Contact West Michigan Lending today for your next loan in the West Michigan area.

You Need a Good Reason to Get a Loan

It doesn’t matter if you are considering a refinance loan or home equity loan; you need to have a good reason for spending the money it will take to close on the loan. Good reasons may include the need for a better rate and terms or the need for cash to consolidate debt or pay other outstanding bills. Whatever it is, make sure the loan will save you money in the long run, and more importantly, make sure you can afford the new loan payments.

Refinance Terms Vary

Not every refinance loan is the same. Some have lower payments during the term and one final balloon payment at the end. Some terms last 30 years, while others only last 15. If you will be getting a refinance loan, make sure the terms will be manageable for you.

Home Equity Loan Terms Vary

Like refinance loan terms, home equity loan terms can also vary. Some loans are adjustable rate options, while others are fixed. Term lengths can also fall all over the map, so it is a good idea to evaluate all of the options available to you before making any final decisions.

Fees Need to Be Compared

When most people are looking for a refinance or a home equity loan, they compare interest rates. While this is a smart thing to do, interest rates aren’t the only thing that should be focused on in the comparison process. Because lending fees and closing costs can vary from lender to lender, you also want to take time to make comparisons between these variables.

Loan Interest Isn’t Always Tax Deductible

Contrary to popular belief, the interest paid on a home equity loan or a refinance loan isn’t always tax deductible. Before automatically assuming that you will be able to get tax savings, you should speak with a qualified accountant. An accounting professional will be able to look over your situation, as well as the potential loan to determine whether or not you are eligible for tax deductions.

There is No Such Thing as a Free Loan

Don’t be fooled by lenders who offer no closing cost refinance loans or home equity loans. There is no such thing as a free loan. If you don’t pay the costs upfront, you will pay for them later on in the loan. While this may not seem so bad, you need to remember that you will also be paying interest on anything not paid upfront.

Tax Assessment Aren’t Genuine Appraisals

If you are thinking about getting a refinance loan or home equity loan, don’t assume that the local tax assessor’s appraisal represents the actual market value of your home. Tax assessments aren’t genuine appraisals. Your home may be worth quite a bit more or quite a bit less than the amount indicated on your tax assessment. The only way to find out how much your home is really worth is to contact an independent real estate appraiser.

You Can Back Out

Federal law gives you the opportunity to back out of a refinance loan, a home equity loan, or any other type of loan that will be using your home and property as collateral. You have a total of three days to change your mind after the loan has closed. If you are unsure about the loan for any reason, this window of opportunity is your chance to get out before it is too late. The term is called’ “Buyer’s right of refusal.”

Contact West Michigan Lending today for your next loan in the West Michigan area.

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Rate-and-term refinancing

Rate-and-term refinancing pays off one loan with the proceeds from the new loan, using the same property as collateral. This type of loan allows you to take advantage of lower interest rates or shorten the term of your mortgage to build equity faster. Rate-and-term refinancing refers to a myriad of strategies, including switching from an ARM to a fixed or vice-versa. For example, if you have an ARM that is set to adjust upward in a few months, you can refinance into a fixed-rate mortgage. Or if you have a fixed-rate loan and you know you will move in two or three years, you could refinance into a lower-rate 3/1 hybrid ARM.

Cash-out refinancing

Cash-out refinancing leaves you with additional cash above the amount needed to pay off your existing mortgage, closing costs, points and any mortgage liens. You may use the additional cash for any purpose.

For example, say you bought your house for $150,000 a few years ago and borrowed $120,000. Now the house has an appraised value of $250,000 and you owe $110,000. With a cash-out refinance, you could get a mortgage for $150,000. You would pay off the $110,000 you owe and pocket the $40,000 difference, minus closing costs.
Michigan Mortgage Bankers Association

To learn more about West Michigan Mortgage options you can contact us directly. Click the contact link to email us.

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Contact us for assistance with your mortgage in West Michigan.

There are 4 steps in the loan process. You’ll note that we’ve made your role in them as easy as possible, and we take care of all the details! That’s our obligation to you.

Step one: find out your borrowing limit

This is a function of a couple things. What kind of monthly payment can you handle? Also, how much will a lender give you when your credit history and employment come into play? The first part you can get a rough idea of by using the calculators on our website. We will ask you a few questions to make sure you cover all the bases. Based on standard lender guidelines, we’ll get you a good idea of what kind of terms and loan program you can expect to benefit most from.

Step two: prequalification

This is the most important part of the process and the part where you may save the most money. You will enter information on past employment, assets, debt, etc. Then we will pull up your credit score. Once we gather and examine all of your information, we will send to you a Pre-Qualification Sheet. Handle it with care — to a home seller, it’s like a suitcase full of cash! Your realty representative will use this pre-qualification document to give the best offer on the home you pick, and the seller knows you’re pre-qualified. it gives you buying clout! So while your time is being spent picking out the home that’s good for you, we are working out the details of the loan that’s right for you.

Step three: apply now! we make it easy

After your offer has been accepted by the home seller, we will help you to finish the loan application. Fill out a quick form right here on our website — the process couldn’t be easier. Also, by using this online form, you will qualify for a free appraisal of your new home. Apply Now >>

Step four: your Grand Rapids mortgage is funded

Both of your agents will work together to designate an escrow/title company to handle the funding of your new loan once it’s approved. We’ll make sure everything is in order, and you’ll sign everything at the escrow/title company’s office.

You’ve answered a couple questions, given us some detailed information, applied online, and finally, you’re moving in! We’re in the business of loans, you’re not — so we do almost all of the work.

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This is good news for many but for some can lead to confusing encounters with mortgage brokers and serious sharks along the way. The best advice that anyone can give someone attempting to embrace the dream of real estate ownership is to deal with a reputable company when it comes to obtaining a mortgage. Even when dealing with reputable lending companies you must watch out for those who do not have your best interest at heart. That’s why Treadstone Mortgage is here to serve you. We want to earn your trust and business so that you can be confident in us as your Mortgage company.

If you would like some very practical advice when it comes to getting a mortgage, then you are at the right place. First of all, avoid lenders that are encouraging you to take a loan for more money than you are comfortable repaying. Foreclosures are at a record high when it comes to the mortgage industry at the moment because of predatory lending practice on behalf of some mortgage brokers. These practices include convincing people to borrow more money than they could realistically hope to pay over time and have any quality of life as well as convincing home buyers to take out adjustable rate mortgages in the beginning in order to procure lower rates.

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A subprime loan typically has a higher interest rate than other loans because the people who need it usually have a poor credit history or very low credit score.

These high interest loans do make people pay a lot more for a house they want but actually have some benefits.

There are many financial institutions that specifically deal with subprime lenders. This means they know how to help those with poor credit.

Some banks also offer prime and subprime mortgages because they know their community well and some areas just don’t have the types of jobs that prime mortgages will need to ensure their monthly payments.

It can be embarrassing to go to a local bank if you live in a relatively small town so you may want to choose a subprime only lender.

A good benefit of a subprime mortgage is that you don’t have to take the time to raise your credit score. This can take years of payments and credit building and many people just don’t have the time for all of that.

They realize they made some late payments here and there but are past that and want to own a home. Not everyone with bad credit got it by not paying their bills on time.

Many times, wives and husbands who are irresponsible can annihilate their significant other’s credit and even after divorce, it’s still bad.

A subprime mortgage to many people is a chance for a new beginning.

If you need a Subprime Mortgage in the Grand Rapids Michigan or surrounding area, contact us and we would love to help.

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To put it simply, it’s a loan where you are using your house as collateral. The difference between this and a normal loan is that your house becomes your backup just in case something happens and you are unable to continue payments.

Mortgages come in many different forms depending on what you are looking for with regards to financing. Some examples are the fixed rate and adjustable type.

These differ in how the payments are set up and whether or not each payment will be influenced by current interest rates across the country.

There are also commercial loans if you are planning on buying an apartment complex or other type of real estate that has the potential to make you money.

Before you decide to buy a home, it’s very beneficial to do as much research as possible. You should try to learn about each different type of mortgage and what the payments actually consist of.

Do they change each month Should you put a lot of money down before setting up payments It can be very complicated and stressful for almost anyone due to the sheer ending cost of it all.

Owning a home is a dream for many people and you will want to make sure you are well educated on home ownership before you even speak to a broker.

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Well, there are lots to choose from and they are all tailored to your specific needs. If you have a great job and money isn’t an issue, you can make higher payments and possibly pay off your loan in as little as 10 to 15 years.

For many people though, they don’t have great jobs and need to best plan for their budget.

Most mortgages differ in just a few ways. They may require balloon payments up front or toward the end of the loan period or they might be influenced monthly by ever changing interest rates.

Fixed rate loans are very popular because you are guaranteed to have the same bill every month regardless of interest rates. If you are on a budget, this is a great option.

Adjustable rate loans differ from fixed rate as they fluctuate with current interest rates. Don’t worry though, they usually have a cap so you won’t be paying twice as much as the month before. The cap is usually just a couple percent.

These are just a couple of popular types of home loans. If you plan on getting a commercial loan, you will have many more mortgage types available.

Some of these have very low payments for the first year until your business is established and they they increase so you can pay them off quickly.

The best bet is to research the different types of loan you are interested in and discuss them with someone here.

Contact us for more information.

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The real term for this is called a home equity loan. This is a common loan type that homeowners can use for whatever they want.

A home equity loan requires that you use your house for collateral just like a normal home loan. There are different types of home equity loan out there and you can always use the money for whatever you want.

College, bills, and home repairs are some common uses. You will need outstanding credit to be approved for this kind of loan though.

A closed end type home equity loan gives you a big chunk of money immediately and you can’t get another loan until this one is fully paid.

The amount you can get depends on factors such as how much your home is worth, your income, credit score, and similar things. A closed end loan usually comes as a fixed rate type and allows you up to 15 years to pay it off.

An open ended home equity loan is a little different. This loan will let you borrow money whenever you have a need for it.

The loan lender will set up a line of credit that is pretty much based on all the same factors as the closed end loan. These usually have an adjustable rate and you can make payment for 10, 15, or even 30 years.

So why are these called second mortgages Because you are adding yet another loan payment that uses your house as collateral and adding another monthly payment. Though tempting, it can cause you a lot of problems in the future.

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Do you want old wrecked cars on your lawn Go for it. Finally build a duck pond of your own Sure, it’s YOUR house and you can do what you want.

Unfortunately, life happens and sometimes you won’t quite be able to make your loan payments all the time. This is where private mortgage insurance comes in.

When you first buy your home, most lenders expect you to pay a large down payment of at least 20 percent or get some kind of insurance loan protection program that’s called private mortgage insurance.

This insurance coverage will protect the lender just in case you are ever unable to make your monthly payments. This insurance doesn’t cover anything else though.

If your home catches fire or something, you better hope you have some other types of insurance. This is only to cover you if you fail to make your payments.

Even if you don’t need it, it doesn’t hurt to get private mortgage insurance just in case. No job is 100 percent reliable and if you have to relocate or change jobs, you won’t have to worry about your house payment if you happen to go a week or two without pay. It’s better to be safe than sorry.

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Knowing these factors and doing what you can to improve them all can make a tremendous difference when you go and see your lender and start the process that will get you your new property.

Some of the basic factors apply for just about any loan but are especially important if you are trying to get a mortgage. The big one is, yep, credit.

How good is your credit Get copies of all of your credit reports from the 3 major consumer reporting companies and check each one for errors.

Many times they have errors that can be corrected in just a few weeks and that helps boost your score. If you have credit cards, pay them off as well as any other outstanding bills.

A nice large down payment will always improve your chances of being approved. If your credit isn’t completely top notch, the bigger the down payment, the more likely you will get improved.

If your credit is great, you can still put down as much as possible to lower the monthly payments or decrease the total loan time.

Above all else, don’t lie to your lender. If you tell them you are a supervisor of a power plant and they find out you are a UPS man who has only had the job for 6 months, you will be totally screwed. Be honest and your lender will do their best to work with you.

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