Yes, it is still possible to qualify for a mortgage. Insight Loans is the industry leader in Bruised Credit Mortgages. We have programs 1 day out Bankruptcy with a sizable down payment and 2 years out of Bankruptcy with a small down payment.
The documentation required for each loan differs depending on your situation. We always require income, employment, and asset verification, but sometimes we need additional items. Your Loan Officer will provide you with a list of items needed.
Mortgage insurance protects the lender against taking a financial loss in the event the mortgagor stops making payments. It is required on mortgage programs that require less than a 20% down payment. Mortgage insurance on a Conventional loan can be avoided by putting 20% down or doing “Lender Paid Mortgage Insurance” (LPMI). With this option, the lender pays the mortgage insurance, which is offset by a higher interest rate charged to the borrower. Ask your Loan Officer for details.
These programs make it easier to purchase a home for those that otherwise may not be able to afford it. There are programs that require little or no down payments, no pre-payment penalties, and limit certain fees and charges the borrower must pay to establish the loan. These programs also have excellent rates.
Your monthly mortgage payment includes a payment to the principal balance, interest, and escrow, otherwise known as P.I.T.I. (principal, interest, taxes and insurance). The principal portion will decrease your balance owed each month while the interest goes to the Lender. The Taxes and insurance will go into your escrow account until those bills are due.
Pre-qualification is a lender's judgment of your ability to make payments on your mortgage, based on your verbal statement of income, assets, and employment history. Pre-approval is an actual underwriting decision making you conditionally approved and is only subject to the lender's final review of your title work, credit, appraisal and other determining factors.
Seller Paid Closing Costs are costs that the Seller will pay on behalf of the Buyer at closing thus reducing the amount of money the Buyer needs at closing. These costs can be charges like Appraisal, Credit Report, Title Fees, Property Taxes and Home Insurance. It cannot go toward the Buyers down payment however. It is always a good idea to try to get some Seller Paid costs especially if you are working with a limited amount of money.
No, there are no fees charged up-front. The appraisal will need to be paid for via the client’s credit card after the loan has been in process 3 days. If the loan does not close for any reason the borrower will be charged for any actual 3rd party fees Insight Loans has incurred such as credit report fees.
The interest rate is the rate you agree to pay for your mortgage loan. It is used to determine the interest portion of your monthly payment. The annual percentage rate (APR) includes your interest rate and prepaid finance charges to give you an average yearly rate. Typically the higher the loan closing costs and Mortgage Insurance the higher the APR.
Your monthly payment includes an amount which is placed in a fund held by the mortgage company to pay your annual property taxes and insurance premiums as they become due. This fund is referred to as an escrow account.
A rate lock is an agreement between the lender and borrower guaranteeing the rate for a certain period of time. There are four components to a rate lock: loan program, interest rate, points, and the length of the lock. Typically a standard rate lock is either 30 or 45 days.