Tuesday, May 27, 2014

When Can Your Mortgage Application Get Rejected?

Filling out mortgage application can be a tedious job that not many of us like doing. It is important to give it a few extra minutes and complete the application carefully with all details correctly and fully mentioned. There are several reasons for a mortgage application to get rejected, a few of which are discussed here.

Areas where you went wrong

Baffled with a mortgage rejection? Well, one of these may have been the reason!
  1. Unsuitable credit history – A lender will check your past records to see how well you have managed your finances – both incoming and outgoing, to decide if you will be able to manage a mortgage. Poor credit history equals rejection.
  2. Insufficient credit history – Quality and quantity matter with this one. Those who have been using only cash for all transactions and have never had a loan or credit card in the past don’t have any credit history to be checked.
  3. Employment issues – Be sure to be gainfully employed for a good amount of time, on a regular basis before you apply for a mortgage. How stable you are with your earnings is a deciding factor for mortgage lenders.
  4. Incorrectly filled application form – By deliberately hiding information or omitting to mention important details, you are giving an opportunity for the lender to reject your application. For this issue, using a mortgage broker is beneficial as he/she can check your form and give you advice on filling it before submission.
Steve Morgan of Bethany Beach lender is a reputed mortgage broker who helps you understand the reasons of a loan rejection before helping you to tackle them. Be sure to hire the right broker to avoid frustrating mortgage delays and rejections.

Thursday, May 22, 2014

Myths About Mortgages

Save on years of rent by buying your much awaited Bethany beach dream house. Relax! There’s no immediate hurry to pay your mortgage back as quickly as possible. Get a mortgage loan without a 20 percent down payment.

Here are some traditional mortgage myth busters from Steve Morgan that will set you on the right track from the start.

Top myths

Why rent a house or an apartment, when you can own one of your own. Save on your home by owning it as well. Double the perks with fewer downsides, owning a house makes for more savings in the end.

Build on equity along with standards; as a new home owner, you can build your wealth over time by saving on rent premiums and expenses.

A pre-approved mortgage isn’t a guaranteed mortgage. Once you’re pre-approved for a mortgage, the best course of action would be to avoid ruining your credit by celebrating with your soon to be mortgage.

With new age mortgage options out, budding home owners don’t need to put a 20 percent down payment in order to get a mortgage. Institutions like the Federal Housing Administration (FHA), lets out mortgage loans that accept around 3.5 percent as minimum down payment.

Since mortgage conditions are much approved, the myth which presumes your mortgage has to be paid off  at the earliest isn’t quite true. Intelligent home-owners invest the extra savings instead, so earning more rather than losing out on their mortgages.

With mortgages now available at affordable interest rates, hopeful Bethany beach house owners can take advantage of current market situations. Increase their earnings by investing money saved on mortgage payments, as well as get great options tailored to suit viable budgets and requirements. 

Friday, May 16, 2014

Turning your Vacation Home into an Investment

A vacation home at Bethany Beach is a source of great joy and can be a good investment that can be leveraged by renting out the property, when you are not using it personally . The act of turning a vacation home into an investment property has the added advantage of getting tax breaks along with the extra income that it brings in. A property is recognized as an ‘investment’ according to IRS Pub 527, if it is rented out for more than 14 days in a year or 10 percent of 365 days, whichever being the most.

What to consider?

People who are keen on investing in a beachfront property must figure out the maintenance costs and other related details like tax and insurance. A beach house is prone to wear and tear owing to the  sand and salt that it has to withstand, which means it will need a coat of paint every two or three years.

The thought of building a beach house from scratch can be an exciting prospect which again will need time and effort on your part along with the limitations of sticking to the budget. This is where a real estate agent comes in handy as they can help you acquire that beautiful beach house with little to no efforts.

The location of a beach home is crucial for it to make a great rental. A beach house  that suits the needs of an average vacationer should be fully furnished and must be ideally located within walking distance from the beach. Although such properties tend to cost more, they do make up for great rentals that bring in more money.

The low interest rates and easy mortgage programs in the state of Delaware, particularly around the Bethany Beach is a good reason to buy that lovely beachfront property you have been dreaming of. Steve Morgan at Fairfax Mortgage Investment, Inc. is a Bethany beach lender and a mortgage broker who can help you realize your wish of acquiring the best beach property to spend some quality time with your loved ones.

Monday, May 5, 2014

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.