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Understanding Which Mortgage Loan Is Right for You: An Interview with Raz Razla of HML Investments

By Raz Razla

Tell us a little bit about your company and the services you offer.

HML Investments is a mortgage brokerage firm where we strive to help consumers achieve the best loan product. I offer Conventional, FHA, VA, HARP loans, Reverse Mortgages, Purchase Money transactions, Refinance Transactions and Private Money Lending. I have been in the mortgage industry for over 15 years and HML Investments has been my home for 2 years. HML Investments offers the best service during the loan transaction and after. We educate our customers on the best loan product to fit their needs and budget.

What is one of the most important things for potential homeowners in Bay Area to know when they're starting to look at the different types of home loans?

The first thing potential homeowners need to know is to find out from a loan specialist the right type of loan program that will fit their budget and also to find out how much "HOUSE" they can afford. One mistake consumers make is they start looking for a home before acquiring financing. It is important to sit down with a mortgage consultant and they can advise you of which loan program is the right fit.

Also, many consumers when they are ready to purchase or refinance their home go to their local bank and apply. Most banks have tight guidelines and will not approve you for a loan and also have one type of loan product that you may not be able to get qualified. It is important to have a mortgage broker handle you transaction because they deal with many banks and many loan programs.

Is there a common misconception about mortgages that you've seen first-time home buyers have?

The biggest misconception that I have seen from first time home buyers regarding mortgages is the fear of applying for a mortgage. Buyers don't think they can get approved for a home mortgage or afford the monthly payment. Most people who rent and pay a certain amount every month CAN afford to purchase a home at the same payment they are renting. When I meet first time homeowners I explain to them the process from start to finish and put them at ease that everything will be handled in a timely manner.

How should people approach trying to understand the types of loans that are available to them and deciding which one is the best fit?

People should approach loans that are available to them by asking one question: Can my income be verified? This question and the answer that follows will determine what loan product will best fit you. There are loan programs for individuals who can't verify their actual income and that puts them in a different category of loan programs available to them. First time home buyers have many advantages and many loan programs to help them achieve to purchase their dream home.

Deciding which loan program is best can be derived by risk factors of credit, income, and assets. Banks calculate a person's risk in obtaining a loan by these factors. Every individual has a loan program that will fit their budget and lifestyle and it's my job to get you the right loan product.

What are two or three of the most common types of loans that people apply for in Bay Area and the main benefit of each one?

    The 3 types of loan that people in the Bay area apply for is the following:
  • Bank Statement program - this program is for individuals who are self-employed and do not verify their income on their tax returns. The bank will derive their income by adding their monthly deposits and taking an average of the deposits as income. The benefit of this program is consumers get qualified for this loan program and don't have to show tax returns.
  • FHA ? This is a government sponsored program that allows first time homebuyers to purchase a home with 3% down payment. Consumers enjoy very low rates on this program making them qualify for more house because of the low rate and higher debt to income ratio.
  • Reverse Mortgages ? This type of loan is more geared to 62 and older individuals who have plenty of equity in their home and want the freedom of not having to be burdened with a mortgage payment. This allows the individual to live in the home, own the home and live off the equity that they have earned without making any monthly mortgage payment. The benefit of this program is the homeowner keeps the house free of payments and every year they are offered a line of credit to pull money out so the homeowner can enjoy income as needed.

What advice would you give to prospective home buyers who want a lot of flexibility with their mortgage?

My advice to prospective homeowners is when applying for a mortgage make sure there is no pre-payment penalty where you are tied to your loan for a certain period of time. The penalty won't allow you to refinance your home if rates drop or sell if the home values increased. Apply for a mortgage that fits "YOU" and that the mortgage you applied for is not a burden rather an investment for the future.

What's the best way for people to reach you and your company?

The best way to reach me is by cell ? 323-559-3154 or by email raz@hmlinvestments.com My company website is www.hmlinvestments.com.

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About The Author

Raz Razla is Home Mortgage Consultant at HML Investments.

Phone: 323-559-3154

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