Helpful Mortgage Refinancing Suggestions for Los Angeles in 2013-2014
If you have been trying to figure out when it would be the best time to get a Los Angeles mortgage, then 2013 might be one of the few times. If you have decent credit and know how to shop around for the best rates, then you might be about to find some great rates. This is possible even if you have an underwater loan. The following are 10 helpful mortgage suggestions that you can use to find great mortgage options in 2013:
Suggestion 1: Don’t Wait Around—Refinance Now
If you have not undergone a Los Angeles home refinance within the past few years, then you probably have a high mortgage rate. Get one of the existing low rates while you still can. It is said that these rates should still be low during the first part of 2013, but they will eventually go up. However, when they do increase, a lot of people will hate that they did not refinance and get a low rate when it was possible.
Suggestion 2: Buy a Home Now
Since rates are so low, now is the time to buy a home. If you don’t think that you will qualify for a loan, now would be the best time to get in a home for a lot less money. If you want to make the process much quicker, then get your mortgage preapproved before you begin house hunting.
Suggestion 3: Do a Comparison between FHA and Traditional loans
A lot of house hunters would prefer an FHA loan Los Angeles because it gives them the chance to get into a home with only a three and a half percent down payment. However, the fees that are associated with FHA loans will go up in 2013. As a result, many house hunters will prefer to use savings and get into a home via a traditional loan instead, based upon their credit score. If you have savings that can be applied towards a conventional loan, then compare a conventional loan to a FHA loan.
Suggestion 4: Make Sure that Your Credit is Superb
Getting credit is still going to be a hassle. There are new Los Angeles mortgage rules for 2013. Good credit is going to be the key. You will have to have a least one year of almost perfect credit history. Also your credit score will have to be 720 in order to get a pristine interest rate. If you have a credit score of 680 or higher, you might still be able to get a good mortgage rate, but the lower the score, the harder it will be for you to be granted loan approval.
Inspect your report before applying for a mortgage loan. Pay down your balances in order to improve your score. If you are using over thirty percent of your available credit, this will hurt your credit rating. Also, make sure that your report does not have any errors before applying for your Los Angeles mortgage loan.
Suggestion 5: Pay Off Your Mortgage Earlier
If you want to be debt free, this might be the time to change your 30 year mortgage into a 15 year mortgage or even a 20 year one. However, be certain that you can have the money to pay the higher amounts for the shorter duration. Also, be certain that you have an emergency fund as well.
Suggestion 6: If you have an Underwater Loan, then Refinance
If your loan is more than the amount of your home and you have attempted to refinance your home in the past, then attempt it again. The HARP 2.0 has changes to give homeowners the ability to refinance, no matter how much they were underwater on their present loan. Even though there were changes to the program, many homeowners still have problems trying to refinance. However, lenders are starting to come around and are paying attention to the HARP 2.0 program these days. If one will not approve you based upon the HARP 2.0 program, then go to another one who is more receptive.
Suggestion 7: Work with Your Lender
If you are not able to pay your mortgage, then do not ignore your mortgage lender. There are many new programs in the works that can help you to pay your mortgage payments on time. Lenders are more receptive to working on ways to pay past due loans via loan modifications. Some are even okay with short sales so you do not have to remain in a home that you cannot pay for anymore. You might not like it, but your best bet is to keep the lines of communication open with your lender.
Suggestion 8: Do Not Apply for Anything Else Before Closing
A lot of lenders will pull a second credit report before closing. Do not screw things up by opening up any more credit accounts during this time. Quite naturally, this could change everything. If you were a borderline applicant, your mortgage lender might change their decision and not grant you a loan.
Suggestion 9: It is Not Final Until Closing
The mortgage application is approved and a rate is approved. This is only the beginning. Get all requested documents to your lender within a twenty-four hour period. When you don’t respond to your lender or hold off the home appraiser, this is wasted time. Lenders have numerous applicants during 2013. Lost paperwork or last minute changes could possibly delay closing. Why should you be concerned? This means that you could lose your locked in interest rate. Communicate with your lender at least once a week in order to confirm that everything is still on track.
For more information on getting the best mortgage possible call our experienced mortgage brokers Los Angeles at Yousif Mortgage Services at: (310) 252-7268.