Welcome to Mortgage Guide
Private Mortgage Insurance Article
. For a permanent link to this article, or to bookmark it for further reading, click here.
How to Get Your Loan Approved by the Mortgage Company
from:There’s no question that credit resources have tightened across the United States and abroad. The subprime loan mess has left huge echoes of dismay from lenders that make it much harder to qualify for a mortgage from any mortgage company. Whereas, in the past, you could be relatively certain of getting into a home (even with no money down), today’s mortgage company is requiring far more stringent guidelines be followed. Along with the mountainous pile of paperwork you have to fill out, you may be asked for even additional documentation in this climate of loans, which went badly.
Keep Track of Your Credit Score
Now, even more than ever, your credit score counts. The average good score has been raised to 720 to 750 for most lenders, including mortgage lenders. A mortgage company will scrutinize your credit report heavily. There are new rules coming about that may help those whose credit only suffered a minor ding here and there, but if you have multiple late payments and defaulted loans, your chances of getting approval from a mortgage company drop substantially. Since most mortgage lenders are not doing subprime loans anymore, if your credit is not good, you will find the battle to be uphill.
Collect Your W-2s, Tax Returns, and Bank Account Statements
A mortgage company may ask for additional proof of your income and assets besides just your tax returns. They may also ask for several month’s worths of bank statements and copies of your W-2s. You can expect to have to substantiate any level of income you state on a loan. Unlike the past liar’s loans, which allowed self-employed people to estimate their income with little documentation, newer guidelines will keep this from happening.
Expect a Sizable Down Payment
You will be asked to put down from 10 to 20% of the home’s value as a down payment. If your credit is less than stellar and/or your income fluctuates, then you may be asked to put the full 20% down in order to qualify for the interest rate that you want on the loan that you want. You can negotiate with the mortgage company to put down less than the full 20% but it usually comes a higher cost of a higher interest rate, which can add hundreds of thousands on to the cost of the loans. In addition, should the home’s value depreciate, as some have done in California, the additional equity you’ve placed in the home can keep you from being upside-down later when you want to sell or refinance.
Private Mortgage Insurance News
What it takes to buy a home - Chicago Tribune
 Chicago Tribune | What it takes to buy a home Chicago Tribune They put down 20 percent to avoid private mortgage insurance and snagged a 30-year fixed rate of 3.75 percent from a credit union. Their monthly mortgage payment is $1524. Before you take the plunge, consider the answers to questions often posed by ... |
Mortgage Q&A: Borrowers hit by mess others made - Washington Times
 Washington Times | Mortgage Q&A: Borrowers hit by mess others made Washington Times There also was the problem of private mortgage insurance (PMI). If a qualified HARP candidate carried PMI, the PMI company would refuse to transfer the PMI to the new HARP loan. As an owner of a mortgage company for 20 years, I found these sorts of ... Don't HARP on it, refinance program too good to pass up |
Wrangle Over $76 Billion in Mortgage Insurance - Courthouse News Service
Wrangle Over $76 Billion in Mortgage Insurance Courthouse News Service By LISA BUCHMEIER MILWAUKEE (CN) - Mortgage Guaranty Insurance Corp., the nation's largest private mortgage insurer, has a $535 million dispute with Freddie Mac over MGIC's risks on $76 billion in mortgage insurance. MGIC claims Freddie Mac and its ... |
Mortgage insurance protects the lenders - San Francisco Chronicle
Mortgage insurance protects the lenders San Francisco Chronicle Some answers to mortgage-related questions from readers: Q: Ruth M. asks, "My daughter, who is going through foreclosure, asked a good question: Why, when she and her husband had been required to pay for private mortgage insurance as part of their loan ... |
MGIC Settles Historic Mortgage Insurance Case Involving Maternity Leave - Forbes
MGIC Settles Historic Mortgage Insurance Case Involving Maternity Leave Forbes Neals is the mother of three children, the youngest was born on June 21, 2010, and PNC determined, based on Fannie Mae's underwriting guidelines, that her request to borrow 90% of the value of her home required private mortgage insurance. Mortgages On Maternity Leave : MGIC Settlement Streamlines Loan Approvals Mortgage Guaranty settles home insurance bias claim |