Can Online Gambling Affect Getting A Mortgage
Taking on a mortgage is a major financial responsibility. But oddly enough, nearly half of homebuyers don’t take the time to shop around for the right lender, according to the Consumer Financial Protection Bureau. In addition to traditional banks and mortgage brokers, homebuyers have a third option in the form of online mortgage lenders. If you’re cautious about going online to track down a home loan, here’s a quick rundown of the advantages and disadvantages of getting a mortgage online.
Find out now: How much house can I afford?
The Pros
- Rachel Lummis from Xpress mortgages agreed gambling transactions cause problems. She said: “Many of us like a flutter on the grand national – that won’t affect you – but if you have daily amounts going out to companies, such as Bet Fair or Ladbrokes then that can cause an issue.” 2) Being overdrawn.
- Over in Ireland, some mortgage applicants are reportedly being denied mortgages because they have online betting accounts, according to the The Herald. Apparently, the presence of a betting account is being used as criteria to approve or decline a home loan application, despite the fact that it’s perfectly legal to gamble over there.
There are plenty of requirements you must meet when applying for a new mortgage or when you plan to refinance your existing loan. Lenders will look at your debt levels, income and credit score. They’ll also look at your employment history. Fortunately, getting a mortgage with a new job is far from an impossible task. Compulsive gambling often leads to unsupportable debt. Gamblers will stop paying on credit cards, mortgages, auto loans and student loans, trying to compensate for losses. Choose Your Debt Amount Get debt relief now.
1. You may Get Lower Rates and Fees
Unlike a brick-and-mortar bank, online mortgage lenders often operate without having to cover a lot of overhead. As a result, they might be able to pass the savings to their customers in the form of lower interest rates or lower fees. If an online lender offers you a rate that’s even a quarter of a percent lower than what other lenders offer, that could potentially save you thousands of dollars over the life of your loan.
2. Applying for a Loan May Be Less Time-Consuming
If you’ve never applied for a mortgage before, it goes something like this. The lender will hand you a stack of paperwork and a laundry list of documents that you’re required to make copies of. Getting everything in order can take days or even weeks if you’re chasing down bank statements or tax forms.
Online lenders can make the process less difficult to navigate. Instead of making copies of tax returns or other financial documents, you can just upload them to the lender’s website. That can speed up the loan process and save you some headaches.
Can Online Gambling Affect Getting A Mortgage Rates
3. It May Be Easier to Get Approved
Your credit score plays a big role in determining whether you can qualify for a mortgage. Conventional, FHA, VA and USDA loans all have minimum credit score guidelines for approval. But individual lenders can raise the bar to weed out borrowers who may be a credit risk. If your credit isn’t perfect, an online lender might be more willing to grant you a loan.
The Cons
1. Getting Help May Be Harder
If you’re applying for a mortgage through a local bank or a broker, you’ll probably be able to call them at any time within business hours to get answers to your questions. With an online lender, it might be more difficult to get someone on the phone when you need assistance.
2. Rates Aren’t Guaranteed
Jumping on board with an online mortgage lender because they’re promising you a super low rate can backfire if it turns out that you’re not eligible for a great deal. By that point, you could be several weeks into the process, so you might feel like it’s too late to back out. And as a result, you could end up paying more for a mortgage than you had originally planned.
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Do Your Homework
If you think an online mortgage lender is the way to go, it’s best to do some research before you apply. It’s a good idea to read reviews and find out whether there have been any complaints filed against the company, either with the Better Business Bureau (BBB) or your state’s attorney general’s office. Then, you can carefully compare the loan terms they’re offering to make sure you’re getting the best deal.
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Back taxes = no mortgage (until now)
If you are paying back taxes with an installment plan, most mortgage programs required you to clear your tax debt before getting a mortgage. Until today.
Verify your new rate (Dec 18th, 2020)Fannie Mae clears the way
Mortgage giant Fannie Mae sent out an update today to its lenders allowing them to approve applicants who owe back taxes. The change is effective immediately.
You don’t have to clear your tax debt before buying or refinancing a home. However, you do have to meet a couple of criteria:
- The lender must document that you have an approved IRS installment agreement in place. It must indicate the terms of repayment, including the monthly payment amount and total amount due.
- In addition, you must be current on your monthly installments. You can prove this by supplying the most recent payment reminder from the IRS. That will show the last payment amount and date, and the next payment amount owed and due date.
Finally, you cannot have an IRS lien on your home. That’s what happens when you ignore tax debt or fail to set up or stick to a repayment plan. The IRS liens your home, and to lenders it appears that the only reason you are making installment payments now is that the IRS forced you to.
Payments count
Can Online Gambling Affect Getting A Mortgage Lender
Your lender won’t completely ignore your IRS obligation, however. Your monthly payment will be included in your debt-to-income ratio (DTI), which could reduce what you’re allowed to borrow.
For instance, 43 percent is a common threshold for mortgage programs: below 43 percent is good, above 43 percent is bad. So if you earn $5,000 a month and make a $300 a month tax payment, at a 4 percent rate, you could borrow almost $63,000 less with the tax lien than without it.
Practical matters.
If you plan to buy or refinance a house while repaying back taxes, it might help to negotiate a lower monthly payment and longer repayment period with the IRS. That way, you’ll qualify for more financing if you need it.
Alternatively, go for the highest payment you can possibly make, pay that thing off as fast as possible, and apply for your next mortgage with a clean slate.
What are today’s mortgage rates?
Current mortgage rates are significantly higher than they were a couple of weeks ago. However, understand that you can offset some of that increase by shopping aggressively for your home loan.
For instance, data show that mortgage rates can vary between lenders by .25 percent (conforming) to .50 percent (non-conforming) on any given day for the same loan. That dwarfs a .125 percent increase in overall rates. It pays to shop, and that’s easy to do right here.
Verify your new rate (Dec 18th, 2020)