Types Of Assets To Include On Your Mortgage Application

When a lender goes over your home loan application, they’ll take a look at your credit score, total monthly debt and total monthly income as well as your overall net worth. Your net worth matters because it tells your lender how much money – between your income and assets – you really have.

1. Cash And Cash Equivalent Assets

Be sure to list all of your cash and cash equivalents on your mortgage application. These assets include any cash you have on hand, the money in all of your checking or savings accounts, money market accounts, certificates of deposit (CDs) and more.

2. Physical Assets

Physical assets include anything tangible that you own that’s valuable – anything that can be touched. Physical assets that can be sold for funds to be used to qualify for a mortgage include – but are not limited to – properties, homes, cars, boats, RVs, Jewellery and artwork.

3. Nonphysical Assets

Nonphysical assets aren’t as liquid – and they don’t have a physical presence like a house or car. Pensions, 401(k)s, IRAs, bonds, stocks and even royalties fall into this category.

4. Liquid Assets

Any nonphysical asset that you can instantly convert to cash would fall into this category, like readily tradable bonds or stocks.

5. Fixed Assets

There are some physical assets that may take longer to receive cash for, such as furniture, some real estate and antiques.

6. Equity Assets

If you have any retirement accounts, stocks or mutual funds, these are considered equity assets. Be sure to include these on your home loan application.

7. Fixed-Income Assets

Fixed-income assets include any investment funds that have been lent in exchange for interest. This typically includes government bonds and some securities.

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Joint Mortgage: What To Know About Applying For A Home Loan Jointly.

What Is A Joint Mortgage Loan?

A joint mortgage is shared by multiple parties, typically a home buyer and their friend, partner or family member. Some people apply for a parent-child joint mortgages with their adult children. A joint mortgage allows two or more parties to pool their financial resources and potentially qualify for a bigger or better loan than they could have on their own.

Unlike joint ownership, which sees two parties sharing the legal ownership of a property equally, a joint mortgage has nothing to do with whose name is on the deed. With a joint mortgage, two parties are simply both responsible for the loan – even though one of them may not have their name on the actual title and doesn’t technically own the property.

How Joint Mortgage Loans Work

When you buy a house with a joint mortgage, you share responsibility for the loan with another person. While joint mortgage applicants are often married, you don’t have to be married to the other party on your loan – you just both have to qualify and be over the age of 18. The factors used to decide whether you qualify for the loan are pretty much the same as if you were applying for a mortgage yourself; your lender will look at borrower credit scores, income, debt, employment history, etc. All parties that will be on the loan have to submit their own mortgage application.

If you’re approved, both you and the other party involved will sign a promissory note. You will both be equally responsible for making payments on the loan, though one of you can make the payments on behalf of the pair or group.

Whose Credit Score Is Used On A Joint Mortgage?

When you get a joint mortgage, your lender will look at the credit history and credit scores of all applicants that will be on the loan. Since everyone’s credit will impact the loan you qualify for, it can be detrimental if you or the person you’re applying with has a poor credit score.

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12 Critical Questions To Ask When Buying A House

There’s a lot to keep in mind when buying a house, and if you’re not an experienced home buyer, you probably don’t know everything that should go into your home buying decision.

1. What Is The Risk Of Natural Disaster?

2. Are There Health Or Safety Hazards?

3. How Old Is The Roof?

4. Are The Major Appliances In Good Condition?

5. What Is The Cost Of Utilities?

6. What’s Included In The Sale?

7. Have There Been Any Additions Or Renovations?

8. How Much Do Homes Sell For In The Area?

9. Why Is The Seller Leaving?

10. How Long Has The House Been On The Market?

11. What Is The Neighborhood Like?

12. Does The House Have A Reputation?

Take the first step towards the right mortgage, Message me or Schedule your call today:- CALENDAR LINK

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In cases of mortgage fraud for profit, scammers most commonly promise victims to save their homes from foreclosure with term modifications and debt management, or to entice buyers with free services and reduced interest rates. Scammers prey on vulnerable homeowners and prospective homeowners who lack education or financial security.

How To Spot Mortgage Scams:

‘Too Good To Be True’ Interest Rates

Mortgage rates that are noticeably lower than market interest rates are typically a sign of various hidden fees or even a bait-and-switch tactic. Predatory lenders may try to tell you that you no longer qualify for the advertised rate, or tack on additional fees after locking in the original rate if they think they can get away with it.

Your Loan Estimate Isn’t Honored

Your Loan Estimate gives basic loan information in a standardized format from the U.S. Department of Housing and Urban Development. It includes itemized costs of a loan, including fees, and is sent within 3 business days of a mortgage application. Lenders aren’t allowed to charge fees outside of the credit report fee prior to accepting the terms.

Under the Real Estate Settlement Procedures Act (RESPA), mortgage lenders are required to honor the Loan Estimate within the relative tolerance level. If these estimates aren’t honored outside of changed circumstances, be wary of predatory lending.

Mortgage Payment Scams

A mortgage payment should remain under 28% of your monthly income. The higher your debt-to-income ratio (DTI), the riskier you are for a mortgage lender. If your lender is recommending a type of home that requires a loan larger than 28% of your disposable income, be wary.

Homes Overvalued

Overvalued property creates risk for legitimate mortgage lenders by generating an inaccurate resale valuation or an inflated borrower income that will be difficult to pay off with existing income.

Penalties For Prepayment

A prepayment penalty is charged for paying off your mortgage too quickly or for refinancing. While prepayment penalties can offer lower overall interest rates, oftentimes, they’re hidden in the fine print of agreements. As a result, many borrowers don’t realize the stipulations of the penalties and are hit down the line with fees. Generally, these penalties are included as a way for lenders to make money on interest payments at the expense of the borrower.

Your Credit Score Doesn’t Matter

Your credit score will always affect your mortgage rate, without exception. If you’re being offered a home loan that states this score won’t affect the mortgage, be wary. These tactics are typically schemes that prey on low-income borrowers and generally come with undesirable terms.

Take the first step towards the right mortgage, Message me or Schedule your call today: https://calendly.com/beatawojtalik/30min

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What would you rather have: a Lamborghini or a rental home creating passive income for you?

Lambo = $4,546 per month (and that’s a USED one too!)
Home = $3500 per month (for a $758,874 home)

Run the numbers – it always makes more sense to hold an Appreciating Asset rather than a Depreciating Expense. 

When your money works for you, you don’t have to work as hard for your money.

To find out how much you qualify to buy in today’s market just send me a Email: beataw@dominionlending.ca

Source:
https://www.nerdwallet.com/mortgages/how-much-house-can-i-afford/calculate-affordability

Home Buying Checklist For First-Time Home Buyers

Buying your first home can be a complicated process, but you can make it easier on yourself by following a checklist that breaks down the steps.

1. Find A REALTOR

You’re not legally required to hire a REALTOR or real estate agent when you buy a home, but a real estate professional can make it much easier to find the home that’s perfect for you. Real estate professionals are trained in every aspect of the home sale process.

2. Figure Out How Much House You Can Afford

A lender will only offer you the amount that you can afford to pay monthly toward your mortgage. You should know how much you can afford to spend on a home so you can narrow your personal home search. If you come prepared with this figure, you’ll also be helping your real estate agent to find you the properties that you can afford.

3. Find A Mortgage Lender And Get A Preapproval

Next on the list, it’s time to get preapproved for a mortgage. A mortgage preapproval gives you a good idea of how much house you can afford, your interest rate and the type of loan programs you qualify for.

4. Begin The House Hunt

With your preapproval in hand, you can start searching for homes within your budget.

You may have seen “for sale” signs around your neighborhood. Today, most properties will also be listed virtually. You can use online real estate databases to help you find properties within your budget that fit your needs. Your REALTOR or real estate agent will be a big help as you look for homes.

5. Gather Your Documentation

It’s never a bad idea to be proactive. When preparing to buy a house, you’ll need to submit financial documentation to your mortgage lender, so you should have it on hand.

6. Make An Offer On A Property

Once you’ve followed those first five steps, you can now put in an offer to buy a  property that checks all your boxes. It can be difficult to decide how much you should offer, so it’s best to defer to your agent. They’ll compare sales data and other local property values to help you make a reasonable offer.

7. Conduct A Home Appraisal And Inspection

An appraisal only gives you an estimate of how much your home is worth. An appraiser looks at factors like overall property values in the neighborhood and the general condition of the property. Mortgage lenders require appraisals because they need to know that they aren’t lending you more money than your home is worth.

A home inspection, on the other hand, gives you a more intimate look at the inner workings of your home. During this process, a home inspector will walk through your property and test things like the electrical system, plumbing and other amenities.

8. Close On The House

After your home passes inspection and undergoes an appraisal, you’re ready to close. Closing involves signing all the necessary paperwork on your mortgage and taking control of the property.

If you are ready to take the next step in your Mortgage journey, Message me or Schedule your call today: https://calendly.com/beatawojtalik/30min

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How Much Can A 1% Difference In Your Mortgage Rate Save Or Cost You?

The short answer: It can produce thousands or even potentially tens of thousands in savings in any given year, depending on the purchase price of your property, your overall mortgage rate, and the total amount of the mortgage being financed.

By way of example, say that Taylor, a 30-year-old woman who is a first-time home buyer, wishes to obtain a 30-year fixed loan on a new home with a 20% down payment. Below, you can get a sense of just how much that she stands to save given a 1% difference in interest savings on her 30-year mortgage.

As you can see, savings stand to be well over $1,000 in just the first year of Taylor’s home ownership alone. Multiply these savings by the entire life of a 30-year loan, and she’d potentially save enough to purchase a car, pay for a college education, or even make major renovations or additions to the home.

In short, the difference that a 1% increase in mortgage rates makes could add up to tens of thousands of dollars in savings over the life of a 30-year loan term. By doing some simple math, it’s easy to find out if purchasing a home, refinancing a property, or pausing to work on your credit score is the right financial option for you.

If you are ready to take the next step in your Mortgage journey, Message me or Schedule your call today: https://calendly.com/beatawojtalik/30min

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The 10 Golden Rules When Applying For A Mortgage Loan

1. Don’t change jobs or become self-employed.
2. Don’t buy a car, truck, or van unless you plan to live in it.
3. Don’t use your credit cards or let your payments fall behind.
4. Don’t spend the money you have saved for your down payment.
5. Don’t buy furniture before you get the keys to your house.
6. Don’t apply for any new credit cards
7. Don’t make any large deposits into your bank account.
8. Don’t change bank accounts.
9. Don’t co-sign for anyone.
10. Don’t purchase anything until you get the keys to your house.

If you are ready to take the next step in your Mortgage journey, Send an email: beataw@dominionlending.ca

Don’ts for Avoiding Common Mortgage Mistakes

1. Don’t wait until you find the perfect house to apply: Apply for pre-qualification when you know you’re ready to start looking, instead of when you’re “finished” looking. You’ll be better positioned with the seller and avoid potential heartbreak when you are preapproved for the type/price of home you are looking for.

2. Don’t submit incomplete documents or photos of documents: Time is of the essence in the current housing market. Don’t let incomplete documents slow your loan process down. Take time to ensure everything is in order before sending your documents to your loan originator. Likewise, make sure you’re giving your loan originator the forms of documents they need to complete the process.

3. Don’t make large cash deposits or give any large gifts without first talking to your loan originator: Your loan team needs a paper trail of all transactions to show why your bank accounts are fluctuating. Their goal is to ensure your income is coming from legitimate sources and that you’ll be able to pay off your mortgage debts. So, a large change in your finances, either plus or minus, could throw a red flag.

4. Don’t apply for other forms of credit before, during or shortly after your loan process: Multiple credit inquiries in the same time period could harm your credit score and cost you money. If you can avoid double-dipping on mortgage and credit card inquiries, you’ll potentially save thousands of dollars.

5. Don’t pay attention to marketing calls offering mortgage “deals”: An unfortunate reality of running your credit score is that it triggers a barrage of calls from companies looking to sell you a mortgage or worse, steal your information. Don’t let these calls shake you. Know they will come and know to ignore them.

If you are ready to take the next step in your Mortgage journey, Email me: beataw@dominionlending.ca

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Terms You Should Know When Starting The Mortgage Process.

PITI – Principal, Interest, Taxes And Insurance (Monthly Mortgage Payment)

Principal – Amount of the loan paid back each month, reducing your loan amount.

Interest – The interest charged on the loan each month.

Taxes – Taxes charged by local jurisdictions, based on the value of the property (Property Taxes)

Insurance – Insurance due each month for your property like homeowners (Hazard) insurance, etc.

Other costs associated with PITI depend on the loan program and down payment amount chosen.

If you are ready to take the next step in your Mortgage journey, Email me: beataw@dominionlending.ca

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