Don’t Let Your Past Employment History Affect your Mortgage

The first rule to secure a home loan is you should have 2 years past employment history. This is the thinking of most of the people. We will help you to get you around your sketchy employment past.

Stay in the Same Industry

The true meaning of 2-year past employment history is you need a history of working for at least 2 years consistently. In these 2 years, you can also change your job but that doesn’t mean you change your job from one industry to other.

For example, you are a doctor in any hospital now and have been for one year.  If next year you will choose to be a teacher in a school that’s not the same industry for you and you will not go back to the same position which you have got in the hospital. But if you are in hospital as a doctor and switched to another hospital in the next year, So it might be better for you. You might have better experience. Mortgage loan officer will always look for predictably and consistency.  Mortgage loan officer always wants the job in which you are good and industry in which you have experience. If you have a new job but in the same industry then you have more chances to succeed. According to the Mortgage loan officer, this means you can pay your home loan on time.

Avoid Gaps in Your Past Employment History

Mortgage loan officer doesn’t like the gaps in employment. If you don’t have the job then it will be a big red flag for mortgage loan officer. There are some cases like:

Unemployment for more than Six months-In this case, mortgage loan officer will don’t allow you to have a home loan until you got a new job for at least six months and after your six months work experience you can apply for a home loan.

Unemployment for less than Six months-In this case, mortgage loan officer will allow you to have a home loan after just 30 days at the new job but within the same industry of your work.

You should have a valid reason behind the gap in employment. No matter what was the situation at that time but mortgage loan officer will require the full explanation for your gap in employment. Mortgage loan officer will ask you some questions about gaps in employment like Did you fall ill and had to stop working? Or they can ask Did you leave or were you let go? Just keep in mind that you should have plenty of proof that you can show with your answer.

Look Ahead to Raises

You should tell your mortgage loan officer if you are sure that you have a raise in the future. But for this, you have to provide a valid proof of the raise. For example, your employer can show the details of your raise, including the intended date by writing a letter to the mortgage loan officer. It will be easy for you to qualifying if you have a higher income.

Create Compensating Factors to Make up for Your Past Employment History

You can show your compensating factors to the mortgage loan officer to overlook your past employment history. These things are called “make up” for your sketchy past employment history. From showing these factors you can get a mortgage loan officer on your side. By these factor mortgage loan officer will have the reassurance that you can pay the home loan payments. Compensating factors are:

• High credit score
• Ample assets you can use for reserves
• Low debt ratio

 Figure Out Your 2-Year Average

Mortgage loan officer will take a 2-year average of your income. It will be easy for you and for mortgage loan officer to calculate your job experience If you had the same job for last 2 years. You will have to show W-2s from each job which you have done over those 2 years to the mortgage loan officer.

Final Thoughts

If you don’t have a job then make sure that you should stay on top of your finance. If you default on your loans, then you will damage your credit and then you will have an even harder time securing a loan. You should be honest with your mortgage loan officer. 3CALoan local mortgage broker provides no tax return home loan which is also called no tax return, without tax return, private hard money home loan, private hard money loan, bank statement home loan, bank statement loan, equity loan and many more. We help our customers every step of the way. We prioritize informing and educating our clients about the home buying process. Our client’s happiness and confidence upon closing a deal reflect our excellent quality services. To find out more information about mortgage and how we can help, contact us at (818) 322-5626.

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Local Hard Money Lenders are a Real Estate Investors Dream: 3CALoan

Investing in a real estate is no longer that you want to buy that house. But it became a way for many people to generate income. You can earn a profit by investing in real estate and it is also the oldest form of investing. Earlier when there was no way for people to trade in stocks and bonds, real estate was the only way to grow their wealth. Many people need help to buy a real estate because they can’t afford on their own. Sometimes local hard money lenders are the better option than banks.

MONEY IS GIVEN TO THE BORROWER MORE QUICKLY

You have to be very quick when you are in the market to buy a home. Most people opt hard money home loan for this reason because the process of this home loan is very fast. In hard money loan, the local hard money lenders can lend you the home loan in just 4 days. After the final documents have been signed, received, and finalized, the money will be available to you quite quickly. Whether you need the money to purchase your dream home or for a quick sale of an investment property that’s going hot on the market, hard money home loan will be best for you. The entire process can happen much more quickly than a traditional or bank lending and mortgaging process.

If you finance a home loan from bank then you have to go through a huge underwriting process and its usually very lengthy and you also have to wait long for the approval process. There are a lot of documents which you have to fill out, paperwork to produce, and forms to sign all of this will take time. As a result, you will be able to start work on fixing your investment much more quickly if you opt private hard money loan lenders.

YOU’RE MORE ABLE TO BUY A “RISKIER” INVESTMENT

When it comes to home loans, the bank doesn’t like taking risks. If you are in the market to purchase a home that needs a lot of work, the bank will usually turn you down for a home loan. The bank will consider too much risk to give home loan even if the value of the home which you like to purchase is expected to increase after you will work on it. When it comes to the bank to finance a home loan then there is not a lot of wiggle room. Their guidelines are very specific along with the requirements about the condition of the property.

Private hard money loan lenders can understand the fact that everyone can purchase the property at cheap-rates and can also be fixed at a reasonable price. Local hard money lenders will help you better because they will take it as a good investment rather than a huge risk.

YOUR FICO SCORE COUNTS LESS

Sometimes, there are things which happen and you can’t control them, due to that your FICO score takes as hit. Things like you lost your job and due to that, you missed a few payments on your credit card. Generally, local hard money lenders don’t care about the credit history or any bumps that can damage your credit score, they only focus on the deal in their hand.

Private hard money loan lenders save time to not dig into the borrower background to analyze the financial history. They don’t care about the credit card payments which you have done or not in the past or any other mistake by you which can damage your financial health. So in this way, private hard money loan lenders are able to do closing faster than the bank. If you will go to the bank they will only offer home loans to people with good credit score.

THE DEBT-TO-INCOME RATIO IS LESS STRICT

Banks don’t like to finance a home loan if you have debt payments higher than 33% of your provable income. Situations, where you can have higher debt payment, is when you have started a new venture or you are self-employed. Local hard money lenders don’t consider debt-to-income ratio as an important part of the loan application. They are very less strict about that. Local hard money lenders are more concerned about the value of the property.

Final Thoughts

There are many types of home loans but hard money home loans are common in financing real estate. Going with a hard money lender instead can be a good way to avoid traditional financing options. For the down payments and interest rates, hard money loans are completely different from other home loans. People like real estate developers, house flippers, builders, and contractors are commonly found opting for this type of home loan. You have to be careful and avoid making any costly mistakes. Our goal is to provide opportunities for people to meet their financial goals through alternative financing options something different from the traditional method of money lending.

Possibly, from the distinctions above, you will find the best way to get a home loan. If you still have any doubt or you’re ready to obtain a home loan, Feel free to contact us. You can contact us at (818) 322-5626 or (818) 3CA-Loan today! 3CALoan local mortgage broker provides no tax return home loan which is also called no tax return, without tax return, private hard money home loan, private hard money loan, bank statement home loan, bank statement loan, equity loan and many more. We will run you through the details of home loans and hold your hand throughout the process.

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Things to Avoid While Taking Home loan mortgage to refinance loan

Home loan mortgage refinance loan means replacing the mortgage you have with a completely different mortgage. You can replace the mortgage with a new lender or use the same lender. Either way, you are essentially getting a new home loan with a whole new home loan term. In order to qualify for a home loan mortgage refinance loan, you must own your property for more than six months. There is no harm in refinancing. A good number of homeowners refinance to consolidate their debt.

At the end of the day, replacing a high-interest debt with a low-interest mortgage is a good idea. Interest rates in 2018 for home loan mortgage refinance loan are not as low as in the past. In some cases, you may be able to refinance home loan in low-interest rates. If you are getting .5% or more below what you are getting now then it may be a good option for you to refinance your home loan this year. There are some things which you can avoid while refinancing home loan.

Not Shopping Enough

While refinancing home loan, if you are considering the first interest rate is lower than what you have now then it is often a mistake. Mostly every homeowner goes to their current lender or bank for refinancing home loan. Or, they just search few lenders who are offering low-interest rates.

For your next home loan, it will always pay to shop. A difference of 1/8 of the point is not much, that payment of $25 lower per month but it adds up to thousands of interest charges over the years. For some of the home loan programs, some lenders may offer lower rates. It is always good for you to get several mortgage loan quotes.

Just Looking at Rate

If you want to home loan mortgage refinance loan then you will want a low-interest rate but there are more things which you must consider. In pricing of a mortgage, there are a lot of factors that low rate you see may not work out.

For example, the low interest rates you see that are advertised by the lenders are only for people with the best credit scores. After some time you may discover that the interest rate which you are getting is considerably higher, but after the approval process, you will not want to get back off to the deal. Closing costs also differ from lender to lender. Closing cost will come with higher fees than other loans but you may see low rates in an advertisement because this is tricky for you to get trapped. You must ask about credit report fees, loan origination fees, points, etc while shopping for your Home loan mortgage refinance loan.

Not Getting a Low Enough Rate

Many people take refinance loan for a new rate which is small to make a major difference in payment. If you are saving $40 per month on your payment then it is good for you. To recover thousands in closing costs that you have paid off, it will take you for many years.

For example, if you pay closing costs of $7500 and per month you are saving $150 on your payment then your break-even point will be 75 months which is more than six years. If per month you are only saving $75 then your break-even point is approximately twelve years. You will essentially be lost money if you will sell the home before that.

Stretching Out the Loan

Some people will recommend you that home loan mortgage refinance loan is a short-term home loan. If you’re having a 30-year loan for last 10-years, you may get benefit from refinancing into a 20-year or 15-year mortgage. In a long-term loan, you will have a higher payment and you also pay off the loan for many years but you will pay a lower rate which will be better for you.

Final Thoughts

Refinancing can be a good thing. It can save you money, lower your interest rate, or lower your term. But, you have to do it right. Contact us if you would like more information on home loan mortgage to refinance loan. 3CALoan local mortgage broker also provides no tax return home loan which is also called no tax return, without tax return loan, private hard money home loan, private hard money loan, bank statement home loan, bank statement loan, equity loan and many more. Our goal is to provide opportunities for people to meet their financial goals through alternative financing options. We can help and guide you through the process. Feel free to contact us at (818) 322-5626 or (818) 3CA-Loan today! We will run you through the details of home loans and hold your hand throughout the process.

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Private Hard Money Loans In California: 3CALOAN

Private hard money home loans are issued by a non-institutional individual to borrowers. The home loan comes secured on the basis of a note and deed to trust for a real estate transaction. Private money lenders typically have some type of relationship with the borrower as opposed to private hard money home loans. Private hard money home loans are short-term loans secured by real estate. They are usually a 12-month term loan, but they can extend from 2 to 5 years as well.

Why Do Private Hard Money Home Loans Close Faster?

You will love the private hard money home loans because they close faster than any other home loan. If your home loan closes faster than there will be a better chance of beating out your all competition and also getting the property which you want to buy. Generally private hard money lenders will close your home loan faster due to some of the factors that are given below:

Asset-Based Lending

Generally private hard money home loans lenders don’t care about the credit history or any bumps that can damage your credit score, they only focus on the deal in their hand. Due to this, private hard money lenders save time to not dig into the borrower background to analyze the financial history. They don’t care about the credit card payments which you have done or not in the past or any other mistake by you which can damage your financial health. So in this way lenders are able to do closing faster than the other home loans.

Paperwork

When you will apply for a Private hard money home loans there is very less paperwork as compared to other home loans. For getting approved for this home loan you don’t need to show your paystub for income verification neither credit history for getting a credit score. So, this means you don’t have to complete as much paperwork as you would with a traditional loan. This saves you weeks and you get property much faster.

Approval

Private hard money home loans lenders approval process is significantly shorter than the bank process. You will deal with only one person throughout the loan process and that person will almost always available for you. Private hard money loan lenders have the ability to close loans faster and sometimes in as little as 24 hours.

Final Thoughts

Contact us if you would like more information on hard money and private lending. 3CALoan local mortgage broker also provides no tax return home loan which is also called no tax return, without tax return, private hard money home loan, private hard money loan, bank statement home loan, bank statement loan, equity loan and many more. For the down payments and interest rates, hard money loans are completely different from other home loans. People like real estate developers, house flippers, builders, and contractors are commonly found opting for this type of home loan. Our goal is to provide opportunities for people to meet their financial goals through alternative financing options. We can help and guide you through the process. Feel free to contact us at (818) 322-5626 or (818) 3CA-Loan today! We will run you through the details of home loans and hold your hand throughout the process.

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Home Closing Fees Can be Lowered: 3CALoan

Being a good homebuyer, you have settled and negotiated on the home’s value but it is not everything. You are more opportunity to save your money. One of them is by lowering your home closing fees while buying a home. Home closing fees consist of services and specific fees that you have to pay for closing on your home loan. The closing fees will generally come in between 2% to 6% of the home value but it is also dependent on your loan program. Here are some strategies that you can use to save your money on closing fees your loan.

ALWAYS SHOP AROUND

If you taking the home loan first time than you may not realize that many of the fees and rate with the home loan process are negotiable. Every real estate agent or lender will recommend you certain home inspector or company to use. Their recommendation will be good for your home loan process. So, you should follow their recommendation. You can also compare the prices for these services so that you can get the best deal.

THINKING BEFORE BUYING POINTS

You also have the option to “buy down your rate” but it will only dependent on your home loan program and loan lenders. Discount points will work when the cost of the one point will be the 1% of the home loan’s value. It is worth paying points in exchange for a lower interest rate if you have decided to stay in your home for a long-term. You should calculate before making any decision about the points.

ASKING THE SELLER TO SWEETEN THE DEAL

You should discuss the closing fees with a lender before trading with a seller. In some loans, the seller can pay a percentage of the home price as a closing fee to buyers but the amount which seller can pay will be dependent on the loan program. If there is no detail in the card about the cash contribution, you can simply ask a seller to decrease the amount of home price to help balance the closing fees that you will pay.

COMPARING LOAN ESTIMATE FORMS

You should compare few lending institutions so that you will find your best option for the home loan process. You should have trust on the lender. Every lender had a different term and unique fees mentioned in their loan estimate. So, you should ask questions if you don’t know about any of the charges which are meant in the loan estimate.

RESEARCHING HOMEOWNERS INSURANCE OPTIONS

There is homeowners insurance which you will pay monthly with your mortgage payment, but there is one more type of insurance which you have to pay during the time of closing. So, you should be ready for the insurance cost at the closing. You can save your money on home closing fees by choosing the less expensive insurance policy.

TAKING ADVANTAGE OF A MILITARY STATUS

If you belong to the veterans and active duty military family then you are eligible for the VA Loans. VA Loans offer a zero percent down payment. So, if you can qualify for the VA loan then you don’t have to pay the down payment that alone can make huge savings. In VA Loans, there are many ways to minimize the home closing fees.

Final Thoughts

Buying a home is the best investment that you can make in your lifetime. You can save your money by finding some ways to minimize your closing fees. You can use that money to reinvest in your home which you have saved at closing fees. Just be sure that for saving few amounts, you are not sacrificing the quality. After all these steps you will be on your way to decrease the home closing fees. For more helpful home buying tips, 3CALoan can help you find your answers. We help our customers every step of the way. We prioritize informing and educating our clients about the home buying process. Our client’s happiness and confidence upon closing a deal reflect our excellent quality services. Contact us at (818) 322-5626 or (818) 3CA-Loan today! We will run you through the details of loans and hold your hand throughout the process.

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USING HARD MONEY LOANS TO FLIP YOUR HOUSE: 3CALoan

From last few years, flipping houses has become very popular. Books like Rich Dad, Poor Dad by Robert Kiyosaki and few TV shows like Flip this house can give you a big knowledge to Flip Your House Easily.

SO HOW DOES HOUSE FLIPPING WORK?

To easily flip your house you can buy a home for a cheaper price, fix up the things which need to fix in the home and then sell it for more price which you paid off early to buy that home. This is only possible if you have a start-up capital to purchase a home and you can only earn the profit by selling the home quickly. Generally, many people don’t have enough capital to purchase the home and neither bank approves the short-term loans. What will you do when you don’t get the loan from the bank? You can try Hard money loans.

HARD MONEY LOANS

Hard Money loan comes secured on the basis of a note and deed to trust for a real estate transaction. So by taking this loan, you can easily purchase a house to flip. As compare to banks these loans are much easier to obtain. Private money lenders fund hard money loans, which are short-term loans secured by real estate. They are usually a 12-month term loan, but they can extend from 2 to 5 years as well.

HARD MONEY LENDERS

Hard money lenders are a non-institutional individual or a company that gives a loan to borrowers. Private money lenders typically have some type of relationship with the borrower as opposed to hard money loans. Hard money lender can easily provide you access to money and you can use that money to flip houses.

WHY YOU CAN’T BORROW MONEY FROM A BANK?

You will find difficult to approve the short-term loan from the bank, but it is possible to obtain these types of loans. Banks make their money off of the interest rate that they charge you on the loan. Bank will generate greater money in long-term loans than in short-term loans, which is why they’re difficult to obtain.

BENEFITS OF USING A HARD MONEY LOAN

• Hard money loans are easier to be approved for than bank loans.
• Hard money loans are quicker to obtain than bank loans.
• You can pay off your loan and the interest payments quickly.

Final Thoughts

Hard Money Lenders will look at your pay stubs, your credit ratings and tax records. If everything checks out then they will request you to put money down. After all these steps you will be on your way to the flip your house easily. If you are interested in exploring the options of private hard money loans 3CALoan can help you find your answers fitting your personal and housing needs. We help our customers every step of the way. We prioritize informing and educating our clients about the home buying process. Our client’s happiness and confidence upon closing a deal reflect our excellent quality services. To find out more information about hard money loans and how we can help, contact us at (818) 322-5626 or (818) 3CA-Loan today! We will run you through the details of loans and hold your hand throughout the process.

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YOU CAN USE TAX RETURN IN HOME-RELATED THINGS

Almost all Americans are expecting a tax refund in the coming week. If you are one of them and thinking to go on a trip, a shopping spree or something fun but these ideas will make your money burning a hole in your pocket. You can think something different and meaningful to use that refund. Your home is the best place to start. One of the smartest financial decision of that tax refund is putting them towards a real estate investment. Below, we will discuss the ways you can put that tax refund in good use.

PAY MORE ON YOUR PRINCIPAL BALANCE

The big amount can be saved over the life of your loan by applying for an additional mortgage payment. You can pay two additional mortgage payments for the year even with your refund of $3,000 which is the average tax refund. May not find that significant, making two additional payments every year but even if you do it once you can save a large noteworthy quantity of interest over time.

PAY DOWN DEBT

If you have any plan to buy a home soon by taking out a mortgage, then it is a good idea to paying down your debt. It will give a good impact on your capability to buy a home because every lender checks the debt-to-income ratio. The lender will compare the amount you owe and the amount of income you bring in with that mortgage. Lenders require your total debt to be less than 44%.

STAGE YOUR HOME FOR A QUICK SALE

Thinking about selling your home? Choosing to stage your house prior to listing it can significantly decrease the length of time it’s on the market. You could say it’s an investment that will pay off in dividends if it means your home sells more quickly – because you’ll end up saving on mortgage payments, utility bills and other home expenses in the long run.

SPLURGE ON NEW APPLIANCES

If you have any plan to buy a new home real estate soon then buying new appliances is probably not at the top of your to-do list. But there are a few reasons which make this a good idea.

Every household appliances have there owned expiry time period from 8-12 years and after that time period, they stop working or they cause harm to your home. So, it’s better to replace them before they get worse. There is one more reason for buying new appliances is while selling your home they may not break or make your new home real estate value but it certainly can speed up the selling process of your home by making it a shiny new suite of appliances.

 IMPROVE YOUR HOME WITH A DIY PROJECT

Smaller projects can increase your home’s sale price because it will improve the cosmetic appearance of your home. Here are some projects to consider for this:

• Give your home new life with a coat of paint– You can transform your room with a beautiful color and calming neutrals are the best option for you if you are planning to sell your home in future.
• Add some charm with a new front door– If you have a steel front door then you can upgrade that with the craftsman-style wood door. It will change the appearance of your home from the outside and you will also receive the compliments from your guests.
• Refresh your kitchen with a backsplash– From a new backsplash, you can transform your room completely. Even if you don’t like your room cabinets, a beautiful backsplash will change your opinion by brightening things up.
• Replace light fixtures in your home– You can change your home’s lighting option with the modern ones. You can also try to consider those lights to match your doorknobs or cabinet because this looks more attractive.
• Install new flooring– New Floors have some options which are amazing and are very inexpensive. By installing new flooring you can transform your room.

Final thoughts

Feeling inspired to use your tax refund wisely on your home this year? It takes a small amount of money to make a huge impact on improvement to your home or for your future home. We help our customers every step of the way. We prioritize informing and educating our clients about the loan process or anything which is related to the loan process. Our client’s happiness and confidence upon closing a deal reflect our excellent quality services. Feel free to contact us at (818) 322-5626 or (818) 3CA-Loan today! We will run you through the details and hold your hand throughout the process.

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STRATEGIES For Using Hard Money Loans Southern California

Hard money loans southern California are issued by private investors or companies. They are usually a 12 months term loans, but they can extend from 2 to 5 years as well. This type of loan is a specific type of asset-based loan financing. Hard money loan lenders are private investors or companies that have funds to issue a hard money loan. Hard money lender should be quick to have an advantage of lending opportunities. You should learn few things about hard money loans or you can contact any hard money lenders in California before you opt them so you can avoid pitfalls and sticky situations. Hard real estate loans are short-term loans secured by real estate and the interest rates are much higher as compare to traditional financing. In the commercial real estate world, the hard money loans play an important role. These are some strategies where hard money loans may make sense for you.

CAPITAL IMPROVEMENTS

If there is a need to renovate, repairs, or capital improvement to the property then it is a good option because it would increase the value of your property from both rental income standpoint or a valuation. In this case, you should try to get the shorter duration of higher interest loans to increase the value of your property. You can realize the increased value of your home after the work will complete.

PURCHASE OF A PROPERTY

When you want to purchase a property, often the period of purchasing is very critical. Private lenders usually serve this type of market and they provide major tools in buying a property. While purchasing the property there are two things which are very sensitive that is strategic property purchases and attractive real estate opportunities. Traditional lenders are not good in these types of purchases because they are not able to finance quickly. Hard money loans Southern California are much quicker than traditional loans in the evaluation of the loan, approve of the loan and closing of the loan.

DEVELOPMENT

If you own a piece of land and want to build with a ground-up development. You can’t able to get this type of loan from traditional lenders but hard money lenders offer this type of loan. While assessing the creditworthiness of the project lenders will always look at some variables like collateral, your equity in the project, project presentation, your development experience, timeline, and the financial reserves of the borrower. If there is something bad about these factors then the traditional lender will decline the project financing. Hard money lenders will also consider these factors but they weigh the attractiveness of the overall project, not just these factors.

 UNDERVALUING/UNDERPERFORMING PROPERTIES

Private lenders have some good candidates like the property that are performing below market efficiency and undervalued properties. Traditional loans usually don’t serve these loans due to the underwriting guidelines related to income statements and current expenses and on the other hand, the primary focus of hard money lenders are on the value of underlying property.

LOAN UNDERWRITING

In traditional real estate loans, the primary focus in the underwriting of loan is your creditworthiness. In underwriting of a loan, there are some factors will affect the loan like bankruptcies, high debt levels, foreclosures, late payments, mechanic liens, and tax liens. For hard money lenders, the cornerstone of the loan is the property itself but they can establish asset-based loans.

Final Thoughts

There are many types of loans for financing real estate but hard money loans are common in financing real estate. These loans allow you to buy and fix the property which you want. Going with a hard money lender instead can be a good way to avoid traditional financing options. For the down payments and interest rates, hard money loans are completely different from other loans. People like real estate developers, house flippers, builders, and contractors are commonly found opting for hard money loans Southern California. Our goal is to provide opportunities for people to meet their financial goals through alternative financing options something different from the traditional method of money lending. We can help and guide you through the process. Feel free to contact us at (818) 322-5626 or (818) 3CA-Loan today! We will run you through the details of loans and hold your hand throughout the process.

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