MHQ - Mortgage HeadQuarters

Low mortgage interest rates and property prices are empowering millennial to buy rather than rent. As a matter of fact, recent surveys show that one in four couples aged 18-34 are signing a deed together even before getting married. As young first-time homebuyers are a crucial part of the housing market, we feel it's important to provide tips for millennials to help them buy that first home! 1. Assess Your Financial Situation Lending institutions typically follow the 28/36 rule. This means that your mortgage payment, property taxes and insurance should not exceed more than 28% of your monthly gross income. Add to that your total debt payments, including college loans and credit card debt, which should not total more than 36% of your gross income. Lenders also look at your credit score to ensure that you’re in stable financial condition to take on the responsibilities of a mortgage. 2. Start Saving for a Down Payment Homebuyers typically put down anywhere from 3-20%

When you apply for a mortgage loan, your credit report and score both play a role in whether a lender will approve your mortgage loan application. Derogatory information, such as collection accounts, foreclosures, bankruptcies and late payments, all damage your credit. What you may not realize is that the way you manage your debts influences your scores, which in turn can influence your ability to qualify for a loan when you're ready to buy a home. Here are some credit issues to solve before applying for a mortgage to better improve your odds of loan approval. Errors in Credit Reports The credit reporting system is imperfect. Credit grantors, which are the source of much of the information that goes to the three credit bureaus, make mistakes. Some are due to sloppiness, some to confusion over names, and some are intentional. The credit bureaus also make mistakes. They have no financial interest in keeping anyone’s credit score low, but they do have a financial interest in m

For today's homeowners, one of the greatest benefits of homeownership is the home equity you build up over time. The gradually expanding value of a home is a financial resource that can gain momentum over time. Building equity can be a long-term strategy for growing wealth, but it's also a great resource when you need a little extra cash for financial endeavors or any home improvements you're needing to complete. Let's take a look at what a home equity loan is and some of the benefits for qualified recipients. What is a Home Equity Loan? A home equity loan is a type of second mortgage . Your “first” mortgage is the one you used to purchase your home, but you can use additional loans to borrow against the property if you have built up enough equity. Home equity loans allow you to borrow against your home’s value. They provide access to large amounts of money, and they can be easier to qualify for than other types of loans because they are secured by your house. B

For first-time buyers and existing homeowners who are self-employed, it can be a little more difficult to get a mortgage. If you work for yourself, and are looking to remortgage or buy a new home, getting approved for a mortgage loan isn't impossible, but it does mean you'll likely have to jump through many more hoops to prove your income than someone who's steadily employed and on a company payroll. So, what can you do to help your chances of getting approved for a mortgage loan when your self-employed? Here are some tips for you to go by: Proving Your Income When lenders determine how much to lend to you, they generally base their calculations on your average profit in the past few years.  That being said, one of the most important factors for self-employed workers is being able to prove your income to any mortgage lender you apply to. Most will want to see at least two years’ accounts or tax returns. The more accounts you can show the better. Lenders prefer b