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Sometimes you need something when you don’t, and other times you think you don’t need something when you do. That’s why we made this list of documents that you may need in order to refinance your mortgage. Every refinance deal is different, so you may be asked to provide more or less than what is on this list depending on your unique circumstance. Documents Needed for Application The past 2 years of federal tax returns, W-2s, 1099s, or K-1s, depending on your type of income. If you are self-employed (own 25% or more) and file corporate tax returns, please provide a copy of the last two years tax returns. If you filed for an extension for this year, please provide a copy of the filed extension and your two prior year’s federal tax returns. Please be sure tax returns are signed where applicable (page on 2 personal, page 1 on business). 30 days most recent pay stubs for all current employers. 2-year employment history – if there are any gaps, a letter of explanation may be needed by your lender Most recent available asset statements (checking, savings, brokerage accounts, money markets, etc.) covering at least a 2-month period. Please provide all pages even if blank or is a reconciliation page. Retirement account statements (IRA & 401(k)), all pages. Copy of driver’s license for all borrowers. Current mortgage statement Name and phone number of the insurance company that insures your home If Applicable Copy of any child support orders, all pages. Divorce decree, if you pay alimony or if you receive it and want to use it for qualifying. If you have filed ...

Mortgage Speak

Get a Lower Rate, Take Cash Out of Equity, or Get Rid of PMI When you refinance a loan, you essentially replace the current loan with a new loan. There are a variety of reasons to go through this process, from lowering your interest rate, to planning for life’s important milestones. Let’s look at the most common reasons homeowners refinance their mortgages, starting with reducing the monthly payment by getting a lower rate. 1. Get a Lower Rate to Reduce Your Monthly Payment If you are a homeowner that is looking to reduce your monthly payment and you purchased your home with a higher interest rate than is being offered now, you may want to consider refinancing your mortgage. Lowering your interest rate has a two-fold benefit. Not only does it lower your payment, but it also increases the rate at which you build up equity in your home. 2. Take Cash Out of Your Home’s Equity When you owe less than your home is worth, that means you have equity built up in your home. Up to 90% of the difference between what you owe and your home’s worth can go to you in cash depending on the lender’s guidelines and your qualifications. You can spend the cash on home improvements, debt consolidation, paying off student loans, or any other financial needs you may have. 3. Eliminate Private Mortgage Insurance (PMI) Is your loan backed by the FHA or did you purchase your home with less than 20% down? If so, there is a good chance that you have PMI. Private Mortgage Insurance is used to protect lenders if a borrower falls behind on their payments. If the new loan amount you get when you refinance is less than 80% of your ...

Mortgage Speak

Gain a better plan rather than living paycheck-to-paycheck with your next mortgage Homeownership is a goal that most of us have. In order to make this dream come true, future homebuyers need to do some financial planning and budget their money in order to save for a home. Let’s take a look at a possible financial scenario of a newly-married couple, Brad and Ann, renting an apartment and plan to purchase their first home within the next 12 months. Build good credit First things first. If your credit needs a little TLC, you need to take care of that first. Talk with one of our helpful Mortgage Bankers to review your credit report and profile. You will work with your Mortgage Banker to ensure there is no suspicious activity or late payments recorded that shouldn’t be there. If you have a poor credit rating, it could limit the amount of house you can qualify for due to a high-interest rate, or result in your application being denied by an Underwriter. If your loan application gets denied, BankSouth Mortgage can help you get back on track with your credit and finances. We never want to say “no” to a borrower, but rather help each customer achieve their financial dream of homeownership. Add up monthly income sources Now for the second-largest elephant in the room when it comes to planning a budget, your income. There is no way you’re going to be able to know how much home you can afford if you don’t add up your monthly income sources. In our make-believe financial scenario, Brad is an Accountant brings in $2,900 in take-home pay a month, and Ann’s monthly take-home amount is $3,200 a month as a ...

Mortgage Speak

What is a renovation loan?

Jan 9
7:30
AM
Category | Mortgage Speak
A renovation loan is a type of loan that borrowers can use to make renovations to their current or future home. It could mean turning a fixer-upper into the home of your dreams. Renovation loans can be taken out at the time of purchase or as part of a refinance of your current home to make improvements. These renovations usually result in the homeowner’s ability to build equity immediately once the renovation is complete. There are many options to choose from when it comes to a renovation loan. How do renovation loans work? With a renovation loan, you can turn a fixer-upper into the home of your dreams. Renovation loans can be stand-alone loans or in tandem with a new home purchase or refinance depending on the type of loan you are approved for. Here are some highlights of common renovation loan types: Construction to Perm Renovation Loan If you’re looking to do major renovations to turn a fixer-upper into the home of your dreams, the 2-time close Construction to Perm (CP) renovation loan may be for you. You can put down as low as 10% and make interest-only payments during the construction. Streamlined FHA 203k With a single FHA home loan, you can combine the cost of the home with the non-structural renovation costs – up to $31,500 in renovations. A streamlined FHA 203k can be done as part of a purchase or refinance. Non-structural repairs include improvements/modernizations, elimination of health/safety standards, replace roofing, painting, and more. Homestyle Renovation Loan The Homestyle Renovation Loan makes it possible to include renovation costs with your conventional first mortgage on your home. This is a ...

Mortgage Speak

What industry experts are predicting for Georgia mortgages in 2020 I think it’s safe to say that 2019 has been a historical year when speaking about the mortgage and real estate markets. Several Georgia markets saw record-low interest rates on new and refinanced mortgage loans, and real estate agents managed many competing home offers, driving prices above asking in many cases. The Mortgage Bankers Association says that the mortgage industry is on a path for the best year since the great recession in 2008 as a result of the rate cuts enacted by the Federal Reserve. What’s in store for 2020? Many are wondering if we will see interest rates continue to stay where they are now, or if they will drop even lower. Let’s look back at 2019 and see where we could be headed in 2020 based on what the experts are predicting. Recap of 2019 Mortgage Trends Mortgage experts across the country predicted that 2019 would see rates increase as the demand of mortgage originations soared, but that is exactly the opposite of what happened. Demand rose and interest rates fell. This benefited everyone in the industry, not only the mortgage lenders and realtors, but the homebuyers, sellers, and current homeowners. Homebuyers were able to obtain financing more easily, sellers’ homes sold faster, and homeowners were able to take advantage of lower interest rates by refinancing their current mortgage. The focus of many mortgage professionals was on first-time homebuyers in 2019, according to experts at NerdWallet. During the great recession, many millennials delayed buying a home due to affordability, tight lending restrictions, and student ...

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