Steps to Freedom: Home Loan

By R A Smith

If you are thinking about buying a home, one of the first things to do is find out what price range you can afford. Getting pre-approved for home financing can determine the maximum price and loan amount that you can get, based on your credit scores, income, and down payment. A mortgage pre-approval can save time and effort in your home search, and tells others that you are ready and able to buy a home.

Here's a Collection of Other Home Financing Tips:

Need flexibility on credit issues?

In addition to a low down payment, an FHA mortgage allows lower credit scores than conventional home financing. A bankruptcy only needs to be discharged for 2 years, and 3 years on a foreclosure.

Need payment choices for a tight budget?

Some lenders offers flexible mortgage terms with a 30 year fixed rate that gives you a payment choice each month for interest only or a fully amortized payment, which could help when money is tight.

Do you want an option for lower closing costs?

If you need to reduce your closing costs, you typically have the choice of decreasing the points by increasing the rate. Mortgage rates are priced to allow you to buy the interest rate up or down.

How long will you keep your mortgage?

If you plan to keep your mortgage for less than five years, you may be able to save money on your payments with a 5 year fixed rate plan. Also consider financing your home with zero points.

What debts are counted in your debt ratio?

Monthly debt payments are added to a mortgage to calculate a back-end debt ratio, including: credit card minimum payments, car loans, student loan, personal loan, alimony, child support, tax liens.

Are you required to have an impound account?

An impound account is money collected with the monthly loan payment to be set aside in reserve to pay property taxes and insurance. It's usually required on mortgages with less than 20% down payment.

Buying a condo with an FHA mortgage?

A condominium project must be FHA approved in order to get an FHA loan. If the project is not approved, the FHA spot loan program is designed to provide financing for an individual unit.

What about opening new credit accounts?

Applying for a new credit card, or financing the purchase of anything, just before or during the mortgage process can drop your credit scores, and lower credit scores can cause a higher rate or worse.

Are you planning a job or career change?

If you plan to make a job change, especially if the change involves commission or a different line of work, wait until after your new mortgage has funded, to avoid creating a potential problem.

Article written by Rick Smith at http://www.crhome.com, additional loan information at http://www.ditech.com

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By Jesse Saenz

The fact that the US has 3.9 million homes for sale and most of them coming from foreclosures means that newer, more efficient Home Loans must be offered. The truth is, getting a home loan is easier now than before the Real Estate boom, you just need to look in the right place. In the following article I will tell you where to look for the lowest interest rates, and well as what the banks will be looking for when qualifying you.

Specifically ask for Government Loans such as FHA or VA

In order to resolve some mysticism, and shed light on this shady subject I inform my clients that they should specifically ask for Government Loans such as FHA or VA (Federal Housing Administration, Veterans Administration.) I say this because the government has poured money into these departments and are eager to create revenue by lending it out in Home Loans.

For instance, FHA offers First Time Home Buyer Programs, Loans that allow 3 or more borrowers, Little or No Money Down Programs, and offer the lowest Interest Rates in the country backed by the Federal Government. FHA is a great place to look for Financing as they are rewriting the book on Stable and Sustainable financing of Homes now and for the future. You will stay ahead of the curve by empowering yourself with knowledge of specific programs, and the constant changes that are made on Government Loans. So now that you know where to look, what will determine whether you qualify or not?

The first place to start is getting with a quality professional Loan Officer, and or Realtor that specializes in Government Loans. What they will tell you is that the banks are looking for Credit, Capacity to pay back, and Collateral such 401k, or cash on hand. I suggest using a local Loan Officer to help you establish your credit scores, procure paperwork, and calculate payments. Since most Loan officers work on commission only, they are free of charge to start, and are usually very savvy and eager professionals. (For a list of Loan Officers I work with and recommend, please contact me) These 3 C's of Financing are the most widely and acceptable terms to Finance Professionals and speaking the same language of professionals is the best way to make sure you gather all the proper facts.

So now that you know where, and what to look for, get out there and see what is for sale. I bet you will be amazed by the price, and it may even be cheaper than the rent you currently paying. Make sure you consult a professional, speak the same language, and ask for Government backed Loans.

* If you have been a victim of Loan Fraud and or Foreclosure please contact me, as I am able to modify your loan, or register you to fix your credit in a credit rehab program. In most cases you only have to wait 1 year after a Bankrupt or Foreclosure to purchase.

For more information about Jesse Saenz and Connect Realty email jesse.saenz@comcast.net or
http://www.connectrealty.com/jessesaenz

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http://EzineArticles.com/?Is-it-Hard-to-Qualify-For-a-Home-Loan-These-Days?&id=2091195

Steps to Freedom

Wednesday, July 15, 2009

Home Financing Tips For Buying a House