Wednesday, June 28, 2017

Four Things You Should Know Before You Modify Your Mortgage

If you have heard about mortgage modifications and are wondering if this is the answer to your money troubles, you should take a moment to read on further. Mortgage modifications help thousands of people reduce their house payment and free up part of their income to pay other bills. But the process can be complex, and you should be prepared to be patient if you need to lower your house payment. In the end though, if you fill out the application and provide what is asked of you, along with the help of a debt management professional, the rewards are great.

Four things you should know before you modify your mortgage include:

         Will a new appraisal be needed? When you initially bought your house you had to have an appraisal done in order for the lender to agree to make the loan. This is because lenders must follow certain guidelines when making loans, and one of those guides is that a loan cannot be given for more than what a piece of property is worth. But with a modification there is no requirement to appraise the property. This is because the lender is modifying their own loan and as such does not need to verify whether the loan to value ratio exists; that part was done at purchase.
         You will be asked to provide proof of income, and the ability to make the modified payment. It might seem strange to prove you can make a lower payment than your current payment, especially if you are making the higher payment routinely. But this can be part of the process and you should be prepared to gather your documents and have them copied for your lender.
         You should also expect to wait a while before your new loan is approved. This can be frustrating, especially if you have an immediate need for financial relief. But with the help of a trained professional, you can rest easy knowing your lender’s questions are being answered, and are being answered timely.
         There will be a loan closing once the modification is approved. That means there are closing costs that will have to be paid, just like when you bought the home. But most times these costs can be made a part of the modified loan, so you are not out of pocket any funds.
Let us help you today if you are having a hard time making your house payment. We can go over the modification process with you, and help you to understand how it works and how you will benefit.

For more information about mortgage modifications, contact us at We will help by coming up with solutions that work for you and have multiple locations to meet your needs for office visits.

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