Banks, Credit Ratings and Getting A House Mortgage

October 30, 2009 · Posted in Bad Credit Loans · Comments Off 

Below we have listed some of the many questions that banks and other mortgage lenders will ask you when determining whether or not to grant your house mortgage application. The better you are able to answer these questions, the more chance you have of getting a mortgage and owning your own property.

Obviously, mortgages, large house deposits and jobs are currently hard to get, but if you really want a house or apartment of your own in the future, no matter how long it takes to get it, now is the time to think ahead and to put yourself in the best position to obtain a home mortgage when the economy improves.

Are Your Income and Expenditure Claims Realistic?

Do your homework before meeting with the bank or mortgage lender regarding how much monthly income you expect to receive in the future. If you intend to rent out a room in your new house, make sure you know what the current monthly rent is in your area. How much will you need to spend in order to make the house or room rentable? First time buyers are allowed to receive a maximum of 10,000 euros per year tax-free as income from renting out a room.

Can You Manage Money?

Nowadays the banks will want to know that you are a trustworthy person to loan money to. Keeping good records of your rent as well as your other major repayments such as car loans will reassure the bank that you can manage money.

Do You Need Money For Other Payments?

In the past the banks were happy to lend money for the fitting out of a house, as well as the mortgage needed to buy it. Today, if you are lucky enough to obtain mortgage approval, the banks will try to reduce the amount loaned to you as much as possible. It will help your mortgage application if you have no other major repayments to make, so defer any ideas you have about a new car or other big spend until after you receive your mortgage.

Do You Smoke?

Non smokers can make significant savings on the life assurance cover that will be needed in association with your mortgage.

Have You A Bad or Inaccurate Credit Rating?

Bad credit ratings can happen to good people. It may be due to an unpaid or lost bill, whilst it can also be due to inaccuracies in the credit report itself. It is better to find out your credit rating yourself, rather than waiting for a lender to inform you of your credit rating. This will give you an opportunity to address any inaccuracies and perhaps settle any outstanding debts. The more ‘blemishes’ you have on your credit report, the more likely it is that your lender will charge you a higher interest rate to protect themselves against a potentially bad loan.

Do You Expect Higher Interest Rates?

Are you assuming that you can repay your mortgage on the basis of current interest rates or have you calculated what it would cost based on interest rates that are two, three or four percent higher than current rates? Ask yourself if you could afford to pay a higher monthly payment without infringing on other payment commitments you may have.

This article is only intended as a basic general summary and you should always seek professional advice where necessary.

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Planning Ahead For A Home Mortgage

October 29, 2009 · Posted in Bad Credit Loans · Comments Off 

Obviously, both mortgages and jobs are difficult to come by these days, but if you really want a house or apartment of your own in the future, now matter how long it takes to get it, now is the time to think ahead and to put yourself in the best possible position to get a mortgage when the economy improves.

The list below includes some of the questions that the banks will ask you when assessing your house mortgage application. The better you are able to answer these questions, the more chance you have of getting a mortgage and owning your own property.

Have You Accumulated Savings?

Mortgage lenders will want to make sure that you have a good record of savings. Regular contributions, for as long a period as possible into a savings or deposit account, will be looked on favourably by banks and mortgage lenders when they assess your application. So plan ahead, open an account now and get a regular savings plan going so that when mortgages become more widely available, you will have a good record to show the bank. Even if you can’t afford to save much every month, at least it will demonstrate to the bank a regular history of payments.

Are You A Loyal Customer?

There is some evidence that banks are more willing to lend to those people that have savings with them for a long period of time. So if you feel that mortgage rates will be equivalent from the major lenders in the future, open a savings or deposit account in the bank of your choice and become a regular saver, even if it is only a small amount every month.

Do You Have The Right Job?

The type of job you have is crucial. Mortgage lenders will only loan to those people in the most recession proof jobs, so a job in a semi state organization or the most secure private company will really help your house mortgage application. At the moment, any job is a good job, but if you want your own house in the years to come, you should consider the impact any future job will have on your chances of getting a mortgage.

Do You Have A Bad Credit Record?

Reduce your debt as much as possible and do all you can to avoid a bad credit history. It’s vital that you keep in touch with any company or lending institution that you owe money to. Don’t avoid their letters, negotiate a repayment schedule with them, even if it is for a small amount each month. Do all you can to avoid being listed on the wrong page of a credit agencies records.

Have You The Right Friends?

If you think that you will never be able to afford a mortgage on your own, or that your job is not secure enough, consider a joint application with a friend and don’t forget the conditions above will apply to them too, so let them know what the banks will expect from them.

This article is only intended as a basic general summary and you should always seek professional advice where necessary.

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Refinancing A Mortgage – Refinancing Explained

October 27, 2009 · Posted in Bad Credit Loans · Comments Off 

Homeowners thinking about refinancing might be somewhat confused and bewildered by the amount of possible options to select from. Investigation of these options will help clarify the refinancing products and offer an indication of the most advantageous routes to take. This article outlines the types of mortgages on the market, along with recommendations on points to remember before a final decision is made.

Types of Mortgages

There are two common choices of mortgages available for refinancing, together with a third concept. Choosing the appropriate type of mortgage for the homeowner’s circumstances is the largest decision that homeowners confront.

The first common option is the fixed rate mortgage. The interest rate remains permanent throughout the duration of the loan. This is beneficial for homeowners who are able to negotiate a low interest rate.

The second common option is an adjustable rate mortgage. The interest rate will fluctuate through the term of the loan. The fluctuations are dependent on indexes, such as the prime. The rate will rise and fall in accordance with the index’s increases and decreases. This type of mortgage is not as secure as a fixed rate mortgage. Homeowners with questionable credit rates are often offered this product.

There is a limited protection built into adjustable rate mortgages. A clause incorporated into the loan may limit how many percentage points the rate of interest is permitted to increase during a specified amount of time. This protects the homeowner from significantly higher mortgage payments due to marked interest rates hikes.

The third concept is the hybrid mortgage. This mortgage has combined elements of the fixed rate mortgage and adjustable rate mortgage. The first specified portion of the mortgage would come with a fixed interest rate, with the remainder of mortgage having an adjustable interest rate. Hybrid mortgages usually have a lower fixed interest rate than the standard fixed rate mortgage. Lenders have introduced this concept to solicit customers.

Closing Costs

Homeowners need to calculate the closing costs attached to a mortgage before making a commitment to refinancing. Closing costs can add up to a substantial amount. Typical closing costs including application, appraisal and loan origination fees, together with other miscellaneous charges. These costs need to be compared to the savings the homeowner expects to receive from refinancing.

Overall Savings

Overall savings are an aspect the homeowner needs to thoroughly calculate. If there are no overall savings, refinancing may not be advantageous. The goal of most homeowners in refinancing is to realize some savings at the end of the day. There are some homeowners, however, who are concerned with lowering their monthly payments. If their primary consideration is not focused on overall savings, then refinancing may be advisable.

Overall savings are dependent on a number of factors. The interest rate of the old mortgage is compared with the rate of the new mortgage. Also, the amount of the existing mortgage is relevant. How long the homeowner plans to own the home has an effect.

It should not be assumed that the money saved by reducing a previous interest rate to a more favorable one is the sum total of savings. Closing costs must be deducted from the interest savings. If the result of this subtraction is negative, refinancing may not be worthwhile. Alternatively, if the end result is positive, the homeowner will have a net overall savings.

This information should assist the homeowner in deciding if refinancing is a viable option.

Find out the actual advantages of refinancing as well as when is refinancing not advisable from the experts when you visit http://www.mortgagerefinanceguidelines.com, the premier resources on steps to refinancing

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FHA Manufactured Home Loan – FHA Manufactured Home Financing Is Possible!

October 14, 2009 · Posted in Bad Credit Loans · Comments Off 

More people today, then ever before, own or want to buy manufactured homes. Unless you have cash buying power, getting a loan for a manufactured home is not always easy and actually can present quite a challenge.  The problem with manufactured home financing is most mortgage lenders will not loan money to buy a manufactured home.  Today, about the only type of mortgage available is a FHA Manufactured Home Loan.

The best type of manufactured home financing to get is a FHA Manufactured Home Loan. This type of loan opens up a lot of opportunities for people who want to buy a manufactured home but don’t have a lot of money to complete the transaction.  You can get more information on FHA Manufactured Home Loans by clicking on the links at the bottom of this article.

Most people who want to buy a manufactured home may want to get a Title 1 loan.

A Title 1 FHA Manufactured Home Loan is a great type of loan because they are not government or grant based. They also have requirements where they have to give the home owner a fixed rate for 20 years. FHA does not really loan money. By insuring loans they help you find lenders that are qualified to meet your needs. This type of loan can be used to buy a lot to place a manufactured home or a manufactured home and lot combination. The one requirement that FHA insists on is that the borrower be planning to make the home their permanent residence.

With an FHA Manufactured Home Financing you can borrow from $69,678 for just a manufactured home up to $92,904 for a home and lot combination. This is a substantial amount of money for people to work with, while looking for the right home. If your home is new they also require a 1 year warranty, which most new manufactured homes have anyway. These loans go up to 25 years for people looking to buy a home. In order to get an FHA loan you have to be an eligible buyer but most of the requirements are required by any lender.

If you are looking at manufactured homes and you want to get a loan, the best type of loan is a FHA Manufactured Home Loan. These loans are pretty workable for any buyer and they also are not too complicated to get. They do have some requirements but most of them are very reasonable for anyone looking to buy any type of home. You do have to have the money to make your payments and prove your income. The borrower has to make the home their permanent residence and they have to set up the home under correct guidelines. All of these requirements are reasonable for any future home owner.

While most conventional loan lenders will not loan money for manufactured home financing you can still get a FHA Manufactured Home Loan even for existing homes.

Click here for more free advice about FHA Manufactured Home Loan where you get much more information on the different types of FHA loans.

Learn more about buying HUD Homes For Sale with a FHA Loan click Streamlined FHA 203K Loan.

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