homestyle Renovation and the VA Renovation all work basically the same way and they all are much easier to do these days! You can choose almost any contractors, as long as they are licensed and insured, and don’t have to get multiple bids. Closings can happen in 45 days. Each loan has unique qualities, so please contact us to learn more about how we can help your find the best solution for you!
Now is the Time to Refinance Your Home
As a home owner, market volatility can surprisingly be your best friend. After Britain’s infamous Brexit vote to leave the European Union recently, the housing market was shaken up and mortgage rates plummeted. This means that you, a home owner, are in a prime position to consider your refinancing options. You can finally bring down that interest rate or align your mortgage to your long term financial goals. Now is the time to refinance your home.
Because of the aforementioned events, The New York Times recently reported that several marketplaces have seen over a 130% surge in refinancing applications. It was also reported that mortgage rates are the lowest they’ve been in years with a solid prediction that the rates will stay low for the rest of the year. That, of course, does not mean that you should drag your feet on refinancing. But it does give you time to do thorough market research and get your paperwork ready for the application process. With more applications being submitted nationally, there are also more rejections.
We’ve compiled an easy guide for you to prepare your paperwork for financial success.
Refinancing Goals
The first step in deciding to refinance is to consider your goals. The most common reasons for a modern refinance are:
1.) Lower your monthly payment
2.) Pay off your mortgage faster
3.) Get cash from your home
4.) Consolidate your debt
5.) Earn more from your investment property
If you’re still on the fence about whether this is the right financial path for you, talk to a Home Loan Expert for more information.
What Will I Need to Refinance?
We’ll assume you’ve found a reputable and friendly mortgage company and want to move forward with the refinancing process. Most mortgage lenders will require several documents. We’ve listed them here so you can prepare them in advance to ensure a smooth application process.
- Proof of Income – Usually pay stubs, last 30 days or longer.
- Copy of Homeowners Insurance – Most lenders want proof of sufficient coverage.
- Copies of W-2s
- Copies of Asset Information – Statements of savings, checking and 401 K accounts, and any investment records for mutual funds or stocks.
- Copy of Title Insurance – This helps verify things like taxes, titles, and property descriptions.
- And finally, lenders will want your credit report, so now is the time to make sure it’s in tip top shape (Forbes has a great article on how to improve that 3-digit score here).
Now is the Time to Refinance: Prepare
So now that you are motivated and ready to move forward with the refinancing process, here’s a Step-by-Step guide so you know what to look for and are armed with information:
1.) Determine Your Goal – Make sure that your goals align with the list above.
2.) Learn Your Credit Score – The better your score, the better rates you’ll be offered by mortgage companies.
3.) Research Your Home’s Current Value – Check online for surrounding neighborhood recent home sales to see where local property values are at.
4.) Shop for Your Best Mortgage Rate – Always shop around, not just for rates, but for a reputable mortgage company.
5.) Know Your Fees – Be aware of hidden costs like application fees, appraisal fees, document processing fees, underwriting fees, credit report charges, title research, recording fees, tax transfers and points, the list goes on. Make sure that your mortgage company is upfront about all fees, which ties back into finding a reputable mortgage lender. Do not get suckered into the “no cost” or “low cost” refinance scam, because it means they’re just moving your fees into the actual loan in the form of higher interest rates. Do your research and avoid these scams.
6.) Get Your Paperwork Ready – As mentioned above, you’ll need to gather your statements, paystubs, and whatever else your lender will require.
7.) Have Cash on Hand – You’ll most likely need cash at closing to pay property taxes, insurance, closing costs, and any other unplanned expenses, so be sure to have some set aside for this. Luckily, (as stated in our first blog post) you are protected as a modern home buyer and mortgage lenders are required to list all expenses in your loan estimate paperwork.
Follow these steps with a great mortgage company and the refinancing process will set you up for long-term financial success.
The Modern Homebuyer is Now Protected
Buying a home can be an intimidating experience. There are a mountain of numbers and forms to fill out and a lot of blind trust that goes into what realtors, sellers, and mortgage companies are saying. There are many stories of today’s modern homebuyer getting scammed (not from United Mortgage, but from less reputable companies full of false promises and deals that are “too good to be true”) that should put a healthy fear into the buying process as they look into their first home mortgage. But, according to Mortgage News Daily and the National Association of Realtors, thanks to sustained job growth and low mortgage rates, home buying is the highest it’s been in 9 years.
How Does This Affect You, the Modern Homebuyer?
There are two main ways that this current market trend of high home sales positively affects the modern homebuyer. First, with so many homes being sold, mortgage rates are extremely low compared to what they’ve been over the past decade. Now is a great time to buy or refinance a home.
The second, and maybe most important, is that the mortgage process has been changed to protect the cornerstone of the housing market: you, the buyer.
According to CNN Money, new mortgage disclosure rules went into effect in October in order to reduce the amount of fraud and/or intentional complication of the mortgage process to trick the homebuyer into settling for last-second rate changes
The previous system required four forms to fill out, the new system only requires two. One of which is required to be sent to you three days after a submitted application, meaning it’s now easier to shop several agencies (and yes, we encourage you to shop, especially because we believe in our company and rates and know you’ll come back when you’re ready to start a great business relationship). Also, this form breaks down estimated closing costs so you’re not surprised by them at the end of sale.
Preview of the new mortgage form to protect the modern homebuyer
Check out the rest of the form here and see how easy it is to use: http://www.consumerfinance.gov/owning-a-home/loan-estimate/.
Why Are We Excited?
We’re excited because more and more companies, and the government, are taking an ethical approach to the real estate and banking business, which now protects you, the consumer. And the more that consumers are protected, the more homes will be purchased, and the more the entire housing market will thrive as it’s designed to.
We here at United Mortgage do not trick our customers. We do not sneak in hidden costs at closing. We do not use shady and illegal techniques to get more money out of you. Instead, we value you. We want you to return to us as you buy another home, upgrade, or refinance in the future. We pride ourselves in building lasting relationships and leaving a positive impact on our community. We value our reputation because we believe that a reliable brand that you can trust is the real backbone of modern business. It’s why we want to not just be your mortgage lender, we also want to educate you on current market trends and business practices so that you are empowered.
Buying a home, especially a first home, is a milestone in one’s life. It doesn’t have to be scary. It should be celebrated. And we’d love to do that with you.