Author: kollin.yelensky

Many individuals aren’t aware of what their rights are when it comes to their credit report. In fact, many have never even heard the words ‘Fair Credit Reporting Act.’ The FCRA is responsible for regulating the collecting, use, and distribution of any consumer information, including that of consumer credit reports. The goal of this act is to help protect you from any willful or negligent inaccurate information in your reports.

The Facts

Here are a few important things you need to know about the Fair Credit Reporting Act:

• Consumer credit reports are filled with information relating to your credit, such as the statuses of your credit accounts and bill payment history.
• Reports include such information as to whether you are making your payments on time, the amount of credit you have out there, how much credit you currently have available, the amount of credit in use and whether a debt collector is collecting on any money you owe or not.
• A credit report can also contain information about your payments on a rental property.
• Liens, bankruptcies, and judgments are listed on your credit report and provide valuable insight as to your current obligations and financial status.

Butler Mortgage Can Help

All of these things are crucial to whether or not you can get a mortgage. If something isn’t accurately represented in your credit report, the mortgage experts at Butler Mortgage can help. Our experts understand that you have every right to dispute that information and have it removed. Don’t allow inaccurate information to remain in your credit file. Discover your rights under the Fair Credit Reporting Act. If you have any questions about what the FCRA means for you, call us today at 407-931-3800.

Reverse mortgages are an available option for seniors that own their home or have low balances left on their mortgages. This type of mortgage will convert the equity of the home into a lump payout, a line of credit, or a monthly payment. Seniors may choose one of these options or combine them. When a senior acquires a reverse mortgage, the loan will have no monthly fee as long as they continue to live in the home.

There are many benefits a senior will experience from a reverse mortgage. Here a few of them:

1. Remain in Your Home

   You may continue to live in your home with no monthly mortgage payments. You will be able to use the equity you’ve already built up for whatever you choose.

2. Tax-Free

   Because the reverse mortgage is a loan, any funds you receive — either as a monthly payment or as a lump sum — are tax free.

3. No Restrictions on Use

   You may choose to use the funds in any way you like. You may pay off other debts, make purchases, or take a much-needed vacation.

4. Proceeds Options Are Flexible

   You may choose how you would like to receive your funds. You may either receive a lump sum or monthly payments. You may also choose a line of credit. Depending on your wants or needs, you can combine all three options.

5. Federally Insured Protection

   Reverse mortgages are federally insured. If the lender holding your reverse mortgage loan defaults, you will continue to receive the benefits of the loan.

6. Other Assets Remain Safe

   If you have your home in a reverse mortgage, your other assets or income are not considered for the lender.

How We Can Help

The benefits of a reverse mortgage outweigh the negatives for seniors. It’s a great option to help with other debt, increase a financial portfolio, or simply enjoy your golden years by taking vacations or making purchases you otherwise weren’t able to do, and the experts at Butler Mortgage can help. Call us today to speak with one of our financial specialists and come up with a plan that suits your unique circumstances. For questions, or to take the first step towards a reverse mortgage, call us today at 407-931-3800.

Purchasing a home is one of life’s most important events. Your real estate agent will help you with their knowledge about properties, but for information regarding financing and home mortgages, you’ll need to talk with a mortgage company. When you meet with the mortgage company, it’s important to ask several questions before finalizing any home purchase.

1. Qualifying Factors for a Mortgage

   Find out what requirements you must meet regarding your credit history, employment, liabilities and assets, and income. Your mortgagor will review all of your information to see if you qualify. They will also discuss different types of loans available to you, including government programs, such as FHA and VA, as well as first-time homebuyer loans.

2. Minimum Down Payment

   The amount of money you have as a down payment will affect your monthly payments and also be a deciding factor if additional mortgage insurance is necessary.

3. Interest Rate Information

   Interest rates can fluctuate from day to day and are dependent upon things such as your loan type, down payment, and credit scores. Ask your loan originator how your personal situation may affect the interest rate you will receive. It is possible to lock the interest rate for a specified amount of time.

4. Prepayment Penalties

   It’s important to know if you will have any penalties should you pay the mortgage off early. You may be penalized if you reduce your principal, or refinance.

Trust our Experts

These are just a few of the important questions you should ask when meeting with a mortgage company. Although your real estate broker does not generally partake in mortgages, they can offer you some information if you’re unsure of appropriate questions to ask. It’s important to ask these questions to seasoned mortgage professionals, and you can trust the experts at Butler Mortgage. To speak with one of our experienced professionals and make a plan that best suits your needs, call us today at 407-931-3800.

What is a USDA Loan?

When a person decides that they want to move to an eligible rural location, the Department of Agriculture offers different types of loans, one of them being a USDA loan. This loan allows home buyers to purchase a home with no money down, as well as 100% financing to those who qualify. As long as your credit score is at or around the 600’s and you meet the other requirements, this loan may be easier to get approved than a regular mortgage. It is also a good idea to see what qualifies as ‘rural’ in your state. The USDA guidelines are loose, so you could live in a small town or suburb outside a larger city that qualifies.  A USDA Loan is used to promote small town living by making rural land more affordable.

Do I qualify?

When applying for a USDA loan, here are some helpful things to keep in mind:

• What are your state’s income guidelines? You must meet these in order to qualify for a loan.
• How many people are living in your house? What is the average income of the surrounding area? Both these factors will determine how much you qualify for.
• Will the home you are buying be a vacation home or a rental property? You can only qualify for a USDA loan if it is your primary
• Are you a lower-income buyer? Since no down payment is required, it may be easier for a household with a lower income to get a USDA loan than a regular mortgage.
• What’s your credit score? In order to get the best deal possible on a loan, you have to have a decent credit score. Remember if your score is lower it could be because of credit errors, so be wary of those.

If you are looking to move to a more rural location, or prefer the convenience of purchasing a home with no money down, a USDA may be right for you. If you have any questions about applying, or are wondering if you qualify for this loan, call Butler Mortgage at 407-931-3800 for a free consultation.

Why You Should Invest in Homeowners’ Education Courses

These days, people can study almost anything in school, from how to become a professor of literature to how to bake wedding cakes. However, did you know you can also take homeowners’ education courses? These courses cover everything you might need to know as you prepare to buy a home.

Are You Ready?

The first thing homeowners’ education courses will cover is whether you’re ready to buy a home. Every individual is different, and just because you aren’t ready now doesn’t mean you’ll never qualify. However, you can prepare yourself in a few key ways. Think carefully about your plans for the home. Discuss whether you need pre-approval for mortgages and other loans, and be prepared to set a budget.

Navigating Mortgage Payments

Most potential homeowners aren’t familiar with how mortgages work and the options can be confusing. Homeowners’ education courses teach you how to find the best lender, how to navigate loan and insurance options, and how to interpret mortgage-related terms and paperwork.

Recognizing Fraud

Hopefully, you won’t encounter fraud as you buy your first home. However, unscrupulous people take advantage of inexperienced buyers. When you take a homeowners’ education course, you’ll learn how to recognize fraud and how to protect yourself from it.

Owning your own home can make you feel secure, but you may need a mortgage to make that dream real. There are several types of mortgages to choose from, including an FHA. An FHA mortgage is one insured by the Federal Housing Administration. Borrowers pay mortgage insurance, which protects the lender should the buyer default on the loan. Although FHA mortgages seem to benefit only the lender, they carry many benefits for the buyer as well.

More Lending, More Mortgages

Perhaps the biggest benefit of FHA mortgage rates is that they allow lenders to offer more mortgages at attractive interest rates. The FHA has endorsed more than 325,000 more mortgages than usual in recent years. As a result, more buyers have been able to invest in homes. Additionally, the increase in FHA mortgage rates led to better financing. Buyers can currently finance a home with just 3% down, versus 3.5%.

Lower Insurance Premiums

Since the 2015 FHA rate cut, lenders have been pushing for mortgage insurance premiums (MIPs) to end once a buyer’s loan reaches 78% of its original balance. Over time, this would drastically lower buyer costs and allow more people to qualify for shorter mortgages with better financing. Lenders hope that, over time, FHA mortgage rates will help the economy recover.

Buying a home, whether you’ve done it before or not, is exciting, but there are many things to consider which can make the process stressful. We have some tips to help make the process a bit easier.

Know your budget

Knowing your budget is the most important part of buying a house. It will only hurt you in the long run to look at homes that are out of your price range. Know the price range you can afford and don’t stray from it if you can help it.

Know what you want

Almost as important as knowing your budget is knowing what you need and want. Go into the search with a plan for what you are looking for, what you are willing to compromise on, and what you are not. Look down the road, as well; you may be in this house for years. Will it still suit you and your family then?

Be fully prepared

Preparing correctly beforehand will save you a lot of stress. Increasing your credit score can drastically lower your house payments. A score of 580 might see your loan approved, but a score of 750 or more will get you the best deals. Also, remember to plan for the down payment and closing costs on your new house! Buying a house in Florida is a big deal. Make sure you go into the buying process with a clear plan so that you come out the other end with a home you’ll cherish for years.