Purchasing a home can be a rewarding, yet challenging experience for cash-strapped first-time homebuyers. Due to out-of-pocket costs associated with buying a home, you might doubt your ability to secure a mortgage. Premier Mortgage Group offers a variety of mortgage solutions to help first-time homebuyers attain financing, such as government-sponsored bond programs.
These programs provide down payment and/or closing costs assistance to first-timers who have limited cash reserves. Borrowers who haven’t owned in the previous three years may also be eligible for a bond program.
A renovation breathes new life into an outdated property, but it isn’t without costs. Our Renovation Loan can provide the resources you need to transform a primary residence or investment property—without juggling separate loans. Regardless of whether you are buying or refinancing, you can roll renovation costs into your mortgage loan. Since home renovations boost a property’s value, the amount you’re eligible to receive is based on the property’s appraised value after renovations.
It's possible that if you are struggling to pay your current payment, a refinance of your mortgage might be the solution. Refinancing replaces your current mortgage with a new one, often resulting in a more favorable interest rate and terms. Other benefits of refinancing include:
As a medical physician, you have unique financial circumstances and housing needs. Within your profession, large amounts of student loan debt are common, and employment earnings can vary wildly from residency to practice. Additionally, as you begin to earn more income and start to look at homes with higher sales prices, you may find yourself looking at loan amounts that exceed conforming loan limits and require more specialized financing. All of these issues can make for a confusing and difficult home buying experience. At Premier 100, we take time to learn about your needs and circumstances in order to connect you with the right loan - for your situation – with the right rate that fits with your overall financial goals.
Loan-to-Values up to 95% are allowed for properties with sales prices up to $682,500
Loan-to-Values up to 90% are allowed for properties with sales prices up to $1,665,000
Student loans that are deferred for more than one year DO NOT have to be counted as part of your debt-to-in- come ratio, which can help you qualify for a larger loan amount
Monthly Mortgage Insurance* payments not required
Income from a new job can be used for qualification as long as you are scheduled to begin that job within 60 days (for loan amounts greater than $650,000) to 90 days (for loan amounts less than or equal to $650,000)
If you are a physician interested in a property that exceeds Fannie Mae and Freddie Mac’s conforming loan limit of $453,100, securing a mortgage requires specialized financing. Premier 100 can help you find the right mortgage for your situation. Ask about our exclusive Physician Loan Program to see if you are eligible for a loan limit up to $682,500 (with a down payment as low as 5%), or a loan limit up to $1,665,000 (with a down payment as low as 10%).
Fannie Mae is implementing significant guideline changes that will help those with student loan debt to more easily qualify for a mortgage including:
Changes to how debt-to-income ratios are calculated for borrowers with student loans
Expanded guidelines that allow borrowers to pay off student loans without the typical rate increase that’s required for cash out transactions
Exclusion of student loan payments from debt-to-income ratio calculations when a borrower can verify those payments are made by a family member with 12 month’s canceled checks
These changes are welcome news for consumers with student loan debt. Whether you’re looking to purchase or refinance a home, connect with us today to learn more about these updated guidelines and to find out if you qualify.
Will you live in your home longer than three, five or seven years? If so, predictable monthly payments make it easier to budget and manage your money. A fixed-rate mortgage provides this type of stability by protecting you from higher mortgage payments in the future. A fixed interest rate never changes, so your payments remain the same over the life of the loan.
Our Union Advantage Program offers a wide selection of attractive benefits, and we are committed to providing union members and their immediate family with top-notch service through every step of the mortgage process. Don’t let a short credit history or a low credit score stop you from getting a home loan. We can help you find a loan that’s perfect for your circumstances. As a bonus, our union members enjoy specialized benefits such as a $500 gift card after closing on a new purchase or refinance.
Many people think that they need to save lots of money for a 20% down payment on their home. Whether you are a first-time homebuyer or a repeat borrower, it's possible that you can purchase a property with a smaller down payment. Premier 100 can help you review your options in terms of down payment assistance programs or low down payment mortgages. FHA home loans require as little as 3.5% down and a standard conventional home loan only requires 5% down.
Lack of a down payment is one of the biggest obstacles to homeownership, but down payment assistance programs may be available in your area. This type of assistance can include grant programs and interest-free second mortgages. If you don’t qualify for assistance, a Premier 100 specialist can provide information on low down payment mortgage options such as FHA home loans. In addition, many mortgage programs allow down payment and closing costs gifts from relatives, as well as closing costs assistance from home sellers.
If you prefer to live out in the country, our USDA mortgage product may help you get there. For eligible suburban and rural home buyers, it's a 100%, no-money down mortgage loan backed by the U.S. Department of Agriculture (USDA).
The men and women who serve our country as part of the US Armed Forces deserve our respect and gratitude. We have served those who serve us for more than a quarter-century, providing the VA home loan benefits to Service members, Veterans, and eligible surviving spouses. There are both fixed-rate and adjustable-rate mortgage options when purchasing a primary residence, or refinance an existing VA home loan to lower your mortgage rate and monthly payment. Program benefits include:
100% financing/no down payment
No private mortgage insurance
Competitive interest rates
No prepayment penalty
Yes - Premier 100 understands that purchasing a home can be a rewarding, yet challenging experience if you are a first-time homebuyer. Due to unknown out-of-pocket costs associated with buying a home, you might doubt your ability to secure a mortgage. Premier 100 offers a variety of mortgage solutions to help you attain financing such as FHA loans and down payment assistance grants.
These programs provide down payment and/or closing costs assistance to first-timers who have limited cash reserves. Borrowers who haven’t owned in the previous three years may also be eligible for a bond program.
Premier 100 offers HUD-Section 184 Loans, which are specifically designed to assist Native Americans with a home purchase. This program takes into consideration the unique challenges Native Americans face when buying a home by offering flexible credit and income underwriting.
Eligible borrowers can use funds for new purchases, new construction homes, refinances and rehabilitation projects on or off native lands.
A luxury home is a large investment, and setting up financing for your dream home can be complicated. We have access to mortgage products that accommodate the larger loan amounts required by luxury homes, and we have the expertise to manage your transaction efficiently and professionally.
A reverse mortgage enables older homeowners (62-plus) to convert part of the equity in their homes into tax-free* cash without having to sell the home, give up title, or take on a new monthly mortgage payment. (Borrowers must remain current on property taxes, homeowner's insurance, and HOA dues as applicable.)
Whether you are purchasing or refinancing your existing mortgage, our conventional mortgage product may benefit you. A conventional mortgage is a home loan that isn't guaranteed or insured by the federal government and conforms to the loan limits set forth by Freddie Mac and Fannie Mae. You can get a conventional loan at a fixed or adjustable rate. Three other options — FHA, VA and USDA loans — are backed by the federal government.
If you are thinking about building a new home, Premier 100 can help. Whether you need financing for a single-family home or a condominium, Premier 100 will guide you through the process from filling out your loan application until your closing. We understand that building a home can be stressful and it typically takes longer to complete these purchase deals. We strive to make the process as smooth as possible with attractive features:
Our loan officers are paid from the loan itself. Cherry Creek Mortgage has relationships with many investors so we are able to customize products to fit your needs. Since we have access to a multitude of products and investors, it gives us the ability to find you the right loan, not just any loan. Our loan officers work with your financial goals in mind and customize a package, program, or solution for you.
You are ready to buy a home! After you receive your pre-approval, it’s very important to inform us of any changes to your financial picture or credit history as this could impact the amount or type of loan for which you’ll qualify once your loan is fully underwritten.
Mortgage insurance is generally required in one form or another when the down payment is less than 20%, and it protects the lender in the event of loan default. The lower the down payment, the higher the risk for the lender, and thus the higher the monthly mortgage insurance premium. Depending on your particular situation, there may be loan options available that either don’t require monthly mortgage insurance payments or allow your monthly mortgage insurance payments to be dropped at some point in the future.
(Disclaimer: *BPMI = Borrower Paid Mortgage Insurance; LPMI = Lender Paid Mortgage Insurance. LPMI may not be cancelled by the borrower; it terminates only when the loan is refinanced or paid off, and it usually results in a loan with a higher interest rate than BPMI unless discount points are added to lower the rate. BPMI may be cancelled or terminated when the loan reaches 80% of the original value of the property.)
It is a policy provided by the title company guaranteeing the accuracy of the title work done on your home at the time of purchase. As a buyer, you are required to purchase a lender’s policy of title insurance as part of your standard closing costs, which only protects the mortgage company. You may also choose to purchase an owner’s policy, which would protect you against any loss in the event of any legal issues relating to the title of your home.
Many different factors need to be analyzed to determine if refinancing is right for you, such as the length of time you intend to stay in your home, the type of loan you currently hold, or whether you’re currently paying monthly mortgage insurance. We are always happy to provide a recommendation for your particular circumstances.
Not everybody qualifies for the same mortgage rates. If you think about the times you have applied for a loan, you’ll remember that the interest rate the lender gave you was partly determined by your credit score, your debt to income ratio, and the amount of money you were planning to put down on the loan. These are some of the strongest factors that influence rates (though they’re not the only ones).
While home buyer John might qualify for a mortgage rate of 5% based on his credit score and other risk factors, home buyer Jane may only qualify for a rate of 6.25%. The offers you receive will be based on various factors, in addition to your credit score.
Much of it has to do with risk. The big idea here is that risk impacts the rate. A borrower who is considered a higher risk due to late credit payments, high debt ratios, etc., will typically end up with a higher interest rate than a borrower with a higher credit score, more income and significant assets.
We are often asked why there is so much paperwork mandated by the bank for a mortgage loan application when buying a home today. It seems that the bank needs to know everything about us and requires three separate sources to validate each-and-every entry on the application form.
Many buyers are being told by friends and family that the process was a hundred times easier when they bought their home ten to twenty years ago.
There are two very good reasons that the loan process is much more onerous on today’s buyer than perhaps any time in history.
1. The government has set new guidelines that now demand that the bank prove beyond any doubt that you are indeed capable of affording the mortgage.
During the run-up in the housing market, many people ‘qualified’ for mortgages that they could never pay back. This led to millions of families losing their home. The government wants to make sure this can’t happen again.
2. The banks don’t want to be in the real estate business.
Over the last seven years, banks were forced to take on the responsibility of liquidating millions of foreclosures and also negotiating another million plus short sales. Just like the government, they don’t want more foreclosures. For that reason, they need to double (maybe even triple) check everything on the application.
However, there is some good news in the situation.
The housing crash that mandated that banks be extremely strict on paperwork requirements also allows you to get a mortgage interest rate as low as 3.43%, the latest reported rate from Freddie Mac.
The friends and family who bought homes ten or twenty years ago experienced a simpler mortgage application process but also paid a higher interest rate (the average 30 year fixed rate mortgage was 8.12% in the 1990’s and 6.29% in the 2000’s). If you went to the bank and offered to pay 7% instead of less than 4%, they would probably bend over backwards to make the process much easier.
Bottom Line
Instead of concentrating on the additional paperwork required, let’s be thankful that we are able to buy a home at historically low rates.
There are some common scenarios that can lead to a longer processing time. Here are some factors that might cause a mortgage lender to take a relatively long time with processing.
1. New mortgage rules require more verification.
In 2014, a new set of mortgage rules took effect, and they’ve had an impact on how lenders originate home loans. The Ability-to-Repay rule, for example, requires mortgage companies to thoroughly verify and document a borrower’s financial ability to repay the loan. As a result of these and other government regulations, mortgage lenders might take a long time to process and approve loans (longer than in the past, anyway.)
2. There are lots of players and paperwork involved.
When you apply for a home loan, your application and paperwork might pass through the hands of half-a-dozen different people (or even more, if you use one of the “big banks”). Loan officers, processors and underwriters, oh my! And additional documents might be requested at each stage. Think of a snowball getting larger as it rolls downhill.
This is another reason why mortgage lenders can take a long time when processing loans. There are many steps in the process, many documents to review, and several different people involved.
Granted, some lenders have made big advancements with streamlining in recent years. This is especially true for those companies that put an emphasis on technology, web-based applications, and the like. But by and large, it’s still a cumbersome process with lots of paperwork along the way.
3. Underwriters often request additional documents.
Home loan applications go through several screening processes. Underwriting is the most intense review. This is when the mortgage lender’s underwriter (or underwriting department) reviews all paperwork relating to the loan, the borrower, and the property being purchased.
Underwriters often request additional documents during this stage, including letters of explanation from the borrower. It’s another reason why mortgage lenders take so long to approve loans.
4. Home appraisals and title searches can delay the process.
In a standard residential real estate transaction, the buyer’s mortgage lender will have the home appraised to determine its current market value. Additionally, a title company will usually step in to verify the seller’s right to sell (and transfer ownership of) the property.
Sometimes these things go smoothly — other times they don’t. For instance, the appraiser might decide the home is worth less than what the buyer has agreed to pay (in the purchase agreement). This can delay or even derail the mortgage process. The title company might have to find and fix problems relating to the title. All of this can make the process take longer.
Sometimes It All Goes Smoothly
Let’s end on a positive note. I don’t want to give you the false impression that mortgage lending is always a slow process. Sometimes it moves quickly and smoothly, with no hang-ups or obstacles along the way.
Some lenders can process an application and approve a borrower in 7 – 10 days. This is especially true when there are no underwriting issues or conditions to resolve.
But if the mortgage company has a backlog of applications, and/or the borrower has a host of financial and paperwork issues, it can take a relatively longer time.
First and foremost, because you need an experienced professional working on your behalf. The AGENT’s commission is not paid by the buyer, but by the seller of the home being purchased, and it is in each party's best interest to have professional representation. As a seller, profits are generally maximized by having an experienced AGENT market and sell your home, rather than dealing with the headaches of trying to do it all on your own.
Many people are surprised to learn that rates change on a daily and sometimes hourly basis. Interest rates fluctuate in response to changes in the financial markets. The bond market is generally a good indicator of the trend of interest rates, with higher bond rates usually producing higher mortgage rates.
