Advice from a Mortgage Expert

Having a place to call your own is something that everyone wants. With the soaring realty prices, taking out a mortgage is the only available option. Many mortgage companies like Bethany Beach Lenders offer attractive interest rates. Mortgage brokers like Steve Morgan will also assist you with all the paper work and legal documents that are synonymous with buying a home.

What do the experts suggest?

The market is constantly fluctuating. The rates that are prevalent today are replaced tomorrow. Experts suggest that there is no better time to invest in property than today! Two experts: NY1’s Tara Lynn Wagner and Ross Kenneth Urken say that the best time to buy a house will be within the next five months. The prices are going to soar  which  in turn will increase the interest rates. They speculate a rise of 5 percent in the interest rates over the next twelve months.

Urken says, "I really think it's chicken and egg”. People are seeing interest rates rise so they are more compelled to get into the market . If you are looking to buy a home, your biggest priority right now should be getting your financial house in order. Credit score is really your golden ticket to getting a great rate from lenders and thus a more affordable mortgage.

Choosing a mortgage is as important as choosing a house. Mortgage brokers help in shopping for the best deals. They also handle all the legal paper work and assist through-out the entire process. Steve Morgan is a certified mortgage broker who has clients in Delaware, Maryland, Virginia and Washington DC.

Bethany Beach, the quiet town in Delaware is gaining popularity as the ideal retirement and/or second home. The booming real estate industry has made this small town into a  perfect get away. Waiting on the interest rates to drop is as good as shooting arrows in the dark- unpredictable! Once you have your finances in order and a good credit score start shopping for the perfect home.

Questions to Ask Your Mortgage Lender

Mortgage lenders help you in finding the exact mortgage loan that will suit all your needs. The lenders have every kind of information on mortgages and should be willing to share the information with you. So, it is important to get to know what questions you should ask to your Bethany Beach Lender, before signing a mortgage contract.

Answers you need to know

The first question you should ask is about the Annual Percentage Rate. Lenders could hide small fees and charges that might lead you to paying more money. The APR takes into account all of the extra charges, so it is better to know it before getting a loan. Your second question should inquire about escrowing your insurance and taxes. Some prefer to pay them all at once, others over a period of time, and hence talk with your lender about whether you have to make an escrow account or the lender will sort it out for you. Other questions you could ask is about prepayment penalties on the loans, or whether to not do something that changes you financial information or credit report before the closure of your loans.

Such questions, if asked correctly, can lead to a better experience when applying for a mortgage loan. Steve Morgan says to get your facts right before making any applications for loans on Bethany Beach, Delaware. For more information on how to get a mortgage loan, get Bethany Beach Lender to help you out. 

Cutting Down Your Mortgage Payment

Purchasing a home can be a cumbersome and difficult process to maneuver around. Fortunately for property buyers in Bethany Beach, there are now a variety of loan schemes on offer that help reduce both their down payments, as well as their monthly Private Mortgage Insurance (PMI). A PMI is an additional sum that is integrated into the overall mortgage payment. Schemes that allow individuals to place under 20 percent of a property’s value as a down payment, typically involve a PMI. 

80/10/10 scheme

PMIs can amount to significant monthly sums depending on the total value of the property. However, there are a variety of ways in which buyers can avoid or reduce their PMI premiums. The f80/10/10 scheme permits buyers to put down just 10 percent of the total property purchase value at first. The lender will then place down 80 percent of the property value. Buyers can then use the same Bethany Beach lender or another lender to place a second mortgage of the remaining 10 percent of the property’s value, thereby taking care of the monthly PMI. 

Gift of equity

For individuals who live in family-owned properties, or those looking to purchase properties from their landlords, there is the gift of equity scheme. This scheme allows the current owner of the property to place 5 percent down payment on behalf of the buyer. However, to do this, the buyer will need to provide a letter of motivation from the owner of the property, detailing the reason of sale. 

It is important to remember that most of these schemes require individuals to have a credit score greater than 700. Before availing of these methods, it is always advisable to consult an experienced mortgage professional like Steve Morgan. 

Undertaking a Mortgage Loan in Bethany Beach

If you are searching for a place where you can escape for a peaceful weekend and where nature’s beauty will allow you to relax to your heart’s content, Bethany Beach is your ideal destination. The place is also ideal for retirees and those looking for a second home away from the bustle of city life.

Making the choice

There are mortgage lenders like Steve Morgan, a Bethany beach lender who can help you decide on the mortgage amount. But even before you meet a lender, it is better to do a self assessment and see how much you can pay.

You may have prior commitments which the mortgage lender will not take into account. He will ask you questions related to your credit profile, income, debts and give you an estimate. But whether you can pay back that borrowed amount after satisfying your hobbies or passion and saving for your family depends entirely on you.

If you buy a home, say at Bethany Beach, other than the mortgages you will also have to pay property taxes, principal, interest, and homeowners’ insurance. Also know that if your down payment is less than 20 percent, you may have to pay for additional mortgage insurance. Moreover, set aside money for repairs and maintenance. Lenders mostly allow a 41 percent to 43 percent debt-to-income ratio.

If you are confused as to what the safe mortgage limit for you is then consult an experienced Bethany beach lender like Steve Morgan. He will calculate the amount for you based on your tax returns. He will also take into account any outstanding loan or premiums you may have to pay to come to a realistic figure.

Qualifying for a Mortgage Loan in Bethany Beach De

It is not very easy to get loans from banks and they look for certain factors when it comes to granting a mortgage loan. This is because they want to make sure that the applicants are financially capable of paying back the loan. Banks therefore assess loan takers thoroughly before loans are sanctioned to them.

What can you do to qualify for a loan?

If you are planning to get a mortgage loan for a Bethany Beach home, some of the factors that you need to keep in mind when applying for your loan are:

• Get adequate cash reserves for the mortgage down payment.
• Have an acceptable credit score.
• Be employed in the same field for two years or more.
• Have a monthly income that is higher than your monthly mortgage loan amount.

Apart from banks, there are also other ways of getting a mortgage loan easily. You can take the help of an owner to completely or partially fund the expenditure of your new home. Another option available is to take the help of a family member or a friend either as a co-signor or as the person purchasing the house in his or her name.

Utilizing the services of a mortgage broker is another way of acquiring a mortgage loan. Since they have a vast network of lenders at their disposal, they are the best people to help you find a lender who will give you the required loan amount. In this context, you can engage the services of well-known Bethany Beach lender, Steve Morgan.

Although the bank route is the most preferred option, you need to plan accordingly to save time, as well as to avoid the rejection of your loan application. At the same time, remember that there are options apart from bank loans that you could try.