My fiancée and I are not experts at mortgages, but we have learned many valuable lessons about the home buying process by our experiences in the last two years. Our journey started out searching all over the internet and yellow pages looking for a loan that would best fit our situation. But first we had to determine what our situation was, and what kind of home we wanted. We have learned through this process that the type of property you want is a major part of getting the loan process started.
After about six months of looking at homes from Dixon to Dobbins, California, we decided that we could not afford the size home we wanted with our current income. Doesn’t that sound familiar? So we decided we wanted to buy bare land. Sounded like a good plan to me. But, then we started looking for a land loan, we filled out all of those Get a 300,000 dollar loan, No Money Down for $214.24 adds that they have on every website you visit. Then dozens of loan officers called us back saying we pre-approved for all different types of money, when we told them we were trying to buy land they replied in two different ways, “We don’t have land loans” or “it will take at least 30% down. “Alright I’ll call you back,” I said.
So we sat down and started calculating this option. We found a one-acre lot we like in Dunnigan, California for $160,000, “That’s a lot cheaper then the $395,000 home we want in Woodland,” I told my fiancée. So, I figured if we could almost afford the $395,000 home we could easily afford this loan. WRONG! I realized that 30% of $160,000 is $48,000; we don’t have that kind of money for a down payment. I decided there had to be a way to get this land we wanted, so I scheduled appoint to meet the Real Estate Agent that was selling the land; which turned out to be the worst mistake of the whole journey.
My Fiancée and I arrived at the Real Estate Agents office hoping to get some different options, so we could buy the land we wanted. But after three hours of listening to interesting stories about his children and ex-wife, we left his office with an offer to the seller, the agent representing us, handing him a $1,000 deposit to take the land off the market, and a verbal agreement that we could receive a loan for $160,000 with 5% down. My Fiancée and I were excited and nervous at the same time; we’ve learned about dual-agency in school and really didn’t know if he could get the best deal we could, since he represented both the buyer and the seller. Note: At all Cost, Do not have the same agent as the Seller or vice versa. But we searched everywhere and this was the first time we heard that we could receive a land loan with only 5% down, so we just decided to stick with our decision.
To be continued……
______________________-
Amanda Swift writes on Business and Real Estate related issues. You can learn more by visiting my blog, Find the Right Mortgage for Your Family http://savingmoney4future.blogspot.com/ Help from Demario Warren
Sunday, July 1, 2007
Finding the Right Mortgage Terms By Peter Dellane
Many people in the market for a new home are now using mortgage loan calculators, which are free of charge and easily found online. It is a great convenience to quickly find a rough idea of possible monthly payments, and for this reason, calculators are a worthy service. Mortgage calculators are even found on many online property listings providing simple comparison. To fully utilize these inexpensive tools however, it is important to understand the different types of mortgage terms and which ones are right for your situation.
Fixed-rate mortgage terms are the most commonly chosen mortgages of homebuyers, especially if they are planning on staying in the home for a long time. "Fixed-rate" describes the fact that the interest rate on the loan will remain exactly the same for the duration of the loan. So whether it is a twenty or fifty-year loan, the interest rate will never change.
ARMs, or Adjustable rate mortgages, have a much wider range of term agreements. The basic idea of an ARM loan involves an introductory period where the rate is fixed, and once that period of time is over the interest then adjusts according to current market levels. At this point, the interest on an ARM loan may change as often as every year. A two-step mortgage also has an introductory rate, but the interest will only adjust one time. Both of these terms can be expressed with a number system where the first number represents the time period of the introductory interest rate while the second number refers to how long that rate must stay the same without adjusting to the market. For example a 5/25 means that the introductory interest rate will last for fiver years and it must remain at the new amount for the next 25 years. A 7/ 1 means that the loan may re--adjust to the market every single year after the seven year introduction.
One last type of loan terms is known as the Balloon Mortgage. These are more popular for those looking to build or remodel a home who are not planning on staying in the house for the duration of the loan. In a balloon mortgage, there is a very low introductory rate that lasts for approximately seven years, and then the remainder of the loan must be paid. If the loan is $100k, and the introductory payments account for $10k, then the remaining 90k must be paid in full to the lender. This is ideal for the customer that planes on keeping the house for a very short period of time or plans to sell.
Understanding the basic mortgage terms will help tremendously in the search for a great Maryland mortgage that will give you the financing you need to live in the house of our dreams. Think about your goals for owning a house and how long you plan to stay so that you can find the Mortgage terms that are best for you.
About the Author: Peter Dellane is the President of Ability Mortgage Group, LLC, A leading Maryland Mortgage company offering low costs zero point mortgages. For more information please visit www.marylandsmortgage.com
Article Source: http://EzineArticles.com/?expert=Peter_Dellane
Other Recent EzineArticles from the Real-Estate:Mortgage-Refinance Category:
How Much Cash Can You Get from a Reverse Mortgage?Make Sure to Select the Right Mortgage BrokerMortgage LoansHome Loans Has Made Home Buying EasySome Help With Getting The Best Mortgage100% Financing MortgagesDiscover The Value Of Canny Mortgage ResearchGetting New Home Mortgage Leads - Internet Mortgage Leads are not the Only OptionGood Reasons For Getting That RemortgageReal Estate Loans - Pre-Qualification, Pre-Approval, and Letters of CommitmentDiscover The Best Value Mortgage For Your MoneyUnderstanding Mortgage Rate Quotes When RefinancingSubprime Loans Save LivesSelecting The Right Commercial Mortgage BrokerArizona Refinance Mortgage Rate - Negotiate and Save ThousandsMost Viewed EzineArticles in the Real-Estate:Mortgage-Refinance Category
Mortgages: Turn Your Pennies into PoundsPoor Credit Home Mortgage Loans - The Role of the FICO ScoreThe Zero Down 80/20 MortgageBuying A Home After Bankruptcy - Get A Mortgage Loan After Bankruptcy100% Financing or No Down Payment & Bad Credit Mortgage LoansHome Mortgage Loans For People With Bad CreditBad Credit Home Financing - Buy a House Even With Poor CreditSecond Mortgage / Home Equity vs. RefinanceOption ARM - The World's Most Dangerous MortgageRefinancing After BankruptcyMortgage Cycling - Brilliant or RiskyBankers Don't Want You to Know That You Pay for Your No Cost Home Loan ForeverDo Your Homework - Find the Mortgage That Fits Your Lifestyle and Your BudgetMortgage Glossary of TermsA New Choice for Home Financing: Correspondent Lenders
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MLA Style Citation:Dellane, Peter. "Finding the Right Mortgage Terms." EzineArticles 25 June 2007. 01 July 2007 <http://www.ezinearticles.com/?Finding-the-Right-Mortgage-Terms&id=621218>.APA Style Citation:Dellane, Peter. (2007, June 25). Finding the Right Mortgage Terms. EzineArticles. Retrieved July 01, 2007, from http://www.ezinearticles.com/?Finding-the-Right-Mortgage-Terms&id=621218Chicago Style Citation:Dellane, Peter. 2007 Finding the Right Mortgage Terms. EzineArticles (June, 25), http://www.ezinearticles.com/?Finding-the-Right-Mortgage-Terms&id=621218 (accessed July 01, 2007)
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Fixed-rate mortgage terms are the most commonly chosen mortgages of homebuyers, especially if they are planning on staying in the home for a long time. "Fixed-rate" describes the fact that the interest rate on the loan will remain exactly the same for the duration of the loan. So whether it is a twenty or fifty-year loan, the interest rate will never change.
ARMs, or Adjustable rate mortgages, have a much wider range of term agreements. The basic idea of an ARM loan involves an introductory period where the rate is fixed, and once that period of time is over the interest then adjusts according to current market levels. At this point, the interest on an ARM loan may change as often as every year. A two-step mortgage also has an introductory rate, but the interest will only adjust one time. Both of these terms can be expressed with a number system where the first number represents the time period of the introductory interest rate while the second number refers to how long that rate must stay the same without adjusting to the market. For example a 5/25 means that the introductory interest rate will last for fiver years and it must remain at the new amount for the next 25 years. A 7/ 1 means that the loan may re--adjust to the market every single year after the seven year introduction.
One last type of loan terms is known as the Balloon Mortgage. These are more popular for those looking to build or remodel a home who are not planning on staying in the house for the duration of the loan. In a balloon mortgage, there is a very low introductory rate that lasts for approximately seven years, and then the remainder of the loan must be paid. If the loan is $100k, and the introductory payments account for $10k, then the remaining 90k must be paid in full to the lender. This is ideal for the customer that planes on keeping the house for a very short period of time or plans to sell.
Understanding the basic mortgage terms will help tremendously in the search for a great Maryland mortgage that will give you the financing you need to live in the house of our dreams. Think about your goals for owning a house and how long you plan to stay so that you can find the Mortgage terms that are best for you.
About the Author: Peter Dellane is the President of Ability Mortgage Group, LLC, A leading Maryland Mortgage company offering low costs zero point mortgages. For more information please visit www.marylandsmortgage.com
Article Source: http://EzineArticles.com/?expert=Peter_Dellane
Other Recent EzineArticles from the Real-Estate:Mortgage-Refinance Category:
How Much Cash Can You Get from a Reverse Mortgage?Make Sure to Select the Right Mortgage BrokerMortgage LoansHome Loans Has Made Home Buying EasySome Help With Getting The Best Mortgage100% Financing MortgagesDiscover The Value Of Canny Mortgage ResearchGetting New Home Mortgage Leads - Internet Mortgage Leads are not the Only OptionGood Reasons For Getting That RemortgageReal Estate Loans - Pre-Qualification, Pre-Approval, and Letters of CommitmentDiscover The Best Value Mortgage For Your MoneyUnderstanding Mortgage Rate Quotes When RefinancingSubprime Loans Save LivesSelecting The Right Commercial Mortgage BrokerArizona Refinance Mortgage Rate - Negotiate and Save ThousandsMost Viewed EzineArticles in the Real-Estate:Mortgage-Refinance Category
Mortgages: Turn Your Pennies into PoundsPoor Credit Home Mortgage Loans - The Role of the FICO ScoreThe Zero Down 80/20 MortgageBuying A Home After Bankruptcy - Get A Mortgage Loan After Bankruptcy100% Financing or No Down Payment & Bad Credit Mortgage LoansHome Mortgage Loans For People With Bad CreditBad Credit Home Financing - Buy a House Even With Poor CreditSecond Mortgage / Home Equity vs. RefinanceOption ARM - The World's Most Dangerous MortgageRefinancing After BankruptcyMortgage Cycling - Brilliant or RiskyBankers Don't Want You to Know That You Pay for Your No Cost Home Loan ForeverDo Your Homework - Find the Mortgage That Fits Your Lifestyle and Your BudgetMortgage Glossary of TermsA New Choice for Home Financing: Correspondent Lenders
This article has been viewed 31 time(s).Article Submitted On: June 25, 2007
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MLA Style Citation:Dellane, Peter. "Finding the Right Mortgage Terms." EzineArticles 25 June 2007. 01 July 2007 <http://www.ezinearticles.com/?Finding-the-Right-Mortgage-Terms&id=621218>.APA Style Citation:Dellane, Peter. (2007, June 25). Finding the Right Mortgage Terms. EzineArticles. Retrieved July 01, 2007, from http://www.ezinearticles.com/?Finding-the-Right-Mortgage-Terms&id=621218Chicago Style Citation:Dellane, Peter. 2007 Finding the Right Mortgage Terms. EzineArticles (June, 25), http://www.ezinearticles.com/?Finding-the-Right-Mortgage-Terms&id=621218 (accessed July 01, 2007)
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100% Financing Mortgages By Mike McAtee
100% finance mortgages are mortgages with zero money down required at the time of the initial loan. The main advantage of this type of loan is the ability to buy a home with almost no money down. Providing 100% financing of the purchase price of your home, this mortgage is specifically designed for homebuyers who have limited available cash, but excellent credit.
100% financing offers complete financing of your property. The other option, 80/20, finances your mortgage with two loans. If you have a strong credit profile but have limited funds to commit to a down payment, then an 80/20 mortgage is just right for you. Lenders typically require a down payment of at least 20 percent of the purchase price. If the loan amount is for more than 80 percent of the purchase price, PMI is usually required. You can avoid paying PMI by getting a second mortgage ('piggyback loan') to back up your first mortgage.
The first mortgage is provided for 80 percent of the cost of the home and the 'piggyback' second mortgage is for the remaining 20 percent. The 80 percent first mortgage can be a fixed-rate (15-year or 30-year), adjustable-rate (usually 5/1, 7/1 or 10/1 fixed period ARM) or interest-only loan. The 20 percent second mortgage can be a home equity line of credit that changes with the prime rate. Combined, the two loans allow you to purchase 100% of your home with no money down. Both loans may be carried by your lender, but sometimes the seller or a second lender is required to carry the 20% mortgage.
Each lender has their own criteria for deciding who will meet the required qualifications for a zero-down loan. Most sub-prime lenders require any bankruptcies or foreclosures to have been at least twelve months ago. A conventional loan requires these to be discharged for two to four years ago.
While a credit score of 600 or higher is best, large cash reserves can also qualify you. Six to twelve month’s worth of cash reserves in the form of savings, money market, or other liquid assets are considered ideal.
If you choose 80/20 financing with the seller carrying the second mortgage, you can qualify with sub-prime lenders with a score of 560.
You will also want to decide what type of mortgage you want. An ARM is easier to qualify for and has lower rates. A fixed rate mortgage offers the safety of a constant interest rate over the life of your loan.
Typically an ARM will be a better deal if you plan to refinance within a couple of years. After you have improved your credit history, you can refinance for a conventional mortgage with low interest rates.
The two main benefits of 100% financing are: constant monthly payments - with a fixed rate mortgage, your monthly principal and interest payments stay the same throughout the life of your loan, so you are protected against any unexpected interest rate increases; frees up cash - existing funds can be used for closing costs or other needs, rather than a home down payment.
For more information, please visit 100% financing mortgages resource, or call us toll free at (866) 919-0222 x200. Mike McAtee is a full service Indiana lending expert that is the President of Paramount Funding - a company known to offer zero down loans or find a loan to fit any situation. Paramount Funding is proud of their reputation of providing superior customer service and creating satisfied customers. They work hard to satisfy the mortgage needs and exceed the expectations of their customers. To get more information on lower mortgage rates, click on the links in this article.
Article Source: http://EzineArticles.com/?expert=Mike_McAtee
Other Recent EzineArticles from the Real-Estate:Mortgage-Refinance Category:
How Much Cash Can You Get from a Reverse Mortgage?Make Sure to Select the Right Mortgage BrokerMortgage LoansHome Loans Has Made Home Buying EasySome Help With Getting The Best MortgageDiscover The Value Of Canny Mortgage ResearchGetting New Home Mortgage Leads - Internet Mortgage Leads are not the Only OptionGood Reasons For Getting That RemortgageReal Estate Loans - Pre-Qualification, Pre-Approval, and Letters of CommitmentDiscover The Best Value Mortgage For Your MoneyUnderstanding Mortgage Rate Quotes When RefinancingSubprime Loans Save LivesSelecting The Right Commercial Mortgage BrokerArizona Refinance Mortgage Rate - Negotiate and Save ThousandsWhen Can I Refinance My Home?Most Viewed EzineArticles in the Real-Estate:Mortgage-Refinance Category
Mortgages: Turn Your Pennies into PoundsPoor Credit Home Mortgage Loans - The Role of the FICO ScoreThe Zero Down 80/20 MortgageBuying A Home After Bankruptcy - Get A Mortgage Loan After Bankruptcy100% Financing or No Down Payment & Bad Credit Mortgage LoansHome Mortgage Loans For People With Bad CreditBad Credit Home Financing - Buy a House Even With Poor CreditSecond Mortgage / Home Equity vs. RefinanceOption ARM - The World's Most Dangerous MortgageRefinancing After BankruptcyMortgage Cycling - Brilliant or RiskyBankers Don't Want You to Know That You Pay for Your No Cost Home Loan ForeverDo Your Homework - Find the Mortgage That Fits Your Lifestyle and Your BudgetMortgage Glossary of TermsA New Choice for Home Financing: Correspondent Lenders
This article has been viewed 44 time(s).Article Submitted On: June 28, 2007
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MLA Style Citation:McAtee, Mike. "100% Financing Mortgages." EzineArticles 28 June 2007. 01 July 2007 <http://www.ezinearticles.com/?100%-Financing-Mortgages&id=625224>.APA Style Citation:McAtee, Mike. (2007, June 28). 100% Financing Mortgages. EzineArticles. Retrieved July 01, 2007, from http://www.ezinearticles.com/?100%-Financing-Mortgages&id=625224Chicago Style Citation:McAtee, Mike. 2007 100% Financing Mortgages. EzineArticles (June, 28), http://www.ezinearticles.com/?100%-Financing-Mortgages&id=625224 (accessed July 01, 2007)
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100% financing offers complete financing of your property. The other option, 80/20, finances your mortgage with two loans. If you have a strong credit profile but have limited funds to commit to a down payment, then an 80/20 mortgage is just right for you. Lenders typically require a down payment of at least 20 percent of the purchase price. If the loan amount is for more than 80 percent of the purchase price, PMI is usually required. You can avoid paying PMI by getting a second mortgage ('piggyback loan') to back up your first mortgage.
The first mortgage is provided for 80 percent of the cost of the home and the 'piggyback' second mortgage is for the remaining 20 percent. The 80 percent first mortgage can be a fixed-rate (15-year or 30-year), adjustable-rate (usually 5/1, 7/1 or 10/1 fixed period ARM) or interest-only loan. The 20 percent second mortgage can be a home equity line of credit that changes with the prime rate. Combined, the two loans allow you to purchase 100% of your home with no money down. Both loans may be carried by your lender, but sometimes the seller or a second lender is required to carry the 20% mortgage.
Each lender has their own criteria for deciding who will meet the required qualifications for a zero-down loan. Most sub-prime lenders require any bankruptcies or foreclosures to have been at least twelve months ago. A conventional loan requires these to be discharged for two to four years ago.
While a credit score of 600 or higher is best, large cash reserves can also qualify you. Six to twelve month’s worth of cash reserves in the form of savings, money market, or other liquid assets are considered ideal.
If you choose 80/20 financing with the seller carrying the second mortgage, you can qualify with sub-prime lenders with a score of 560.
You will also want to decide what type of mortgage you want. An ARM is easier to qualify for and has lower rates. A fixed rate mortgage offers the safety of a constant interest rate over the life of your loan.
Typically an ARM will be a better deal if you plan to refinance within a couple of years. After you have improved your credit history, you can refinance for a conventional mortgage with low interest rates.
The two main benefits of 100% financing are: constant monthly payments - with a fixed rate mortgage, your monthly principal and interest payments stay the same throughout the life of your loan, so you are protected against any unexpected interest rate increases; frees up cash - existing funds can be used for closing costs or other needs, rather than a home down payment.
For more information, please visit 100% financing mortgages resource, or call us toll free at (866) 919-0222 x200. Mike McAtee is a full service Indiana lending expert that is the President of Paramount Funding - a company known to offer zero down loans or find a loan to fit any situation. Paramount Funding is proud of their reputation of providing superior customer service and creating satisfied customers. They work hard to satisfy the mortgage needs and exceed the expectations of their customers. To get more information on lower mortgage rates, click on the links in this article.
Article Source: http://EzineArticles.com/?expert=Mike_McAtee
Other Recent EzineArticles from the Real-Estate:Mortgage-Refinance Category:
How Much Cash Can You Get from a Reverse Mortgage?Make Sure to Select the Right Mortgage BrokerMortgage LoansHome Loans Has Made Home Buying EasySome Help With Getting The Best MortgageDiscover The Value Of Canny Mortgage ResearchGetting New Home Mortgage Leads - Internet Mortgage Leads are not the Only OptionGood Reasons For Getting That RemortgageReal Estate Loans - Pre-Qualification, Pre-Approval, and Letters of CommitmentDiscover The Best Value Mortgage For Your MoneyUnderstanding Mortgage Rate Quotes When RefinancingSubprime Loans Save LivesSelecting The Right Commercial Mortgage BrokerArizona Refinance Mortgage Rate - Negotiate and Save ThousandsWhen Can I Refinance My Home?Most Viewed EzineArticles in the Real-Estate:Mortgage-Refinance Category
Mortgages: Turn Your Pennies into PoundsPoor Credit Home Mortgage Loans - The Role of the FICO ScoreThe Zero Down 80/20 MortgageBuying A Home After Bankruptcy - Get A Mortgage Loan After Bankruptcy100% Financing or No Down Payment & Bad Credit Mortgage LoansHome Mortgage Loans For People With Bad CreditBad Credit Home Financing - Buy a House Even With Poor CreditSecond Mortgage / Home Equity vs. RefinanceOption ARM - The World's Most Dangerous MortgageRefinancing After BankruptcyMortgage Cycling - Brilliant or RiskyBankers Don't Want You to Know That You Pay for Your No Cost Home Loan ForeverDo Your Homework - Find the Mortgage That Fits Your Lifestyle and Your BudgetMortgage Glossary of TermsA New Choice for Home Financing: Correspondent Lenders
This article has been viewed 44 time(s).Article Submitted On: June 28, 2007
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Some Help With Getting The Best Mortgage By T. O' Donnell
Before you begin filling out the boring paperwork, check your credit rating. If there are any problems with your credit, you can take a little time to fix them before you start checking out mortgage deals.
If your credit rating is bad, you can take steps to improve it. This is a bureaucratic chore, but can save you hundreds, if not thousands of pounds.
Getting a mortgage is so stressful, and getting a house so desirable, that people want to get it over with quickly. So they sign up to bad deals. Then their marriage breaks down two years later. The drip-drip effect having no money at the end of the month is quietly corrosive.
Improve your credit-rating. Find out what it is at Equifax, Experian, TransUnion and/or CallCredit. Lenders may access them all. Then do the following:
- Make sure you are on the electoral register.
- Satisfy liens and public judgements, such as in the County Court (CCJs).
- Correct errors, including erasing judgements older than seven years. Paid-off debts can be legitimately recorded up to seven years after settlement.
- Close unneeded accounts. Close them off _slowly_, not all at once. Keep only two credit cards. These should include your oldest card, as that has the longest credit history associated with it.
- Pay off credit cards. Keep balances low, and paid off on time.
- Open a savings account at your bank.
- Keep your debt low; below 75% of available credit.
- Build a good payment history. Pay your bills on time!
Then do something unusual; go for a walk in a green area and think over whether you need a mortgage at all.
If you do, what do you want it to do for you?
What you could do to get the property you want, without signing over half your income for the next thirty years?
Some options are:
Self-build: Are you up for the challenge of building your own home? If you have a site, you can put a 'kit house' on it. This is one whose design has been tried and tested, and which can be put up quickly. There are innovations coming out in house building all the time; consider taking advantage of them, and saving some money.
Buying and letting: Buy a place, do the minimum to tart it up, and rent out a room. You need to watch out for taxation of the rental income, but it could get you a bigger place, or a smaller place paid-off faster.
Buy At Auction: This is a popular idea, but problematical in practice. You have to factor in the auctioneer's fees, and the phenomenon of 'auction fever'; some newbies get very excited at an auction. They bid way over the value of the property. Also, hardened auction-goers buy houses the way you or I buy a pair of shoes. They buy 'em, tart 'em up, then flip them on, often for quite a small profit. This makes for tough competition.
It's best to get pally with an estate agent, and take your time. These guys get wind of the best deals, and notify their friends first. You might get lucky, and get a great house, at a good price, from someone who has to sell in a hurry.
T. O' Donnell http://online.ttmortgages.co.uk is a licenced credit broker based in London, UK.
Article Source: http://EzineArticles.com/?expert=T._O'_Donnell
Other Recent EzineArticles from the Real-Estate:Mortgage-Refinance Category:
How Much Cash Can You Get from a Reverse Mortgage?Make Sure to Select the Right Mortgage BrokerMortgage LoansHome Loans Has Made Home Buying Easy100% Financing MortgagesDiscover The Value Of Canny Mortgage ResearchGetting New Home Mortgage Leads - Internet Mortgage Leads are not the Only OptionGood Reasons For Getting That RemortgageReal Estate Loans - Pre-Qualification, Pre-Approval, and Letters of CommitmentDiscover The Best Value Mortgage For Your MoneyUnderstanding Mortgage Rate Quotes When RefinancingSubprime Loans Save LivesSelecting The Right Commercial Mortgage BrokerArizona Refinance Mortgage Rate - Negotiate and Save ThousandsWhen Can I Refinance My Home?Most Viewed EzineArticles in the Real-Estate:Mortgage-Refinance Category
Mortgages: Turn Your Pennies into PoundsPoor Credit Home Mortgage Loans - The Role of the FICO ScoreThe Zero Down 80/20 MortgageBuying A Home After Bankruptcy - Get A Mortgage Loan After Bankruptcy100% Financing or No Down Payment & Bad Credit Mortgage LoansHome Mortgage Loans For People With Bad CreditBad Credit Home Financing - Buy a House Even With Poor CreditSecond Mortgage / Home Equity vs. RefinanceOption ARM - The World's Most Dangerous MortgageRefinancing After BankruptcyMortgage Cycling - Brilliant or RiskyBankers Don't Want You to Know That You Pay for Your No Cost Home Loan ForeverDo Your Homework - Find the Mortgage That Fits Your Lifestyle and Your BudgetMortgage Glossary of TermsA New Choice for Home Financing: Correspondent Lenders
This article has been viewed 18 time(s).Article Submitted On: June 28, 2007
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MLA Style Citation:O' Donnell, T.. "Some Help With Getting The Best Mortgage." EzineArticles 28 June 2007. 01 July 2007 <http://www.ezinearticles.com/?Some-Help-With-Getting-The-Best-Mortgage&id=625273>.APA Style Citation:O' Donnell, T.. (2007, June 28). Some Help With Getting The Best Mortgage. EzineArticles. Retrieved July 01, 2007, from http://www.ezinearticles.com/?Some-Help-With-Getting-The-Best-Mortgage&id=625273Chicago Style Citation:O' Donnell, T.. 2007 Some Help With Getting The Best Mortgage. EzineArticles (June, 28), http://www.ezinearticles.com/?Some-Help-With-Getting-The-Best-Mortgage&id=625273 (accessed July 01, 2007)
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If your credit rating is bad, you can take steps to improve it. This is a bureaucratic chore, but can save you hundreds, if not thousands of pounds.
Getting a mortgage is so stressful, and getting a house so desirable, that people want to get it over with quickly. So they sign up to bad deals. Then their marriage breaks down two years later. The drip-drip effect having no money at the end of the month is quietly corrosive.
Improve your credit-rating. Find out what it is at Equifax, Experian, TransUnion and/or CallCredit. Lenders may access them all. Then do the following:
- Make sure you are on the electoral register.
- Satisfy liens and public judgements, such as in the County Court (CCJs).
- Correct errors, including erasing judgements older than seven years. Paid-off debts can be legitimately recorded up to seven years after settlement.
- Close unneeded accounts. Close them off _slowly_, not all at once. Keep only two credit cards. These should include your oldest card, as that has the longest credit history associated with it.
- Pay off credit cards. Keep balances low, and paid off on time.
- Open a savings account at your bank.
- Keep your debt low; below 75% of available credit.
- Build a good payment history. Pay your bills on time!
Then do something unusual; go for a walk in a green area and think over whether you need a mortgage at all.
If you do, what do you want it to do for you?
What you could do to get the property you want, without signing over half your income for the next thirty years?
Some options are:
Self-build: Are you up for the challenge of building your own home? If you have a site, you can put a 'kit house' on it. This is one whose design has been tried and tested, and which can be put up quickly. There are innovations coming out in house building all the time; consider taking advantage of them, and saving some money.
Buying and letting: Buy a place, do the minimum to tart it up, and rent out a room. You need to watch out for taxation of the rental income, but it could get you a bigger place, or a smaller place paid-off faster.
Buy At Auction: This is a popular idea, but problematical in practice. You have to factor in the auctioneer's fees, and the phenomenon of 'auction fever'; some newbies get very excited at an auction. They bid way over the value of the property. Also, hardened auction-goers buy houses the way you or I buy a pair of shoes. They buy 'em, tart 'em up, then flip them on, often for quite a small profit. This makes for tough competition.
It's best to get pally with an estate agent, and take your time. These guys get wind of the best deals, and notify their friends first. You might get lucky, and get a great house, at a good price, from someone who has to sell in a hurry.
T. O' Donnell http://online.ttmortgages.co.uk is a licenced credit broker based in London, UK.
Article Source: http://EzineArticles.com/?expert=T._O'_Donnell
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This article has been viewed 18 time(s).Article Submitted On: June 28, 2007
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MLA Style Citation:O' Donnell, T.. "Some Help With Getting The Best Mortgage." EzineArticles 28 June 2007. 01 July 2007 <http://www.ezinearticles.com/?Some-Help-With-Getting-The-Best-Mortgage&id=625273>.APA Style Citation:O' Donnell, T.. (2007, June 28). Some Help With Getting The Best Mortgage. EzineArticles. Retrieved July 01, 2007, from http://www.ezinearticles.com/?Some-Help-With-Getting-The-Best-Mortgage&id=625273Chicago Style Citation:O' Donnell, T.. 2007 Some Help With Getting The Best Mortgage. EzineArticles (June, 28), http://www.ezinearticles.com/?Some-Help-With-Getting-The-Best-Mortgage&id=625273 (accessed July 01, 2007)
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