Home Mortgage Archives - Stonebriar Mortgage

How Your Credit Score Affects Your Mortgage Rate

November 26, 2019 by Stonebriar Mortgage

From your income, to your bills, to your lines of credit—many factors influence your credit score. The score follows you through life and impacts numerous things, including your ability to buy a home. Whether your score is high or low will determine the rates and terms of your mortgage. This week, educate yourself about how your credit score impacts your mortgage rates with Stonebriar Mortgage in Dallas, TX and California.

Getting Approved for a Mortgage

The higher your credit score is, the better your chances are for getting approved to hold a mortgage. Your credit score also influences your ability to obtain pre-qualification for a mortgage. If you are considering how your credit score will impact your life, you can always get professional help from a credit counselor. You can also seek advice from the team at Stonebriar Mortgage.

Rating Your Credit Worthiness

If you have a high credit score, and other good traits sought by lenders, then you can get a mortgage approved with a great rate. However, if your score is low, you may consider holding off on a major purchase until the score improves. If the low score is being caused by high debts or late payments, seek out an accredited counselor to guide you in the process of debt consolidation or paying fees off.

Your credit rating is set and highly regulated in this market. There are three different national credit bureaus that calculate your credit score: Experian, Equifax, and TransUnion. Each bureau may have a very slight difference on your score, but the way they calculate it must be consistent.

Mortgage lenders may check your scores and consider your income or other assets. Scores in the 700 and above range are considered good, as you move downwards, you will be seen as a moderate risk by banks (usually around 620 or below) and some may even decline you as you drop below the 600’s. If it does not seem like you will get a good rate for a major purchase, consider changes to improve your score by just 20 to 100 points.

Repairing Your Credit Score

If you have a low credit score, and want to improve it, there are many services available. You should research to ensure that they are valid sources and not scams. The team at Stonebriar Mortgage is here to help you. A simple way to improve your score is to ensure you pay off debts on-time, and before the date that the company reports to the credit bureau. Below are other ways people have been able to repair credit:

Debt consolidation-aim at using this only to consolidate to lower interest rates on outstanding debts and pay things off quickly.
Ensure your current lines of credit are not closed/left unused—it can increase your score by a minor amount to use an older credit card for a small purchase and pay it off immediately.
Calling companies to discuss repair—if you see a blemish on your credit report, try contacting the company to clean it up, especially if it shows there may have been an error or identity theft.

Stonebriar Mortgage is here to help people in the Texas and California markets understand how to get great mortgage rates. Even if you feel your score is low, home ownership may not be as far off as you think!

2- and 4-Unit Multifamily Loans

September 24, 2019 by Stonebriar Mortgage

Buying a duplex or multifamily apartment complex can be a great way to generate steady income and build wealth through real estate. You can even live on-site while you build up savings and equity. Financing two- and four-unit complexes can be like obtaining a mortgage on a single-family home. This week, Stonebriar Mortgage tells Dallas, TX and California homebuyers how to invest in real estate using two- and four-unit financing loans.

Is it a Residential or a Commercial Loan?

The first thing to understand about financing complexes with multiple units is to know which category the units fall into. Generally, the smaller buildings of two to four units fall into residential home mortgages. Properties with more than four units will likely require a commercial lender and additional requirements that you must follow. Stonebriar is here to focus on two to four-unit complexes for the purpose of this topic.

Loan Programs for Multifamily Properties

The same loan programs that help purchase single family homes can be used for multi-family properties. FHA Loans, VA Loans, and conventional loans all have programs available for this larger purchase. Obviously, FHA and VA Loans will have specific qualifications and criteria.

Using FHA Loans

Using an FHA loan will require you to live on the property, but the program can be more accessible financially. You can get as low as 3.5% down payment requirements, good rates, and qualify even if your credit score is not perfect. The eligibility may be less stringent, but the loan amount and property must be within the FHA criteria.

Using VA Loans

For this program, you must be a qualifying current or former military member. You must still also live on-site. However, in this program, no down payment may be required. Costs and requirements for the program are also very reasonable. VA lenders will not require you to get private mortgage insurance and as with FHA Loans, you do not need perfect credit to qualify.

Using Conventional Loans

Conventional loans are non-government sponsored. There are still limits on the size and costs on the properties they will pay for. These are private programs and may require you to pay mortgage insurance and place larger down payments than with FHA and VA Loans. Your financial information and credit score may be more heavily scrutinized, depending on the lender.

Loan Programs for Multifamily Properties

In purchasing the complex, you must clearly decide whether to live on the property as you apply for loans. If you decide to live off-site and be the landlord, then you must consider how you will manage the property remotely and pay for this. Stonebriar Mortgage enjoys helping clients find two- and four-unit complexes in Dallas, Texas and California, please feel free to reach out with any questions you have about financing.

Reverse Mortgages

August 27, 2019 by Stonebriar Mortgage

A reverse mortgage is exactly how it sounds; it is a loan taken out of the equity in a home you already own. Many people use a reverse mortgage to pay off debt, make home repairs, or purchase a second property. Home equity loans are another name for a reverse mortgage. While these loans can be hard to understand, the process can be quite simple. In this week’s blog post Stonebriar Mortgage helps Dallas, TX and California homeowners learn about reverse mortgages.

Understanding Reverse Mortgages

Imagine you take out a reverse payment from all the monthly payments you have made on your home mortgage. This is exactly what you do when you apply for a reverse mortgage. The lender is taking your loan out of the equity you have built in the home, and paying it back out. You will still be charged interest and fees to complete the process. Be sure that you can pay off a reverse mortgage, because if you cannot, then you may have to sell your home.

Home Equity Mortgages

Another name for a reverse mortgage is a home equity mortgage. One type of program, called the Home Equity Conversion Mortgage (HECM) is a government-sponsored program. You can apply for this program directly. Eligibility criteria include many different requirements. Some programs require a minimum age to apply. If you are older, then you have typically built more equity in homes you have owned. The amount of money you can get in this program may depend on your age.

When you apply for an HECM, you will meet with a government housing counselor. Together, you will review your income, home appraisal, credit score, debt, and abilities to handle additional financial responsibilities. The counselor will then notify you if a HECM makes sense and can also help refer you to other programs.

Other Reverse Mortgage Programs

Single purpose reverse mortgages are another alternative to an HECM. They are a program created for a single specific purpose: such as energy upgrades or home renovations. Government agencies and nonprofits typically manage single purpose reverse mortgage programs. Some agencies even create programs to help people pay off their debts.

Proprietary reverse mortgages are another type of home equity loan. These are designed by private banks, typically. If you wish to increase the value in your home or raise its worth, you can speak to a lender about the various programs available. Since the lender creates the program terms, there can be many options for your reverse mortgage.

If you want to know more about reverse mortgages, we are here to help. Stonebriar Mortgage helps Dallas, TX and California homeowners with an array of home loan needs, including equity loans. Contact our friendly team today!