The Home Loans Support Center

Every person is unique, but when you face a challenge like getting or refinancing a home loan, you are never alone.  Countless men and women have faced the exact same challenge and have survived and thrived.  The following guide is designed to help you navigate your journey with the best information and resources that helped other survivors when they faced the same challenge. 

TSC has scoured the Internet and assembled links to the very best home loan resources: articles, blogs, forums and tools that can help you make better decisions and take action to help you make the right decisions and take the right actions.

As you’ll see, we always welcome your ideas and suggestions to make this Home Loans Guide even more helpful to survivors like you.   
 

JUST MAKING PLANS

Survivors Say: Best Resources for Home Loans

• Washington State Department of Financial Institutions: Home Loan Basics
• Freddie Mac
• Home Loan Learning Center

The Big Picture

The traditional home loan is repaid over the course of 30 years, but versions exist for 15 and even 40-year repayment periods. Banks once asked for a 20 percent down payment on the home, but the requirements are changing. Know what the financial expectations are for your mortgage, and know how you can minimize extra costs.

Yahoo Finance: Mortgage Basics

If you already have a mortgage, and you're having trouble meeting the payments, determine if you qualify for the government’s mortgage relief program:

MakingHomeAffordable.gov

Your Home Loan

Mortgages can be good investments because they build "equity," or the difference between the value of a home and what is owed on the home. Calculate your equity to find out how much value your house has.

MSN Money: How Much Home Equity Do You Have?

As you begin to make payments, you may want to consider a bi-weekly payment schedule. On this schedule, by making half-payments every two weeks, you will make one more annual payment than you would on a monthly schedule, thereby reducing your principal and the interest you owe significantly.

About.com: Bi-Weekly Mortgage Payment Plans

If you're concerned that you may default on a payment, learn how your mortgage works and what your legal options are.

Federal Trade Commission: Facts for Consumers

Your World

Getting or refinancing a home loan can be an arduous task. While it may feel overwhelming, take the time to thoroughly educate yourself on the different types of home loans available and find the resources available to support you through this process. You may even ask a friend with experience getting a home loan to give you some advice on how to handle this process -- emotionally and logistically.

Home Loan Myths

• Without good credit, you can't qualify for an FHA loan.
• The monthly payment for your mortgage will only go towards the principal.
• Home equity loans are not tax deductible.

Information and Recommended Links for Survivors: 

• Mortgage Advice and Counsel: Mistakes That Mortgage Shoppers Make
  
• Bank Rate: How Do I Refinance My Mortgage?
  

Types of Loans

Conventional

The conventional home loan requires a 20 percent down payment and has a repayment schedule of 30 years. These loans have pros and cons, which you should examine before committing to the loan.

Lender411: FHA vs. Conventional Loans

FHA Loans

FHA, the Federal Housing Authority, grants loans backed by the government. These loans have different qualifications than conventional mortgages and work well for millions of Americans.

HUD.gov: Let FHA Loans Help You

ARM Loans

Though ARM -- or Adjustable Rate Mortgage loans -- have received significant bad press, these loans work well for certain situations. ARM loans are good choices for people who either expect their credit score to increase or their income to increase drastically in a short period of time.

Mortgage X - Option ARM

Dangers of “Creative Financing"

If you find that you are tempted to purchase a house beyond your financial capabilities, and you think you can do so through "creative financing" -- proceed with caution. Some of these loans carry significant risk, such as the inability to refinance at the end of an ARM at a decent rate.

Family Resource: The Specter of Creative Financing

Creating a Support Circle

• Set up your TSC Survivor Profile
• Join support groups of other survivors or set up your own
• Interact and provide updates on your profile or our forums.

Insurance & Appraisal Matters

Insurance Matters

Homeowners’ insurance can be a significant part of your monthly bill. Before you purchase homeowners’ insurance, you need to make sure you are getting the best possible rate available. 

Federal Citizen Information Center: 12 Ways to Lower Your Homeowners Insurance Costs

Appraisal Matters

In most cases, the lender will have someone appraise the home before you buy it. Still, you need to educate yourself about the appraisal process so that you can spot any red flags.

Our Family Place: House Appraisals

Professionals Who Can Help

When you are considering a home purchase, professionals can help you find what you are looking for.

Find out how to select a Realtor or real estate broker:

All Business: How to Select a Realtor or Real Estate Broker

Resources to Find Home Loan Professionals

• Choice of Homes - Who Should You Choose? Mortgage Broker or Bank?
  
• Home Gauge - How to Select a Home Inspector
• Zero Million - Real Estate Foreclosure and Your Mortgage Financing Options

The Emotional Rollercoaster

Getting a new home loan can be exciting -- if you're moving into a new home -- but the process can also be challenging. The financial burden may be great, and the process can be complicated. Educate yourself so that you are in the best possible position to keep your home and thrive.

Books Survivors Recommend

• The 106 Common Mistakes Homebuyers Make
• The First-Time Homeowner’s Handbook: A Complete Guide and Workbook for the First-Time Home Buyer
  
• The Foreclosure Survival Guide: Keep Your House or Walk Away With Money in Your Pocket
  
• The Smart Consumer’s Guide to Home Buying

What Survivors Wish They’d Known

Communicating with Your Home Loan Professionals

• Ask all of the questions you have. The home loan process is full of jargon you may not understand. Don’t be afraid to ask questions until you understand what’s going on.
• Don’t sign anything without reading it. Make sure you know exactly what each document means.
• Find someone you trust to show the house and tell you about the mortgage. Someone without an emotional investment in the process can help you make better decisions.

Dealing with Home Loans: Information and Recommended Links for Co-Survivors 

How you can help

• When someone you know is purchasing a home, you can offer to help with the process of checking out the house to see what kind of work needs to be done.
• Be a sounding board for your friend or family member to help them determine what they can afford.
• Be supportive if your friend or family member has a mortgage they cannot afford. Reserve judgment and try to help fix the problem.

What to say 

• "I’m sorry this isn’t working out for you. Let me know if you need any advice.”
• "I’d be happy to help you decide on what mortgage to get if you need me to offer any advice."
• “If you want to vent about anything related to your home loan, I’m here for you. I know these decisions are tough.”

What not to say

• "Well, I didn’t think you could afford that house when you bought it." 
• "You might lose your house."
• "Maybe you should just walk away."

Things you can do for a survivor every day

Offering to review your friend or family member's budget can be very helpful. Some people may be reluctant to share their financial information with others, in which case you can help by offering money-saving tips. You may also offer assistance running errands to your friend or family member, as dealing with mortgage problems can be very stressful.

How to build a support network

• Set up your TSC Co-Survivor Profile
• Create a support group for your friend or family member.
• Interact and provide updates

How to help a survivor deal with day-to-day challenges

• Telling Children About Financial Problems
• Creating a Budget
• Evaluating Refinancing Options

Once you’ve finalized your home loan, you may think you've overcome the biggest home-related hurdles -- not quite. You now need to focus on maintaining and improving the appearance of your home -- and budgeting for that.

Learn how to maintain your home using this basic tips list. You should make maintaining your home a priority to keep from incurring significant costs later.

Remodeling My Space: General Home Mainenance Tips 

Use this annual checklist to help you spot problems before they become major issues.

Bob Vila: Home Maintenance Checklist

Learn how to budget for your home improvement plans.

Lets Renovate: Budget Home Improvement

Give Back

What helped you while you were searching for the right home loan? Take a look back at your journey and share with other what helped you and what you wished you would have known/done during your home loan experience. You can create a profile, reach out to other survivors, join support circles or share your story by following the links at TheSurvivorsClub.org.

If you find that you are unable to cover the cost of your mortgage, a foreclosure may be your only option. You should educate yourself on what foreclosure proceedings entail.

• The Survivors Club - Foreclosure Support Center
• About.com: Buying Foreclosures - How Foreclosures Work

If you do face foreclosure, know how it will affect your future credit options:

Privacy Matters: Foreclosure and Your Credit History