Purchasing a home is incredibly exciting and stressful. Knowing as much as possible before you purchase is the key to reducing stress.
Getting A Mortgage From Beginning to End
The mortgage process can often be a confusing one. Most homebuyers are interested in their dream home, not their lender. Throw in endless forms and document requests, and the mortgage process can quickly become miserable. Many home buyers have turned to an easier route with the mortgage no doc program and the no doc mortgage loansFlorida program in the state of Florida. Here is an overview of how it works, which will hopefully cut down on your stress.
Searching for the best loan is the first step. The best loan for you is entirely dependent upon your situation. A low interest rate may be a key for one person, while a low down payment might be critical for another. Other factors include your credit score, length of the loan and so on. I highly recommend you don’t apply with the bank where you have a checking account. If they know it is your first loan, you are going to get a poor deal. Shop around or use a mortgage broker to do so.
Getting pre-approved is not a required step, but you should do it. This single step will cut the stress factor of buying a home by at least half. Instead of sweating your loan application during escrow, you can relax because you are already approved. This free time gives you the opportunity to nag the seller for breaks on the home purchase.
The next step is to file a mortgage application. Many people make the mistake of providing the minimum amount of information possible. If you have credit problems or some other negative, the lender will find them. Provide as much information as possible on your application.
Part and parcel with your application is supporting documentation. This is where a mortgage broker can really help. A lender is not going to take you application at face value. Unlike applying for a credit card, the lender wants to see supporting documentation. You will commonly be asked to submit tax returns, pay stubs, bank account statements, investment account statements and so on. The lender will inevitably lose some of these and ask for them again. Welcome to the mortgage loan process! If you have a problem providing documentation, then you should consider a no doc mortgage or a no income verification mortgage Florida program in the state of Florida where these programs are very popular.
Appraisals, inspections and title searches will next be ordered on the property. The lender wants to make sure the seller has the right to sell it, the home is in good shape and it is worth enough to justify the loan. There isnít much you can do during this step, so relax.
At this point the loan is processed to get everything in shape for the underwriter review. The underwriter is the buck stops here person for the lender. The underwriter will approve or deny the loan. They may also ask for additional information or offer adjusted terms. If this occurs, you can make counter offers.
Assuming the loan is approved, commitment time is the next step. Yep, you will sign the loan documents. This sounds simple, but many people canít help but get nervous about committing to the repayment of hundreds of thousands of dollars. Just do it!
Assuming everything is going well with the purchase, the next step is closing. The lender will wire money to the title company, escrow will close and you are the proud owner of a new home and hundreds of thousands in debt!
One of the most important decisions you will make in your financial life is which mortgage you should get. For many people, the option of a fixed rate mortgage seems appealing. But what exactly is a fixed rate mortgage, and why do so many people choose this option? If you are new to mortgages then this article will let you know a little more about fixed rate mortgages and their benefits. Some people are seeking out a real estate advisor to ensure safety on advice or investing with a real estate investment firm.
What does fixed rate mean?
A fixed rate mortgage is fairly straightforward, and does exactly as the name suggests. A fixed rate mortgage has an interest rate that remains the same throughout the mortgage term, meaning that your monthly repayments will remain the same, allowing for inflation of course.
Why a fixed rate mortgage?
Many people choose fixed rate mortgages because of the security and peace of mind that they provide. If you have a fixed rate mortgage, then you know your monthly repayments will not change, meaning you can budget effectively for both the short and long term. If you have a mortgage with a variable rate of interest then your payments can change depending on market fluctuations. This can leave you paying less, but often leaves you paying more each month. The best times to get fixed rate mortgages are when competition is high, and the fixed interest rate is lower than that of the tracker or variable rate mortgages.
Are there any drawbacks?
There are drawbacks to getting a fixed rate mortgage. The biggest drawback is that the interest rate is usually higher than that of variable rate mortgages. The added security comes at a price, in that you have to pay more in interest over the length of the mortgage. Also, the ëfixedí rate is usually only fixed for a certain number of years, usually 2 or 3, after which the rate can be put up and then fixed for another period. This can mean that your mortgage will be cheap now, but in the future the rate could rise.
Who should get fixed rate?
Despite its drawbacks, there are many people that should definitely opt for fixed rate mortgages. If you are on a tight budget and have a fixed income each month, then you cannot afford for your payments to rise. Having a fixed repayment each month means that you know you can make the payment even if national interest rates rise. Also, if you can get a deal whereby the starting interest rate is lower than that of a variable rate mortgage or even the same, then opt for the fixed rate mortgage. I recommend seeking out to a real estate advisor or a real estate investment firm.
How to decide?
If you are still unsure about whether or not a fixed rate mortgage is right for you, then consult an independent financial advisor. They will be able to help you find the best deal, as well as tell you whether or not the base interest rate is going to fall or rise. This will determine whether a fixed or variable rate mortgage is best for you.
This is the most popular type of mortgage as the monthly payment for interest and principal remains fixed through out the mortgage term, Property Insurance and taxes may increase but the monthly repayment of the amount will be stable.
Fixed rate mortgages are available for 10 years, 15 years, 20 years and 30 years period of time, there are also fixed rate mortgages available for Biweekly mortgages and this helps to shorten up the loan by making the payment every two weeks. You can now apply for a no doc mortgage Florida program or a mortgage no doc loan for a fixed rate.
Fixed rate mortgages have 2 distinct features, first one is that the interest rate would remain the same through out the term of your mortgage, second feature is that payment of the loan remains level for the life and are structured for the repayment of the loan at the end of the mortgage term.
The most popular fixed rate loans are 30 years mortgage and 15 years mortgage. During early payment period, a large amount is being taken for the interest and the rest goes off to the balance principal amount, for instance a 30 years of fixed rate mortgage will take 22.5 yrs of the level payment of the loan for the payment of the half of the mortgage amount. Under 30 years of mortgage, month after the month you can choose to pay only interest or you can pay off principal with interest as it is a great option available for those who have tough time for money at times, with this option of lowering the payment you can increase the cash flow for paying off interest bills, remodeling your house, financing schools or college needs or increase your retirement savings.
With Fixed rate mortgage your loan rate is fixed for the mortgage term, you can pay interest only for 10 years and pay the balance interest plus principal for the next 20 years, this helps you to refinance the loan with out any pre payment penalty.
The advantages of 30 years mortgage is, when it is compared with 15 years mortgage the monthly payments are lesser, interest rate remains the same even if the interest rate goes up, monthly payment does not increases as it remains the same for the entire 30 years, compared to 15 years mortgage you would be paying higher rate of interest and the interest rate remains the same even if the interest rate gets decreased.
If you have planned for a long-term loan and does not like to take up the risk you may opt for fixed rate mortgage. Many home owners are applying for a no document mortgage or no doc mortgages.
To get correct information about the real estate in downtown Orlando, home buyers must consult a reputable real estate agent. Downtown is a buzzing place, and several people get confused by how quickly it changes. However, once you find real estate in downtown Orlando, you’ll love its convenience, area services, and all around quality of this bustling metropolis. Many condo investors have turned to no doc mortgage loans Florida or no doc mortgage Florida programs for financing.
Its major attractions, such as shopping plazas and entertainment venues, have transformed the area into a very popular place. Those interested in getting a foothold in the area must consult real estate agents, who have the latest details of new homes and old home sales. Being familiar with the local market, the real estate agents will be in a position to help the new homebuyers clinch a deal at attractive rates.
By buying such property, the homeowners will have a good investment for the future. Though other forms of investment are also available, the real estate investments have made premium gains. Those who do not live in their home can rent it to others with the help of qualified real estate agents. The agent helps the owners handle the necessary paperwork while purchasing the property, and also helps them to find suitable tenants. Agents can also give advice on reducing tax burdens. Downtown is becoming one of the hot destinations for those seeking to relocate to Orlando, and this is leading to increase in prices of condos and other properties. Taking this into account, the real estate developers are including several amenities like separate pools, entertainment venues, parking lots and others, to attract more home buyers.
In commercial real estate you are constantly going to be using negotiation skills. Your negotiations skills will be put to use, not only in the process of creating an offer and working to get it accepted, but also with your contacts, brokers, buyers, sellers, engineers, and lenders. Hard money lenders Florida programs and hard money lenders Orlando programs are booming for agent referrals. In any situation where there are more than two interests, you can rest assured that negotiations must take place in order to satisfy everyone’s goals. Many people are afraid of negotiation, usually due to lack of experience. Once you begin practicing your skills, it will get easier for you, and may even become fun! Negotiation is filled with tactics and problem solving that are used to yield the best results for each party.
Being a good negotiator is very important to this business. There are different negotiating styles that work for some people, and not others. For example, some find success with a very strong, even intimidating approach in negotiation. I prefer to use a straight forward approach. I am prepared, informed and persuasive. I am confident, as I have anticipated the questions and concerns the other party may have, and will answer them, as needed. This helps me to clearly and confidently negotiate terms. As a result, closing deals is often easy and fun. It is true that different styles should be used in different situations, so study others who negotiate and develop a style that works best for you! In commercial real estate, as in most businesses, it is best to yield to an agreement that is win-win, meaning both parties are satisfied with the results at some level. If the strongest concerns of each party are addressed and a solution results, the agreement is of mutual benefit to both parties. If you are not familiar with negotiation, I suggest that you take a class, purchase a book, or find a seminar that covers the basics of negotiation. There are many generic tips and tactics that will sharpen your negotiation abilities, and make it easier for you to get what it is that you want out of an opportunity. In commercial real estate, there are specific negotiation tactics that can be written into contracts. Many of these tactics require some creativity and are specific to certain situations. Don’t be afraid to get creative; after all, this is where commercial real estate gets really fun! You’ll be surprised how you don’t have to have everything figured out when you put a property under contract! In commercial real estate, it is always a good idea to write a letter of intent before actually purchasing a property. In residential real estate, a letter of intent is usually not necessary, but in commercial real estate, I consider it a necessity. The letter of intent should be clear, concise and not in legal format. It should appeal to the owner as a direct, personal letter, explaining your purchasing intentions with the property. Many people put in terms, closing dates, length of due diligence, and so on in the letter of intent. Negotiation can take place here, without any money being permanently spent by the buyer, or a deal completed. It can open a dialogue between you and the buyer, and start negotiations early in the game without anything being set in stone. Another tactic that can be written into the letter of intent is known as an option contract. This option contract is a good way to investigate the property; you then have time to begin putting together a deal to make sure it is feasible. You can offer a certain amount of money to tie up the property in order to do some initial research, and not even mention closing a deal yet. This is a great option that can allow you to decide to move on with a property and begin negotiating, or simply move on to the next opportunity in a short amount of time. The option can be as simple as 15 days to do some preliminary work with $15,000 at risk. At the end of the 15 days, you may option for a full due diligence period and continue with the purchasing process. When negotiating an offer, and you still have some questions left unanswered that will be unveiled during the due diligence, you can always write an item subject to or contingent upon the ability for you to do to the property what you intend. For example, if you are purchasing raw land zoned R-1, single family housing, and the broker mentions that the city would be supportive of rezoning the property commercial, which would greatly increase the return on investment, then you could write in the contract that you will purchase the property if you can get the property rezoned to commercial. This is done often, and works with many different variables that could affect the use of the property. Writing in contingency clauses can be a great way to protect your interest and make sure that you end up with a property set up properly with a favorable exit strategy. As we all recognize, seller’s have specific needs that need to be met. A buyer may really want to take the opportunity that the property would provide, but realizes that he or she may not be able to satisfy all the needs of the seller up front.
You can get access to hard money lenders and private money lenders with the hard money lenders Florida program. A negotiating tactic that would work here would be for the buyer to satisfy the seller’s needs in two or more parts. The buyer could set up two dates to pay the seller- with money in the beginning, and then money at the end of a certain period. This would allow the buyer to take the profit that he made from the property, and give the seller his money. As long as you satisfy the basic, up front needs of the seller, he or she may be willing to accept these terms, and you are on your way to fulfilling another opportunity! As there are many other negotiating tactics that you will create to satisfy the requirements to make a solid deal, there is a really great tactic that allows you to continue to invest money into commercial real estate without paying taxes on capital gains! This option was made possible through the Internal Revenue Service tax section 10-31, better known as the 10-31 Exchange. This allows for sellers to use the profit from the sale and reinvest it in another commercial property without paying one cent in taxes! Can’t get much better than this for investors! There are investors who are strictly involved in 10-31 exchanges, and it is a great way to keep the cash flow moving from one property to another with the benefit of full profits and no taxes. Sometime this tactic is a great choice and should be added to the contract when it can be optimized. As you can see, the negotiation tactics in commercial real estate are there to protect your interests and maximize results. Be creative with these negotiations, and always be confident when walking into a deal. Be prepared, informed and persuasive. It is also necessary for you to keep your emotions at bay and your ego out of negotiations. You have to be prepared to walk away from any deal that cannot be made to fit your needs. Always make an effort to sharpen your negotiating skills, and finely tune the tactics you use to increase your bargaining power. Having a few extra “tricks” up your sleeve will enable you to make a deal in your favor and get the results you want.
Many people have asked whether or not FSBO’s are really worth the time and effort involved in the sale. The simple answer is, Yes! It stands to reason that the FSBO industry is based on some amount of success or else it would never have grown to the size it currently is. And the industry is growing in size every year. Part of the reason for this phenomena is the fact that home sellers are becoming more and more educated on the involved process and as such are demanding a level of service that many real estate agents are not willing to provide, or able to provide due to a high number of clients.
Many investors are using no doc mortgages with FSBO’s or no doc mortgage Florida programs. The resolution to this problem has been the education of sellers and the drive to eliminate the middle man. For years people were convinced the the only way to sell a home was to contact their local realtor and then wait for the offers. But what if that agent was not providing enough service to sell the home in a timely manner? Was there any real way to ensure that this was being done? It can be hard to trust someone in such a way when nothing appears to be happening. But you can trust yourself right? So, why not give yourself the tools you need to become your own real estate agent? The part that cannot be stressed enough is the need to educate yourself on the process before you undertake the selling of your own home. Start investigating the rules and regulations concerning real estate contracts and conveyance. Find out about liens and easements and inspections. In selling your own home there are a lot of hats that you will have to wear. Of course it never hurts to get legal advice and guidance from a lawyer educated in real estate law. There is also an abundance of information available online to help guide your education. The web is a great resource for almost every aspect of the home sale process so take the time to investigate these things to the full extent. Good luck!
Buying a house is a big investment. It really puts a dent on your financial resources. Of course, the expenses do not end with the down payment. You still have to contend with the monthly payments for the mortgage. This is a financial situation that you will have to live with for years until you have fully paid off your loan. Most home owner’s aren’t aware of no doc mortgage loans Florida programs which can help them out.
But what happens if you get behind in your mortgage payments? A delay in payment can have very serious consequences for your mortgage situation. If the delinquency in payments has become too severe then your home could be in danger of foreclosure. A foreclosure means that your property will be repossessed by the lending institution that gave you your mortgage.
Fortunately, even if you have defaulted on your payments, it does not necessarily mean that your property will be foreclosed. There are various alternatives to a foreclosure that you can take. Some of these are:
The no doc mortgage Florida program or no doc mortgages is an option. Also, Paying the delinquency. Generally, all lending institutions are required to accept all the payments that were delinquent and reinstate the loan. The delinquent payments that you have to pay may also include some legal fees especially if you are already in the foreclosure stage. There are also lending institutions that require certified funds in order to reinstate the loan.
Forbearance and Repayment. One of the most common ways of resolving a delinquent mortgage is to work out a plan with your lending institution where in you get to pay a part of your delinquency every month on top of your regular monthly payments. If you are in a situation where you are not able to meet the monthly mortgage payments, your lender can elect to extend the forbearance by suspending payments for a certain period of time up until you can start a repayment schedule.
Payment Assistance. Some state and local governments and also private charitable organizations have instituted programs that help people with delinquencies pay all or part of their mortgage obligation for a certain period of time.
Reamortization. In a reamortization, the delinquent mortgage amount is added to the loan balance as a way of bringing the mortgage payments up to date. This move increases not only the total loan amount but also the monthly payments. Of course, the increase in payment will not be as large if the life of the loan is also extended.
Private sale. A private sale of the property affected by the delinquency can also be done as it will allow you to meet your obligations as well as get any equity that may have accumulated. In private sales it is usual that the amount is greater than the stated amount owed on the loan.
Most of these alternatives presume that you will be able to pay your mortgage payments at some point. But there is also a particular foreclosure alternative called a loss mitigation program. The federal government as well as the mortgage industry established this type of program as a way of stopping foreclosures. Under this program you are given options that will not only assist you in keeping your home even if you do not have the financial capability to pay for the mortgage payments. With these types of programs, it becomes so much easier to address the problem of foreclosures.
As the real estate market cools, the profit potential of home ownership has cooled as well. Here’s a strategy called “follow the builder.”
It is relatively easy to make a profit when you sell your home if the market is rising sharply like it has been in most of the country for the last three years. It becomes more difficult when a hot market slows down. It’s very difficult to make a profit on the sale of your home when prices are falling. You will notice hard money lenders begin to market more in the latter phases. This is particularly popular for hard money lenders Orlando programs and hard money lenders Florida programs.
Is there a way to be relatively sure you’ll make a profit when you sell your home? There is under all but the most negative market conditions. In fact, I’ve seen young, energetic couples use this maneuver multiple times when they don’t even need to move.
Follow That Builder
In many areas of the country, there are builders who build hundreds of houses each year within a fifty mile radius of each other. They build entire communities or are one of three to five builders who build entire communities around big employment centers. This present you with an important opportunity.
Builders will typically sell first phases of communities for significantly less than later phases. On one hand, they need to get the cash flow moving. On the other, it is harder to sell at high prices because the community typically consists of dirt lots and construction equipment. Put the hands together and you have a great profit opportunity. Some of the power brokers receive a real estate commission advance on listings at the commission advance.
The idea is to get in on the first phase of the build out. You will purchase the home at a discount, which gives you built in equity. As the community is built up, you sell the home for a profit at a higher price. While you’re doing this, you keep tabs on the builders projects and find another location where you can do the same thing.
You’ll end up living in each house for a year or more and picking up nice profits along the way. The only real downside is you have to move repeatedly.
I’ve seen this work well for a number of people who have done it more than once. However, you need to be aware that generating profit this way can have tax consequences. You need to discuss your plans (including projected timing and profit potential) with your tax professional so that you are prepared to deal with any tax consequences.
There is an alternative to the traditional route when it comes to selling your home. You can use one of the many specialist companies that offer to buy your house so that you’re not at the mercy of a chain, or paying huge fees to agents and solicitors. Here are the steps you need to follow:
Decide how quickly you need to sell your home
Most quick sale companies can complete the purchase of your house within just four weeks. If you need to sell sooner than that, just say so; they can normally arrange a quicker purchase. If you’re selling your house because you’re relocating unexpectedly or because you’re in financial difficulty, set a realistic timetable and ask the company if they can keep to it.
Decide how much you will accept for your home
You may not get the full open-market price for your property as you would with an estate agent, but you don’t have to pay estate agent fees and the whole process is quicker which means you save on mortgage and bill payments. Look at the current market value of properties like yours in the same area and decide how much you’re willing to accept from a specialist buyer, bearing in mind the other savings you are likely to make.
Talk to the companies
Always try to talk to the specialist companies rather than just contacting them over the internet. Talking to them gives you a much better idea about how they approach the sale. You can also take this opportunity to ask any questions about the process and to make sure that you can use your own solicitor to check the contract and that you won’t be asked to commit on the spot.
Meet an agent
Most specialist buyers will send someone round to view your house. This allows them to give you an accurate and fair valuation and also gives you the opportunity to ask any further questions.
Agree the sale
Once you’ve been given a valuation, you will normally have a set period in which to think about whether you want to agree to the sale. If you decide to go ahead, it’s a good idea to get an independent solicitor to look at the contract before you sign. Make sure you know if there are any additional costs to pay, and when you will receive the money. Also find out when you will be expected to vacate the property and whether the company can help you find other accommodation. Your agent will qualify for a real estate commission advance or commission advance.
Getting a quick house sale is as easy as these five steps and can be accomplished in as little as 3-4 weeks, making it ideal for people in a wide range of circumstances, including those going through a divorce or bereavement or those who are in financial difficulty.
There is one word to describe the current housing market: optimistic. Despite months of hearing about a housing bubble and rising mortgage rates, the outlook for real estate is good. We now have hard money lenders Florida programs and hard money lenders Orlando programs that have made it easier to access mortgage loans.
The worries of a bursting real estate bubble actually seem to be low among homeowners. In a national survey conducted by ING Direct, most individuals experienced some growth in their home value in the past 12 months. The average increase was approximately 6%, with owners in New England and Pacific states having the largest growth. The values of homes in south central states remained about the same.
Most homeowners do not seem concerned about a downturn in the real estate housing market. Almost 74% of the individuals surveyed, who have owned their homes for more than three years, remained optimistic about the value of their home.
The 30-year fixed rate mortgage is at its highest point in four years. However, as it hovers at 6 percent, it is still a relatively low rate compared to the exceedingly high rates of the late 1980s when mortgage rates increased to over 10%. Hard money lenders Florida brokers are aggressive in the market and offer rates in the single digits.
According to Freddie Mac, there are indications of a strong economy, which is why mortgage rates have increased lately. Consumer confidence is on the rise and existing home sales is also on the upswing. This can be attributed to a positive labor market. As most people know, healthy employment leads to greater consumer spending.
Consumer perception is everything. With the continued view that real estate is a good investment, people will continue to buy and sell houses. This will bode well for home buyers, home sellers, real estate salespeople, mortgage lenders and just about anyone related to the real estate industry.
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