Getting to Know the Home Buying Process

Getting to Know the Home Buying Process

Getting to Know the Home Buying Process

 

The Mortgage process can be daunting, which is why we recommend having a local Alabaman mortgage broker in your corner that will take you through the different twists and turns of every process. You want to find the best mortgage company, and we recommend Rocket Mortgage as they are the largest and best in the U.S and have years of experience, great customer service, convenience, and access to easy online technology. It is important that you select a mortgage company that will service your loan after you close, so it is best to know what you are looking for.

 

Mortgage Servicing: What you should know

It is best to find a local mortgage broker that will help you manage your mortgage and guide you through the application process, and after closing, until your loan has been totally paid off.

There are various things that your local mortgage broker does, and these include the following:

  • Assisting the client with obtaining pre-approval for a mortgage loan
  • Collecting all relevant documentation (pay slips, bank statements etc.)
  • Help you complete the mortgage application
  • Ensuring that borrower understands all legal disclosures
  • Submitting documents to the lender
  • Maintaining records of payment
  • Maintaining loan balances
  • Providing timely communication
  • Collecting monthly payments
  • Making sure Property taxes are paid
  • Making sure homeowner insurance is up to date

Understanding Fees and Payment Options

When comparing different mortgage lenders and servicers, we recommend the personalization and convenience of an Alabama licensed mortgage broker.  They will explain to you the various servicing fees and payment options

Rocket Mortgage has no service charges when it comes to payment and provides different payment options like one-time payments, automatic payments, and biweekly payments.

Technology: Personal Online Account

It is understandable that life can get busy sometimes, and it might be hard to manage all the paperwork and payments that will come with getting a mortgage. With Rocket Mortgage, you will have access to a personal online account that will allow you to do the following:

  • Manage and make payments
  • View your tax and insurance payment history
  • Access your loan information
  • Use the amortization calculator
  • Access your mortgage documents
  • Keep track and view your home’s equity easily
  • Connect with Rocket Mortgage through the online chat feature

 

More Benefit of Rocket Mortgage Compared to Other Mortgage Companies

Rocket Mortgage offers less servicing fees than other lenders in the marketplace. There is no charge when you make a payment on your mortgage, whether you make it online or over the phone. This service is free, so you can rest assured that you will save hundreds, or even thousands, of dollars throughout the life of your loan.

Rocket Mortgage also has multiple payment options:

  • One-time payments
  • Automatic payments
  • Biweekly payments

With that being said, when you choose a mortgage company, you need to make sure you ask about any additional fees that might be added on top of your mortgage payments.

Loan Types and Products that Rocket Mortgage Offers

If you are looking for a company that offers a wide range of loan options, Rocket Mortgage is the best option for you. For people who want to buy a new home and for homeowners that are looking to refinance an existing mortgage, Rocket Mortgage is the best option that you should look into.

Right now, they offer the following types of mortgages:

  • Refinance loans
  • Fixed-rate loans
  • VA loans
  • FHA loans
  • Conventional loans
  • Jumbo loans

You will have access to different types of mortgage refinance loans through Rocket Mortgage, which include standard rate and term refinancing, as well as cash-out, refinance loans. They also offer government-secured loans for refinancing like FHA streamline refinance loans and VA Interest Rate Reduction Refinance Loans or IRRRL.

There are also services that Rocket Mortgage doesn’t offer, which are the following:

  • USDA loans
  • Construction loans
  • Adjustable-rate mortgage loans
  • Any type of renovation loans
  • Home equity loans
  • Home equity line of credit

Rocket Mortgage: Refinancing Services

Rocket Mortgage offers a good selection of refinance loans, from conventional to government-backed loans. The average refinance loan takes about 30 to 45 days to close, from start to finish. The fees that you pay to refinance usually average from two to three percent of your loan amount.

You also won’t be able to have an estimate of fees until you submit an application to Rocket Mortgage. If you want to avoid any extra upfront costs, you can roll the refinance closing costs into your new home loan. This will work if you have enough equity to show.

Conclusion

There are plenty of benefits and advantages that Rocket Mortgage offers. They offer a wide range of services and the best part about this company is they do not have an extra charge when you are making payments. Hopefully, with all the information that is listed above, you can make an informed decision to choose Rocket Mortgage as your company.

Should I Refinance?

Should I Refinance?

Refinancing 101

 

One of the biggest financial burdens in life is when you have a mortgage. Refinancing your home will save you money or make your monthly bill payments easier. Now, you should only refinance when you can lower your interest rate, but this is not always applicable. There are some homeowners that may need short-term relief from a lower monthly payment, even if you need to start over with a new 30-year loan.

 

When Is the Right Time to Refinance?

 

The number one trigger when it comes to refinancing is when homeowners start to notice that mortgage rates are falling below their current loan rate. However, there are other good reasons why you should consider refinancing, and they are the following:

  • Homeowners are looking to pay off the loan quicker through a shorter term.
  • Homeowners are looking to tap a bit of home equity with a cash-out refinance.
  • Homeowners have gained enough equity in their homes to refinance into a loan without any mortgage insurance.

The rule of thumb when it comes to refinancing is if you can reduce your interest rate by at least 1.5  percent. However, there are plenty of lenders that say one percent is enough for homeowners to consider refinancing.

Remember that when you reduce the interest rate, it will not only help you save money but will also increase the rate at which you would build your equity in your home. Aside from that, it can decrease the size of your monthly payment.

 

Good Mortgage Rate: How to Know

 

Once the Federal Reserve lowers short-term interest rates, plenty of people expect mortgage rates to follow. However, mortgage rates will not always move in lockstep with short-term rates. Make sure that you avoid focusing too much on low mortgage rates that you may read or see in different advertisements.

Keep in mind that the mortgage refinance rates change throughout the day, every single day, and the rate that you will be quoted may be higher or lower than the rate published at any provided time. The mortgage refinance rate is based on your credit score as well as the equity you have in your home.

You will be more likely to get competitive rates when your credit score is good and you have proof of steady income.

 

The Inner Workings of Refinancing: What You Should Know

Once you decide to refinance, you will get a new mortgage to pay off your existing mortgage. Refinancing is the same as getting a mortgage to buy a new home. You will be free from any stress of home buying and moving. There is also less pressure to close a deal by a particular date.

If there will come a time that you regret your decision, you have until midnight of the third business day after you have closed your loan to cancel the transactions that you have done.

You also have to submit an application and meet your lender requirements in different areas, such as credit score, debt-to-income ratio, and employment history. You will have a choice to go with your original lender or find a new one when it comes to refinancing.

You, as a homeowner, should also have enough equity in your home to qualify for a refinance. The equity in your home should be typically at least 20 percent.

Make sure that you keep in mind that you will also need to pay closing costs and fees. It should be around three to six percent of the loan’s value. The value for this can add up to thousands of dollars, so it is best that you crunch the numbers to make sure the money you will save in interest will exceed the closing costs.

 

How to Find the Best Refinance Rates: The 101

 

For you to find the best finance rates, you will need to do some work but rest assured it won’t take too much of your time. Make sure to look at banks, credit unions, and online comparison sites so that you can find the best finance rates. Aside from that., you can also work with a mortgage broker if you want someone to do all the work for you.

The government will require the loan estimate to show your estimated interest rate, monthly payment, and closing costs on a standard form that will make it easy to compare information across different lenders.

We recommend using Rocket Mortgage as they are the largest lender in the United States and as such offer many benefits over other lenders.

 

Final Thoughts

 

Refinancing can be a great financial move when it comes to reducing your mortgage payment, shortening the term of your loan, or helping you build equity quickly. If used carefully, it can be a valuable tool for bringing your debt under control. Before you take a step-in refinancing, make sure that you take a careful look at your financial situation and ask yourself important questions.

It always pays to remember that savvy homeowner is always looking for ways to reduce their debt, save money, build equity, and eliminate their mortgage payment. When you take cash out of your equity in refinancing, it doesn’t help to achieve any of these goals.

 

Should I Refinance?

Get to Know the Home Buying Process

Get to Know the Home Buying Process

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