Blog - Michael Inkman

How to Choose Which Mortgage Is The Right One for You

January 10, 2025 by Michael Inkman

When it comes to buying a home, selecting the right mortgage is one of the most important financial decisions you’ll make. The type of loan you choose will impact your monthly payments, interest rates, and overall financial stability. To make the best choice, it’s essential to understand the different types of mortgages available and how they align with your financial goals and circumstances.

1. Conventional Loans

Conventional loans are the most common type of mortgage and are offered by private lenders such as banks and credit unions. They come in two main forms:

Fixed-rate loans: These have a stable interest rate that remains the same throughout the life of the loan, making them ideal if you prefer predictable payments.
Adjustable-rate mortgages (ARMs): These start with a lower interest rate that adjusts periodically based on market conditions. ARMs can be a good choice if you plan to sell or refinance before the rate changes.

Conventional loans typically require a higher credit score and a larger down payment compared to government-backed loans.

2. FHA Loans

Backed by the Federal Housing Administration, FHA loans are designed for borrowers with lower credit scores or smaller down payments. Key features include:

Down payments as low as 3.5% for those who qualify.
Flexible credit score requirements.
Higher debt-to-income (DTI) ratios allowed compared to conventional loans.

FHA loans are an excellent option for first-time homebuyers or those who need a more accessible entry point into homeownership.

3. VA Loans

VA loans are available exclusively to eligible veterans, active-duty service members, and certain members of the National Guard and Reserves. These loans are backed by the Department of Veterans Affairs and offer unique benefits, such as:

No down payment required.
Competitive interest rates.
No private mortgage insurance (PMI) costs.

If you’ve served in the military, a VA loan can be one of the most affordable paths to homeownership.

4. USDA Loans

The U.S. Department of Agriculture offers USDA loans to buyers interested in purchasing homes in rural or suburban areas. These loans are designed to help low- to moderate-income families and offer:

No down payment for qualified applicants.
Competitive interest rates.
Flexible credit requirements.

If you’re looking to buy a home in a rural area and meet the income requirements, a USDA loan could be a great fit.

Choosing the Right Mortgage

To determine the best mortgage for your situation, consider the following factors:

Your Financial Situation
Evaluate your credit score, savings, and income stability. These factors will influence your loan options and the terms you qualify for.
Your Long-Term Goals
Think about how long you plan to stay in the home. If you’re planning on a long-term commitment, a fixed-rate loan might be best. For shorter stays, an ARM or low-down-payment loan might make more sense.
Risk Tolerance
If you prefer stability and predictable payments, opt for a fixed-rate loan. If you’re comfortable with some financial variability, consider an ARM.
Eligibility
Check if you qualify for special programs like VA or USDA loans, which offer favorable terms and benefits.

The right mortgage is more than just a loan—it’s a stepping stone toward achieving your homeownership goals while maintaining financial health. By understanding the differences between loan types and assessing your personal needs, you can make a confident, informed decision.

How to Strengthen Your Mortgage Application and Boost Approval Chances

January 9, 2025 by Michael Inkman

Your mortgage application is more than just paperwork—it’s your chance to demonstrate to lenders that you’re a reliable and financially stable borrower. Whether you’re a first-time homebuyer or looking to upgrade, a strong application can make a significant difference in securing favorable terms. Here are practical steps you can take to improve your mortgage application and maximize your chances of approval.

1. Focus on Your Credit Score

Your credit score is one of the most critical factors lenders consider. A higher score shows financial responsibility and reduces the perceived risk of lending to you. To enhance your credit score:

Pay down outstanding debts: Reducing credit card balances can improve your debt-to-credit ratio.
Avoid late payments: Consistent, on-time payments build trust with lenders.
Hold off on opening new credit accounts: Avoid taking on new debt or making large purchases on credit before submitting your application.

If your credit score isn’t where it needs to be, start improving it months before you apply for a mortgage.

2. Reduce Your Debt-to-Income Ratio

Lenders closely evaluate your debt-to-income (DTI) ratio to ensure you can handle monthly mortgage payments alongside existing debts. To lower your DTI:

Pay off small debts when possible.
Avoid taking on new loans or credit obligations.
Keep your spending in check and focus on saving for your down payment.

A lower DTI ratio signals to lenders that you can comfortably manage your financial obligations.

3. Highlight a Stable Income

Having a steady and reliable income is crucial for mortgage approval. To showcase your financial health, provide thorough documentation, including:

Recent pay stubs
Tax returns from the past two years
Bank statements showing consistent deposits

If your income includes bonuses, commissions, or freelance work, ensure that it’s well-documented and consistent over time.

4. Be Honest About Your Financial Situation

Transparency goes a long way in building trust with lenders. Fully disclose your financial situation, including:

All sources of income
Any debts or financial obligations
Assets that may help strengthen your application

Hiding information can lead to delays, complications, or even denial. By being upfront, you’ll foster trust and avoid surprises during the underwriting process.

5. Shop Around for the Best Rates and Terms

Not all lenders are the same, and comparing options can help you find the best deal. When shopping around:

Look at interest rates, closing costs, and loan terms.
Check customer reviews and lender reputations.
Don’t be afraid to negotiate or ask questions about fees and conditions.

Even a slight difference in interest rates can save you thousands of dollars over the life of your loan.

6. Save for a Larger Down Payment

While some loans allow for low down payments, offering a higher one can strengthen your application. A larger down payment reduces the loan amount and shows lenders you’re financially committed to the purchase.

Improving your mortgage application isn’t just about increasing your chances of approval—it’s about setting yourself up for long-term financial success. Lenders want to see that you’re a low-risk borrower, and by taking these steps, you can present a solid financial profile that stands out.

Ready to take the first step toward homeownership? Start improving your mortgage application today by following these tips. A strong application can help you secure the home you’ve been dreaming of!

Can You Use Income From Two Jobs to Qualify for a Mortgage?

January 8, 2025 by Michael Inkman

Balancing two jobs or a full-time career with a side hustle can be rewarding, not just for your wallet but also when it comes to qualifying for a mortgage. Lenders recognize that additional income can strengthen your application, but there are specific rules to ensure your income is reliable and sustainable.

If you’re wondering whether you can use the income from two jobs to qualify for your dream home, the answer is yes, but there are some important factors to consider.

How Lenders View Your Income

Primary Job Income
Your main job is the backbone of your financial profile and carries the most weight with lenders. This consistent and reliable income forms the foundation of your mortgage approval.
Secondary Job or Side Hustle Income
Additional income can be included in your application if it meets specific criteria:

You’ve been working your second job for at least two years.
The income is stable, and you can demonstrate that it’s sustainable over time. Lenders will assess the hours, workload, and consistency of your second job to determine whether it’s reliable.

What You’ll Need to Qualify

To include income from both jobs, you’ll need thorough documentation:

Pay Stubs
Provide recent pay stubs from both jobs to verify your current earnings.
Tax Returns
Your tax returns from the past two years should reflect income from both jobs, showing consistency over time.
Employment History
Lenders will look for a steady employment history in both positions. This helps prove that your second job isn’t temporary or sporadic.

What Happens if You Don’t Meet the Two-Year Requirement?

If your second job is relatively new and doesn’t meet the two-year threshold, it likely won’t count toward your qualifying income. However, that doesn’t mean you’re out of options. Here’s what you can focus on instead:

Strengthen Your Credit Profile
A strong credit score can offset other areas of your application that may need improvement. Pay down existing debts, make all payments on time, and avoid opening new credit accounts before applying for a mortgage.
Save for a Larger Down Payment
A substantial down payment can improve your loan-to-value (LTV) ratio, making you a more attractive borrower to lenders.
Show Stability in Your Primary Job
Even without the second income, consistent earnings from your primary job can be enough to qualify, depending on the loan amount and your debt-to-income ratio.

Why Documentation Matters

Lenders require thorough documentation to ensure that your income is stable and sufficient to cover your mortgage payments. By providing accurate records and demonstrating consistency, you can maximize your chances of approval—even if you’re relying on income from two jobs.

A Strategic Approach to Home Buying

Whether you’re planning to buy your first home or upgrade to a new one, it’s essential to approach the mortgage process strategically. If you’re working multiple jobs, ensure you’ve got the right paperwork and meet the required criteria. This preparation can make the process smoother and give you the confidence to secure the home you want.

Lee Vanvolkenburg

15:43 23 Nov 23

Michael and his team were wonderful to deal with. They were excellent with communication and always available to answer questions. Thank you all!

williams lovos

22:54 16 Nov 23

We close on the house tomorrow! Thank you David and Michael for making my first home buying a smooth process. I had several out of the ordinary situations that would had easily not been possible to get the loan in the time that they were able to approve it. My wife and I are forever grateful for the work the team did. Thank you again!

Mario Silvestri III

16:45 16 Nov 23

Rex Perkins

16:56 15 Nov 23

Everything had been going well over the past two years since refinancing an existing mortgage. The application process, approval, servicing website, everything had been very smooth, nothing but the best service. I then had a minor issue arise. We had a wind loss claim on our home and, unfortunately, I had put off getting the check cosigned until the last minute. An issue arose as part of a minor miscommunication in terms of where the check was to be forwarded for endorsement.

To make a long story short, I feared that this miscommunication and misdirected check coupled with my procrastination were going to result in the check expiring and a huge hassle on my part to go through the process again. Mr. Inkman nor his branch were in any way involved with my account or account management, yet, the check inadvertently ended up in their draft loss department and I feared this would further delay things. I was a bit frantic.

One of those that I emailed was Mr. Inkman. In an era when customer service is not as valued as in the past, I was very skeptical I would meet the deadline. But, to my surprise, Mr. Inkman took it on his own to personally get things done and get the issue resolved. It appears that he tracked down the overnighted check personally, directed it for signature, packaged and overnighted the check back to me. All the while remaining professional and pleasant and providing consistent email updates on the status. It doesn't even look like he delegated, rather taking the initiative and seeing it through on his own.

To me, that's not just doing a job, that's going above and beyond in terms of leadership, professionalism, and customer service. We could not be more happy. And, as a further sign of good will, the Fairway CEO actually emailed me personally to follow-up and assure resolution. Been very happy with Fairway since my refinance, Mr. Inkman's efforts only further reinforce that opinion.

Samer Fallouh

15:01 15 Nov 23

Debbie Salas

21:47 03 Oct 23

This transaction probably would not have happened without Michael. Whenever we hit a stumbling block, he found a way around it! He kept us informed and was a positive light all the way through to the end and beyond.
Thanks

Eric Kieffer

22:46 16 Aug 23

Did business with Michael about 20 years ago and he was happy to help us again. He and his team did a great job. See you in another 20.