Mortgage 80 20 With Mortgage Brokers

Mortgage 80 20 was a trend, an easy access mortgage loan. Many people believed it was a mortgage-plan designed to help homeowners qualify to buy their dream home.

What is a Mortgage 80 20 Loan? First, let me tell you that it's not what you thought it was. 80 20 loan it's actually two loans with two different lenders. The first lender will provide 80 percent of the money and the second lender the 20 percent left. Usually "the second" as it's known in the lending industry came with a very high interest rate. This way your debt would be covered 100 percent with money you borrowed from two different institutions.

Mortgage 80 20 was an easy, practical and very popular loan people liked because, as you can tell, it didn't require any down payment. You just needed to pick the house you wanted to buy, qualify for it and get the keys.

So here is my advice. Consult your mortgage broker or loan officer, if you trust them listen to what they have to say. If they are looking out for our interests they should not offer you an 80 20 loan. Their advice should be that you put at least 10 percent down. If you are refinancing, they should not, under any circumstances allow you to max out the loan to value of your loan.

Once you apply for a loan, the documents go to the mortgage underwriter. That is the person analyzing your application to determine whether you qualify or not.

What underwriters say you need to qualify for a loan:

1. High income, at least double than what you spend in a month.
2. Money in the bank. If you don't have enough money
to make the payments from your salary, you will have money in the bank to back you up.
3. Your name will have to be on title, if it's not, it becomes an occupancy issue.
4. You need to let them know if you own another property, if that's the case, it becomes another occupancy issue.
5. Your credit score. It's a must that you have good credit. The underwriter wants to make sure you will make the payments on time so, if you have been late in any of your payments: mortgage, credit cards, auto, etc: you need to clear them from your credit.
6. It's important that you are employed with the same company for at least two consecutive years. They want to know that you have stability in your life.

In reality is the underwriter who makes the final decision, not your mortgage broker. A good mortgage broker will know ahead what documents the underwriter will ask for. Make sure you get the right mortgage broker to help you with your project so you don't waste your time and energy.

REMEMBER:

1. Stay with your mortgage financial plans
2. Don't even think about mortgage 80 20 (I don't even think they exist anymore)
3. Your mortgage broker or loan officer is key in this process, he/she can make of kill the deal.

Article Source: http://www.propertymagnate.com/articles

Yanni Raz is a mentor for many in the Real Estate Mortgage industry. He has been tutoring many homeowners in California and help some also to save their homes.www.1atm.org Mortgage Lenders

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