Who Can Benefit from Bank Statement Home Loans in California?

January 13, 2021 by Cindy Steelman

California is a great state to live in for many reasons. You get to enjoy a great climate in most places, all while enjoying cultural diversity and plenty of progressive policies that make it the dream destination of most people. However, buying a home in the area can be challenging for many new homeowners. Still, most places in California have been well-developed and are ready for inhabitants to stay for long periods.

First-time homebuyers in Roseville might experience challenges with the whole process, which can be off-putting when they can’t find the right deals. Any place has its respective markets, and these can vary depending on a multitude of factors. However, before making any moves, it pays to consider the investment you’re making on a residential property in California.

Bank Statement Home Loans in Roseville

Securing home loans in Roseville is quicker than you might think, as there are plenty of lenders available to first-time buyers. While some might not meet the requirements of other loans like jumbo loans or conventional ones, bank statement loan programs can be of assistance. Plenty of factors play into how a person can secure the best rates for their mortgages, such as credit history, debt-to-income ratio, and other factors that determine financial responsibility.

Roseville is home to plenty of new developments, making it a destination for many young professionals and entrepreneurs. While it can be a daunting task to secure home loans, bank statement loans can be used nowadays to secure financial assistance to purchase a property. This system works by verifying income with bank statements instead of pay stubs or tax return documents. If you find that you have a good credit score but lack substantial income on your federal tax returns then, bank statement loans are a prime choice.

Seasonal Employees and Bank Statement Home Loans in Roseville

Some people working in seasonal industries might not have a steady income all-year-round to sustain traditional home loans. These people might take odd jobs due to not being currently employed, while others might freelance to help pay the bills. Nonetheless, taking on a conventional loan will divide the value of your annual payments into 12 months and not six. This spread makes it nearly impossible to secure a traditional loan because it results in a high debt-to-income ratio.

However, with bank statement home loans in Roseville, using your income per month can secure you a deal with a lender. You need to be working for the seasonal company for at least two years to qualify, but this is an excellent option considering how large home payments can be for those with varying income throughout the year.

Commissioned Work and Bank Statement Loans

Commissioned workers are more prevalent nowadays, as the industry is significant for people who need work done via freelancing. Since freelancing never brings home an equal amount of money for each commissioned piece, it can be challenging to secure a conventional loan. Some months can have exorbitant amounts of money, while other months are stale. The gig isn’t a steadily paying job with a monthly salary however it can be averaged over 2 years by using your federal tax returns. However, if your income on paper is too low then the bank statement program is something to consider.

Home Loans Expert in Roseville: Steelman Mortgages

Bank statement home loans in Roseville can help those who are young and new to the workforce. Without the need for a comprehensive set of documents to prove that you qualify for lenders’ money, this is best for those who have decent-to-good credit scores and unique job situations. Contact your local lender today to help you with the first-time home buying process.

Steelman Mortgages is a top mortgage company in Roseville, California who can help with home loans of all kinds. Secure your dream home in the beautiful West Coast by contacting our brokers today! Call (916) 847-7263 for more information.

Fixed or Adjustable: Which Mortgage Type Is Better?

January 8, 2021 by Cindy Steelman

Home Buying Tips in Roseville California

Choosing a mortgage can be extremely stressful and confusing, especially for a first timer. Should you go with a fixed-rate loan or one with an adjustable rate? This article aims to answer this question and help you make a decision.

However, if it is your first time to take out a mortgage, it is still best to talk to a mortgage loan specialist to ensure that you make the right decision as to which type of mortgage to get. Here is a quick summary of the types of mortgage loans available to help lay the groundwork before you talk to a mortgage specialist.

What is a fixed-rate mortgage loan?

As its name suggests, a fixed-rate mortgage is a loan that will have the same payment amount for the entire duration of the term. The amount of the monthly mortgage payments and the interest rate will not change. Usually, the loan term for fixed-rate mortgages ranges from 10 to 30 years.

The advantage of taking out a fixed-rate mortgage is that the interest rate stays the same throughout the whole term. This will enable a person to anticipate how much they will pay every time. It will allow the person to allocate a certain amount in their monthly budget for their mortgage, as it will be predictable every time.

What is an adjustable-rate mortgage?

Adjustable-rate mortgages, or ARM’s, come in varying interest rates. The unpredictable nature of adjustable-rate mortgages is caused by the interest rate. At the beginning of the loan term, the interest rate will usually be much lower than that of fixed-rate mortgages. This will usually be a way to entice borrowers to take this type of loan.

ARM’s usually have a fixed payment period of 1, 3, 5, 7, 10 years. After the fixed period the interest rate will begin to fluctuate with the market, usually the LIBOR. The ARM interest rate is tied to the LIBOR and will adjusts as the LIBOR adjusts. The adjustable period can be each month, every 6 months or once a year meaning your interest rate and your payment will change each time it is time to adjust which will be included in your Note that you sign when you take on the mortgage.

The advantage of this type of mortgage is that your interest rate can be lower but that depends on what is going on with rates at the time. Another advantage is to take a lower payment for a short amount of time know that you will sell or refinance the property during the lower interest rate and payment time. These loans usually have a balloon payment due at the end of the time period.

Making Your Choice

It is important to consider your financial situation before making your decision as to which type of loan to get. If you like to stick to a budget, the predictability of a fixed-rate mortgage will suit you. However, if you are ready to take a calculated risk for some of your monthly interest rates to be cheaper than others, you may want to consider an adjustable-rate mortgage.

However, choosing a mortgage should not only be dependent on the interest rate. This is why it is a good idea to consult with a mortgage specialist before making your decision.

Mortgage Loan Experts: Steelman Mortgages

Now that you have been armed with the knowledge about mortgage loans, you are better able to make informed decisions about which type of mortgage to get. It is unwise to make the decision based on what an acquaintance, friend, or family member did when they took out their own mortgage. Keep in mind that each person or family has different needs. It is vital to analyze your own needs first, as well as how you will be paying for your mortgage before you make a decision.

If you are still confused about which type of mortgage may benefit you the most, you have the option of contacting a mortgage loans company to get more information about these loans. The specialists who work at these companies will be happy to discuss the specifics of each type of loan with you and help you make the best choice.

Whether you are looking for more information on mortgage loans, or if you are ready to take one out, Steelman Mortgages can lend you a hand. Interested parties can call (916) 847-7263 to get help with their mortgage in Roseville today!

The Federal Reserve’s Decision to Cut Mortgage Rates

December 23, 2020 by Cindy Steelman

This year has caught many of us unprepared, resulting in unexpected circumstances in nearly every industry. The real estate industry is no exception. Even as the Federal Reserve cuts short-term rates and pumps money into the mortgage finance system to deal with this instability, there are still plenty of considerations you need to take into account when thinking about buying your dream home.

The Reason For The Rate Drop

In order to ensure the stability of the real estate market, the Federal Reserve decided to cut the rates on all existing mortgages subsidized or guaranteed by the government. Since then, the federal funds rate has remained near zero, with central banks promising not to raise mortgage rates again until they are confident that the economy has survived and recovered the current circumstances.

This was to lighten the load on the average person. Many people have already lost much during this year, and this was a way to help people to get lower mortgage payments by allowing homeowners to refinance into a lower monthly payment and to help people who are purchasing to receive a lower monthly payment.

Why is This Necessary?

In times of economic uncertainty, the market can behave in unpredictable ways. The US government did not want a complete financial disaster, so, by cutting the cost of money helped the housing market. Home sales are now at record highs.

These recent financial injections not only make it easier for people to retain ownership of their homes, it makes mortgages and other financing plans for buying a house more accessible to an aching market. This gives everyone who was suffering the weight of the these trying times a chance to buy a home even amidst economic uncertainty.

What I Need To Know About Refinancing in 2021

Plenty of homeowners have decided to refinance, so many lenders are faced with heavy workloads and more complicated approval processes. As such, it would do you well to lighten the load by submitting a complete application with all the necessary documentation.

It also helps to understand what your refinancing goals are. Are you looking to get a lower monthly rate? Shorten your loan term? Replace your adjustable-rate mortgage with a fixed-rate loan? Are you seeking to borrow more than you own in a cash-out refinance? These are just some of the questions you need to ask so you and your lender can agree on mutually beneficial terms.

Buying A Home or Refinancing with Steelman Mortgages

2020 has brought plenty of uncertainty in nearly every aspect of life. Not only have we been forced to stay indoors to stave off the spread of this disease, but we have also been subject to an unstable market and rising prices. As such, it is important to keep abreast of all the important decisions of the federal government, as they can help you make the right choices about your future and prepare for what’s coming more easily.

If you’re looking to refinance, buy a home, and so on, give Steelman Mortgages a call at (916) 847-7263. We can provide you with all the best mortgage options. There’s nothing we love more than helping people achieve their desired lifestyles and obtain their dream home.