Making The Approval Process with Wholesale Lenders Easier
July 29, 2008
The mortgage industry is continuing to experience volatility with credit tightening, lender problems, and a decrease in available loan programs. During this time, mortgage brokers will be seeking new wholesale lenders who can provide competitive rates, good service, and loans that can meet borrowers’ scenarios. If you find yourself in this situation, the following common-sense steps will help make the approval process smoother.
Just as it’s best to submit a full loan file, you should submit every required document for your application at the same time. This will make things easier for the reviewer and help prevent your own procrastination.
Newly formed brokers — include a detailed resume for yourself and any key staff. Clarify with the lender the number of years of industry experience they require.
Verify AE information for references before you submit them. If you can’t reach the AE, then the lender probably won’t be able to either.
Make sure you provide all the requested signatures
Review your application to ensure you submit all information has been requested.
Sole proprietors may be asked to submit 2 years of company financials or tax returns. If the application does not clarify this requirement, ask the lender.
If there is a checklist, use it as your guide and double check before sending off the approval package.
Fill out the application using a printer or typewriter. Handwriting can be difficult to read and result in errors.
Although this period of change can be scary, there is hope out there, and there are still good wholesale lenders who can help you provide loans to your clients. Find those good ones, then use the steps above to simplify the approval process with them. Before you know it, the market will have stabilized and you’ll have relationships with some of the best lenders out there.
Mortgage Cycling - A Much Friendlier Mortgage Broker
July 29, 2008
Mortgage brokers are changing in modern times and they really are taking on the traditional mortgage brokers. As we enter into a new era of recession people want to make savings as consumers and that includes when looking for a mortgage. You may be used to being hassled when trying to organize a mortgage but things just don’t work that way anymore.
At last there is a new alternative and he is called the Mortgage Seeker. You really will feel that every fine detail is there in big black bold letters. You really feel as though you are dealing with somebody from a genuine professional institution and they will always go to the trouble of signing a sealing a contract that states the amount to be paid in commission and they certainly wouldn’t later try and get further fees from you, like their colleagues do in the traditional sector.
The way things used to be done meant you not being revealed the final total amount until after the application submission. Traditionalists though have a policy of adding a markup to the wholesale rate of the mortgage to make their profit. Be wary of committing yourself to a really great savings mortgage as there will more than likely be a bonus coming your way before finalizing the deal.
The problem with the traditional system is that they haven’t really always got your best interests at heart where by the new upfront mortgage brokers will only gain anything by finding the mortgage that best suits you.
You will even get back third party rebates from a upfront mortgage broker whereas the bad guys will just pocket it. In my opinion honesty is always the best policy and the whole set up of the upfront mortgage broker can only allow that. This, with a bit of luck can change the way things have been done up until now and mortgage seeking will no longer be something to put off.
Do Debt Consolidation Services Really Work?
July 29, 2008
The best way to deal with debt is to pay it all off on your own. This isn’t always possible, however, due to constantly changing circumstances that may at times not even allow you to pay the minimum payment on monthly bills.
Many people who find themselves deep in debt turn to debt consolidation to aid them in getting out from under their debt. This is done by getting a home equity loan, moving all your debt to one credit card with a low interest rate, or taking advantage of the help offered by debt consolidation services.
What do debt consolidation services do?
Credit counseling consists of negotiating with a client’s creditors for lower interest and/or lower payments. Late and over-the-limit fees are often waived as well. Then the client sends the credit counseling agency one payment each month, and the agency distributes the money to creditors as agreed upon.
The pros
Credit counselors are normally able to work with credit card companies to reduce your payments and interest rates even if you have tried to do so without success. You can also be helped to arrange a budget that will work for you by a counselor, all with the goal of assisting you to care for all necessary expenses while still saving money to use in paying off debt.
Cons
Despite all efforts from credit counseling agencies, some creditors simply refuse to make the changes necessary to bring your monthly payments down to an affordable level, especially if you owe a lot of money. If this happens in your case, you will have to try to find another way to pay off your debt or, if the circumstances demand it, file for bankruptcy.
Another thing about credit counseling is that it isn’t free. Credit counseling agencies may charge monthly fees for their services, adding them on to your monthly payment. If they don’t, they have to get the money to pay their employees somewhere. That “somewhere” is usually from your debtors, as a percentage of your payment.
Using a credit counseling service to eliminate your debt does appear on your credit report, but will not necessarily reflect badly on your credit. Some creditors view Chapter 13 bankruptcy and credit counseling programs to be basically the same thing. While you are eliminating debt by means of such a program, you will not normally be extended any additional lines of credit.
Just like any other business, there are some credit counseling services that should not be trusted with your money. You can check the Better Business Bureau for information on which agencies are best. Use that information to make an informed decision about which agency to go with.
Credit counseling may be able to help you get your debts paid off. But it is important to consider the pros and the cons of entering such a program. Trying to work out a deal with creditors on your own may work, eliminating the need to get a third party involved.
Tips for Avoiding Excessive Credit Debt
July 29, 2008
There is no ‘one-size-fits-all’ solution to how much debt you may safely take on. There are, however, guidelines that you can follow to keep from going in over your head.
Naturally, credit card companies and other lenders are happy to put up as much money as they believe you can pay back. They take risks, but these risks are carefully considered. They look at default and current interest rates and carefully review your credit history when considering your loan or credit application. You can benefit by mimicking some aspects of their strategy.
Before you apply for new credit, consider whether you will ever need to default on a payment. Do not even consider doing so, or filing bankruptcy on purpose. The consequences of doing so are serious. These options should only be considered as a very last resort.
You may be able to factor future increases in income - this is common among businesses and financial institutions - but you must be positive that you’re actually going to receive it. Potential stock market income or the promise of a raise is not a guaranteed increase in income.
When businesses invest, they look at current interest rates and make predictions about where they are headed. You can do this as well. It’s difficult make such predictions with confidence, but general trends do not occur at random. Look such financial indicators as futures and bonds. If bond option prices are going down, interest rates will likely rise in the future. The direction of inflation and interest rates are the sort of speculation that professionals commonly engage in.
Look at your own credit history the way that a bank would. Would you lend yourself $10,000 at 7% for 48 months even if you could find online loan companies? Avoid making excuses for late or defaulted. You may have had a legitimate reason, or you may not have yet developed the maturity or financial resources to repay your debts on time.
Be realistic when you consider your income and expenses. You may be smitten with the idea of driving a new car, but can you afford that extra monthly payment and continue to meet your essential financial obligations? Answer this question honestly.
It is up to your discretion whether it’s worth assuming ongoing credit card debt (and interest) to purchase an item that you covet. You may prefer to have that item today more than you value the money you will save by waiting until you have the cash up front.
Think about it. Impulse buying commonly leads credit card users into unmanageable debt. Consider that if you save your money you can have the item that you desire, and even something extra for the money you would otherwise have paid in interest.
If you can’t afford a purchase, evading the fact will get you into the kind of financial trouble that takes months or years to rectify. If you think in the long term and are realistic, you will be able to decide how much debt is acceptable for you.
Government Grants: A Viable Option for Debt Relief?
July 29, 2008
There are many different ways for an individual to get out of serious debt. Options include using personal loans, home equity loans, high-limit, low- interest credit cards, and debt consolidation services. Taking advantage of government grants is another very interesting method with which debt can be diminished.
Advertising on the Internet, television, and radio all claim that debt consolidation is one of many things that money from a government grant can help you pay for. This however, is not always true. Even when it is, debtors will not have an easy time putting government grants to use for debt consolidation.
What kind of grants are they talking about?
It’s true that the government gives out some grants. But most of these grants are for things like assisting people in starting a business or helping first-time homebuyers. There are no programs specifically aimed at helping debtors pay off their debts.
The only type of government grant that is remotely related to personal debt relief is the small business grant. One could conceivably start a small business using grant money, make a profit, and use that profit to pay off debts. These small business grants are few and far between, however, and are designated for use by specific types of business that meet the government’s needs.
What about other grant sources?
Apart from the government, individuals can receive grant money from private corporations. Such corporations have specific requirements that whoever wants to receive their money must be able to meet. Attempting to eliminate personal debt tends to be unrelated to the needs of a large business corporation and therefore not a valid reason to receive a grant on their part.
Charitable donations, however, are rather commonly made by large corporations. Acts of charity are done by businesses in an attempt to improve the public’s opinion of them or to support the local community. Giving of this nature is not a reliable and therefore should not be considered as a way to eliminate debt.
Where Can You Find Help for Debt?
There are several sources of help available for individuals in debt. Though finding someone to pay off your debt for you would be very unusual, you may be able to reduce your minimum monthly payment and interest rates on credit cards by speaking with the credit card companies personally or by using a credit counseling agency.
There are also some free resources online that can help you take control of your finances. You can learn how to make a workable budget and put extra money toward your debt payments. It may not be as easy as getting money from the government, but you can often get your debt under control on your own.
The Secrets to Low Cost Refinancing Home Loan!
July 29, 2008
The decision to refinance your home should not be taken lightly especially if you have lived there for a long time. As these loans are usually large, you will need to carry out some research so that you know you have done everything to keep your repayments as low as possible.
The Internet has changed the financial world as so much can be done online now including finding the best deals around without leaving your home. The other benefit of the Internet is that any research and quotes can be gathered anonymously which is a luxury that people in the market for home refinancing loans in the past did not have.
Everyone knows that often when you give up your personal information to a potential lender they are likely to continue contacting you until you are frustrated and being able to do your initial research online eliminates this. Of course being able to source a large number of lenders and compare their refinancing deals without leaving your home has got to be the biggest benefit of all.
The homeowner is in control, deciding when they want to search and as they do not have a mortgage broker trying to convince them to use a particular plan it is easier to find the one that suits best. This control over your own finances was predicted by financial experts some time ago and has changed the way financial arrangements are now carried out.
When matters of a financial nature were carried out before they were available online, it wasn’t unusual for homeowners to complain about the fact they were often confused by the process and felt that their concerns did not matter. This is no longer the case because any research carried out online produces answers to any and all questions so the homeowner is able to understand the whole home refinancing loans process before they agree to any particular lender.
It doesn’t end there of course because once the information has been gathered and the choice of lender made then it is just a simple matter of filling out the application online once again, which simplifies the process even further. The traditional method of someone calling into a lender and spending hours trying to get every detail right is over especially when it can be done when it is convenient for you.
Being able to apply online affords homeowners the opportunity to do the paperwork from home, send it in and then waiting until the final part of the process to actually visit the lender in person to conclude the refinancing home loan. More and more now, even this last step is becoming redundant as many companies allow the completion of the refinancing online and a visit to the mortgage lender is not necessary.
I hope this article has demonstrated that using the Internet does have certain benefits and next time you are considering refinancing your home you will consider the Internet.
How To Choose A Debt Consolidation Lender
July 29, 2008
If you’re looking for a loan to consolidate your credit cards and other debt, a debt consolidation lender will often be your best choice. They may be easier to deal with than a traditional bank, especially if your credit score is not that good.
With a wide range of interest rates and various services to choose from, finding the right lender can be a challenge.
Expect a lengthy application form. Along with detailing your current financial state of affairs including outstanding debts, income and assets, an interviewed about your living and spending habits may be forthcoming to help them understand your circumstances and how the debt accumulated.
Lenders vary greatly and repayment issues are a major concern. These factors will have a significant effect on the total amount to repay. Here are some important factors to consider:
1. Interest rate 2. Monthly payment 3. Length of the loan 4. Lender’s commission; aka, ‘points’
These factors can have a significant effect on the total amount you will have to repay. Plus, a lender with favorable terms in one area may still wind up costing more if their terms are not so good in another.
For example, if the interest rate is better from one lender but they charge you a commission, your total payable could wind up being more. A commission is generally calculated on a “points” basis - one point being 1% of the total you are borrowing.
Internet search engines are an effective way to research debt consolidation lenders. Comparing terms from different lenders is easy from your computer.
Many lenders operate completely online, but you should always contact them in person before making your final decision. Call their customer service department and speak to one of their representatives. See if they are able to answer your questions effectively, how quickly they can be reached and how comfortable you are dealing with them.
This is likely a long-term relationship. Be sure of your choice before signing anything.
Mortgage Information
July 29, 2008
If you’re new to buying a home and don’t have the time to read an encyclopedia on mortgages, this is the article for you. We’ll go over some basic mortgage terms and concepts to get you started.
Deciding to buy a home and obtain a mortgage is a serious decision with significant responsibilities. Not only must you spend money upfront to obtain your loan, you’ll be entering (or increasing) your debt. You’ll also be responsible to pay a large monthly payment. Hence it is important that you choose wisely what loan to get and where to get it.
You’ll want to understand some basic terms so that you can better compare mortgage options: rate, APR, closing costs, Mortgage, monthly payment, fixed, and ARM.
Let’s start with the definition of a mortgage. A mortgage is when you borrow money to either refinance your current home or to buy someone else’s home. The collateral for the loan is the house itself. In other words, if you were to break your mortgage contract, such as by missing payments, then the mortgage holder would be able to take possession of your home.
The term “rate” refers to the percentage used in calculating the amount of interest you’ll pay for your loan. The interest is essentially your cost for borrowing money. If the interest rate remains the same throughout the loan term, then the mortgage is considered a “fixed-rate” loan. On the other hand, if the rate can change, then the mortgage is called an adjustable rate mortgage or an ARM.
Besides interest, there are additional costs associated with obtaining a home loan. These could include fees for underwriting, the application, checking your credit history and scores, having the property’s value appraised, loan origination, title search and insurance, etc. Together, these fees are called “closing costs”.
While the interest rate is an important number, by itself it is insufficient for comparing lenders. This is because lenders and brokers can charge different fees, making a loan from Lender A actually less expensive than from Lender B, even though it has a higher interest rate. In order to help provide a number that can be compared across lenders, the government has regulated that closing costs be added to the loan amount to determine what is known as the Annual Percentage Rate or APR.
Besides looking at the APR, you’ll want to pay attention to the total monthly payment that you will owe. Besides including principal and interest, this amount includes property taxes, hazard or homeowner’s insurance, mortgage insurance, and HOA dues. Mortgage insurance is independent of interest rate, and when factored into your monthly costs, could result in a loan program with a higher interest rate having a lower monthly payment than a loan with a lower interest rate.
Is Debt Consolidation For You?
July 28, 2008
For people trying to cope with having too much debt there are many different companies offering debt consolidation loans. As such these types of loans are demanded by a lot of people having the same type of problems.
Generally these loans can help people to manage their finances easier. Besides only thinking of one loan, debt consolidation can also provide a lower interest rate plus the length of the loan may be extended.
It is common for lenders to want a consolidation loan to be backed by a mortgage, although that is not always the case. If a lender does get the loan secured by a mortgage they will be better protected in the event of default.
After the loan has been secured it is common for the lending company to contact all the other lending companies to negotiate a payment. It is not uncommon for the lending companies to offer some type of financial advice to the troubled borrowers.
Basically a consolidation loan may be regarded as a form of debt refinancing. From this point forward the other lenders would have been paid or settled by the new lending company and there will only be one loan outstanding.
Here is something to keep in mind:
Most consolidation loans are secured to your home meaning if you default your home may be at risk.
Consolidating your debts into one loan is an excellent option to consider for many people having financial troubles. Consolidating your loans into one should be considered if you keep getting late fees and penalties due to non payment.
Auto Loan Secrets - Don’t Get Reaped Off!
July 28, 2008
Very few people use their own funds when they decide to buy a car but how much do you know about auto loans? The good thing about an auto loan is that it is secured on the vehicle you are purchasing and as each payment is made, the amount at risk reduces so there is less at risk if something untoward happens.
Your choice of vehicle is of course dependent on how much you will be allowed to borrow so you will need to do some careful searching on the internet if you want to find a quality vehicle.
Although it is enjoyable looking around car dealerships and you can get a great feel fro the car you are looking at, the internet is much faster and many cars can be seen in a short space of time without all the traveling involved.
If you have a specific car in mind but the amount you can lend won’t cover the cost of a new car then why not go for the same model but a couple of years old and get a real bargain. However, even though auto loans are an easy way to fund the purchase of a car, your application could be turned down if you do not have a good credit score so check this before you even make the loan application.
Having a poor sore does not automatically bar you from having being accepted for an auto loan but you might find that the loan interest rate is set higher as a penalty. If your score is under 550, this is when you may find you are penalized when you apply for your auto loan but above this level there shouldn’t be any problem at all.
Although most financial establishments will arrange an auto loan on your behalf, including dealers, using the internet will allow you to compare the different rates, including those for internet finance companies as well.
Find out how much you have to pay now and then find out the overall costs and keep in mind that a low cost may not mean low total costs for you later when you look at the whole picture. Many people choose a low down payment thinking it’s easier to manage but that choice increases the total cost of the auto loan and in the end they may end up paying more than what the car is worth.
Most lenders prefer it if you have insurance and it will usually lower your premiums as they feel safe in the knowledge that their money is not at risk but it is not a requirement for the loan.
Most car dealerships will offer a rebate against the car if you decide to take out their finance package and this is a worthwhile action to take because one the rebate has been given, the finance package can be rearranged with another, less expensive company to save even more money.
You may find a lot of online lenders however, Capital One Auto Loans and E-Loans do not require any down payments. Online auto loan rates are the standard for dealers to beat so look for the best and get your loans only from the best.
