Saturday, July 28, 2007

The Efficacy Of Buying Mortgage Leads

There are alternatives to direct mail that yield better results for mortgage brokers. Mortgage lead generation that comes from online sources provides a greener solution to the problem of junk mail. It also tends to yield better leads, because interested consumers must come to you to request further information about the loan products that you offer. Interested potential customers coming to you requesting information about the specific products that you sell will yield leads with a high closing rate, because they have been screened by the lead generation company to be requesting what you have to sell.

Not all online mortgage leads are alike, however. It pays to inspect the leads for quality. Some lead generation companies will sell you leads, but then turn around and resell the leads to another mortgage broker, or several more brokers. This means that your potential new client is being bombarded by competing brokers, who all want to make a sale. Very likely the lead will not buy, simply to get salespeople to quit pestering him or her. Instead, you will want to ensure that before you purchase any leads that they are for your exclusive use only. This way you can build a trusting relationship with a potential client, and can become more familiar with what type of loan product they desire, so you can offer them specifically what they seek. Qualified leads are the answer to investing resources that will return to you in closed deals and happy new clients.


Thursday, July 26, 2007

Brokers Prosper, Rain Or Shine

Sales of existing homes are expected to drop to 6.74 million this year, a decline of 4.7 percent from the record high of 7.07 million in 2005. New home sales will be down 8.5 percent to 1.17 million, setting yet another 2005 record of 1.28 million. While sales will decline, it is still expected to be the third best year for both existing and new home sales following last year and the earlier record setting 2004. Housing starts are likely to be down 9.3 percent this year at 1.87 million units.

Even in the face of declining sales, prices are expected to continue their unprecedented spiral, although at a less spectacular rate. NAR projects that the median price for existing homes of all types including single family, townhouses, and condos is expect to increase 5 percent this year to $219,200 and the median price for new homes will be up 5.7 percent to $250,900. While this is well below the double digit price hikes seen in recent years, the rise in prices will still outstrip inflation which the Association expects will be up 3.1 percent this year as measured by the Consumer Price Index. Disposal personal income is expected to increase by 3.9 percent.

David Lereah, Chief Economist for NAR said in the report that the sales slowdown has already occurred. "Right now, home sales are a little lower than projected, but they can be sustained around current levels." He cautioned that people often lose sight of the fact that real estate is cyclical." Even so, sales will continue at a historically high pace with modestly higher interest rates as the year progresses, and 2006 is forecast to be the third strongest year on record."

NAR predicted that the 30-year fixed-rate mortgage would rise to 6.9 percent by the end of the year. Freddie Mac, last month revised its prediction for the 30-year downward by 10 basis points to an average of 6.4 percent for the year.

The President of NAR, Thomas M. Stevens, used the new figures to advise sellers to return to the traditional real estate sales model. He stated "It’s easy to understand that sellers have taken it for granted that it would be fairly easy to sell without much compromise during the recent sales boom. Now that buyers have more choices, it’s even more important for sellers to seek advice from real estate professionals."

Got to keep those dues-paying members happy.

NAR will release January 2006 existing home sales figures on February 28 and will "fine-tune" month by month figures for the last three years at that time. The Association will also, within the next two months, revise national and regional median existing home price information back to 1999.


Wednesday, July 25, 2007

Online Mortgage Applications, What Happens After You Hit Submit?

In concept, getting a mortgage quote from 4 or 5 different mortgage companies is a wise decision to finding the lowest mortgage rate you qualify for. Mortgage companies and brokers alike can claim that they have hundreds of lenders and thousands of programs, and I am sure they do, but I have yet to see the one mortgage broker who has that magical lender that can get you a better mortgage then every other mortgage broker out there. The bottom line is, they all have access to the same lenders and same programs, it is just that some mortgage brokers know their programs better then others.

The problem today with submitting your information to an online mortgage lead company is that the demand for your information is at an all time high, and the supply is very low. In order for these companies to stay in business they need to be price competitive with other online mortgage lead companies. The way that they do this is by selling your information to numerous mortgage companies. Just recently I spoke to an individual who received over 40 phone calls from the one application he filled out online.


Tuesday, July 24, 2007

Find Out How To Get A Mortgage After Bankruptcy

It is becoming all too common for individuals, couples, and large families to declare bankruptcy these days. Just thinking about how many people are left unemployed while still using their credit allowances from credit card companies and others is actually pretty daunting. But declaring bankruptcy can be a bit daunting, also, with the many forms that are needed to be filled out. Additionally, bankruptcy itself is an expensive route to go. You need to pay for court costs, lawyer fees, and the like. But those who have filed for bankruptcy should not be worried about not being able to get a mortgage or other credit terms after bankruptcy.

There are many circumstances revolving around bankruptcy which many creditors and mortgage lenders do consider. First, the person who has declared bankruptcy may have had little choice in the matter. The situation could have arisen from their spouse's troubled credit history or use. Also, bankruptcies can stay on your credit report for 7 years or longer, so being prepared when you do speak to credit lenders should be your first priority. But nevertheless, bankruptcies do happen and there are some things that you can do following the bankruptcy to make yourself more appealing to mortgage lenders.


Sunday, July 22, 2007

Make Your Parents Proud: Get Help From A Mortgage Lender In California

You heard a series of vigorous knocks on your door this morning. As you sleepily peeked into the peephole, you realized two familiar faces found their way right in front of your apartment -- your parents. Of course, you panicked because you wonder what on earth are they doing here. About two million other questions zapped instantly inside your head: Are they going to stay here for the night? They should be in Topeka, for all you know. Why do they have to be present when your pad is in complete disarray? Should you open the door or pretend that you’re not there and call your reliable neighbor to tell you’re parents the news that you’re in a business meeting in Seychelles. Oh well… you opened the door anyway. Yes, deal with it folks, your son lives in this pad. As a consolation, you can tell your parents that you already on a process of finding a mortgage lender in California who will assist you in finding a more decent place for a yuppie like you.


Saturday, July 21, 2007

Adjustable Rate Mortgages - The Sad Truth

The truth is, typically fixed rate mortgages have a higher interest rate compared to ARM’s, usually half a point to a point on your interest rate. On a $200,000 mortgage, an adjustable rate of 6.75% and a fixed rate mortgage at 7.75% amortized over 30 years have a payment difference of $136 a month. My guess is, if your debt to income ratio is to high on the fixed rate mortgage but you qualify for the adjustable rate mortgage you are looking at a home that is over your budget.

Now that you find yourself stuck in this dilemma, finding a way out is not as impossible as you think. You need to start seeking options way before your rate is going to adjust. The most common problem I see today has to deal more with credit issues rather than lack of equity. A true mortgage professional is not going to discard you just because you do not qualify for a loan today, he or she is going to work with you to solve your problem 3 months, 6 months or even 9 months in advance to prepare you for a new loan before your mortgage rate adjust.

If you start looking around for a new mortgage early enough you will be able to determine which mortgage broker really cares about you and which mortgage broker cares only about themselves. Do yourself a favor and start looking into what possibilities are available to you today so when the time comes for your adjustable rate mortgage to adjust you are prepared.


Friday, July 20, 2007

Getting The Best Mortgage Payment Protection Quote

This is what the purpose of obtaining this coverage is all about. Some policies will include critical illness (ex: strokes, hart attacks, etc) along with traditional life insurance. This subject makes me think of one of my previous lives where I was an insurance agent for about 5yrs (I still have nightmares about that time period).

If you simplify the transaction, you'll see that a mortgage payment protection policy is just a term insurance policy with added riders. The riders being accident, sickness, and/or unemployment. One of the biggest mistakes I see home owners make is not shopping for better rates and coverage. Most of the time, when dealing with the life coverage portion, lenders will only offer a policy that covers your mortgage balance. This type is called a decreasing term policy. Its designed to mimic your home mortgage., Since the amount outstanding on your mortgage decreases with time, so will the amount of your life insurance. Its a strange situation. Your coverage amount decreases, but your monthly payment remains the same.

Here's a better option. Ask for a quote on their policy with the same riders, except ask for a level term policy. This type of insurance policy's coverage stays level for entire term and usually the cost isn't that much more than a decreasing term. Before accepting any mortgage payment protection quote, search the Internet. Many people have found prices that were 50%-60% cheaper!


Thursday, July 19, 2007

Go Online For Holiday Home Mortgage Offers

As a very rough guide the typical holiday home mortgage will provide up to a maximum of between 70% and 80% of the value of your holiday property. Along with this the majority of lenders will insist that there is a minimum amount for the property, this is usually a figure somewhere in the region of £80,000, and on top of this all lenders will need to make sure that you are able to make the repayments of the mortgage. As you can see holiday home and holiday let mortgages are very intricate and can be much harder to get than a normal mortgage let alone to get the best deal and this is a very good reason to take a broker’s advice.

However even if you choose to go with a broker, when it comes down to it, the choice of mortgage is yours and if you do have any ideas then you should talk with the broker about this. Your broker will work with you and respect your wishes but remember the reason you have gone with them in the first place is because they have the expertise when it comes to finding the best holiday home mortgage offers.

Not only can the broker help you to get the best deal on your mortgage but they can be a valuable lifeline when it comes to taking a huge amount of stress off your shoulders. Going into the holiday home business isn’t easy and the mortgage while of course being essential to the venture isn’t the only factor that has to be taken into consideration.


Tuesday, July 17, 2007

Mortgage Loan Success Is In The Details

When you apply for a mortgage, you are going to have to provide supporting documentation. Ask the lender for a list before hand. If you can't find something, ask the lender if you can submit something else in substitution.

The mortgage industry is based on markets, which means the rates on loans change each day. This can cause a problem. If you get pre-approved for a loan on the first day of the month, but don't close to the end of the month, the rate on your loan can change!

The interest rate is the cost to borrow the money from the entity financing you. The APR is that cost plus all other fees. The APR represents a better picture of what you are paying out, but represented as a percentage.

A great way to get sellers to give you a better deal is to have them pay down the interest rate on your mortgage. The trick to this approach is to agree to a price close to what they are asking for the home, but with the pay down included in it.

Mortgage professionals are in the business of making money, so don't forget that when loan terms are discussed. Get them in writing if you want to be able to rely on them. Anything else is unenforceable. Mortgages are large debts, so don't risk anything.

To avoid paying PMI - private mortgage insurance - try taking out two loans to buy the home. The first should be for 80 percent. The second should be for the remainder minus whatever you are going to put down in cash. This avoids PMI.

Before applying for a mortgage, many will address their credit. There are a few billion credit repair companies and many are less than stellar. One way to know is the payment. If a credit repair company tries to charge you before fixing your credit, terminate them.

The lender has indicated that you will qualify for a bigger loan with bigger payments than you're comfortable with. Listen to your inner voice. Buy something you feel you can afford. Don't overspend and sweat monthly payments.

When it comes to mortgage programs, the government has a good thing going. There are all kinds of programs designed to get you into a home. Make sure to canvas them to see if you qualify for any. If you do, you can save a bundle!

Searching for your perfect home is rewarding. Nobody has ever said the same thing about searching for the perfect mortgage. That being said, a person that understands the process is going to suffer less than one that does not.


Friday, July 13, 2007

Bad Credit Buying

It is safe to say that many people with bad credit fell on hard times or had a string of bad luck. So, several mortgage companies think twice about financing people with bad credit. If you have bad credit, you have to find a good credit mortgage lender that offers a mortgage for bad credit. But be aware that that the loan will have a much higher interest rate and higher closing fees. Here is some helpful advice when searching for such a mortgage.

* Compare the rates of more than one lender that offers a mortgage for bad credit. Search for the one that is realistic and is the best for you.

* If you have bad credit, you could be given a lower interest rate if you spend some time to improve your credit score before taking out a mortgage for bad credit.

* Try to avoid pre-payment penalties, which would require you to pay large sums of cabbage for a minimum of six months before you can pay off the loan. But if you cannot avoid a pre-payment penalty, look for a mortgage with the shortest term.

This Principal Is No Pal

After acquiring a mortgage for bad credit, make it a priority to pay your mortgage payments. Having bad credit is a difficult situation to be in, but defaulting on a mortgage for bad credit would dig a deeper hole for you. Make it a point to meet your payments on time, and if you can make extra mortgage payments, do it! By bombarding the mortgage's principal, you can reduce the interest owed on the mortgage. The gravy is that you will also save on the tax charged to interest.

For most of us, a dream house is simply one that we hold the deed to. And with a mortgage for bad credit, people with less-than-perfect credit can make that dream come to life.


Thursday, July 12, 2007

Mortgage For Bad Credit Can Make A Dream Home Your Home

What makes a dream home? For some, it is the number of rooms. One kitchen, one living room, and a bedroom for each family member are not enough. They want a guest room, a game room, a playroom, and a bedroom for Iggy, the family's pet iguana. Others are more concerned about how the house looks. These people prefer chandeliers that shine like diamonds; rooms with matching walls and carpets; and styles of homes that refer to Victorian, Shaker, or Gothic eras. Others want those special "things" in their homes: swimming pools, pool tables, and home theatres. But sometimes one's dream home comes to life by simply owning a house. In other words, any home owned qualifies as a dream home. But what happens when securing a mortgage is difficult due to one's credit history? In this case, a mortgage for bad credit is the best option!

"Bad" Is Relative

Few people expect bad credit, and even fewer people want it. Credit rating agencies regularly track buyers' credit history. Creditors mainly provide the information to these agencies, which they in turn report. The information can include credit limits, actions to recover overdue debts, and payment history. This information is frequently reported every month. Sometimes, this data can include a sea of details that can make rough sailing for possible lenders. A credit score is a numeric value estimating how creditworthy a person is and how capable he is of paying financial debts. Factors considered include his credit history's length, how quickly bills were paid, and bankruptcy. But even with bad credit, you could apply for a mortgage for bad credit!


Wednesday, July 11, 2007

Mortgage: Deal With A Program That You Can Really Afford

It is very important for everybody to make smooth mortgage application process and understands all the most common and complicated mortgage problems, and then work hard to avoid them. For instance, there are some common problems that need to be considered while applying for a mortgage like not having enough income, too much debt or low credit score. All these problems need to steer clear when you step in the direction of purchasing your home.

Besides that, there is other dangerous mortgage option that looks quite interesting in the beginning as well as allows your loan’s interest rate to fluctuate. These loans give you a lot of flexibility when your monthly payment is due, you can pay a little or pay a lot. This works in your favor if rates go down. But unfortunately, if the rate goes up then it will make your monthly payments skyrocket. And you can get in trouble very easily.

Hence, while purchasing mortgage check how authentic mortgage deal is, in fact deal has to be genuine. Thus, find the right place to get the funds and also determine the amount that you can afford and also your monthly payments. In addition, mortgage purchasing to be taken as a rule by reputed banks, bankers or finance companies. One definitely has to be wary of deceitful loan givers, which can cost them greatly. Any of loans may be appropriate for you, if you’re thinking of using one of the loans. But, make sure you evaluate the risks and you know what you’re getting into. Simultaneously, do not allow yourself to go beyond your limit and deal with a program that you can really afford because there are millions of people around the world who are lapsed in debts to get their dreams.


Home Mortgage Refinancing: What's in It for You?

If you take the plunge and search for some competitive home mortgage refinance rates, what do you get out of it? Refinancing has several advantages.

* Equity in your home gives you additional options. Since the home mortgage refinance rates are usually lower than credit cards, it is easier to consolidate your debt, reduce your monthly payments, and pay off debt faster. And often, a home equity loan is often tax deductible!

* After your Adjustable Rate Mortgage, or ARM, period is up, the interest rate will jump to the current rate - or even higher! Then, your mortgage payment will also increase. Refinancing to a mortgage with a fixed-rate could prevent damaging your credit, or worse-losing your house.

* Refinancing can give you the extra cash that you can use to pay bills, take a trip, make home improvements, or buy a small island!

* There is no need to pay more if it can be avoided. Rates change frequently, so you should search for the best home mortgage refinance rates. In the long run, this will reduce monthly payments.

Not for

All While searching for home mortgage refinance rates is the first step in refinancing, remember that refinancing is not for everyone. As with taking out the first mortgage, consider your ability to make the mortgage payments when considering refinancing. In particular, make sure that you are able, and willing, to make the long-term financial commitment that refinancing requires. Also, only consider refinancing if you get a good deal, and it will help you to save money. Beginning with finding the best home mortgage refinance rates, refinancing will require some time and effort on your part. Make sure the effort is worthwhile!

Life is not a dress rehearsal. Part of refinancing includes searching for premium home mortgage refinance rates. Why not consider your options?


Tuesday, July 10, 2007

Open The Door Of Possibilities With Home Mortgage Refinance Rates

Sometimes, we refuse to try something new or different. We would never change toothpaste brands because we like the flavour of the brand we use. We avoid the U.S. West Coast because we hear horrific stories of its earthquakes. We never buy an orange necktie or dress because nobody else in the office wears that color. While it is natural for us to have likes and dislikes, we should also keep our minds open to new ideas and options. This can make our lives better and richer. If we look at the big picture, our life on Earth is relatively brief. Without being reckless, we should be open to making our lives all they can be. Only then can we say that we are truly living life to its fullest potential. Comparing home mortgage refinance rates could jumpstart a new life.

For Your Consideration

If refinancing a home mortgage is an option, why not consider it? Some people might argue that it is counterproductive: it is ridiculous to borrow money to pay off borrowed money. But even people who are generally opposed to borrowing money or buying on credit agree that few people have enough cash on hand to buy a house. So, taking out a loan should certainly be an option. But after getting a house mortgage, why do people refinance? In a nutshell, homeowners take out another loan to pay off a mortgage they have already, or to get access to their home's remaining equity.


Monday, July 9, 2007

Buy To Let Mortgage: Points To Ponder

  • First and foremost – NEVER be tempted to conceal from a prospective lender that you plan to let out the property as a business. Most “ordinary” residential mortgages have clauses that preclude letting out for profit. So if you do this you could find yourself in serious trouble.
  • When you apply for a buy-to-let mortgage, you are likely to find that the lender is not only looking at your own income, or at the valuation of the property, when deciding how much to lend. They will also want to consider the potential rental income. If you want to estimate this, the best way is to pose as a prospective tenant and make enquiries about similar rental properties in the neighbourhood.
  • Many buy-to-let mortgage lenders require that the likely monthly rental income should be at least 125% of the monthly mortgage payment. Some require that it should be at least 150%.
  • Usually you will find that you need a larger deposit for a buy-to-let mortgage than for an ordinary standard mortgage. It can often be 15% or even 25%. If you have equity in your existing home, using this may be the easiest way of getting hold of the deposit. You might be able to negotiate a smaller deposit, but remember that the bigger the deposit you pay, the better terms you will get on your loan.
  • Repayments on a buy to let mortgage don’t qualify for tax relief. But they CAN be set against the tax on your rental income. So can agents’ fees, if you employ an agent, and the upkeep and maintenance costs of the property.
If you find all this confusing, your best plan would be to find an independent mortgage broker who specialises in buy to let mortgages. A broker would be able to guide you through the process, explain all the ins-and-outs, and find the lender most suitable for your needs.


Thursday, July 5, 2007

Buy To Let: Is It For You?

Buy-to-let can certainly bring big benefits:
  • It can provide you with a regular second income.
  • The property can appreciate, providing you with a substantial capital gain.
  • More and more lenders are offering buy-to-let mortgages.
  • With an increasing number of people unable to get on the property ladder, there is plenty of demand for rental property.

But is it really as simple as the ads make out? No it isn’t. Buy to let isn’t for everyone and you need to decide whether it is for you. It is a huge step to take and you must weigh up all the implications of becoming a landlord. Is this something you really want to do? And remember, if you don’t have a successful tenancy, you don’t make a profit.

  • Check out the area where the property is located before buying. Is it an area people might want to rent a home – for instance, is it near a university or offices?
  • Once you have got your buy-to-let mortgage and bought the property, it is tempting to grab the first potential tenant that comes along. But tenants come in all shapes and sizes – some are decent people, some aren’t. The wrong sort of tenant could bring you a lot of grief. Don’t accept anyone without thorough checks and references, plus an adequate deposit and advance rent.
  • You are responsible for repairs, problems and complaints. The phone can ring at the most inconvenient moment and you have no choice – you have to sort it out there and then.
  • If the tenant leaves, you still have your buy to let mortgage to pay. So your property is LOSING money until you find another tenant – you have to go through all that again.

Many people thoroughly enjoy being landlords and find it fun as well as lucrative. Just make sure before you commit yourself to a buy-to-let mortgage that it is something you really want to do.


Sunday, July 1, 2007

Sub-prime Can Help Prime Bottom Line

My philosophy is simple, yet unique in its approach. The mortgage broker who can get the deal done at a competitive rate usually gets the deal and the commission. Anyone can get any conforming rate anyone else can get. Conforming loan success is a matter of how little you are willing to work for to undercut your competition.

Doing sub prime loans will be easier for you, but you will have to work more to qualify your borrower. But is it worth it? You bet it is!

In the sub prime band, much of that same strategy can work. There is a very important twist though. Each sub prime loan has its own unique problems that must be addressed. I teach all of my brokers to find sub prime lenders that offer you a truly unique advantage over your competition. Sub prime borrowers are far more grateful than conforming ones, in my humble opinion. If you have 10 sub prime lenders offering the same rate on a 2/28 ARM, making 1 YSP, chances are your competition has the same lenders? So what sets you apart? What if you could find a lender that would do the loan for 1/2% less AND still pay you 1 YSP IF you submit a full package to the lender? Now you have a solid advantage.

If you want to have an unbeatable bag of tricks, do your homework first and find lenders that fill very difficult niches that most brokers do not want to do or simply don’t think can be done. Advertise those programs and you will get deals.

Such as a lender that offers a free point at par for simply submitting an appraisal with the package. Or a lender that offers a 1/4% reduction in rate for purchases over 75% LTV! Yes - over 75% LTV. Or a lender who will treat an s/e borrower with less than 2 years of s/e as a full doc. borrower! Or a lender who offers a 107% purchase/refinance at rates under 8%, 30-year fixed, no MI, no escrows and at scores down to 660!

Don’t worry about what your competition can do - be worried about what you can’t do because you do not seek out new lenders with programs to do what you have been told or thought couldn’t be done.

Just some thoughts that have kept many brokers one step ahead of the competition. Many mortgage brokers turn away new lender reps because they do not want to hear the same stuff. I have never been so busy that I could not listen for 10 minutes to information that I could profit from.