If you are one of the numerous Americans looking to get a mortgage online these times, weather you are looking to refinance your current home loan, purchase a new home or just get an equity credit line, I'm sure you have noticed that it seems nearly impossible to get approved for the mortgage loan you require. Thanks to the slumping economy and the large quantity of bad loans that were originated right before the burst from the big real estate bubble, banks have tightened their belts and therefore are making people literally jump through hoops to get authorized for mortgages online.
So what can you do to assist get that mortgage you so desperately need? Well to become quite honest, your chances of getting approved to refinance your present mortgage are probably better now than they were last year but it is still not easy.
The big problem is that when many people purchased their homes when the housing market was booming a few years ago the banks were appraising homes whatsoever time highs, so if they appraised your home to become worth $600, 000 a few years ago and a person put 10% down, your mortgage amount would be close to $540, 000 and today your house would be valued through the bank at probably $400K to $450K depending on where your house is located. This means that even after paying your mortgage for three or four years you still probably owe more than the house is actually valued at by the mortgage lenders. This is an issue because no bank wants to refinance your home for a lot more than what they see its worth. These days your LTV (Loan to Value) needs to be at least 80% which means the most a bank really wants to refinance is approximately 80% of your homes value. Which means that if your home is now worth $450k the most the typical bank would be willing to refinance is maybe $360K. That's the reason it is becoming almost impossible to get approved on the refinance. People all over the United States are inverted on their mortgages.
There may be programs that your current lender can offer you to be able to lower your monthly mortgage payment such as a mortgage loan modification. A mortgage loan modification is when a lender modifies or alters the terms of the current mortgage outside the terms of your original agreement. The only way to do this is to have the ability to show a financial hardship that proves you had a lack of income. Under the Making Homes Affordable program derived by the us government, if you qualify, a lender can lower your monthly mortgage payment to 31% of the gross monthly income. Many people in these trying financial times happen to be struggling to get their loans modified but find they're constantly getting the run around by their lender. Many people have been fortunate enough to have their loans modified inside a timely matter.
If you are in the market to purchase a home you might be in a better position to get approved for a home loan online but it's still not as cut and dry as it was previously. The good thing is that there are many homes available on the market right now at great discounts form a few in years past. If you have your minimum 20% down payment, a great steady job with verifiable income, and a good credit rating you will eventually get approved on a mortgage. Rates of interest are at an all time low and the housing industry is very soft, with tons of foreclosures to select from at great bargains. So if you have the opportunity to buy a home now has become the time to try. It will probably be the best investment you make that you experienced!
So what can you do to assist get that mortgage you so desperately need? Well to become quite honest, your chances of getting approved to refinance your present mortgage are probably better now than they were last year but it is still not easy.
The big problem is that when many people purchased their homes when the housing market was booming a few years ago the banks were appraising homes whatsoever time highs, so if they appraised your home to become worth $600, 000 a few years ago and a person put 10% down, your mortgage amount would be close to $540, 000 and today your house would be valued through the bank at probably $400K to $450K depending on where your house is located. This means that even after paying your mortgage for three or four years you still probably owe more than the house is actually valued at by the mortgage lenders. This is an issue because no bank wants to refinance your home for a lot more than what they see its worth. These days your LTV (Loan to Value) needs to be at least 80% which means the most a bank really wants to refinance is approximately 80% of your homes value. Which means that if your home is now worth $450k the most the typical bank would be willing to refinance is maybe $360K. That's the reason it is becoming almost impossible to get approved on the refinance. People all over the United States are inverted on their mortgages.
There may be programs that your current lender can offer you to be able to lower your monthly mortgage payment such as a mortgage loan modification. A mortgage loan modification is when a lender modifies or alters the terms of the current mortgage outside the terms of your original agreement. The only way to do this is to have the ability to show a financial hardship that proves you had a lack of income. Under the Making Homes Affordable program derived by the us government, if you qualify, a lender can lower your monthly mortgage payment to 31% of the gross monthly income. Many people in these trying financial times happen to be struggling to get their loans modified but find they're constantly getting the run around by their lender. Many people have been fortunate enough to have their loans modified inside a timely matter.
If you are in the market to purchase a home you might be in a better position to get approved for a home loan online but it's still not as cut and dry as it was previously. The good thing is that there are many homes available on the market right now at great discounts form a few in years past. If you have your minimum 20% down payment, a great steady job with verifiable income, and a good credit rating you will eventually get approved on a mortgage. Rates of interest are at an all time low and the housing industry is very soft, with tons of foreclosures to select from at great bargains. So if you have the opportunity to buy a home now has become the time to try. It will probably be the best investment you make that you experienced!