Category Archives: Mortgage Loans

Tips to Get Approved for a Home Mortgage Loan

Category : Mortgage Loans

1. Know your credit score
It literally takes a few minutes to pull your credit report and order your credit score. But
surprisingly, some future home buyers never review their scores and credit history before
submitting a home loan application, assuming that their scores are high enough to qualify. And
many never consider the possibility of identity theft. However, a low credit score and credit
fraud can stop a mortgage application dead in its tracks.
2 Stay at your job
I know someone who quit working seven days before she and her husband were to close on their
mortgage loan. I have no idea why, and unfortunately, it didn’t turn out well for them. They
weren’t able to close on their new home and they lost out on a great deal.
Sticking with your employer while going through the home buying process is crucial. Any
changes to your employment or income status can stop or greatly delay the mortgage process.
3 Pay down debt and avoid new debt

You don’t need a zero balance on your credit cards to qualify for a mortgage loan. However, the
less you owe your creditors, the better. Your debts determine if you can get a mortgage, as well
as how much you can acquire from a lender. Lenders evaluate your debt-to-income ratio before
approving the mortgage. If you have a high debt ratio because you’re carrying a lot of credit card
debt, the lender can turn down your request or offer a lower mortgage. This is because your
entire monthly debt payments — including the mortgage – shouldn’t exceed 36% of your gross
monthly income. However, paying down your consumer debt before completing an application
lowers your debt-to-income ratio and can help you acquire a better mortgage rate.
4. Get pre-approved for a mortgage
Getting pre-approved for a mortgage loan before looking at houses is emotionally and financially
responsible. On one hand, you know what you can spend before bidding on properties. And on
the other hand, you avoid falling in love with a house that you can’t afford.
The pre-approval process is fairly simple: Contact a mortgage lender, submit your financial and
personal information, and wait for a response. Pre-approvals include everything from how much
you can afford, to the interest rate you’ll pay on the loan. The lender prints a pre-approval letter
for your records, and funds are available as soon as a seller accepts your bid. Though it’s not
always that simple, it can be.

Top 5 Advantages Of Mortgage Refinancing

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Category : Mortgage Loans

Mortgage Refinancing is a process of replacing an existing loan with a new one in order to reduce monthly payments, lower your interest rates, take cash out of your home for large purchases, or change mortgage companies. Most people refinance when they have equity on their home, which is the difference between the amount owed to the mortgage company and the worth of the home.

There are many advantages of mortgage refinancing but one of the main advantages of refinancing regardless of equity is reducing an interest rate. A lower interest rate can have a profound effect on monthly payments, potentially saving you hundreds of dollars a year.

Here are the top 5 amazing advantages of refinancing your mortgage:

  1. The first and the most useful advantage of mortgage refinancing is lower your monthly payment.
  2. The second important advantage of mortgage refinancing is shortening the tenure period of the existing mortgage loan. For example, if the tenure period of your existing mortgage loan is 30 years and it seems to you that paying the same amount each month for as long as 30 years is not possible for you, you can transfer the tenure duration of your existing mortgage from 30 years to 15 years, or even to 10 years. This will definitely ensure your future security more prominently.
  3. Mortgage refinancing provides you a chance to shift from an FRM to ARM. If you have an adjustable rate mortgage (ARM) you could lock into a fixed rate mortgage (FRM) and gain the security of knowing what your mortgage payments will be for the life of your mortgage.
  4. Another big advantage of mortgage refinancing comes with the cash-out refinancing option. You can take advantage of some of the equity you have built up in your home over the years.
  5. You can use the equity value of your home by cash out refinancing to get rid of debts. As a large mortgage is tax deductible, unlike credit cards, it becomes an extra benefit for you. By this way, you will save money and pay off your debts simultaneously.

The Bottom Line:

Mortgage refinancing is a great financial move to reduces your mortgage payment, shortens the term of your loan or helps you build equity more quickly. Refinancing your mortgage is also helpful in getting your debt under control. If you are considering refinancing your mortgage, you are advised to look at your financial situation and the market rates carefully and then consult with your most trustful mortgage loans lender to choose the best option to avail the real advantages of mortgage refinancing.

Magna Capital Group, Inc has more than 30 years experience in the financial services business. We provide hassle-free home equity loans and mortgage refinancing with lowest interest rate and flexible terms. For more information about refinancing your mortgage, Call (310) 734 4044 or Email at info@magnaloans.com or Visit www.magnaloans.com.

What is refinancing?

Category : Mortgage Loans , private money lenders

Refinancing lets you change your home loan to suit your new circumstances. Mortgage Choice recommends an annual Home Loan Health Check to assess whether the original home loan you chose is still the most suitable option.
How does refinancing work?
When you take out a new loan, you use some or all of the funds to pay out your existing loan. The new loan often comes from a different lender, but many people refinance with the lender they’ve been using for years. If you move to a new lender, that lender will take care of paying out your existing loan.
If you are unsure whether refinancing is right for your current situation, refer to our refinancing checklist. Check out our latest Refinance Home Loan Infographics too for more details.
What type of things do people refinance for?
Home loan refinancing may be used for different reasons including:
Renovating your home or other home improvements such as a pool.
Paying off your debts such as credit cards by rolling them into your home loan.
Obtaining a cheaper rate, even if it means giving up a few loan features.
To raise cash for a purchase such as a car
You are paying a high interest rate – for example, if you arranged a low-start, rising-rate loan from your home builder.
You want to switch from a variable rate to a fixed rate, perhaps because you can want to reduce the risk of higher repayments.
How will refinancing benefit me?
Refinancing can be a smart way to manage your money. Here are a few reasons why you may want to refinance:
To get a peace of mind with a fixed rate
To obtain a lower interest rate so as to reduce your monthly payments
To gain the flexibility to pay off your loan faster
To consolidate credit cards, personal loans or other debts to reduce your interest rate and monthly repayments
To unlock the equity in your current property to finance a renovation, purchase an investment property or free up some extra cash.

What To Do If Bank Denied Your Mortgage Loan Application?

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Category : Hard Money Loans , Mortgage Loans

If your bank has rejected your mortgage application, it means there is something wrong with your financial records. You might want to know what to do next, why were you denied, how long do you need to wait before applying again, and what steps can you take to prevent it from happening again? It’s important to know the real causes of your loan rejection because it will probably continue to happen if you don’t take action.

Here are some important steps that you should take after your mortgage loan rejection:

Find Out Rejection Factors:
The first thing you should do is find out exactly what happened. Once your mortgage loan application denied, the bank is required to provide specific reasons in writing within 30 days explaining why they’ve been turned down. The most common reason for mortgage loan application rejection is either insufficient income or bad credit. This step will help you to know the actual causes of your loan rejection and make the right decisions without repeating the same mistakes, so that your loan application may get accepted in the future.

Understand The Problems and Fix Them Quickly:
To avoid your future loan rejection, it’s important to understand the actual reasons for your previous loan rejection. This is a very helpful step if you’re considering re-application in the future. Once you identify the problems, take the necessary steps to make it right. Make sure that your credit history and monthly income is up to the eligibility criteria. If you cannot fix these issues, then you might want to consider the next step.

Check With Other Mortgage Lenders:
If you’ve been denied by the bank, it doesn’t mean every lender will reject your application. There should be many hard money lenders in your locality who can help you out. They can provide you better loan programs that can more accurately fit your financial requirements.

The Bottom Line:
If you are unable to fix those issues due to which your loan application was denied by the bank, hard money loans would be the best choice for you. A hard money loan is simply a short-term loan secured by real estate that can be obtained faster and easier than a conventional loan. Hard money loans are backed by the value of the property, not by the creditworthiness of the borrower.

Hard money loans are very beneficial for those who cannot qualify for conventional loans cause of their poor credit score or bad financial records. If you need quick financial solutions and cannot wait for or do not qualify for conventional banking approvals, you can apply for hard money loans. The loan application is very simple and quick. Hard money lenders typically take one to two days and may even be approved the same day.

Magna Capital Group, Inc. provides private money financing on residential and commercial properties of all types throughout California. With over 35 years of experience in the real estate industry, we provide unmatched expertise in customizing a loan structure to meet our client’s specific funding requirements with minimal documentation. If you have any questions about our hard money loan programs, feel free to call us now at (310) 734 4044 or email at info@magnaloans.com.

3 Types Of Mortgage Loans For Home Buyers

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Category : Mortgage Loans

Buying a home is the most expensive choice for most of the people throughout the world. People borrow money in order to buy a home. There are various types of loans available, but a mortgage loan is one of the most common financing options among all of them. A mortgage loan is a kind of money which uses the property that is being bought with the loan as collateral. The property could be your house, a piece of land or any other form of personal or commercial real estate in your name. Almost all kind of real estate qualifies for a Mortgage Loan.

Mortgage loans can be used for various purposes, but it is most commonly used to purchase properties. This loan can also be used when you want to expand your business, buy a house, send your children abroad for higher studies or pay for an expensive medical treatment. The biggest advantage of a mortgage loan is that you can continue using the mortgaged property while repaying the loan. Once the loan is paid in full you are returned complete ownership of your property.

There are many loan lenders like banks, private financial institutes who lend money on specific interest rates. Lenders keep legal documents of the property as security. These documents are handed back to the borrower, once the loan is paid in full. Mortgage loans generally come with a repayment term of 15 to 30 years, but there are many mortgage loan providers have come up with a variety of flexible payment options to encourage buyers to invest in real estate.

Getting a home mortgage loan is a very important event for you. However, you will need to know the types of mortgages available to make your decision. There are different types of mortgage loans available to suit the requirements of different borrowers. Here are some common and popular types of mortgage loans that you may want to consider before opting for one:

Fixed Rate Home Mortgage Loans – This type of mortgage requires you to pay a uniform interest rate and principal amount. The primary advantage of this loan is that your payment is predictable as you are secured of how much exactly you would be paying for the next month. So if you do not want any sort of financial risk and do not want to constantly follow the economy or any kind of interest rates, then this loan is for you.

Adjustable Rate Home Mortgage Loans – Under adjustable rate mortgage the interest rate changes throughout the repayment tenure, based on economic and market conditions. You can take advantage of an adjustable rate mortgage if market condition is down and has a lower interest rate. You just need to be careful though since the interest rates may increase at some point in time.

Interest Only Home Mortgage Loans – If you opt for Interest the Only option, you will only have to repay the interest amount during the loan tenure and return the principal after that.

The Bottom Line:
If you are interested in buying a new home, your are advised to opt mortgage loans at low-interest rates. Magna Capital Group, Inc. offers the lowest interest rate mortgage loans with the best terms. For additional information about mortgage loan types, mortgage loan products or a bad credit mortgage loan visit www.magnaloans.com or Call (310) 734 4044 or Email at info@magnaloans.com.

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    Magna Capital Group, Inc
    8730 Wilshire Blvd., Suite 410
    Beverly Hills, CA 90211

    Although Magna Enterprises, LLC and Magna Capital Group, Inc. are referred to throughout the text of this website as Magna Group of companies, they are not affiliates, parent or subsidiary companies as both companies are separate and distinct entities. Any questions or issues regarding this disclaimer should be addressed in writing c/o Shawn Molem.

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