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Stonebriar Mortgage

Stonebriar Mortgage

What to Look for in a Mortgage Company in Dallas

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What to Look for in a Mortgage Company in Dallas

Looking for a home loan in Dallas or elsewhere in Texas? To find the perfect mortgage, you will need to choose a mortgage company that is as dedicated to connecting you with it as you are to finding it.

Below, you can read some recommendations to help you choose a company to work with on your Dallas home loan.

1. A full spectrum of loan options.

There are many different types of mortgages out there to choose from, and each of them is ideally suited to a different situation.

If you work with a lender that features a limited selection of mortgage products, you may not find the home loan which is most affordable and convenient for you.

If, on the other hand, you choose a mortgage company with a diverse range of lending products, you stand a much better chance of being connected to the one which is going to be ideal for your needs.

2. A flexible application process.

Did you know that the traditional loan application process that requires a W-2 is no longer the only way that you can apply for a home loan?

That traditional process is still a great fit for many loan applicants, but with an increasingly large self-employed workforce, quite a few applicants are looking for a different way to apply for a mortgage.

Mortgage companies which offer a bank statement loan program (also called a stated income loan program) can help you qualify for a mortgage without providing traditional income documentation.

Investors shopping for Dallas properties with the goal of closing rapidly also may avail themselves of an alternative application process like this in order to save time.

3. Experience in the Dallas real estate market.

When choosing a mortgage company to work with, one of the questions you should ask is, “How much experience do you have in this market?”

A local Dallas mortgage broker can typically offer more than a nationwide big box lender in terms of local knowledge, resources and connections.

A larger network of lenders with more established relationships can translate to more loan products available and easier approval.

4. Convenience and speed.

Whether this is your first time shopping for a home or you simply have had a difficult time in the past working with another mortgage company, you might believe that applying for a home loan is necessarily inconvenient and stressful.

But with the right home loan company in Texas on your side, it can be fast, easy, and convenient to get matched with your ideal mortgage.

Features such as useful online tools, different channels of communication being offered, and great customer service (see below) can all speed up the process and make it a pleasant one.

5. Amazing customer service.

There is arguably nothing more important to look for in a mortgage company in Texas than outstanding customer service.

When you are making a huge financial decision such as selecting a mortgage, you want experts on your side that are dedicated to protecting your financial interests now and in the future.

Work with a broker that makes it clear through their actions that they are here first and foremost to make sure that your needs are met.

Consult Now With Stonebriar Mortgage

Stonebriar Mortgage is a Texas-based mortgage company with two decades of experience.

We are well-networked, offer many different types of loans, provide flexible, easy qualification, and can tackle scenarios such as self-employment with speed and efficacy.

We have helped so many homebuyers in the Dallas metropolitan area and throughout TX to move into the homes of their dreams with affordable home loans.

If you are ready to move into your Texas home, please give us a call now at (214) 669-3307 to schedule your consultation. We can’t wait to meet you and get you pre-approved for a home loan.

No Document Loans

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No document loans can be a great solution for borrowers who want to invest in property but have little to no documentation. Many private lenders offer this unique financing option. Commonly known as “no-doc mortgages” or “no-doc loans,” these loans accept a variety of alternative financial documentation. No document loans are your path to home financing without the traditional income documentation, learn more about investing in a Dallas, TX or California home from Stonebriar Mortgage. We can help you find the right lender to start your journey to investing in real estate.

The Essentials of No Documentation Loans

With this type of loan, you are still not excluded from reviewing proof of income. Private lenders will take on risk when providing a mortgage; they must be diligent in ensuring that you can make the mortgage payments. Ensuring that you can pay off your loan is critical to your future.

Stonebriar Mortgage has worked with many clients to avoid risks inherent in some of the no documentation loan programs. A no documentation loan will typically have a higher interest rate than with traditional programs that require more paperwork. This higher rate offsets the level of risk for the bank. Many lenders will also ask for a larger down payment during the approval process.

Documentation such as asset, employment, income from other investments, and other information may be required during the process. Financials will vary depending on the type and size of the loan that a client seeks. Other factors also impact rates, if you have a strong credit score, then this can benefit you. A bank will also want to appraise the property that you seek to purchase. Stonebriar Mortgage will work by your side through closing to find the right financial solution.

The Perks of a No Documentation Loan

Obviously, many homebuyers will choose to work with a no-doc loan because they have difficulty showing their wealth and income on paper. Self-employed people are a target client for a no documentation loan, since they lack some documentation of taxable income. Instead, they may use their savings or at least six months of claimed income in reserve as documentation. Other people can use profit and loss statements and bank statements from their self-owned business.

Some people use no-doc loans to keep their financial history and tax filings private from the lender. If you do this, you may end up with a higher down payment and interest rate. However, your private information will be protected from other predatory lenders who may have an interest in gaining from your wealth.

Finding the Right Mortgage Today

No doc loans are not your only option.  Stonebriar Mortgage also works with traditional mortgage programs and can help you weigh the pros and cons of no documentation loans. Depending on your goals in owning real estate, we can help you find the right home and the right mortgage. We work with clients across Dallas, TX and California, which are high value real estate markets. Get started on investing in the booming real estate market. Contact our professional team in Dallas, TX or California today!

Second Home Loans

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Whether its to vacation in a favorite spot, find somewhere cool to spend summer, or generate investment on another property—there are many reasons to get a second home. Before you decide whether to buy a second home, it is important to weigh your options carefully. You will need to consider if you can afford another mortgage and pay for the upkeep on another home. Below is more information on what to consider and some useful tax considerations. Stonebriar Mortgage helps Dallas, TX and California homeowners learn about options for second home loans in this week’s blog.

Can You Afford a Second Home Loan?

Real estate is a great investment. Even if you are buying a second home to use as a vacation or retirement property, chances are you will not be there year-round. You may be able to generate income off renting the property or owning a timeshare. Below are some factors to consider when deciding if you can afford a second home:

  • Down payment—do you have enough saved for a down payment that will get you good financing on the property?
  • Closing costs—what will the closing costs be? Can you earn them back in rental income or afford them in your budget?
  • Monthly mortgage payment—what will the monthly payments be combined on your current and second home? What about the maintenance costs and taxes?
  • Property Insurance—don’t forget to include any homeowners or mortgage insurance you will need to buy. Some companies charge more for insurance on a second home.
  • Utilities and landscaping—even if you are not there year-round, you will need to pay for utilities and landscaping. How do you manage these things remotely?

Considering the Purpose of Your Second Home

When considering the above costs and whether you can afford them, ask yourself if this is going to be a vacation or investment property. Perhaps it is a mixture of both. The purpose of your second home will impact your taxes. If you spend more than 14 days a year at the home, or rent it for 10% of the time, it is considered a vacation home. In this case, certain items may not be deductible on your taxes, such as utilities and taxes.

If you are using the second home to generate income from rent, then you may be able to deduct items like utilities, management fees, real estate taxes, and more. If the home is a mixture of an investment and vacation property, then get ready to keep detailed records on how you use the home. Your records will be used by your accountant to determine what may be deductible.

Stonebriar Mortgage enjoys helping clients find their second home in Dallas, Texas and California, feel free to reach out with any questions you have about the process.

Interest-Only Home Loans

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Are you looking to buy another investment property? Do you lack the cash flow to pay large monthly mortgage bills? Many buyers want to learn more about great financing to buy a home. This week, Stonebriar Mortgage helps Dallas, TX and California residents understand interest-only home loans. Read on to learn more about various programs and start comparing options. Then, contact our offices when you are ready to start looking.

Interest-Only Home Loan Programs

Many programs are available for home mortgages that offer interest-only financing. It is best to stay up-to-date with program policies, as there are innovative funding opportunities on the rise. Many people remember the awful mortgage crisis in the early 2000s, and are fearful of risks with interest-only options. However, regulations have changed in response to the mortgage problems of the past.

Interest-only mortgages will begin with lower than usual monthly payments and then increase over time. The borrower is only paying off the interest on the loan with these initial bills. This may seem illogical, but interest-only loans offer opportunities to enter the homeowner market at a rate many people can afford. You need to be cautious, and consider whether you can handle the ballooning payments down the line. In the past, banks would approve customers who could not handle this increase. Today, added safeguards are in place that may prevent this issue in the future.

How Interest-Only Home Loans Work

Interest-only mortgages are returning to the market, but remain a very small percentage of new loans approved.  A majority of these mortgages come with a 30-year term. The initial ten years of the loan are interest-only payments. These loans can be fixed-rate or adjustable-rate mortgages. The fixed-rate option helps you predict and keep the same payment throughout the entire term. However, it will be harder for you to take advantage of a lower interest rate should one become available. Conversely, you are protected if interest rates rise.

Some lenders charge a higher rate since interest-only loans may be riskier to approve. If you are able, see if you can make payments towards the principle balance of the loan during the interest-only period. This is usually allowable without a penalty, just be sure you inform the lender that the extra pay applies to principle. However, some lenders will charge penalties for trying to pay too large of a balance or the entire loan early.

How to Qualify for an Interest-Only Mortgage

Many people who are successful at securing an interest-only mortgage carry common traits. Lenders typically like to see higher income and credit scores. A larger down payment will also help convince the lender to carry more risk. Your assets will be reviewed, and it is best if you have reserves that can quickly be converted to cash if needed.

Stonebriar Mortgage is here to help homeowners in the California and Dallas, Texas area consider interest-only loans, contact our friendly team today!

Jumbo Loans

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Are you looking to buy a beautiful home in Dallas, Texas or California? Are you afraid you won’t be able to secure the financing that you need? A jumbo loan may be just the solution for you. This type of mortgage product can be used to finance home loans that exceed restrictions set by Government-Sponsored Entities (GSEs) like Fannie Mae and Freddie Mac. Stonebriar Mortgage is here to discuss jumbo loans for Dallas, Texas and California dream homes. Read on below for more information.

Jumbo Loan Essentials

There are two types of loans: conforming and non-conforming. If a loan is non-conforming that means it exceeds limits set by the GSEs. The limits for conforming loans are updated annually to reflect current home prices, and may be adjusted for more expensive areas, like in California. A non-conforming loan will not get approved for government backing.

In addition, a higher down payment may be required to secure this larger mortgage. You may even be able to provide enough money down to bring the loan into conforming standards for other government programs, such as FHA or VA loans. It is good to explore your options and apply, then adjust down payments and apply again if rejected.

Applying for a Jumbo Loan

When you go to apply for a jumbo loan, there will be a deep review of your finances. The lender will want to verify if you are able to repay the large loan amount using several factors. Here are some of the items considered:

  • Your credit score: usually you will need a good one to get approved.
  • Current debt owed and your debt-to-income ratio.
  • Whether the loan is within conforming or non-conforming rates.
  • Whether you can get Private Mortgage Insurance (PMI).
  • Whether you can offer a down payment (usually they want to see 10-20%).
  • Your current cash reserves and assets.
  • Your home ownership or rental history.

Jumbo Loan Packages

When you secure a jumbo loan, you will need to obtain Private Mortgage Insurance (PMI). PMI protects the lender in case you default on your payments. The cost of this insurance will be factored into your monthly payments. Once you pay down more of the loan, you can negotiate to have the PMI requirement dropped.

Interest rates for a jumbo loan may be higher, due to their increased risk. Perhaps you can investigate an adjustable-rate mortgage, then, apply to refinance the loan down the line if you do not like the rates that you are given. There will be closing costs associated with securing the original loan and with refinancing the loan again.

Whether or not you decide to get a jumbo loan, Stonebriar Mortgage is here to help Texas and California residents secure their dream home. Contact our friendly team today with any questions.