How to Shop for a Stated Mortgage Loan the Smart Way: 3CALoan
Today’s stated mortgage loan is much different than one from 10 years ago. Earlier you could get a loan for 100% of the property value and you could also just state your income and assets. But now it is not possible. Lenders will call the loans ‘stated’, but they are alternative documentation loans.
Borrowers have to prove their income with their alternate documents. You can’t just state your income, you have to show them something which is common like your bank statement instead of paystubs, W-2s and tax returns. From your bank statement, you can prove the income deposits by your company regularly. So, the lender will check your bank statement to confirm your income. This will be risky for lenders to confirm the mortgage on the term of bank statement because they can’t sell the loan to Fannie Mae or Freddie Mac. Most lenders will keep the loans on their own books. This means they set the requirements, some of which may be different than your standard loan.
Shopping for a Stated mortgage Loan
To shop for a mortgage loan, you’ll need to remember some tips like:
Experienced Lenders
You need the lender who already knows about stated income loan. This is a whole new era of non-conforming loans. The last thing you want is a lender that has never gone through the process. If you will choose a lender that has already done many stated loans throughout the last few years will generally yield the best results.
Low Rates
You need the lender who offers the best rate according to your situation. It is not important that you are using no document loans so you have to pay higher interest rates. You should search for a lender within 3 or 4 weeks because in this way your credit isn’t hit by too many inquiries and due to this your credit score will not decrease.
Low Fees
With the interest rate low, you also need low closing costs. You can search the lender who offers best closing rates. The closing cost has an important role in the mortgage and it can also affect your annual percentage rate.
Understandable Terms
Try Different lenders before your will start your loan. For a perfect stated mortgage loan, you want a fixed interest rate and not more than 30- years term. For example what you take, if you can afford a 20-year term, you will be better off in the end. You will pay less interest and own your home a lot faster. Of course, you’ll need to prove that you can afford the higher payment first.
Final Thoughts-
3CALoan can help you find a stated mortgage loan fitting your personal and housing needs. Our competitive rates, efficient services, and talented team can help ease the loan process. 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 stated mortgage loans and how we can help, contact us at (818) 322-5626.
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