Sunday, November 3, 2013

Today's Home Financing Options

FINANCING CONFUSIONYes the world of mortgage financing has changed. Some for the better, a lot for the worse. Lenders have tightened their guidelines to a point that even with ½  down payment, some lender won't touch someone with a credit score under 580. We had 7 lenders turn it down. Fortunately FHA can do the loan and it is approved. But, this illustrates the difficulty that we are all experiencing in today's lending environment and the lenders, it seems, are still trying to find their way in the dark. We constantly get call from Realtors about what programs are available and how to make an offer work with the financing. First of all, virtually all of the traditional and a lot of non traditional loans are still available. The biggest difference is the underwriting guidelines that are substantially different. Credit scores rule. The lower the score, the more difficult it will be to obtain favorable rates and terms, if financing is granted at all. It is a waste of time, in today's mortgage market, to look for homes if you have not been pre-approved. Not pre-qualified but pre-approved. The buyer needs to meet with the mortgage professional and bring in all relevant documents and letters of explanation, then obtain a lender pre-approval, letter in hand. Then start their search. Once, not so long ago, it was pretty simple to just to get some information then send buyers out to find their home. Not so today. While the loans still exist the lenders are making sure that every "i" is dotted and "t" is crossed. Today's mortgage professional needs to make certain that everything is in order to properly submit a file so that it will make it to close and fund on time. They also need to have all the current loan programs, including FHA and VA as well as conforming and non-conforming loans. If not then you need to make sure you have alternate lenders available to handle those files. FHA is not the program of old. FHA has undergone substantial updates to their programs and well as their appraisals. In a lot of cases it is just as easy, if not easier, to get a loan bought FHA than conforming Fannie Mae or Freddie Mac, and the rates in most cases are a little better.So, just like a carpenter, you need all the tools to get the job done. And your lender needs to help provide those tools. If you're having trouble with traditional loans have your lender submit FHA and that should help get you deal to the closing table.

Adverse Credit Home Loans: An Incredible Way of Home Finance in Presence of Bad Credit

Adverse credit home loans are loans that one can get despite having a bad credit rating. If you place your property as collateral, in order to secure the loan and cover the risk of your lender, many lenders will be more than willing to offer you adverse credit home loans. Adverse credit home loans are string of opportunities for those who have bad credit record and would like to pay off their existing debt and head towards the road of good credit status.If you have plenty of impeding debts, you can consolidate them with a comparatively reduced monthly rate of interest. Thus by lowering your monthly outgoing, you can repair your bad credit outfit. If you keep up repayments for a year or so, you can see a remarkable change in your credit score. Adverse credit home loans [] are generally secured home loans. That is the simplest way of getting better deal from your lender.Adverse credit home loans have many benefits like: Low monthly interest rate thus reduced monthly outgoings
Repayment duration ranges from five to thirty years
It is most popular form of conventional loan , thus easily accessible
Loan process is simple, your loan application can get approved very soon
If you have planned for huge investment for your home, adverse credit home loans are ideal because you can draw large amount
You can have flexibility of choosing interest ratesYou should be careful about paying off the installments regularly, because there are chances of property possession by the lender.