Q: I just started working at a new job, does this mean I have to wait to get approved for a mortgage?
A: No, we do require a two-year employment history, but it does not have to be with the same employer. If you have been with your current employer less than two years we can use your hourly or salary rate to qualify you.
Q: I owned my home free and clear before I lost it in the fire. I have received my insurance money and want to buy another home. Should I use all the funds and pay cash from it?
A: We are so sorry that you have to go through this. While owning your home free and clear is nice because you don’t have the monthly payment, at the historically low interest rates that we are currently still experiencing, it is a good time to review your entire financial picture and possibly diverse your monies. It isn’t a good thing to be “house rich” and “cash poor.” In other words, you have no mortgage but you are tight on day-to-day living expenses, or you have nothing saved for later in life. Your mortgage is typically the largest investment that you will make. Now is a perfect opportunity to meet with a professional, like Jennifer Strong at Strong Financial in Lakeport, who can assist you in making wise decisions on what to do with large sums of funds. Possibly you could use some for a new home and some to start an IRA or save in a higher yielding money market account. Depending on where you are in life, starting these types of things now can be extremely helpful later in life. Be sure, that you are using this extremely unfortunate incident to do what you can to better prepare yourself for the future.
Jacie Casteel is senior loan officer and branch manger at Sterling Mortgage in Lakeport. Submit questions to info@sterlinglakecounty.com.
