One of the most time-consuming parts of buying a new home will be securing your financing. With several steps in the process, it’s possible for something to go wrong during any of them, leading to your home loan being denied. While you have control over some factors, others may not be apparent until after the home-buying process has started. Be aware of these three issues so that you are not caught off guard by a sudden home-loan denial.
The Home Inspection Comes Back Bad
It’s typical for a mortgage lender to want to see the results of your home inspection after you have it done. The inspection is what allows you to get a professional look at the guts of the home, and it is typically one of the last chances you have to back out of the deal in case you find something you do not like. The mortgage lender wants to look at the home inspection for the same reason.
Since it’s possible that the lender may get the property back if you default on the loan, they want to loan money for a home that is in good shape. For example, if the inspection finds major foundation damage, then your loan could suddenly be denied.
The Home Is Under-Appraised
Near the end of the home-buying process, your mortgage lender will have an appraisal performed for the home you are buying. This step involves having an independent contractor give their assessment of how much the home is worth. The goal is to see if the home is in the price range of what you ended up paying for it.
Once again, the mortgage lender technically owns the home until your mortgage is paid off. If you overpaid for the home based on the assessment value, the lender may not be comfortable giving you a loan that is more than what the house is worth. You may be required to pay the difference so that the mortgage is only worth the value of the home or your loan could be denied.
You Make Big Purchases Before the Mortgage Is Finalized
Your credit is pulled at the beginning of the mortgage process, but your lender may do it again before they finalize the loan. This is because they want to ensure your debt-to-income ratio is still the same and that you haven’t gotten another loan or haven’t had any blemishes added to your credit report since the process started.
Some homeowners decide to get a head start on their home renovations by opening new lines of credit and making big purchases at local home improvement stores. Even though you have good intentions with this kind of purchase, the lender may view you as a risk and the loan could be denied.
If you want to make sure your loan goes through, be sure to work closely with your mortgage lender throughout the entire process so you can be prepared for any of these situations. Find a lender through a company like Premium Mortgage Corp and ask them about all the factors you should be aware of before you try to take out the loan.
Applying for a loan can be a stressful experience for anyone to go through. It is common for individuals to feel somewhat overwhelmed by the assortment of loan and financing options that may be available, which can make it easier for them to overlook some of their options. For those that own their homes, it may be possible to utilize a home equity loan, but if this is not a type of financing that you have much experience using, you may benefit from having the following couple of questions answered.
How Does Equity Work?
Equity essentially describes your ownership of the house, and this is important for these loans because the home will be used as collateral. In order to determine your equity, the bank will consider any existing lines of credit against the home and the approximate value of the house. If the value of your home is greater than the amount of credit that it secures, you are considered to have positive equity in the house, which is a basic qualification for receiving this type of financing. These loans can be extremely convenient for those that own a house because they may have much lower interest rates due to the fact that the loan is secured with such a valuable asset. However, you should be aware that the amount of the loan that you can receive will be capped at the available equity in the home.
What Factors Are Considered When Taking Out A Home Equity Loan?
In order for a lender to consider you for a home equity loan, it will be necessary to verify that you are the owner of the property. To this end, you will need to submit copies of the deed and title, which will then be verified. This verification process can add several days to the application process time, but it is an essential step for the lender to ensure that its claims to the property being used as collateral are valid. Outside of considering the equity that you have in the house, lenders will also look at your overall financial situation, which will include reviewing your credit history, income and existing debts.
Applying for a home equity loan can be an excellent way of obtaining the money that you need while enjoying lower interest rates. However, if you have never considered using this type of loan, it is important for you to understand how home equity works and the various other factors that the lender will also consider. Being armed with this information will allow you to make the best choice possible when shopping for a loan solution. For more information, contact a company like New Horizons Credit Union.
Many homeowners make the decision at some point in time or another to refinance their home and see if they can get better terms. While they might think they have a solid understanding of the process, it can get quite confusing and overwhelming for many. There are a lot of specifics involved in the whole process. You want to make sure you are getting the best deal and not putting yourself into a worse financial situation than what you needed to. If you aren’t sure where to start, here are four questions to ask the lender when going through the application and approval process.
How quickly can the loan be processed through?
For those who are facing foreclosure, refinancing the loan might be the only way to overcome the default and regain control of your mortgage. If this is the case with your loan, you want to get the mortgage refinanced as quickly as possible to prevent losing your home to foreclosure. Some loan companies will process your loan through within 24-48 hours while others can take weeks. Since each company is different, you want to ask the lender this right from the beginning.
Are there any pre-payment penalties?
While you might only be able to pay the minimum amount due on your mortgage right now, that doesn’t mean your financial situation isn’t going to change in another year or so. In the event that you are able to afford to pay a little extra on your mortgage, you don’t want to be hit with a penalty for doing so.
What is the new percentage rate going to be?
You need to know how much of a difference this new percentage rate is going to make in your overall payments. Dropping your rates by even a percentage point or two can make a big difference in the life of the loan.
Will this extend the amount of time left on the loan?
Make sure you find out if they are going to extend your loan terms as well. If you only have five years left, you probably don’t want to refinance your loan for another 20 years or so. You want to keep the payments down without having to go into debt for longer. Make sure the loan terms are something that you feel comfortable with over the long haul.
By asking the questions above, you won’t end up being hit with a bunch of added costs and fees in the end. Take your time to make sure you have a solid understanding of the process before signing anything. For further assistance, contact local professionals, such as those from Best Rates Mortgage, LLC home refinance.
You may have silverware, but is it made from real silver? The following guide will show you why it may be a good idea to start collecting real silverware and a few tricks to test silver when you are out and about.
Advantages Of Collecting Silverware
The following are just some things to consider:
The first reason you want to start collecting silverware is because it can be worth some cash if you fall on hard times. You can take the piece to your silver specialist, and he or she can tell you if the piece is worth more as an antique or by weight.
Did you know that eating off real silverware can actually be healthy for you and your family? Yes, silver is antibacterial and kills harmful pathogens. There was a time that silver was used by doctors to prevent infections on wounds. So you definitely might be able to prevent all kinds of ailments, like a cold or a stomach flu.
How To Test Silver
You should be aware of a few ways to spot real silverware, especially if you purchase your pieces in places like garage sales or antique shops.
Consider the following:
There are other ways you can test if your silverware is real that a silver specialist can enlighten you about. But, as you can see, there are a few reasons to start your collection. And now you know how to check if it’s silver. Talk to gold and silver buyers for more information.
If you are in a bind and need some money before your next payday, then a payday loan is an excellent option. You might have heard that payday loans are dangerous or unwise decisions. Therefore, you might be a bit apprehensive about taking out such a loan. However, if you use payday loans with the proper amount of planning and care, then they can be a very effective tool. Here are some tips to make sure that you come out on top:
Planning Before All Else
Before absolutely anything else, you need to carefully plan out how you would use a payday loan. It might be tempting to rush out and get the cash now, but getting all your ducks in a row before making any commitments can save you a lot of money.
Figure Out How Much Money You Need
First of all, figure out how much money you need, down to the exact dollar. You should only take out the money that you really need, such as money for food or medical expenses. If you need to pay for something, but could postpone the payment for a few days or weeks (at the expense of some additional interest), then simply waiting to make that payment will likely be a much more financially feasible option.
Check the Laws
Secondly, you should take a look at the relevant laws and regulations in your state. Not all states allow payday loans, which might not be immediately apparent if you are shopping for loans online. Additionally, some states have very strict limits on the size of payday loans and how much interest may be charged. Finally, some states have laws about repayment and how the interest will change over time. In some cases, this can mean the difference between a rapidly increasing interest rate and a more manageable interest rate.
Don’t Pay One Loan with Another (Usually)
You almost never want to take out one loan to pay off another. Therefore, you don’t want to get a payday loan to pay off another loan and you definitely don’t want to get another payday loan to pay off your first payday loan. If that does happen, you can end up with a very high interest rate that grows too fast for you to keep up. The one exception to this situation is when you are getting a debt consolidation loan, which can drastically reduce the overall interest rate that you need to pay.
For more information on payday loans, talk to a professional like EZ Money.
If you are the owner of a small freight brokerage and have a hard time with cash flow because your clients aren’t paying as soon as you like, factoring might be something that can help you. Factoring is a process in which you hand over your accounts receivable portfolio to a factoring company and they give you the money owed to you by clients right away. Then, as payments come in from your clients, those payments go to the factoring company. For giving you money up front, the factoring company charges you fees over the life of a contract. Here are some questions to ask potential factoring companies so that you can get the money you need for your business.
What Information Do You Need In Order to Approve My Company?
If you want to use a factoring company, you are likely hoping for a quick turnaround so that you have the cash flow to pay employee salaries and fuel your trucks. However, you must be aware that factoring companies have different approval processes which necessitate different wait times for approval.
To move things along, be sure to ask exactly what they are looking for during the application process so you can provide them with any documentation quickly so they can make a decision as soon as possible. For instance, they may investigate your credit history and the payment history of your clients, so be sure to make that information available to them.
What is the Term of a Typical Contract?
Some factoring companies have restrictive, long term contracts. Seek out factoring companies that have flexible arrangements in place so that you are free to take back your accounts receivable portfolio whenever you like. If you plan to seek a business loan for another purpose, a flexible factoring agreement might be especially valuable because you may not want to pay factoring fees in addition to loan payments.
Will You Contact My Clients?
When you enter into an agreement with a factoring company, it is important to know who will have the responsibility of contacting clients and telling them where to send their payments while your factoring agreement is in place. Many factoring companies do this for you, but some do not.
Now that you know some things you should ask when considering factoring companies for your freight brokerage, use the questions above to act as a guide and help you make the right decisions. With the right factoring company in your corner, your business will have an opportunity to thrive.
Building a real estate development can be a highly lucrative business venture, but it can also be a substantial investment. Not surprisingly, many people will have to secure some type of funding to complete these projects, but the dizzying array of lending options can be somewhat confusing for people that are undertaking this type of business venture for the first time. This can lead them to overlook some of their options for financing, such as hard money loans. If you have little or no experience with this type of loan, these questions may provide some much-needed clarity to you.
Can You Get a Hard Money Loan If You Have a Poor Credit History?
Securing enough financing for these major projects can be exceedingly difficult for those that are plagued by a poor credit history. In addition to causing you to be denied a loan, these issues can substantially increase the cost of the loan by resulting in higher interest rates.
Fortunately, hard money loans can be the ideal solution for individuals that have a poor credit history. These loans are primarily secured with the value of the property that is being developed. This means that the amount of loan you can receive will largely be governed by the value of the property you are developing as opposed to your personal financial history.
What Is the Process for Applying for a Hard Money Loan?
Many people may think that getting this type of loan has a very different process from more traditional capital sources, but this is not actually the case. You will be required to submit proof of ownership as well as documents proving the value of the real estate. In some cases, the lender may want to have the site independently appraised, but this process can usually be done relatively quickly.
Due to the heavy emphasis on the value of the property, these loans can be finalized soon after the appraiser has completed their work. As long as the documents requested by the lender are correct and the value of the land sufficient, you should expect to receive some type of loan for your project.
Hard money lenders can provide you with a source of capital when you are undertaking major real estate development projects. Yet, you may not know much about these hard money lenders unless you have used their services in the past. Once you understand that these lenders are not primarily concerned with your credit history and what the process for applying for this financing will be like, you can make the right choice for financing your development.
If you are struggling financially, a sudden medical expense can send you into a spiral of debt. Even if you have insurance, copays and coinsurance can add up quickly. If you fall behind in paying your medical bills, some facilities will require upfront payment before they allow you to see a doctor. Before you neglect your health, consider the following ideas for reducing and paying your medical bills.
Check the Bill
Medical bills are full of errors. Some experts say that 50 – 80% of all medical bills contain errors that lead to overcharges. You need to check each line of any medical bill, which can be a daunting task, particularly if you have had complicated surgery. In that case, you may want to engage the services of a medical billing advocate, someone who has enough knowledge to catch these mistakes. When you find an error, you need to contact the hospital or clinic’s billing department and firmly ask that your bill be corrected. Do not be intimidated, and do not relent until your account has been corrected.
You should never hesitate to ask for reduced rates on your medical bills. If you are uninsured, request the hospital’s negotiated rate, the rate that they collect from insurance companies. You may not realize that the uninsured are actually charged the full rate while private insurance, Medicare, or Medicaid pay much less. Also, if you can possibly pay off the bill in full, you may get a substantial discount.
If you ignore a medical bill, you will end up in collections, and your credit will be adversely affected. If other alternatives fail, you can negotiate a payment plan with the medical facility. If you need cash now to get your account back in good standing, consider getting a quick loan from a loan establishment. These loans rely on your employment status rather than a credit check. The payments are taken directly from your bank account, usually on your payday. If you pay back the money quickly and in full, they can be a useful tool, especially where medical expenses are concerned. After all, medical treatment is not optional.
Huge medical bills can be overwhelming, but you can manage to pay off your debt if you use a few proven strategies. Never assume that your bill is correct or final. You can question charges and negotiate for a better rate. Keep up your payments with a little loan help, and soon you won’t owe the medical establishment anything.
Typically, lenders always tell you to avoid making any large purchases when you’re trying to acquire a home loan. A large purchase can result in an increase of debt, which can disqualify you for a loan. Even purchases in cash can be problematic because you may no longer have enough for the down payment or to cover issues that come up. Still, there are times when it’s simply unavoidable. Your car could completely break down, or you could have a business expense.
Always Purchase in Cash If Possible
Say you need to purchase a car. You may be better off purchasing a temporary $2,000 vehicle than getting a loan for the same amount — if you have the additional cash around. Simply spending a large amount of money won’t usually harm you, it’s taking out additional credit. Just don’t spend so much that you don’t have a buffer should you need to pay more for the property you’re pursuing.
Pay Attention to Your Credit Report
When you do need to make a large purchase on some form of credit, you need to pay attention to the changes made to your credit report. Make sure that all of the related credit queries only count as one against your account, and make sure that there are no errors on the reporting of the new account that you’ve created. But regardless, be prepared to see your credit score take a significant hit. Credit scores are based not only on the amount you owe but also on the average length of your accounts and whether you’ve pursued credit recently.
Go For Installment Loans, Not Credit Lines
Installment loans are generally better for your credit than credit lines. Installment loans include personal loans, auto loans and — of course — home loans. So if you need a thousand dollars, it may be better to take a personal loan rather than to take out a cash advance on a credit card– unless, of course, you will be able to pay the credit card back before the mortgage loan is finalized.
Obviously, it’s always best if you can avoid making a large purchase on credit until after your mortgage loan is dispersed. Still, a mortgage process can take a long time and there are times when you have to spend the money. You may need to request a smaller loan or look for a less expensive house, or contact home loan company, like Dynamic Mortgage Concepts Inc, about other lending options for your situation.
If you are in the market of buying a house you might be wondering what kind of loan is the best for you. There are many different kinds of loans out there and it can be hard to sift through the massive amounts of information. Here are some things that you need to know about the different kinds of mortgages that are available to you.
Adjustable Rate Mortgage (ARM)
An adjustable rate mortgage is a type of mortgage that has a low interest rate at the first and then raises after a certain period of time. Depending on the type of the ARM you could have a fixed rate for 3, 5, 7 or 10 years. After that the interest rate raises based on the market values.
The advantages of this type of mortgage are that you get a lower interest rate at the beginning. This is a great option for people who know they are going to live in the house for only a short period of time. For example, say you have a work assignment in a certain city for 3 years. In this case an ARM might be great.
The disadvantage is that there is a risk. If you are unable to see you might be stuck with a high interest rate that is hard to bare.
A Balloon Repayment
Much like the ARM the balloon has a lower interest rate at the beginning. What the lender will do is take the loan and amortized it over a certain amount of time. For example, you might get it amortized over 30 years so that your payments reflect what a 30 year mortgage would be, but the loan only lasts as long as the balloon, usually around 5-7 years.
At the end of that term you will be responsible to either refinance the home to a different kind of loan, or pay off the balance. For this reason, you should only do this loan as a short-term loan.
In this case you would choose a longer term on your loan, like 15-30 years and the rate is fixed. The rate won’t be as low as a balloon or an ARM but it will stay the same and cannot change. This is the best option for people who are planning on staying in their house for longer than 5 years. It also gives you peace of mind knowing that what you signed up for in the beginning.
By understanding the different types of mortgages you can choose what is right for you. To learn more about home loans contact a business like MCS Bank.