|The Archibald Group has researched and worked with many mortgage brokers and lenders. We will help you contact the best fit for you and your financial picture.|
|Mortgages for W-2 Wage Earners
Even though W-2 wage earners have the simplest mortgage process, there are still factors that can make one lender's products a better fit for you over another. Every mortgage broker and most lenders tend to work within their own requirements and procedures, and these may or may not be the friendliest terms for a salaried or hourly wage earner.
We know which lenders are easiest to work with, and who have the best terms.
|Adjustable Rate Mortgages (ARMs)
Most residential home buyers are buying a home they intend to occupy for a number of years. However, this isn't always the case. Some (including investors) may be looking at a shorter ownership time frame. ARMs are appropriate if the plan is to own a home seven or fewer years, particularly five or fewer.
Lenders are willing to loan money at lower interest rates when their money is tied up for a shorter period of time. For that reason, ARMs can result in much lower monthly payments. They can also allow a buyer to qualify for a larger home. However, this isn't generally a great practice, as once the fixed rate period of an ARM is ended, rates can escalate more than expected.
|The Self-Employed Borrower
Since the mortgage and housing crisis began in 2007, it has become a grueling process for a business owner or self-employed person to get a mortgage.
Documentation of income and expenses has become much more detailed and cumbersome. We can suggest a number of lenders that make the process a bit easier.
|Financial Disclosure and Deal-To-Closing Considerations
Since the mortgage and housing problems began in 2007, lenders and their underwriters are scrutinizing income and expense information much more closely. You should be prepared to provide a lot of documentation, and it will be best to be forthcoming with any financial information that impacts your ability to pay the mortgage payment. Eventually they will uncover the information as they work through the process, which could leave you scrambling at the 11th hour. Also, be sure not to add any credit card or other debt between the purchase contract and the closing.
Just before closing, most lenders will pull your credit one last time to check for higher credit card debts or any liens or encumbrances. If they find any, they could deny your loan at the closing table.
|Less than Stellar Credit
It is easy to get a credit ding or two in this tough financial environment. In fact, it doesn’t even take a mistake or late payment, as credit scores are reduced for debt ratios as well as types of debt. Millions of people pay their bills on time and still don’t have those high end credit scores. We know the lenders that are able to provide good mortgages for less than high end credit scores.
|Watch the Fees and Question Them
There are a number of fees associated with getting a mortgage. The cost of origination and other fees are usually some of the highest closing cost item in the deal.
Never hesitate to ask about all fees, why they are charged and how they are calculated.