USDA Loan in Shamokin (888) 464-8732

What questions should I ask a mortgage lender in Shamokin ? If you’re dealing with a mortgage broker there’s some questions that you should ask both on your first meeting with the mortgage broker and throughout working with your mortgage broker to make sure that you’re getting the best service possible.

USDALoanInfoPA is going to go through 10 different questions that you can ask your mortgage lender in Shamokin. Be aware that your USDA Loan or Mortgage broker  will be getting the loan that you need and the service that you want.

The first question that I think everyone should ask a mortgage broker is a pretty straightforward one.

How Much Will a Mortgage Broker Cost?

Most mortgage lenders in Shamokin actually work for free.

So it doesn’t actually cost you anything in order to do it.

They get money because they are paid by the banks when you successfully get a loan.

So they get a small commission of the loan that you apply for and if you get it.

Lender's Mortgage Insurance Explained

So most mortgage brokers in Shamokin will work for free and it won’t cost you anything.

However, there are some mortgage brokers out there who do require deposits or who do require you to pay.

So, it’s important to ask, “How much will this cost me?” when assessing which mortgage broker you want to go with.

How much do Mortgage Lenders earn in commission from me and from my loan?

This is less to understand exactly how much they make.

You can see what percentage of commissions they make and things like that by visiting USDALoanInfo.

But it’s more to understand whether or not they’ll be willing to give you this information.

A transparent mortgage broker is someone that’d be willing to give you this information and you know that they have your best interest at heart.

Lender's Mortgage Insurance Explained

If they skirt around this issue and they don’t tell you how much they earn.

Well then that would send out red flags for me because I can’t trust them to put my best interest at heart because there are some circumstances where one loan will earn them more money than a loan that could potentially be better for me but not as good for them.

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So, I’m just trying to establish whether or not this mortgage broker in Shamokin is someone that I can trust.

And by asking them the big question, the money question,”How much will you earn from me?” That’s a great way to understand whether or not you can trust the mortgage lender.

So ask that question and see how they respond.

Do Mortgage Lenders Invest Themselves?

Now, I don’t think a mortgage broker has to be a property investor in order for them to be able to get you a good loan and for them to help you successfully invest in property.

However, if they are interested in property in Shamokin, if they do invest themselves, then that is going to go a long way to help you because they understand what it’s like to be in your shoes.

They understand what you’re trying to get out of this and they’ve done it themselves so they can help you miss some of the pitfalls and things like that.

If they don’t invest themselves, then I would want to ask them, “Have you worked with many people that invest in property?” Because as mortgage brokers, some of them just work with people who are buying their own home.

Importance of Hiring a Good Mortgage Lender - A TRUE Story

Some of the mortgage lender folk who work with people who are doing particular investment strategies.

So, some might work with people who invest in positive cash flow property or who invest in rural areas, who invest using developments.

Buying a new home can be a significant financial commitment. New home-owners have to pay mortgage instalments for years after they purchase their house so they need to consider the instalment, rate of interest, and other factors carefully. Most clients have low instalments and low interest rates so they look for attractive loan offers that strike a happy medium between both. That’s why most potential home-owners are very attracted to FHA home loans.What are FHA Home Loans?Risk is a very important factor in deciding the mortgage and interest rates. Bankers and lending institutions will charge more interests and set higher instalment rates if they believe they take a greater risk by lending you the money. Most home loan rates are calculated based on market conditions, competition, and risk. If you can influence one factor, the rates can come down. That’s exactly what FHA or Federal Housing Administration does.This establishment allows you to insure your home loan, which minimizes the risk for the lender. If you default on the loan, the insurance will cover the amount and the lenders won’t lose any money on their investment. This assurance eases the mortgage application and approval by a considerable margin. You’re more likely to get the mortgage if you apply for FHA home loans.What are the Characteristics of FHA Home Loans?These loans are attractive because they offer a number of benefits to both the lenders and the borrowers. The insurance is provided by a government agency under U.S. Department of Housing and Urban Development so it’s trustworthy. Here are some of the distinct advantages these loans offer borrowers:You get the benefit of lower interest rates.The qualification requirements are much more flexible.You need to pay a monthly premium for your mortgage insurance. That can add to your monthly cost.You also minimize the risk of foreclosure if you can’t pay back the loan due to financial difficulties.What Do You Need to Know About FHA Home Loans?While FHA loans offer a great deal, it’s important to understand how they work and what they offer before you apply for them. Here’s what you need to know about these loans:The down payment amount is usually set at anywhere between 3.5% and 10% depending on the credit score.If the credit score is above 580, you might be asked to pay around 3.5%.Loans with lower down payment options are limited in availability.You need to get your loan from an FHA approved lender so you can’t just choose any bank or financial institution.For any more information about FHA Home Loans and assistance with applying for one, it’s important that you hire the services of an experienced and credible mortgage agent that will work with you and provide you all the information you need; this will help you make a more well-informed decision about this sizeable investment you are making.

So I would want to find a mortgage broker who either had that experience themselves or who had clients that they had got similar deals for ’cause that way I know that they can negotiate on my behalf and they can get this deal across the line.

What details do Lenders need from me?

It’s one thing to call up a mortgage broker and just to get an estimate of your borrowing capacity but if you’re going through pre-approval and stuff like that, then you’re going to need to provide the mortgage broker with more in-depth details.

You might need pay slips; you might need proof of identity, all of that sort of stuff.

If you ask them up front, “What details do you need from me?” And when you go to your meeting with them you actually provide them with those details, well that just makes things so much easier.

Top Ten List of Bad Mortgage Lenders

Remember, a mortgage lender is only paid once the deal goes through and once you actually get financing.

So the easier you make it for them, the more likely you are going to get better service.

What can I do as a client to make this go as smoothly as possible?

You have the goal of getting financed for your property, the mortgage lender has a goal of you getting financed for your property and no one wants it to be difficult.

And so, if you can ask the mortgage broker, “Look, how can I work with you? How can I make things easy for you?” They’re the experts; they know what they’re doing.

They can tell you exactly what they need and then you can work hard to provide that for them so that they can get everything across the line as quickly as possible.

Second Mortgage

You know, I have customers,I deal with customers and even though I’m not a mortgage broker myself, I know that when there’s difficult customers that you don’t want to deal with, it just makes life so much harder and you don’t want to work hard for those people.

And when there’s customers who are really nice to you and who try really hard to help you provide them with the service you provide, you will bend over backwards to do anything you can for those customers to get them across the line, to help them as much as possible.

So, be one of those customers that the mortgage broker wants to bend over backwards to help you because you have their interest at heart as well.

You want to see them get paid.

You want to see them do an easy mortgage so they get paid easily.

And so you can develop a relationship into the future.

Which lenders can I borrow the most from?

Most people go into a mortgage broker looking for the cheapest interest rate possible.

What is the cheapest interest rate I can get? And the fact of the matter is a mortgage broker is likely to show you the banks that will lend you the amount of money you need and will also have the cheapest interest rate as well.

However, they might not showy ou banks that will lend you more money than you potentially need at the moment.

Now, it’s important to ask, “Which lenders can I borrow the most from?” because this will help you to project into the future.

Maybe you don’t need to know that for this loan right now but maybe, in the future, you might need to borrow money again and you know, or roughly my borrowing capacity is this.

Or if you find out which lenders you can borrow more from, and you find that you can actually borrow an extra $300,000, well you might split up your deposit and invest in two investment properties instead of just one.

And so asking them, “Which lenders can I borrow the most from?” is a great question to ask to really understand your position.

Because, yes, interest rate is important but how much you can borrow is also important as well.

Can I see a full list of my borrowing options?

Most mortgage brokers will provide you with, usually, like a top three or sometimes only a top one.

And I always like to think, “Can I see a full list of my borrowing options?”Again, this is less to say you want to go through all of this in minute detail and see.

You’re probably going to still choose from one of the top three ones.

But you just want to see that they’re giving you the full amount of information.

And most mortgage brokers are good people but there are some dodgy mortgage brokers out there who are just trying to get the deal that gives them the biggest commission.

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And so by asking to see a full list of what your borrowing options, you can then look at that and you can then assess, “Okay, well which loan do I think is going to be best for me?” rather than just taking the recommendation of the mortgage broker who may or may not be thinking about themselves.

So, again, most mortgage brokers are great people out there to help you but it’s always a good idea to get a full list of your borrowing options that are available.

Will this put a mark against my credit file?

And so this is when you’re trying to work out how much you’re going to borrow and stuff like that.

When you go into a bank and you try and find out how much you can borrow, often, the bank will do a credit check and this puts a mark against your credit file.

And what happens is if you have a lot of these marks against your credit file, even though it’s nothing bad, this can actually stop you getting a loan.

Usda Rural Housing

So, talk to your mortgage broker and when you’re looking at, “What can I borrow?”or your looking at getting pre-approval, just understand, “Will this put a mark against my credit file?” ‘Cause it’s not bad to have a couple or whatever.

But if you’re getting lots and lots of marks against your credit file, then that could be an issue.

So just make sure and you know when a mark’s being put against your credit file and when a mark isn’t being put against your credit file.

How soon can I revalue or borrow again?

So if you’re investing in a property to renovate it or to develop it or even if you’re investing in a property that’s potentially under market value, you want to know how quickly can you revalue that property so you can get equity and then hopefully draw equity out of the property to go ahead and invest again.

There are a lot of lenders out there who don’t allow you to revalue within a 12-month period.

So, speak to your mortgage broker about the lenders that will allow you to revalue faster.

And basically, this will give you an idea of how quickly you can revalue to consider going again.

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You’re also going to want to ask them, “After I invest in this property, how soon can I borrow again or what do I need to do to put myself in a position to be able to borrow again and to purchase the next property?” Because hopefully, your goal isn’t just to purchase one property but to grow your property portfolio and to achieve that financial freedom and that financial security that you’re striving for.

Will My Loans be ‘cross-collateralised’?

Now, I have heard a lot of stories about investors whose loans have been cross-collateralised and it’s cause major problems when they’ve gone and sold their property because the bank shave been able to take that money and pay off debt.

And basically, you want to avoid this at all costs from what I hear.

And so, it’s good to ask your mortgage broker, “Will my loans be cross-collateralised in any way?” Generally going with the same lender for two loans does it by default, even though it doesn’t say they’re cross-collateralised.

So, it’s just something that you want to look at the fine print, you want to understand, “Are these cross-collateralised?” And if they are, try and avoid it, try and get loans that aren’t going to be cross-collateralised.

Loan Lenders

So there you have some questions to ask your mortgage broker next time you go and see a broker to find out how much you can borrow or get pre-approval or get financed for another property.

If you are in the market, looking at properties and you want to see some high rental yield properties, then I’ve got 10 property listings that I’ve gone out and found for you guys.

You can see what high rental yield properties look like that are likely to generate a positive cash flow.

Did You Know – You Can Get Pre-Approved for a USDA Loan in Shamokin?

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What is a USDA Mortgage Loan?
The Rural Housing Service (RHS) of the United States Department of Agriculture (USDA) sponsors home loans referred to as Section 502 loans. Under Section 502, direct loans (i.e. from money appropriated by Congress) may be available to some low-income applicants. In addition, those with total household income less that 115% of the median household income in a qualified rural area may obtain government guaranteed mortgages from qualified lenders.

The purpose of the program is described by the RHS as Follows:
The Section 502 Guaranteed Rural Housing Loan Program is designed to serve rural residents who have a steady, low or modest income, and yet are unable to obtain adequate housing through conventional financing. These loans enable low and moderate-income rural residents to acquire modestly priced housing for their own use as a residence through the purchase of a new or existing dwelling or the purchase of a new manufactured home.

If you live in a rural area or in a less developed portion of a metropolitan county, and your household income does not exceed the limit assigned to your area, you may qualify for a USDA guaranteed mortgage.

Why should I consider a government guaranteed USDA Mortgage?

  1. USDA Mortgages may be issued with no down payment.
  2. Closing costs may be included in the loan amount, further decreasing up-front costs.
  3. Because of the government guarantee, interest rates are favorable and there is no mortgage insurance fee built into the monthly payment.
  4. USDA Mortgages are 30 year fixed-rate mortgages. Your interest rates will not increase during the life of the loan.
  5. Credit requirements are flexible. You must have a reasonable credit history and demonstrate that you are willing and able to make timely payments, but circumstances such as previous job loss or other extenuating circumstances may be considered in evaluating your credit history (or your lack of a credit history).

Do I qualify for a USDA Mortgage Loan?
The final word on eligibility is made by an officer in your local RHS office. This local officer has the discretion to evaluate your circumstances and credit history and take into account extenuating circumstances.

You can learn whether you meet the outside limits on household income by going to the USDA Income and Property Eligibility Site at http://www.usda.gov. The same calculator can help you determine whether the property you wish to buy is located in a qualified rural area.

In addition to having a satisfactory credit history, the ratio of your total monthly loan payment to monthly household income may not exceed 29 percent, and the ratio of monthly payments on all debt to household income must not exceed 41 percent.

How do I apply for a USDA Mortgage Loan?
Your local loan office or mortgage broker at First Option Mortgage and Lending can help you evaluate your eligibility, prepare a loan request and take full advantage of the options available to you through a government guaranteed USDA mortgage loan.

Top Mistake People Make When Applying for a Mortgage | Home Loan Application Mistakes

Home Loan Pre Approval

Hi, everyone! Melanie Cameron herewith The Cameron Team, Coldwell Banker Sea Coast Advantage in Wilmington, NorthCarolina. Had an important topic that I wanted to bring to everyone's attentionthat is as a deadline coming up really fast. A lot of buyers in this area likethe USDA 100% financing program, and what that is is a programthat allows for homes that are in certain areas to be eligible for 100%financing. Those maps are getting redrawn, as effective June 4th. A lot of the mapsin our area that were previously eligible for the 100%financing will no longer be eligible for the 100% financing. Stillgot a little bit of time to take advantage of it, like again, the mapschange on June 4th, which is little less than two weeks away. There are somecriteria that have to be met in order to to still get that in the areas that aregoing to no longer be eligible after June 4th. You have to have a signedcontract, ratified contract, by both parties dated before June 4th. You have to have your loan application turned in with the property address onthe property turned in before June 4th and the loan estimate has to be issuedby the lender within 3 days of the application date. So, a couple of things. There. Obviously, the buyer would still need to make all the other necessaryqualifications for the USDA loan, but a lots going on. So, if you're consideringor on the fence about looking at a home that's in the USDA eligible area, thatmight not be in the USDA eligible area in a couple weeks, might want to go aheadand make a decision. If you have any questions about that, give us a call. Youcan reach us at 910-202-2546. Check us out at TheCameronTeam. Net. Remember to continue to like/share/comment on Facebook andYouTube to get in on our monthly drawings. Have a great day, everyone!.

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USDA Loan in Pennsylvania (888) 464-8732