Getting Pre-Approved for a Mortgage Makes Buying Easy

Word Count:
430

Summary:
Whether buying or selling a home, the real estate transaction process can be seriously stressful. Hey, no pain, no gain. Getting pre-approved for a mortgage can seriously reduce stress levels.

Keywords:
pre-approved, pre-approval, mortgage, lender, bank,

Article Body:
Whether buying or selling a home, the real estate transaction process can be seriously stressful. Hey, no pain, no gain. Getting pre-approved for a mortgage can seriously reduce stress levels.

Lender Approval

Many people make the mistake of going house hunting without knowing exactly how a large a mortgage they can get. This leads to incredible frustration when a dream home is found, but you can’t get a loan. For some shoppers, the frustration and stress leads them to throw their arms in the air and give up on the process. While an understandable reaction, the stress and frustration can be greatly reduced by getting pre-approved for a mortgage loan.

Getting pre-approved by a lender involves going through the full mortgage application process. You are going to fill out all the forms, provide tax returns or salary verification, have your credit run and so on. The bank will do a full analysis regarding whether you are mortgage worthy. It will also lay out the specific requirements it expects you to meet including the down payment amount and the specifications your potential home must meet. To this end, the pre-approval process is always contingent on the appraised price of the prospective home and any defects found in the home inspection.

Once a lender approves you for a loan, a magical thing happens. The lender will issue a pre-approval letter. The lender letter indicates the bank has approved you for a loan, the specific amount of the loan and often how long the pre-approval will last.

The pre-approval letter is the golden egg in the home purchasing process. It gives you a significant advantage over other people bidding on the same home. Imagine you are a seller who receives to bids within a few thousand dollars of each other. One bid has a pre-approval letter from the lender and the other does not. Which are you going to choose?

Getting pre-approved also has additional benefits. As you go through the process, the bank may alert you to problems. You can then go ahead and take the necessary steps to fix the loans. Compare this to trying to get a loan while in escrow. You are under a lot of pressure to get the loan in a thirty or sixty day period. If you fail to get the loan, you lose your good faith deposit, which is often thousands of dollars. Obviously, that is a disaster.

Whenever possible, get pre-approved for a mortgage before shopping for a home. It will save untold amounts of stress and make the buying process much easier.

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Finding the Minnesota Mortgage Broker That is Right For You

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475

Summary:
Whether buying a new home or refinancing, here are some great tips to find the Minnesota mortgage broker that’s right for you…

Keywords:
minnesota mortgage broker, refinance, purchase, loan, bad credit, interest only, option arms

Article Body:
Purchasing a home is an important step and needs serious consideration. Whether you are a first time homebuyer, or buying a second home, you need to find the right company to assist you. Find a Minnesota mortgage broker that will answer your questions and help you find the right loan for your situation.

There are numerous services that a Minnesota mortgage broker should offer you. When you find a full-service broker, you will be able to use their services for future needs that might arise. A broker that offers a high level of customer assistance will do all they can to keep satisfied clientele.

Minnesota Mortgage Broker Services

If you are tired of renting and want to settle into your own home, you will find many brokers that are willing to help you. How do you know which one to choose? Sometimes word-of-mouth is helpful, advertisements in newspapers, or reviewing websites.

The most important thing to determine in finding a Minnesota mortgage broker is the services offered, and if they are willing to work with you. When you are going to purchase a home or property, you will want to see if the broker offers you low rates, various types of mortgage programs and advice from a professional loan specialist.

Loan Options

There are different ways to finance your loan. There is the Interest Only loan program that offers lower monthly payments. You can qualify for a higher loan, and have options to pay principal and interest rate, or interest only payments for up to 10 years.

Another option is the payment plan option ARMS loan program. This is an adjustable rate mortgage program that begins with low monthly payments. The payments will increase over the first five years and the loan can be financed for up to forty years.

This may be a good time to refinance in order to reduce your payments or shorten your loan obligation. You can also combine first and second mortgages to get a better interest rate. In addition, you can convert an adjustable rate mortgage to a more secure fixed-rate mortgage.

Help With Credit

If you have had a problem with bad credit, find a Minnesota mortgage broker that will help you re-establish a good credit rating. Even if you have been behind on payments, had a foreclosure, or bankruptcy, there are brokers than can help you. They can work with companies to have you pre-approved without a credit check and sometimes provide 100% financing. Your credit score will not be further pulled down with too many inquiries.

Find a broker that will help make the loan process easy and stress-free. Look at their websites and see what advantages they offer and if their information is presented in a logical manner. Ask for professional help in solving your mortgage issues. There is a Minnesota mortgage broker waiting to assist you.

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Getting The Best Commercial Mortgage Rate

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648

Summary:
Trying to get the best commercial mortgage rate is perfectly understandable, after all a fraction of a percentage point can make a huge difference to the repayments on a larger commercial loan. However, when searching for a competitive rate you should bear in mind that the broker or lender is going to need plenty of information to support the enquiry.

Imagine if you will that someone puts a box containing a 300 piece jigsaw puzzle in front of you, shows you only ten pieces…

Keywords:
commercial mortgage rate, best

Article Body:
Trying to get the best commercial mortgage rate is perfectly understandable, after all a fraction of a percentage point can make a huge difference to the repayments on a larger commercial loan. However, when searching for a competitive rate you should bear in mind that the broker or lender is going to need plenty of information to support the enquiry.

Imagine if you will that someone puts a box containing a 300 piece jigsaw puzzle in front of you, shows you only ten pieces and says “Describe the picture to me” ? what are the chances you would be able to do it? You may be able to say “Well, it looks as if it’s a sunny day and I think I can make out part of a tree” but apart from that very little.

This may sound like an irritating evasion of the issue but the question “I’m looking for a commercial mortgage, what’s the best rate you can get me ?” is equally difficult to answer if a useful response is expected. Not least because different people have a quite different understanding of what types of commercial mortgage will qualify for a headline rate.

Of course there are some brokers who will quote you a very favourable rate “off the top of their head.” This is a little disingenuous in that any rate will be largely meaningless and is probably made in the hope that they can impress the potential client and give him reason to return to them first.

Without doubt the best commercial rates are only available from the mainstream banks, including the likes of HSBC, Barclays, RBS etc. and some other commercial lenders such as The Skipton and Norwich & Peterborough Buildings Societies.

Remember though, before these organisations will consider offering their best rates they are going to want to know quite detailed information about the business they are lending money to, the people who control the company and full details about the property.

Typically speaking the best rates are only available for established businesses with a clean credit history and plenty of good quality and verifiable accounting information. Professional property investors are also generally considered good quality applicants, but only if the rental income stacks up. The following points should explain what a lender would generally look for:

1. Established Business: Would mean that the business has been profitably trading for about 3 years.

2. Good quality and verifiable accounting information: Accounts that have been professionally prepared by a qualified accountant and if appropriate filed at Companies House.

3. Clean Credit: All existing loans and mortgages are up to date, no late payments to suppliers. No CCJ’s either in the business name or the individual director’s personal names.

4. Investment properties would usually need to have a formal lease in place with a good quality tenant. The rental income will need to cover the mortgage payments by a healthy margin.

The above points only relate to applicants chasing the headline rates. There is now a good degree of flexibility for businesses who cannot fulfil the above criteria.

When approaching a lender or broker with a view to obtaining the best possible commercial mortgage rate (or re-mortgage) an applicant should be prepared to divulge all the above information before expecting a sensible answer. At the very least it would be recommended to have the last three years’ accounts, brief CV’s for each director, an up to date business plan and as much information as you can muster about the property in question.

There is no doubt that there are some very competitive mortgage rates available for the right businesses and researching the market has never been more important. By all means approach your existing bankers first as they most likely to be keen to keep your business but having other options available puts you in the strongest position when looking for the best commercial mortgage rate.

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UK Mortgage Protection Insurance And The Contents Of Your Home

Word Count:
340

Summary:
UK mortgage protection insurance has received negative Press coverage regarding what it can do for the homeowner, but anyone who knows a fair bit about UK mortgage protection insurance will have realised that these Press clippings do not tell the full story of just how good and valuable a product it really is. Experts recommend that homeowners have it, but all too many of them are ignored by individuals who would no doubt benefit from it somewhere down the line.

UK mortgag…

Keywords:
Income Protection Insurance, Mortgage Protection Insurance, MPPI, PPI

Article Body:
UK mortgage protection insurance has received negative Press coverage regarding what it can do for the homeowner, but anyone who knows a fair bit about UK mortgage protection insurance will have realised that these Press clippings do not tell the full story of just how good and valuable a product it really is. Experts recommend that homeowners have it, but all too many of them are ignored by individuals who would no doubt benefit from it somewhere down the line.

UK mortgage protection insurance does far more than just cover your mortgage repayments if you ever found yourself unemployed through no fault of your own or taking time out owing to long term illness. There are very real benefits, and one of the main ones that is overlooked is the related bill settlement. UK mortgage protection insurance can help to pay any bills related to your mortgage as well as the repayments, and this could save you more heartache!

The extreme weather conditions at the moment actually prove that having home insurance to protect our contents is worthwhile. However, UK mortgage protection insurance will pay for your buildings and contents insurance too so that nothing else in your home is damaged as a result of your illness or alteration of lifestyle.

Aside from that, and most importantly, it takes care of the major asset within your home. You! UK mortgage protection insurance can give you unparalleled peace of mind and security, which cannot be said for very many other products. By protecting what is most valuable to you, it is effective making itself indispensable.

Lets face it, none of us ever know what is going to happen in the future, let alone whether it is around the corner or years’ way. As a result, it is always better to be prepared and take care of your family’s best interests in advance than suffer the consequences if and when your worst fears are realised! As soon as you read the UK mortgage protection insurance product information, you will completely understand!

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Commercial Mortgages Transform – Jan 2007 update

Word Count:
481

Summary:
Many commercial lenders have gone out of business, where purchased, or have filed bk. Here is a summary of how commercial lending in California is being affected.

Keywords:
Commercial Mortgages, Apartment Building Loans, Mortgages, Commercial, Real Estate, Apartments

Article Body:
Many commercial lenders have effectively (if not actually) shut their doors. For the rest of us, the resulting volume is so great our appraisal and processing systems are stressed to the limit. Several of our competitors are not even taking any more loans just to get through the current overload in their systems. We have chosen to push through the current avalanche of loans, and will continuing to entertain your new loan requests – all while trying to keep our rates very competitive.

What has changed (at least for now, and especially on larger loans) is our desire to only look at solid apartment and commercial properties, with borrowers that add to the overall strength of the loan. To lessen our processing overload, we have temporarily “closed the tap” on hotels/motels, gas stations, owner/user properties, environmental issue properties, “poor-credit” borrowers, etc. This is intended to help “unclog” the backlog so that your more traditional loans will go through faster.

For loans $3,000,000 and above, we are going to be strictly looking for traditional properties, nothing exotic, no stories, issues, or moving parts. Policy DSCRs and LTVs will be strictly adhered to. Borrowers will need to have average credit scores of 680 or better, their adjusted net worth must be 150% or greater than the loan amount, personal debt ratios cannot exceed 40%, etc.

Loans under $3,000,000 have more flexibility in all these areas. The range of acceptable product types is greater, we will look at a wider range of borrower credit and issues, and we can look at offsetting strengths and weakness (where we will not in larger loans).

Debt Service Coverage Ratios are on the rise as we see the economy weaken? 1.20 ratios for residential and 1.25 (or higher) ratios for commercial for the time being…

Though I’m not sure for how much longer? we are still offering to lock your loan, for up to 90 days, at no cost to your borrower.

And yes, we still offer you 1/2% rebate pricing – up to $15,000.00 per transaction.
I have enclosed our latest rate sheet for your review, and I will be happy to discuss your next transaction. On loans over $3,000,000 I will want to see reliable borrower financial data along with your submission – but feel free to call to discuss the transaction even if you do not have “everything” in hand.

For the short term, loans can be expected to take 60-90 days to close. We cannot handle any “rush” transactions for at least the next 60 days. Please let your borrowers all know to structure sales with longer closing dates!! If you have a 1031 exchange, make sure all parties can live with the reality of these closing times. The shortage of quality lenders with good rates, and the uncertainty of the market, will pass and the market will settle. Until then, we will try hard to meet your financing needs. My best wishes to you for the New Year!

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