How To Get a Mortgage In Wyoming With The Best Rates
In this blog, we will cover how to get a mortgage in Wyoming with the best mortgage rates with a lender with no lender overlays. Borrowers with credit scores over 700 FICO can check out discount mortgage brokers in Wyoming, such as www.preferredmortgagerates.com and jumbomortgageoptions.com.
How To Get a Mortgage in Wyoming With The Best Rates
Lenders determine to price on rates based on the borrower’s credit scores. Another important factor in rates for borrowers is lender compensation from lenders. The higher the borrower’s compensation, the higher the rates. The higher the borrower’s credit scores, the lower the rates. Borrowers applying for a mortgage should check on several lenders and get a quote on rates. John Strange, a top producing loan officer at Gustan Cho Associates, about getting the best rates on a mortgage:
Discount mortgage brokers are mortgage brokers who charge very little on the back end, which is often called the yield spread premium. There is no such thing as free in the mortgage business. Mortgage lender’s compensation is what determines rates. The higher the lender’s compensation, the higher the rate for the borrowers.
Lenders determine rates for borrowers by the borrower’s credit scores, payment history, and other loan-level pricing adjustments. Not all lenders have the same loan level pricing adjustments.
Mortgage lenders generally have higher rates in Wyoming because most lenders have higher compensation plans. Most mortgage lenders can charge higher than 600 basis points when the maximum yield spread premium of 2.75%. Mortgage lenders need much higher compensation than the mortgage brokers’ back-end compensation of 2.75%.
How Is The Real Estate Market in Wyoming
The property market in Wyoming has been on steady growth over the last couple of years. This growth could be attributed to low property prices, low tax rates, beautiful nature, and fresh air.
It is amazing how strong the Wyoming housing market is. The housing market in Wyoming has been skyrocketing year after year for the past several years. The high mortgage rates have not made a dent in the Wyoming housing market.
Buying a home in Wyoming can seem intimidating to a first-time buyer, especially one new to the Wyoming property market. The situation could even be worse for buyers with bad credit! But don’t worry. This article will cover the frequently asked question of how to get a mortgage in Wyoming.
How To Get a Mortgage in Wyoming With Bad Credit
The first step in any home-buying process is figuring out where you are financially because, realistically, there is no point in going house hunting, much less making an offer, before you understand your financial situation. Here we discuss your income, credit score, and debt-to-income ratio. Let’s concentrate on your credit score here first.
In Wyoming, any individual looking for a traditional loan to finance their property purchase must have a credit score of at least 500 FICO. But what if your score is below this level? In this case, you will still qualify for a mortgage, only that it may not be the traditional one, but with alternative options.
What we mean is that there are different types of mortgages in Wyoming. While some require a credit score of 620, as mentioned above, there are other types of loans, such as VA (veterans administration) and FHA (federal housing administration), which can accept a credit score as low as 500. The VA option is, of course, meant for service members and their spouses or veterans.
Exploring Non-QM Loans When Getting a Mortgage In Wyoming
You can also decide to go for non-QM loans (Non-Qualified) that don’t have a strict rule on credit score, and you can qualify for a non-QM mortgage loan. Non-QM mortgage loans do not have any waiting period after bankruptcy or foreclosure.
If you have declared bankruptcy or had a foreclosure at some point, you can consider non-QM loans after bankruptcy for homeowners, which enables you to qualify and pre-approval/
On non-QM mortgage loans, all you need to present is your bank statements or any other documentation that indicates your financial situation has been improving consistently. If you show your financial situation has been improving over time, that will show lenders or those funding the loans more secure on the mortgage loan applicants.
The Home Buying Process in Wyoming
Getting Qualified and Pre-Approved For a Mortgage:
Getting Qualified and pre-approved for a mortgage is a very streamlined, easy process. However, every buyer should understand how to get a mortgage in Wyoming. How to get a mortgage is a process. It would be best if you were focused and clear in learning how to get a mortgage in Wyoming. At one time, Mike Gracz of Gustan Cho Associates was choosing to move to Montana. Here is what Mike said about how to get a mortgage in Wyoming.
Once you want to start the house hunting process, you need to have your choice of mortgage pre-approved so that you can show home sellers the letter for them to see that you are serious about the transaction.
Having been pre-approved, you will have a much more secure financial footing, which will help you negotiate. To get pre-approved for a mortgage, you need to apply for and provide all the documentation that will be required from you by the lender. If you qualify, the loan officer will issue you a pre-approval letter.
Hire a Real Estate Agent Who Knows Your Area in Wyoming
Get a real estate agent – truth to be told, finding a house that you can call home in Wyoming isn’t a walk in the park, which is why you will certainly need to hire a real estate agent. Even though it’s not a requirement in Wyoming to have an agent, hiring a good one can be extremely helpful. When looking for an agent, get someone experienced in the local property market and someone with excellent communication skills. You will need those skills at some point during the negotiations.
Shopping For a House
Look for a house – it’s time to look for your dream house! The best place to start the search is from the local listing, which the agent can help you through. By this point, you probably already know how much you will be spending, and you can narrow your search only to properties within your budget.
Mortgage brokers need to disclose the yield spread compensation on the loanestates. It needs to be disclosed on the closing disclosure. Most mortgage lenders often charge 600 FICO or higher as their compensation but do not have to disclose it on the closing disclosure.
Even as you keep perusing the listings, you need to know where exactly you want to settle in Wyoming. With that said, here are the top places you should concentrate your search in.
Buying a Home in Cheyenne, Wyoming
Cheyenne – this is the most populated city in Wyoming. That lies north of Denver, Colorado – about 100 miles – and has a population of about 65,000 people. Regarding property prices, the average home is about 200,000 USD, with a single-family home going for as little as 60,000 USD.
Many consumers do not realize that direct mortgage lenders often have higher rates than mortgage brokers.
If you want a home on a ranch, it will go for about 10 million USD. Considering the interest many people are showing towards Cheyenne, especially those planning to move there, the property market has steadily grown, so you can’t ignore it in your search. It is a very safe place, and employment opportunities are ever-present.
Buying a House in Casper, Wyoming
Casper – there are a lot of activities and adventures associated with this great town in Wyoming, which makes it another potential location you should consider, especially if you are an adventurous person.
Mortgage lenders generally have higher rates in Wyoming because most lenders have higher compensation plans. Most mortgage lenders can charge higher than 600 basis points when the maximum yield spread premium for mortgage brokers is 2.75%.
Home values have been rising recently, indicating a thriving property market.
Buying a House in Laramie, Wyoming
Laramie – this city has abundant historical activities and nature and attracts many tourists yearly. This makes this city ideal for investment properties, including Airbnb’s short-lets, hotels, motels, cottages, and bed and breakfasts.
Your Debt-to-Income ratio is low, and if you have a sizeable down payment, that would be more of a down payment which will impress mortgage lenders. Non-QM Mortgage Lenders love down payments and higher secured credit cards.
Even those looking for residential properties will have plenty of options at affordable prices, so you should also check it out.
Buying a House in Gillette, Wyoming
Gillette is one of the areas in Wyoming with the lowest cost of living. And considering the beautiful nature and scenery, including coal mine museums, breweries, and ranches, it would be a great place to live. The area is safe.
Mortgage lenders need much higher compensation than the mortgage brokers’ back-end compensation of 2.75%.
There are employment opportunities, as well as plenty of basic amenities.
Make an Offer in Wyoming
After you select your dream property in the ideal location, the next step would be to make an offer! Your real estate agent will certainly come in handy at this point, as they will help you with all the paperwork and negotiations on the property’s final price.
As you have seen, having a bad credit history should never stop you from owning a dream home in Wyoming’s amazing and adventurous state. You only need to approach or contact a mortgage broker to help you find a suitable mortgage for your case.
The closing process will involve an attorney, especially when signing contracts and title deeds. But don’t worry because your agent should be able to recommend a reputable property attorney in the state for you to choose one.
Final Thought on How To Get a Mortgage in Wyoming
Gustan Cho Associates are mortgage brokers licensed in 48 states, including Wyoming. Ronda Butts of Gustan Cho Associates explains why Gustan Cho Associates is the lender of choice for many mortgage borrowers.
Over 80% of our borrowers at Gustan Cho Associates are borrowers who could not qualify at other mortgage lenders with due to lender overlays or because they did not offer the particular loan program offered on internet or by social media platform. Gustan Cho Associates has a network of 210 wholesale mortgage lenders.
The team at Gustan Cho Associates has a national reputation for being able to originate and close mortgage loans other lenders cannot do. If you are looking for great lenders willing to help you with every stage of the mortgage step and make the process fund, please do not hesitate to contact us at Gustan Cho Associates.
This guide on how to get a mortgage in Wyoming was written and published on March 20, 2023
