Mortgage Loan Application Tips

Mortgage Loan Application Tips

 

If this is your first time to buy a house, you might be worrying about applying for a loan and how you will be approved. Getting a good loan term is very helpful to give you a strong buyer’s position to choose the house that you want. The process of applying for a loan is more complicated than getting a car loan or personal loan. To give you hints on what you need to do, follow these steps: 

 

1.Know your credit score 

Months before you decide to buy a house pull your credit card report and order your credit score. This is the initial most important thing to do when applying for a loan that many home buyers miss. If you still have credits that needs to be taken care of, do your best to clear them out before you submit a mortgage loan application.  A good credit standing will give you higher chance of getting great mortgage loan terms and a quicker application process. 

2.Have enough savings 

When you are applying for a home loan, it doesn’t mean that you are really broke. It only means that you don’t have enough savings to make a one-time payment for a Calabasas real estate. Mortgage lenders practice more caution these days as an aftermath of the real estate crisis that happened a few years back. They will now require you to pay a down payment, normally around 10-20% of the loan, before you even get approved for the mortgage. 

3.Stay at your job 

To prove that you have a steady source of income, stick to your current employer. If you change companies for the last two years, lenders would think that you will get into financial challenges to pay them back. They will scrutinize your application heavily which could lead to its rejection or you will be get an approval for smaller loans. 

  1. Avoid new debts

Lenders will evaluate your capacity to pay back your loan. They will look into your unsettled credits to check if your income and savings are enough to pay your mortgage and your other credits. If you have many debts because you are constantly swiping your credit card, it will really hurt your chances of getting approved for a mortgage loan. As a rule, all your debts including your mortgage should not exceed 36% of your gross monthly income. Settle your debts first and avoid making new ones. 

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Stock Market Secrets Your Broker Won’t Tell You

Investing in the real estate means that you need to have an idea how the stock market works. This is the biggest problem for most real estate investors. They failed to realize that the stock market plays a significant impact on the positive or negative trend in real estates.  

To help you understand the stock market better, here are six things you didn’t know about it (but should): 

  1. If you want to know what’s going to happen next to the stock market, don’t tune in to the radio or read the business section of a broadsheet. Instead, look into the social media such as Tweeter. Scientists report that the social media predicted the daily changes in the Dow Jones Industrial Average with 87.6% accuracy rate.
  2. The stocks market is not controlled by a person or a group. The brains of the stock market are the computers which translates the trading activities into algorithm models. The traders help analyse and input data but the computers do most of the work.  This means that if a superbug will be invented, it can erase millions of money invested in stock market within minutes.
  3. When you hire a broker to trade in your behalf, his allegiance will not always be with you. There may be times when he allies himself with the shareholder. Stock trading is where he gets his income so he does things that can work for his best interest especially if you don’t know anything about stock trading.
  4. Investing in popular companies doesn’t always work. Facebook is a giant company, but it suffered “technical glitches” on its Nasdaq debut. This resulted to financial losses to those who invested their money in Facebook stocks. 
  5. Earning a college degree yields more return on investment than putting the money on long-term investments such as stocks, bonds or housing.  Having a four-year college education returns 15.2% of the investment annually, according to report from the Modulus Financial Engineering Inc.
  6. Online traders cannot control the stock market. When you call your broker and provided a quote when you want to enter the market, your instruction will not be followed most of the time. This is because the prices can change even before he inputs your entry.
  7. Your losses or profits also depend on whether you choose to invest in high or low beta stocks. This is how it works. Stocks with a beta of 2 have higher volatility, which means you either earn big or loss big. If you are looking for a low-risk with little profit, invest in stocks with lower beta.

Stock trading is a game of chance. But it really helps if you know how it will work for you and how it will make you broke.   

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Real Estate: Real estate loan – Understanding the concept

Real estate loan is what a lot of people use to buy their home. Real estate loans have been instrumental in bringing joy to people by making that unaffordable house affordable. Some real estate investors too make use of real estate loans for buying properties. However, real estate loan is not free money and anyone who buys real estate or plans to buy real estate using real estate loan must understand the concept of real estate loan very clearly.

Real estate loan (also known as mortgage) is the money that you borrow from someone (a financial institution i.e. a mortgage lender) for the purpose of buying a property. The real estate loan generally covers a part of your purchase price and the remaining portion has to be paid by you upfront i.e. as down payment. The amount (i.e. the percentage of total purchase price) that you have to pay as down payment is dependent on a number of factors and you can generally reduce it to even 5% by going for mortgage insurance.

FHA and VA loans (i.e. mortgage insurances through FHA and VA) reduce the down payment requirement on real estate loan even further. Whatever you borrow from the mortgage lender as real estate loan needs to be paid back to the mortgage lender over a period of time (and, of course, you will also need to pay appropriate interest on that real estate loan). The tenure of your real estate loan and the prevailing market rate will determine the amount of interest you pay for your real estate loan. Generally, you are required to pay back the real estate loan in the form of monthly instalments which are composed of both interest and principal portions of your real estate loan.

Also, there are various types of real estate loans e.g. fixed interest rate loans and adjustable interest rate loans. So depending on what type of real estate loan you have gone for, your monthly payments might either remain constant (fixed rate) for the full tenure of the loan or keep getting adjusted periodically (adjustable rate) on the basis of a financial index. Besides that, some other costs are also associated with real estate loans e.g. there are closing costs, inspection costs, attorney fee etc.

Also, in case the property needs some repairs, there will be costs associated with that too. Again, there is stamp duty and other taxes that you need to pay. So, really Free Reprint Articles, you need to understand the concept of real estate loans and the related costs clearly before you actually go for the real estate loan. And understanding these concepts is really not that tough.

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Real Estate Membership Groups – Info

Working with clubs, organizations and other membership groups is a good source of business and a niche that most agents don’t consider. There are so many different kinds of groups — you will have an endless source of business. Groups with large members are a continuous source of leads for new and repeat business year-round. If you happen to be a member of a group already that is even better because people like to deal with someone they know and have something in common with. Even if you are not member, you can arrange to come and speak to the group and bring information about buying, selling and leasing real estate in the area. Be sure to bring along several business cards to hand out, too. You may want to join the group.

The local Chamber of Commerce is an example of a group that is great for networking in your local area. If you are interested in charitable work, you may want to volunteer your services to the organization as well. It may take some time before you get a lead, but working with groups is worthwhile because you can target a number of people at the same time without having to spend a lot of money on marketing. Most groups have newsletters that are emailed to their members. For a small fee or maybe even for free, you can advertise your services in their newsletter or offer to write an interesting article about the housing market.

Start by compiling a list of groups that you want to target. Find out when it meets and who their chairman is so you can call and follow up with a letter or email to arrange a time when you can make a presentation to the group. You may even want to provide refreshments. If you have any professional designation such as the ABR® designation awarded by the National Association of Realtors (NAR) Real Estate Buyer’s Agent Council (REBAC®), be sure to put that on your business cards or marketing materials. This lets everyone know that you have special education and expertise and have taken time to further your education.

The biggest advantage of marketing to membership groups is they have a large number of members who may be interested in buying, selling or leasing real estate. Members also have family members and business associates who may want to refer you, too. Networking in the community is a great way to get to know people and offer your services. You may also want to hold a seminar or some kind of charity event to raise money for their group if they are a non-profit organization. The good thing is there are always new groups starting up in the area. All you need to do is read the local newspaper to see that there is some club or organization sponsoring an event or hosting a program or workshop. Groups are an endless source of new business leads.

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