Archive for February, 2010
Orlando Family Loses Dream Home — This Could Happen To You!
Buying your new home is exciting. Moving in to your new dream home is exhilarating.
Getting a mortgage to finance your dream home is not fun or exhilarating. It’s a drain even with good credit and a bank full of money.
Before shopping for your new home find a mortgage professional whom you trust rely on him or her to help make your new dream home a reality.
Should you allow lenders to compete for your business understand that each lender competing for your business will pull your credit reports and lower your credit scores.
Of course your scores are not supposed to fall as a result of credit pulls when shopping for a mortgage; however the reality is that your scores do suffer.
Rodney P. of Orlando FL had found his family’s dream home. His wife and he received loan commitment and anxiously began packing and looking forward to their new home. A few days before closing Rodney’s mortgage broker called him with bad news. The lender retracted loan commitment citing revised qualifications for the loan program for which Rodney and his wife had applied.
“They told us we qualified…we get all excited…and they pull the rug out from under us” Rodney stated. “Of course we’re devastated. My wife is crying…my kids are crying. I’m angry that they told us yes then told us no. That’s not right.”
Tomorrow qualifying conditions may get even more rigorous.
“I started the loan process with a 619 and fell to a 589 when we got rejected right before closing. All of this happened in about a month’s time” said Rodney.
Once you’re comfortable with your mortgage professional get preapproved. What can you afford and what type of home loan do you want.
Your mortgage professional will take time to listen to your needs and fears about mortgage financing.
Generally borrowers with a middle credit score of 650 or lower are considered subprime. With some lenders albeit fewer by the day an acceptable middle score is 620; however that is fast being replaced with a middle score of 650.
Those with scores from 650 to 720 are in a midgrade between subprime amp;prime category and are considered more favorable risks.
The best rates and terms go to “prime” borrowers with middle credit scores above 720 these borrowers typically negotiate the best rates and terms.
Want to buy a home but can’t or don’t want to put down a down payment? To get 100 percent financing that is 100 of the cost of the home is available generally only to people with credit scores of 680 and higher.
Not long ago mortgage professionals could offer 100 financing to borrowers with a middle credit score as low as 560 to 580.
Perhaps now more than ever you must understand mortgages you cannot rely on your mortgage broker or loan officer to look out for your best interests.
The general belief is that mortgage brokers shop among many lenders for the best loan deal for you. But the broker often makes more money by selling you a more expensive loan.
The reason why subprime loans especially ARMs make up such a large segment of the market is simple: greed.
Do you personally know your mortgage broker?
**Pull your own credit reports from the Big 3 Equifax TransUnion amp; Experian. Go to www.annualcreditreport.com and get instant access free to each of your three credit reports. NOTE: To get your scores you will need to buy them but your reports are free under the FACT Act.
Carefully examine your reports for both good and bad credit accounts. If you’re uncomfortable reviewing or repairing your own damaged credit visit www.fixmyuglycredit.com.
Once you’ve confirmed your credit will not deny you the best loan programs talk to your mortgage professional about qualifying for the best loan programs:
1. Can you prove two years’ income?
2. Can you prove two years’ same industry work experience?
3. Can you prove your down payment money?
Just in case confirm the following considerations with your mortgage professional:
**Do you have a prepayment penalty? If so what type of prepayment penalty i.e. is it a soft or hard prepayment penalty? A soft prepayment penalty allows you to sell your home during the “penalty” stage with no “prepayment penalty.” A hard penalty on the other hand penalizes you for selling or refinancing. For how long is this penalty? How much is the penalty i.e. a prepayment penalty may be a dollar amount or a of the loan amount.
**What is your APR or annual percentage rate? Your quoted rate may be 5.92 but the APR is 6.56. What’s the difference? The fees.
Your mortgage broker who may not have your best interests in mind earns more commission for building in prepayment penalties that may prevent you from paying the loan off early by refinancing. Many brokers also make money by charging high origination and closing fees. Often the higher the interest rate the bigger commission the broker gets.
**What is your broker’s fee/commission? Typically a mortgage broker makes 1 to 2 percent commission on a loan.
The government thinks that all the disclosures you sign during the loan process will reduce or eliminate fraud or your lack of understanding of the mortgage financing process. The shocking reality is that many buyers ignore the legal gibberish comprising the disclosures and trust their mortgage professionals to protect their interests and not gouge them.
Shopping for your new home is much more exciting than learning about financing options and actually getting financed however this is musthave education. Without your financing your dream home may be some other family’s dream home.
About the writer: Vanessa Arellano Doctor from http://www.Jump2top.com a SEO Company
New Orleans Housing Market Is Set To Heat Up Soon
Ever since the aftermath of Hurricane Katrina many neighborhoods have struggled with rehabilitation and repair. There was much interest by investors initially. Unfortunately there weren’t very many quality contractors or subs. A lot of contractors and handyman abandoned their jobs. They had trouble getting materials at times and a trouble with vandalism and fears of their own safety at other times. Additionally there is a lot a price gouging by sobs and workers due to the extreme demands on their services
Many New Orleans homes and homes in adjacent townships such as Slidell were simply abandon. This caused a temporary crisis for the hard money lenders who facilitate the funding for the rehabilitation of homes. One such company recently had to take back 200 uncompleted or shoddily completed homes that caused much damage to their business on top of the current credit crunch.
The New Orleans real estate market is anticipated to experience a boom starting the second half of 2008 after the current mortgage credit crunch subsides. There is much opportunity for investors contractors and handymen to go take over half repaired homes or unrepaired homes and make them beautiful. Profit potential could be good especially if the market is anticipated to strengthen. The opportunity is soon. New Orleans needs your help to restore its beauty and to even enhance its beauty.
If you do decide to invest in New Orleans Real Estate do your homework and make your own decisions. Go up and inspect the property yourself. Try to find a reliable contractor ahead of time. You can start with searches on New Orleans Contractors ahead of time. Try to verify their reputation with the local chapter of the Better Business Bureau and the Chamber of Commerce. If you are not going to live in New Orleans or near by it would be a good idea to hire a reputable Realtor to watch over your property while trying to sell the property.
Another strategy: Call local New Orleans Realtors and find out the good neighborhoods in which homes are selling. Find a Realtor by asking around who knows how to deal with rehab investing. Give the real estate agent your criteria for purchasing a rehab house up front and let them find a good deal for you. Of course we’re assuming that you’ve had plenty of education and experience in rehab investing. To ensure things are done right you may want to move up to New Orleans. Many homes that have been flooded have second floors that are in tact and you could stay on the top floor. Once you’re in New Orleans will know the ins and outs of what’s working and what’s not working. This strategy has been quite profitable to a handyman we know.
We were able to locate an investor who stuck it out. He purchased properties with a partner in mid2006. His partner did a shoddy job and then later abandoned the job leaving this investor quite a challenge since he was the finance partner of the deal. Fortunately he was able to find a great contractor who is doing a fantastic job he was very fortunate. He and his wife made a great team and it’s a beautiful work. Finally after year and a quarter the homes were finished and are in beautiful condition. “I feel proud to be a part of adding beauty back into the rich community of New Orleans. It’s a great feeling.” says Chris
About the writer: Chris Nawada is a recently seasoned real estate investor. He is fallen in love with the process of making homes beautiful and is thankful for the opportunities has been given. Chris just recently finished two homes and can be seen on http://www.neworleanshome4you.com/
Mumbais Residential Segment: Forever Active
Mumbai’s residential market has been active over the past two years. Most of the real estate activity in Mumbai has been in the middle to upper middle class segments though the premium segment which has limited supply continues to attract buyers. There has been some appreciation in the values of prime properties in South Mumbai Worli and Bandra areas.
Residential values are on the rise in the premium South Mumbai properties. Demand continues and there are some new projects coming up in South Mumbai. This includes two towers of 60 stories each known as “S D Towers”.
The North Western and Eastern suburbs continue to be the preferred corporate locations in Mumbai. As a result the suburban move by corporates has given a boost to residential developments. Mindspace and Hiranandani on a regular basis keep coming up with new developments. Relocation of the American School to suburbs has led to many expatriate officials also relocating their residences to the suburbs.
Residential categories all across the city are active. The residential market will see continued activity in the middleclass segment in Rs12.5 million US 2040051000 categories. All areas are seeing a rise in values. With office and residential projects going in tandem developers are now going in for integrated developments. Most large projects have school college hospitals etc incorporated as an integral part of the project.
K Raheja Corp K. Raheja Constructions Samir Bhojwani K Raheja Developers Tata Housing GESCO Mahindra Mahindra Kalpataru and Godrej Housing are the leading developers active in residential market. Central Mumbai areas such as Wadala what were they earlier Sion etc are coming up as preferred residential areas. Navi Mumbai market is witnessing a marginal increase in residential segment due to large off take of residential apartments by Reliance Industries.
For more details on Mumbai Real Estate log on to magicbricks.com
About the writer: George Gonigal provides you the best and latest information on Mumbai Real Estate Builders If you want to Buy Apartments in Mumbai he suggests you log on to magicbricks.com
