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Mortgage Loan Tips: Getting A Bad Credit Home Loan

Written by V. Cari on December 13, 2009

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Just because you have bad credit, or have been declared bankrupt or are experiencing foreclosure, does not mean that you will be unable to obtain credit in the future. There is one thing that you will need to keep in mind and that is, you will be paying more in the form of interest than someone with a good credit score. There are several options for consumers who have bad credit out there. Listed below are some things that you may need to know in this regard:

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Mortgage Loan Tips: Home Loans For Self Employed

Written by V. Cari on December 13, 2009

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Self employed individuals sometimes find it a bit harder to secure finance to get a home loan. In certain cases mortgage lenders and financial institutions do not want to deal with the extra paper work that comes with the approval of a self-employed loan. In addition to this there may also be concerns that you may be unable to earn steady employment as an employed individual would, giving rise to speculations about mortgage repayments. However, do not lose hope there are still several proactive things you can do to wow your credit officer. Listed below is a list of such things:

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Home Mortgage Loan: Applying For A Full Doc Home Loan

Written by V. Cari on December 10, 2009

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Consumers looking to obtain a home loan can best obtain it in today’s tight credit squeeze through a full documentation mortgage loan. This is of course not to say that lo doc and no doc loans are out of the market. In the type of credit crunch that we are now experiencing, major mortgage lenders and financial institutions are looking to write squeaky clean deals. In other words they are looking to write business that can be well substantiated. Under the given circumstances, applying for a full doc loan is one of your best options to obtain finance for a mortgage loan. Click here to read more …

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Mortgage Loans: Qualifying For A Home Loan

Written by V. Cari on December 04, 2009

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It has been discussed at great lengths that the current real estate market is a buyers market. However, we also know that we have experienced the mother of all credit contractions in the recent past. While there are a plethora of purchase options open to qualified buyers, the questions remains how many of us are actually going to qualify for that much needed finance in order to be able to close that home deal.  Prior to even considering the purchase of a home loan it is absolutely necessary that you check whether you qualify for a loan to begin with. Getting yourself a pre-approved loan or checking your pre-qualification status can go a long way to save you heartache and disappointment in the future.  When looking at whether you qualify for a loan it is important to under stand what your home loan officer is looking for. Listed below are some things that you can be rest assured would be a focal point during a pre-qualification process.
Willingness To Pay
If we were to describe this in a couple of words, they would be “credit score”. As credit contracts lenders lay a lot of emphasis on your credit score. You willingness to repay is rather evident from your credit score.  Lenders usually demand “A” rated credit scores. These are credit scores, which are 620 and higher.  In certain cases if your credit score is exceptional, for instance if you have a credit of 700 plus, in such circumstances you may not even need to produce half the documentation that would normally be required.
Positives On Your FICO Score
Listed below are some of the points that reflect positively on your credit score and consequently ease the pre-qualification process:
·       One major plus is not having any repayments, which are older than 30 days in the span of the last 12 months on your credit report.
·       If you have credit cards and/or lines of credit and have only used a part of it, while the other remains untouched, this too adds points to your credit score and would also impress the assessing officer.
·       Another major point booster is having debt obligations/loans paid off either on time or early.
·       In addition to the above if you have been paying down your credit cads or line of credit in full each month, this too looks very impressive during the qualification process.
Negatives On Your FICO Score
Here are a few things that would really prove to be a setback to your FICO score.
·       Late payments during the last 30 days.
·       Loans, which have a charge off, listed next to them.
·       If you have been maxing out your credit cads or lines of credit, be rest assured that it has lessened your credit score.
·       Not having a credit file. If you feel that you are uncomfortable with borrowing and as a result of that you do not have a credit card and no record of a credit, history, you would have taken away any information for your credit officer to base a decision on. It is vital to have a credit  file.
Capacity
If there are ticks against all the above, the last thing your lender is going to check is your ability to make the repayments on your home. This would include checking your payslips and if you are self-employed your tax returns. You need to clearly exhibit the capacity to make the repayments on your home loan while being able to lead a normal life.
These are some of the things that your lender will check to make sure that you qualify for a loan.

It has been discussed at great lengths that the current real estate market is a buyers market. However, we also know that we have experienced the mother of all credit contractions in the recent past. While there are a plethora of purchase options open to qualified buyers, the questions remains how many of us are actually going to qualify for that much needed home finance in order to be able to close that home deal.  Prior to even considering the purchase of a home loan it is absolutely necessary that you choose the right mortgage loan and check whether you qualify for a loan to begin with. Getting yourself a pre-approved loan or checking your pre-qualification status can go a long way to save you heartache and disappointment in the future.  When looking at whether you qualify for a loan it is important to under stand what your home loan officer is looking for. Listed below are some things that you can be rest assured would be a focal point during a pre-qualification process.

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The Best Mortgage Product: Choosing The Right Mortgage For You

Written by V. Cari on December 02, 2009

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At some point in time very individual wants to own a property. Not everyone is fortunate enough to get an inheritance and not have to worry about mortgages altogether. Most of us, if we want a house, we have to consider getting a mortgage. Under such circumstances, most of us feel that no matter what a mortgage is a mortgage and that they all serve the same purpose. This however is a misconception. In today’s business world no 2 people are alike and hence nether are mortgage products. Based on your needs and circumstance you should get a mortgage to suit your requirements. Some such examples are listed below:
Buying A Life-Time Investment
If you are looking to by a house and are hoping to keep it for the entirety of your life span and maybe leave it to your kids someday, then in that case you should consider getting yourself a fixed rate mortgage. These mortgages have rates that can be fixed for the life span of the loan, even as much as 30 years. These are ideal for people who have bought a house with the intention to hold on to it.
Seasonal Or Fluctuating Income Earners
Ideally Adjustable Rate Mortgages (ARM’S) are the way to go in this case. Experts consider these to be pretty risky products. These suit individuals who have fluctuating levels of income. During dry months consumers can make smaller repayments, which only cover the interest component or not even that and can catch up during months where the income is greater. You must remember that if you are consistently making small repayment, in the future you may experience that you payments have risen by a fair bit.
Self-Employed
If you are a self employed individual you may want to get either a low-doc or a no-doc loan. While the interest on these loans is considerably higher, self-employed individuals prefer them owing to the fact that it saves them the hassle of having to obtain and produce financial like payslips or W2’s etc.
Active Serviceman Or Veteran
If you are an active service man or a retired veteran, then it is the best idea to get yourself a VHA loan. These loans allow qualified military personnel to get loans for amount as much as $417,000., with absolutely no down payment. In certain other states of the country the amount goes up to about $625,000.
Recent Graduate With Great Income Potential
If you have recently graduated with a fancy degree and are starting to find your feet in the job world, it would make sense to get a loan which is a one year Adjustable Rate Mortgage. Make sure that you get a loan where the interest is capped and not the payments. If your payments are capped it would mean that even as your repayments are regular, your interest rate is fluctuating and that would keep pushing up the amount you owe the bank. It is very essential to make sure that you have capped the interest. With a one year ARM you may feel the pinch initially but eventually your rising income will be able to see you through.

At some point in time very individual wants to own a property. Not everyone is fortunate enough to get an inheritance and not have to worry about mortgages altogether. Most of us, if we want a house, we have to consider getting a home loan. Under such circumstances, most of us feel that no matter what a mortgage is a mortgage and that they all serve the same purpose. This however is a misconception. In today’s business world no two people are alike and hence nether are mortgage products. Based on your needs and circumstance you should consider various types of mortgage lenders and get a mortgage to suit your requirements. Some such examples are listed below:

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Home Loan Tips : Choosing The Best Home Loans

Written by V. Cari on November 29, 2009

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As more and more properties flood the market, the more the real estate market becomes a buyer’s market. The property market has not been this receptive to buyers in a long time. However, the numbers of foreclosures in the market are making banks contract their credit policy even more. Here is a catch 22 of sorts. While the market tends to be favoring buyers, the banks are making obtaining credit that much more difficult. Don’t lose heart, because credit is still available. Consumers do need to keep in mind, that having a stable job or great credit alone will not suffice to secure you credit. It has to be a combination of these two vital elements and several other factors for banks to consider you an exceptional applicant. While trying to secure a home loan it is essential that you keep a few things in mind. You do not want to end up with having secured a loan and not knowing how to make your repayments because you made a judgment error. Here are a few tips to help you secure the correct home loan.
1.   Know Your Limits: It is essential that you know your spending capacity. Getting a loan which is beyond your means, or one with an extremely high interest rate, will simply mean that eventually the financial burden will catch up with you and you will find yourself delinquent and in a position where you are short selling or being foreclosed upon. Calculate you income and expenditure each week or month to know exactly how much you can spend on home loan repayments.
2.   Shop Around: Do not settle for the first lender you whose office you walk into. You may have banked with an institution for several years, but that however does not mean that they have the best products on the market or products that suit your needs. Look around for to get the best deals. If you are of the opinion that you may be a little lost, seek help. Talk to a mortgage broker to get an explanation; however do not be pushed into making a decision or settling on a lender. The decision is your and you should be comfortable while settling on a lender.
3.   Terms Of The Loan: Before settling on the rate of the loan it is always advisable to select the terms. Terms would include things like the length of the loan, whether you would like a 15-30 year loan or in some cases even a 50 year loan. Next whether your loan is going to be a fixed rate mortgage where the interest rate on the loan remains the same throughout the life of the loan or an adjustable rate mortgage. With ARM’s the rate is locked in for a period of 1-7 years.
4.   Get Your Estimates Right: Once you have gone through the process of selecting our product, lender, terms and interest rate, make sure you get a fai idea of consequent and relevant outgoings. These would include expenses such as closing costs. Closing costs could include stamp duty, set up fees and other ancillary charges. Also make sure you get your estimates of monthly repayments as far accurate as possible. Unless you have this down you could soon find that your repayments are more than you estimated and this could eat into your finances very quickly.
Once you have done this, make sure that you have locked you home loan rate in 30 to 45 prior to the closing out of the agreement. This is necessary as rates are constantly changing. These are some simple yet effective steps to consider when getting a home loan.

As more and more properties flood the market, the more the real estate market becomes a buyer’s market. The property market has not been this receptive to buyers in a long time. However, the numbers of foreclosures in the market are making banks contract their credit policy even more. Here is a catch 22 of sorts. While the market tends to be favoring buyers, the banks are making obtaining credit that much more difficult. Don’t lose heart, because home loans are still available. Consumers do need to keep in mind, that having a stable job or great credit alone will not suffice to secure you credit. It has to be a combination of these two vital elements and several other factors for banks to consider you an exceptional applicant. While trying to secure the best home loan it is essential that you keep a few things in mind. You do not want to end up with having secured a home loan and not knowing how to make your repayments because you made a judgment error. Here are a few tips to help you secure the correct home loan. Click here to read more …

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Home Mortgages: Types Of Mortgage Lenders To Consider

Written by V. Cari on November 28, 2009

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When it comes down to getting a mortgage for your home there are several ways to do it. However, what is important is to understand which type of lender or avenue of finance is best suited to your needs. Some of the options when you talk about home finance range from the traditional banks and large financial institutions to your credit unions and building societies. More non-traditional channels include non-conforming lenders and private channels. Listed below are the various forms of financing and their descriptions.
Portfolio Lending
This is you more traditional form of lending. Banks and large financial institutions are considered portfolio lender owing to the fact that they are lending you’re their own money without having to wry about the fact that these new loans have now got to be sold as soon as possible on the secondary market. As a result of this, these large financial institutions are not at the mercy of FannieMae or FredieMac. However, if these institutions do offer government backed lending products they too are involving themselves in mortgage banking. As a side note, if your loan has been with a financial institution for over a year and you have been making your repayments on time and have no late charges, then in that case your loan is what is known as a “seasoned” loan and the institution can sell it on the secondary market to raise further funds to increase it’s own portfolio. In this even the financial institution goes from being you lender to your servicer.
Direct Lenders
Direct lenders are the lenders who fund their own originated loans. It might be fair to say that this is similar to a portfolio lender. However, this is not always the case. Unlike portfolio lenders, who fund their own loans through their own funds and have to be very large banks or financial institutions, direct lenders can be either large or very small. Unlike portfolio lenders who use their own money, direct lenders use their reserve lines of credit to fund the same. One way to be able to tell the difference between the two used to be the fact in whose name the loan papers were drawn. However, nowadays even the smallest lender can have the loan done in their name.
Correspondents
This type of lending usually has 2 parties to it. The originator is the person who generates the loan, much like a mortgage broker, and a sponsor, is the party to whom the originator bundles up the loans and sells to. The sponsor in turn sells the loans to a mortage banker like FannieMae or Freddie Mac. Correspondents as a rule work with institutions which have a very strong wholesale mortgage department.
Banks & Credit Unions
Banks usually fall under the category of a portfolio lender owing to their size and scale of operations and in addition they use their own funds for the funding of loans. However in certain cases banks which use warehouse lines of credit could be more direct lenders in their way of operation. Credit unions on the other hand usually operate as correspondents owing to the fact that they on sell their loan bundle to sponsor institutes. In some cases very large credit unions could assume the position of a portfolio lender.
It is essential that consumers understand they type of lender they are dealing with to understand the inner workings of their mortgages.

When it comes down to getting a mortgage for your home there are several ways to do it. However, what is important is to understand which type of lender or avenue of finance is best suited to your needs. Some of the options when you talk about home finance range from the traditional banks and large financial institutions to your credit unions and building societies. More non-traditional channels include non-conforming lenders and private channels. Listed below are the various forms of financing and their descriptions. Click here to read more …

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Is Your House an Asset?

Written by V. Cari on October 06, 2009

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Many new age financial gurus argue that your house is not an asset, creating much confusion among home owners and prospective buyers. Buying a home is probably the most expensive purchase any person will make in their lifetime and the 20 to 30 year mortgage means it is also the longest standing debt in most circumstances. With these considerations, it is obviously a cause for concern when experts say that a house is not an asset as buyers may be cautious about parting with their hard earned money.
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Settling Your Home Mortgage When Selling Your House

Written by V. Cari on September 30, 2009

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Home owners with a mortgage should consider the financial implications of selling their home prematurely or at a lower price in order to secure a fast sale. A mortgage may extend over a 30 year period, depending on your financial institution, meaning that the first few years of mortgage repayments will make a very small dent on the capital amount borrowed.A premature sale may be impossible or actually leave your with little or no money in your hand thereby compromising your financial position.

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