Self Employed Christian Home Loan
A self employed Christian home loan can be a tricky thing to acquire if the borrower has not been self employed for less than 2 years. Most banks and credit unions want to see two income tax returns for applicants who work for themselves as proof of income before granting a contract. Even then, many banks are unwilling to offer a deal because of the greater risk associated with self employed persons whose job security is less and whose incomes can vary widely from month to month. Qualifying for a contract to buy a house is difficult for many buyers, but these problems are exacerbated for self-employed buyers. But those who are self employed and want to buy a house can find several options to investigate.
If a prospective buyer has worked for himself for less than two years, one type of self employed home loan option this person can consider is a no-doc contract, which is one where the buyer does not have to supply the lender with any documentation of income or assets. The disadvantage of these contracts is the higher interest rate they carry, typically 2 to 3 percentage points above a conventional loan. Still, many buyers use this option, knowing that after they have 2 years of tax returns as a self-employed person, they can refinance their contract at a lower, conventional rate.
Perhaps the easier option for self employed home loans is to buy a house from a seller offering owner financing. Owner financing offers easier qualification requirements, less paperwork, and a faster closing. The disadvantage is that the purchaser will be working with an individual instead of a lending institution and will most likely have to hire a real estate attorney to handle the transaction. A prospective buyer can identify owners that offer financing by looking for phrases such as motivated seller and all offers considered in MLS.
Another good option is to look for properties advertising assumable transactions. They enable the borrower to take over the payments on the existing contract on the property. FHA assumable loans enable the borrower to simply take over the payments without having to qualify. They are attractive self employed home loans because they often offer the low, conventional interest rates without all the hassles of approval.
The lease option is another self employed home loan option. This contract allows the renter to build equity in a rent-to-own scenario. After the renter has agreed on a purchase price with the seller, the renter moves into the house prior to transfer of the title and makes monthly rent payments to the owner. A portion of the monthly payment is set aside as the down payment. At the end of the lease, the renter can either walk away or apply the funds that have accrued to obtain a contract. This gives both a down payment and time to acquire the 2 years of tax returns needed for a conventional loan.
Finding good deals can seem like a daunting task; however, if a borrower carefully researches and investigates the options, obtaining a new house and financing for a self employed home loan will become a reality. As Christians, we have no excuse about being knowledgable regarding our financial outlook and decisions. First Samuel 2:3 says, "The Lord is a God of knowledge." We are to follow His example. A wise Christian shopper will do adequate research on all the options, enlist the help of a knowledgeable realtor, and educate himself about the different types of self employed home loans to achieve the dream of house ownership.
A home loans mortgage rate is determined by many factors that are affected by the lending risk of any financial institution. Some factors include the latest housing trends, consumer financial standing, and a lending source's business policies. Checking with several reputable lending sources before choosing a program is a wise move for any consumer. Lenders and brokers operate from a competitive business standpoint and are anxious to provide consumers with the best home loan mortgage rates. Any competent company will be able to provide the borrower with a free quote and pertinent information regarding several options.
The present housing market offers very low rates to choose from for those who qualify, making it appealing to many prospective homeowners to purchase now. Home loans mortgage rate increases can be expected in the near future, so many consumers are taking advantage of the low prices available. Home loan mortgage rates are determined by many factors including the borrower's credit history, income-to-debt ratio, down payment, price of the house, and terms of the agreement. There are many things to consider when choosing a lender and program, so requesting several free quotes is helpful in determining the right choice.
Financial records are very important in this process. The best home loan mortgage rates are offered to consumers who have good credit history. Before shopping around for the best home loans mortgage rate, the consumer must make sure that they have paid all credit card balances and have not added or dropped any credit card companies just prior to the application. Also, before shopping, it may be to the benefit of the individual to run a credit check with all three agencies to determine if there are any mistakes in the report. Many consumers find that there are up to 40% of mistakes on their credit reports, which can hurt in finding low prices when applying for financial assistance.
If the consumer wants to be sure of a good credit history report, receiving pre-approval for a loan is very helpful. Another important factor affecting the best home loan mortgage rates is the amount of down payment a consumer is able to put towards the mortgage. Lenders will accept as low as 5%, but the mortgage rate will be higher. A down payment of 20% or more will get the consumer the best home loans mortgage rate possible. "What time I am afraid, I will trust in thee." (Psalm 56:3). Having faith in God for providing answers to financial needs is a great way to begin and end the search for the right assistance program and lender.
Compare Christian Refinance RatesTo compare refinance rates, a loan applicant must first be aware of the lowest interest rate mortgages available to them by knowing their credit report scores from the three credit reporting agencies. By knowing one's own personal credit score, an accurate interest rate can be quoted over the telephone by various mortgage companies. Interest rates are directly determined by a credit score. Be advised that knowledge of all three credit scores from each credit reporting agency are required in order to receive rate information. Each mortgage company may scale their interest rate according to information from one credit reporting agency or a combination of all three.
Refinance or re-mortgage is defined as something financed or mortgaged again. In a sense, comparing refinancing quotes is virtually the same as comparing mortgage finance rates the first time. The only difference is that the loan applicant is looking for a rate lower than what they already have. Lenders update interest rates daily, so it is wise to check local newspapers and other financial literature for this updated information. Anyone who is determined to get up to the minute information can compare refinance rates by using the technology of the Internet. There are many finance and mortgage companies that offer loans via on-line.
A word of caution to those that refinance for a rate barely lower than their old one and that is to be aware of closing costs. Sometimes the closing costs of a new loan cost more than the money to be saved in interest charges over the life of the loan. To compare refinance rates effectively, a loan applicant will have to use a mortgage loan calculator. These types of calculators can be found online. They determine what a monthly payment will be, how much of that payment will be going to interest and what the total amount of interest paid over the life of the loan will be. Consumers should be aware of loan points, rate locks, and PMI or private mortgage insurance. The better informed one is, the better deal they can get on refinancing. "See then that ye walk circumspectly, not as fools, but as wise" (Ephesians 5:15).
Loan points are charged at a rate of 1% of the loan amount requested, and are either required by the lender, or optional used to lower the interest rate by .025%. For example: to compare refinance rates for a loan amount of $100,000 with a 5% interest rate with a 4.5% interest rate ;buying two points which costs $2000 brings the first interest rate to 4.5% and the second interest rate to 4.0%. Once the point and closing costs are factored in to the calculation, a real comparison can be made. It is also important to note that some lenders have loan programs that do not require a loan applicant to pay PMI. Usually a homeowner must pay PMI until the property has 20% equity. When refinancing and getting money out of the equity in the home, be sure that a surprise PMI payment is not required once the new loan takes effect.
Home loan refinance rates vary, sometimes daily and are also different throughout the states. When looking for a new home loan refinance rate, a buyer may have to do some checking to determine whether or not it will be feasible to actually re-mortgage the property at this time. The common purpose of refinancing, after checking current interest charges, is to reduce the mortgage payments with a lower interest charge than what is currently on the existing mortgage contract. "Labour not to be rich: cease from thine own wisdom. Wilt thou set thine eyes upon that which is not? For riches certainly make themselves wings; they fly away as an eagle toward heaven" (Proverbs 23:4-5).
Even the normal advertised interest charges can vary according to where one looks. There are thirty year fixed funding programs ranging from extremely low to extremely high and fifteen year fixed funding plans varying just as much. The home loan refinance rates are determined usually by companies that do surveys and have direct interviews with lending officers. Since a home loan refinance rate can vary among lenders, doing the research before settling on any one may well pay off. Checking out the available interest charges can save a buyer a significant amount of money over the course of repayment. Knowing ahead of time how much can be saved can enable a homeowner to better plan their future. Lower payments to interest can allow an owner to pay off the mortgage sooner or enable them to consolidate multiple outstanding balances from other lenders or creditors. Many lenders will offer four or more quotes and will advertise the best interest charge they have available.
A low charge can possibly be obtained with a simple form online. To locate a lower Christian home loan refinance rate, the applicant only has to answer a few short questions and within minutes, they could have a, hopefully lower, interest charge. To get up to four quotes on home loan refinance rates, an applicant need only to submit their current mortgage interest charge, whether or not the money is to be used for personal reasons or for consolidation is irrelevant. How much the home is worth and what state the property is in will determine the amount. When investigating a good lending source, an applicant will find other options also. If there is equity in the home, refinancing will allow the homeowner to not only reduce an interest rate, but also change the term of the mortgage contract. Before settling on a lending company, a word of advice from some of the experts is that the interest should be about two percentage points below a current mortgage in order for the refinancing to save the owner money in the long run.