There are some great tips in this video, like: Call or write to your lender as soon as possible. Clearly explain the situation and be prepared to provide financial information. If you fall behind - Keep living in your home to qualify for assistance. Contact a HUD-approved housing counseling agency and cooperate with the counselor/lender trying to help you. HUD has a number of special loss mitigation programs available to help you: Special Forbearance - your lender will arrange for a revised repayment plan which may include temporary reduction or suspension of payments; you can qualify by having an Involuntary reduction in your Income or Increase In living expenses. Mortgage Modification - allows you to refinance debt and/or extends the term of the your mortgage loan which may reduce your monthly payments; you can qualify if you have recovered from financial problems, but your net income Is less than before the problem. Partial Claim - your lender maybe able to help you obtain an interest-free loan from HUD to bring your mortgage current. Preforeclosure Sale - allows you to sell your property and pay off your mortgage loan to avoid foreclosure. Deed-In-Lieu Of Foreclosure - lets you voluntarily give back your property to the lender it will not save your house but will help you avoid the costs, time, and effort of the foreclosure process. If you are having difficulty with an-uncooperative lender or feel your loan servicer is not providing you with the most effective loss mitigation options call the FHA Loss Mitigation Center for additional help.

Watch this video and take a few notes: seasonal pay child support retirement pension payments unemployment compensation VA benefits military pay Social Security income alimony, and rent paid by family all qualify as income sources. Part-time pay, overtime, and bonus pay also count as long as they are steady. Special savings plans-such as those set up by a church or community association - qualify, too. According to HUD, income type is not as important as income steadiness with the FHA.

Ask your realty representative or lending institution for info on the HELP program from the FHA. As we reveal you in this video, HELP - Homebuyer Education Learning Program - is structured to assist very first time purchasers start the homebuying procedure. It covers such subjects as budgeting, discovering a house, getting a loan, and house upkeep. Conclusion of this program might entitle you to a decrease in the preliminary FHA home mortgage insurance coverage premium from 2.25% to 1.75% of the purchase cost of your brand-new house.

"Well pull your credit." is the bland phrase you might hear from a lender. What does that mean? Three companies — Experian, TransUnion and Equifax — maintain records of peoples debts and payments. They issue a credit score for you, based on this data. From a lenders perspective, the credit score provides a consistent measure to assess the possibility of a borrower defaulting on a loan. Your credit score can directly affect qualifying for a loan, rate and other terms. The better your score, the better your borrowing situation. A good credit score saves you money, which can help you maintain a good credit score. Its worth checking your credit score regularly, but particularly before a big transaction like a mortgage. If there are issues, start addressing them early. This video may help you understand the score; look for other videos here on credit scores and credit history for more.

The term "appraisal" has a specific meaning in the home-and-mortgage process. Its not an inspection; it is a professional assessment of thevalue of the property. The companies and individuals that do this assessment are called "appraisers". Its important to understand that the appraiser works for the lender, not the buyer or the seller. While a professional opinion about value seems like a useful thing in negotiating price, thats not their job. Because the property will be used as loan collateral, the lender really needs to know what its worth; thats the job. Appraisers have the training and experience to put numbers on key aspects of a property: Size Condition How it compares with other properties in the local market They have the training to focus on things that will affect value; as the video says, damage and neglect affect value but a sink full of dishes does not. The appraised value can affect transaction details. If the value is lower than the offered price, the offer might have to change — for example, reducing the price, or increasing the down payment. Appraisal results are a good point-in-time thing to know. Just remember that the appraisers customer is the lender, not you.

When you apply for a mortgage and provide the 6 required pieces of information, a lender must provide a Loan Estimate within 3 business days if the loan is approved. This video explains the basics. The Loan Estimate is a standard form, with required information. Yours will include: Loan terms, including interest and loan schedule Projected payments Costs at closing, including: Total Interest Percentage APR (Annual Percentage Rate) Estimates of costs from lender-recommended providers ("Cant Shop"). Final costs must be in defined limits of these estimates. Estimates of costs that you can shop; these will vary based on your decisions. Be clear that the Loan Estimate is anestimate - not a final, binding contract for loan costs and terms. It will give you a ballpark understanding about this loan, and some limits on the possible changes in final costs. For more assistance (and additional videos) on the specific parts and pages of a Loan Estimate, search "Loan Estimate" on this site.

Intimidated by mortgage loan terms and the list of fees? This short explainer video will help you get a handle on all of it. While a mortgage involves borrowing money for a home, there can be quite a few items and fees in the stack of papers. "Loan origination" -- the process of documenting and evaluating your loan application -- is not free. The "loan application fee" is one of the key components to understand. This fee generally covers: The lenders costs to verify, evaluate and underwrite the loan. This fee also pays for appraisal of the property — a professional valuation for the lender (not for the buyer.) Fees to "pull" your credit history. Other surcharges; ask the lender for a detailed list. Loan application fees are generally non-refundable.

The video puts this in more visual terms, however your individual scenario will figure out the very best sort of loan for you. Lenders can assist you utilize your responses to choose which loan best fits your requirements. Do you expect your finances to change over the next few years? Are you planning to live in this home for a long period of time? Are you comfortable with the idea of a changing mortgage payment amount? Do you wish to be free of mortgage debt as your children approach college age or as you prepare for retirement? Lenders can assist you in using your replies to decide which loan is the best fit for you.

Heres a short article and helpful explainer video, giving you some tips on choosing a lender for your mortgage loan. While applying for a mortgage can be intimidating, remember that lenders want your business! You are the customer, making one of the biggest purchases of your life. Companies you consider should be responsive, professional and helpful as you start sizing up your options. There are many advantages to working with a lender that has a local presence. They will have connections with the other businesses and government organizations involved in the purchase, and will know "how to do this" in your particular state and locality. A local presence also helps the lenders personnel be up-to-date on home values and conditions in the area, which could potentially be a factor in your search. Companies without a local presence should not automatically be rejected. Your communication preferences and record-keeping habits might make a national lender with a robust digital loan-processing system a fit. You should be comfortable with calls and video, rather than face-to-face conversation, if that looks like a fit. Advice from friends and family may be helpful, but keep this in mind. People do not buy homes as often as they buy groceries, or even cars. Verify the advice you receive with your own homework, online research, and feel for the situation.

This video outlines what to expect after youve applied for a mortgage loan. There are 6 required pieces of information for a mortgage loan application, covered in another video here on Video-Genius. Some lenders may request additional information at the time of application, or later. Once you have supplied the 6 required pieces, lenders have to provide a Loan Estimate in 3 business days. Lenders will verify the information you provide, through actions like credit checks, credit history and employment verification. Most lendersmust follow these steps, to assess your ability to repay. (Dont be offended by verification — it is required.) Once information has been verified, and processes like underwriting completed, the lender will make a decision about loan approval. If the loan IS approved, they will deliver a Closing Disclosure detailing all of the costs and terms. If you have a Closing Disclosure already, there are videos here that cover all of the pages and details to help you make sense of it. The Closing Disclosure itself must be delivered to you, 3 business days prior to consummation of the loan. The lender will usually set a date for that loan consummation process; this may also be your closing meeting. For clarity — closing essentially means "transferring ownership", and consummation basically means "committing to the loan." Once you have completed both of these, take a breath and pat yourself on the back! Successfully buying a home is a big milestone. Hopefully you remembered to get the keys so you can start transforming "the property" into your home.