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Commercial Mortgage Leads
18/07/10
If you are a commercial mortgage broker, or running a commercial mortgage lending company, you must have felt the need for commercial mortgage leads. Business owners often require commercial mortgage loans to buy office space, factories or stores. Commercial mortgage leads help lending institutions approach commercial mortgage loan seekers with loan offers. Commercial mortgage seekers, while searching for the best mortgage deals, submit their mortgage loan requests to the commercial lead-generating companies. They fill out a simple online application form providing all the relevant details. The lead-generation companies then supply the applications to the commercial mortgage lending institutions. The mortgage loan applications then turn into commercial mortgage leads.
However, before approving the commercial mortgage leads, mortgage lead generation companies verify the authenticity of the applications. Commercial mortgage leads are not merely a collection of contact addresses of the borrowers. The type of commercial mortgage loans the borrowers want and the objective behind such loans should be taken into consideration. The lead generation companies should judge the merit of the loan applications before sending them to the lending firms. Qualified commercial mortgage leads make the job easier for commercial mortgage lenders. The responsibility of the lead generation companies doesn’t end with supplying quality leads to the lending firms. They need to study the commercial mortgage lending companies as well. They need to make sure that the companies are federally insured. They even check the credentials with the Better Business Bureau.
The verification process will ensure that the lending companies don’t have the opportunity to take the loan applicants for a ride. On the basis of the commercial mortgage leads, the lending companies offer quotes to the loan applicants. As a commercial loan applicant, you can then accept your favorite loan offers. Commercial mortgage leads are designed to facilitate the communication between borrowers and lending firms.
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There are currently around 6 million homeowners who have an interest only mortgage. This type of mortgage means that the monthly repayments that you make are just taken off the amount of interest that the mortgage accumulates. The capitol which you borrowed must be paid back when the mortgage has run its terms.
The interest only mortgage seems to be very popular with those who are house buying for the first time. Recent research showed that the amount of first time buyers taking out an interest only mortgage rose to 18%. The mortgage could be popular because the rates of interest are usually a lot lower than a repayment mortgage. Due to this it is the only type of mortgage that many starting out first time in buying can afford.
However while low rates of interest are a good thing the down side is that when the term of the mortgage comes to an end you will still owe the same amount of money that you started out owing. If you do not have a means of paying this then of course you would have to take out another loan.
Lenders have perhaps become a little lack with this type of loan because years ago you would have to be able to prove to them that you had means of repaying the capitol at the end of the mortgage. Today you can take out an interest only mortgage and having to find the capitol is only mentioned on the bottom of the mortgage agreement.
Ideally those taking out this type of mortgage should have some form of investment that they are able to fall back on and so use it to repay the capitol of the loan. While the interest only mortgage does give the cheapest rates of interest over the long term it is one of the dearest types of mortgage.
If you want to be sure that you can own your home at the end of the mortgage arraignment then you have to have a repayment mortgage, unless of course you already have the means by way of an ISA. This means that part of the monthly repayment goes towards the interest and the other part towards the capitol. If you have an interest only mortgage then you should consider changing a part of it to a repayment mortgage or start saving money in an ISA account.
If you want to check out the rates of interest that come with interest only mortgages then go with a specialist website. You can get several quotes together on one page which makes comparing quotes easy and quick. You also have to take into account the small print of any loan you are considering as this is where you can find the added costs. Costs such as set up fees can vary widely from lender to lender so it is worthwhile choosing a mortgage with low costs or costs that have been waivered. The small print can include valuation fees and a lump sum payment if you should want to switch mortgages within s certain time frame of taking out the mortgage.
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Sub-prime loans are becoming more readily available through traditional lenders. Even with a bankruptcy or foreclose in your credit history, you can still find financing for the purchase of your home. The key to sub-prime mortgages is to do your research and compare both terms and rates.
Your Credit History
A poor credit history doesn’t have to send you running to sub-prime lenders. For one, you may still qualify for an A loan, reserved for people with good credit. If your bankruptcy was four or more years ago and you have established a good payment history since then, your FICO score is probably over 600, the requirement for an A loan.
Through FHA loan programs, you can apply for a loan after two years of a bankruptcy or foreclosure. VA loans also look more leniently on past credit problems. In the end, don’t assume that because you have an adverse credit history you have to apply for the higher interest sub-prime loans.
Sub-prime Mortgages
If you find that you do have bad credit, you can still work with a traditional lender, who may offer you better interest rates. As financing companies expand their financing options, more and more companies are adding services for B, C, and D loans.
Sub-prime mortgages are based partly on your credit history, but largely on your mortgage or rent payment history. You will want to provide proof of your rent payments by sending copies of your rent receipts or checks. Mortgage payments can be verified through your credit report.
Sub-prime mortgages are just short term financing options. Once you have improved your credit history, you can refinance your mortgage for better rates.
Sub-prime Lenders
When you start your search for a sub-prime lender, include all lenders in your investigation. Request quotes from traditional lenders as well as those who specialize in poor credit financing. Compare everyone’s financing packages to find the best rates and terms.
Ideally, you want to find a low APR with no prepayment fees. Unless you plan to keep your mortgage for seven or more years, it is probably not worth paying points for lower rates. You may also find that an ARM will provide lower rates with more buying power than a fixed rate mortgage.
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FHA Secured Loans
24/04/10
In 1965 the Department of Housing and Urban Development (HUD) was formed. Within HUD operates the Federal Housing Administration (FHA), which has the primary responsibility for administering the government home loan insurance program. This program allows a first time home buyer who might otherwise not qualify for a home loan to obtain one because the risk is removed from the lender by FHA who insures the loan for the lender.
The most popular FHA home loan program for a first time home buyer is by far is the 203(b). This is your standard fixed rate loan for 1-4 family owner occupied houses and only requires a minimum of 3% from the borrower. This loan also permits 100% of their money needed to close to be a gift from a relative, non-profit organization, or government agency.
The main advantage to a FHA home loan is that the credit criteria for a first time borrower are not as strict as Conventional Loans sold to Fannie Mae (FNMA) or Freddie Mac (FHLMC). Someone who may have had a few credit problems or no traditional credit should not have a problem obtaining FHA financing. Also, FHA home loans are assumable, allowing a person to take over the mortgage without the additional cost of obtaining a new loan. In addition, the seller or lender must pay for part of the “traditional” closing costs (called non-allowable costs) while a borrower’s allowable costs can partially be wrapped into the loan. The monthly mortgage insurance premium is cheaper for an FHA loan verses a conventional loan with 3% down. Finally, FHA loans may may require less income to qualify as they will exceed the Conventional debt ratios of 28/36% as their standard is 29/41%. To learn more about debt ratios, please see the income section.
Many people make the mistake and assume that FHA loans are only available for first time home buyers. This is not true. FHA loans are available to anyone, whether your first or fifth home and can be used to purchase a home or refinance a home. If refinancing a home the current loan DOES NOT have to be an FHA loan.
The greatest disadvantage of FHA home loans is that FHA limits the loan size that a borrower can borrower Please see the link for FHA Loan Limits in your area. Others may try and convince you that the FHA upfront mortgage insurance premium (MIP) is a disadvantage. However this amount makes just a very small increase in the borrower’s month payment and is partially refundable. See the section on MIP refunds for more information.
There are several notable FHA home loan programs available as characterized below.
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How “bad” is bad credit? If you can pull your credit report yourself and get a copy of your FICO credit score, that will give you a good idea. Here is a general idea of the FICO score breakdown:
500 ? 580 – Poor Credit – You should be able to get a home mortgage loan if you are willing to make a down payment, probably somewhere between 5-20%. You will probably need a sub-prime mortgage loan with a slightly higher interest rate.
580 – 620 – Fair Credit – You’re right on the edge. You may be able to get 100% financing or you may need a small down payment to make the loan work. Depending on how much money you put down, you may be able to get prime interest rate.
620 – 640 Average Credit -You should get a 100% home loan financing. You should not need to have a down payment. You should be able to get a low interest rate.
640 – 700 Good Credit – You should be able to be approved for a 100 – 125% home mortgage loan. You should be able to get a great interest rate.
700+ Excellent Credit – You’re in the drivers seat! You should be able to get an excellent rate with excellent terms. Of course, all of these factors vary with each borrower depending on the size of loan you want and on your income and other factors.
What is the FICO Score Based On? Most of the FICO score is dependent on amounts owed and payment history. So, the fastest and best way to increase your credit score will be to make payments on time and keep old accounts open.
What Should I Avoid To Keep My Score High? If you are in the process of getting a new mortgage loan, avoid applying for or opening any new credit accounts. This can drop your credit score very quickly and make it that much harder to get approved.
