Chase Bank Home Loan Modification For Chase Customers

Most people trying desperately just to make ends meet are now wondering if they have any other alternatives to foreclosure. Luckily, mortgage loan modification can help stop foreclosure in its tracks and get homeowners back on their feet. Your lender and your loan’s insurer make a difference in how and when you’re able to modify your loan, so look into requirements for Chase Bank home loan modification policies and processes in this article.

The first thing you need to do is find out who insures your loan. Many people have no idea because they have never needed to know before. The easiest way is to call Chase and request the information. If your loan is insured by either Fannie Mae or Freddie Mac, then you are probably eligible to participate in the President’s $75 Homeowner Stability Initiative that works with lenders and borrowers to reduce monthly payments to 31% of gross monthly income.

Of course there are a few stipulations, you must be the owner and occupant of the home, and you loan must have less than $729,750 in unpaid principal and originate before 2009. Your loan must also exceed 31% of your income, and each loan is only eligible for one modification under this plan. It is, however, highly beneficial and if you think you qualify then you should talk to a financial counselor about it. This government plan gives incentive payments both to homeowners and to lenders to facilitate the process, so homeowners get better deals with loan modifications through this government program than by going straight through their bank.

If your loan is not a Fannie Mae or Freddie Mac loan, however, you are not eligible for refinance under this new government program. But don’t despair. Chase bank has its own loan modification process and you should certainly look into it before resigning to foreclosure. Requirements include being the owner-occupant of the home, holding a first mortgage (never before modified or refinanced), and being able to afford monthly payments between 31% and 40% of gross monthly income. Naturally this is higher than the government rates because these types of loan modifications are not funded by the government Homeowner Stability Initiative. If you meet the above requirements, Chase will ask for a hardship package containing your hardship letter, financial statement, pay stubs, bank statements, and tax returns.

No matter what avenue you go through – Chase or the government – modifying your loan is usually a much better option than foreclosure. It preserves your credit score and allows you to stay in your home.

Home Loans – Qualification Or Pre-Qualification?

There are some confusions regarding loan pre-qualification. People usually think that by pre-qualifying you have all you need to start shopping for a property. Actually, pre-qualifying will let you start looking for a property knowing that you have high chances of getting approved for that amount and those terms but that pre-qualification is not based on a thorough analysis of your income and credit and thus, there is no guarantee that you will get approved.

This usually implies that the final loan will have different terms than the ones stated in the pre-qualification letter. This has further implications: You need to be careful to provide true information to the lender so the pre-qualifying is as adequate as possible and you should have some savings in case the amount lent is a bit lower than you thought it would be. A lower amount assigned is a common problem that causes many transactions to fall because the buyer did not take the necessary precautions.

Pre-Qualification Explained

When you contact a mortgage loan lender to obtain a loan quote, the lender will present you an offer for which you will qualify if your financial and credit situations are exactly as you explained and if there are no additional variables that can modify their decision. Therefore, it is possible for you to request the lender to put this in written in order for you to use that information to shop for a suitable property.

You need to understand that legally speaking, there is no obligation for the lender to comply with that offer because they will state that the loan approval is subject to a credit and financial analysis for the actual qualification to take place. Therefore, you need to be extremely sincere with the lender (if there is something, they will find out) and you need to be prepared for unexpected situations that can shrink the amount of money you will actually obtain.

Actual Qualification for A Home Loan

The qualification process is different because once the lender has provided you with the result of the qualification, there is a legal obligation to respect the terms of the resulting document. Therefore, only final qualification guarantees you that you will get the loan you need with the terms agreed. However, in order to go through the qualification process and get approved for the final loan conditions, you will need to meet the requirements set by the lender and also go through a credit verification process.

This implies that you will need to apply with enough time for this process to be completed. If you are rushed, chances are that many problems will arise. The lender has to analyze your credit score and history, your income and financial situation, the documentation and legal stance of the property and the owner too.

Only after all these requirements have been fulfilled, you will be able to obtain approval for the loan and know the exact final terms including how much money you can obtain. You should put aside some extra money in case the resulting amount is not what you expected. Such precaution has solved not few but many real estate purchase’s emergencies.

Credit Home Loan – Home Loans For High Risk Borrowers

With sub prime lenders offering mortgage loans to the borrowers with a deformed credit status, getting loans to materialize your dream to buy a new home is possible. Reasonable lenders make variety of mortgage loans for bad credit scorers at a little bit higher interest rates. But, unreasonable bad credit mortgage lenders offer loans at extravagantly higher rates and fees. So, begin a comparative search and analysis before you put a step forward in signing the deal.

How to Compare the Rates Offered By Lenders?

The best way to compare rates on the credit home loan is through Internet. You may have handful of local lenders providing bad credit loan to finance property purchase; however, to analyze the maximum lenders dealing in these loans, internet is the best option. Apply through lenders’ websites by entering basic details and your requirement. You will soon receive loan quotes from those lenders. Now compare amongst their interest rates charged, total costs including fees and extra points, percentage of the total amount offered in property purchase etc. to find who’s giving the best rates around.

Get the Real Mortgage Quotes

After you have accessed and analyzed general quotes, ask bad credit home loan lenders for specific quotes. Unlike general quotes, real mortgage quotes require more information than basic including location of your home, amount payable as down payment and more personal and financial information. The best way to work on real quotes is through Internet in the comforts of your home where you can easily find papers related to personal and financial records.

Apply For the Bad Credit Home Loan

After comparing general, real quotes in detail, you must have pointed out lender to get bad credit home loan like you do the same for bad credit personal loan. Soon after you apply, your lender will send you final papers for you for confirming loan request. Read papers carefully. If you agree to the terms and get the form notarize, its time for the final touch – to sign, seal and deliver. Keep in mind that mortgage lenders only take account of three years of payment history to refinance your mortgage loan. Refinancing a mortgage loan can lower interest rates of your existing bad credit home loan.