Mortgage Questions You're Too Afraid to Ask: Part 2

With decades of experience in the mortgage industry, it's hard to stump our mortgage bankers. There are some questions, though, that some buyers may be too shy to ask. That's ok! We are always available to help answer the tough questions. Here are four more mortgage questions you might be too afraid to ask:

1. Can I get a mortgage with no job?

Yes, you can! Qualifying for a mortgage does not require standard employment, but it does require income, which must be documented as part of your loan application. Aside from standard W2 employment, some other forms of income we can work with are self-employment, real estate rental income, retirement benefits, disability payments, annuity settlement payments, and interest from savings or investments. You can even include spousal or child support as income, as long as it will continue for at least the next three years. If your income comes from sources other than W2 employment, you should be prepared to provide documentation to show the source of the income, such as tax returns, award letters, court documents, etc. One of the most significant deciding factors of the loan approval is the debt-to-income ratio (DTI) which shows the lender the monthly debt payments you have compared to your gross monthly income. Contact us today for a complimentary consultation to review your available income sources and calculate your DTI.

2. If I file for bankruptcy, what happens to my house?

When filing for bankruptcy, keeping your home is probably at the top of the list of concerns. You can feel confident knowing that legally a lender or loan servicer cannot punish you for filing bankruptcy. They cannot change your loan rate or terms, so it's entirely possible to keep your home. Whether you are filing chapter 7 or chapter 13, bankruptcy does affect the status of your home, so if you want to keep your home, make sure to discuss that with your bankruptcy lawyer as soon as possible. If you have questions about how bankruptcy can affect your future home purchases and refinances, please give us a call; we're here to help!

3. What do I do if I haven't paid my property taxes?

All homeowners in the United States pay property tax to fund their local county and municipal services such as schools, road maintenance, parks, police, libraries, etc. If your tax bill is unpaid, the local tax office will begin to charge interest on the unpaid amount. You may also be charged penalties for overdue payments. If left unpaid, a tax lien can be placed on the property. If you've received a letter indicating you are behind on local taxes, it is important that you contact a tax attorney as soon as possible. Failure to pay is considered an "event of default" and could put you at risk of foreclosure, even if you always make your monthly mortgage payments. There are resources available to help you! The law surrounding failure to pay your property taxes is complicated and varies from state to state. Your tax attorney can walk you through relief options, which can include:

• Making up for your past-due payments.
• Requesting a tax deferral.
• Establishing a payment plan.
• Taking out a property tax loan to pay the debt in monthly installments.

4. What happens if I can't make my mortgage payment?

Most mortgage payments are due the first day of the month, but policies can vary. Typically, there's a 15-day grace period, in which case you would have 14 days after your payment is due to pay your bill without accruing a late fee. Mortgage lenders typically report late payments to credit bureaus after they become 30 days (or more) past due--meaning you usually have the full month to make the payment before it is reported as officially late. After the 30-day mark, your credit score will likely be affected. If you don't think you can make the next month's payment, contact your mortgage servicer to find out what your options are. They may be able to set you up for making smaller payments multiple times per month or work with you on a loan modification to change the terms of your original loan. You may be struggling to make your mortgage payment because of additional debts. Contact your mortgage banker to discuss how to potentially consolidate your debts to make your monthly payments more manageable. Talk openly with us about issues like these, we're here to help and can only assist if we know what is going on in your life and with your finances. For further reading, check out Mortgage Questions You're Too Afraid to Ask: Part 1.

If you have questions about how to handle financing a mortgage, contact us or fill out the short form below. Our experienced mortgage bankers are here to guide through to achieve your goal of homeownership.