Minnesota Mortgage

Mortgage Info You Can Actually Understand!

By Ailsa Forshaw

This is a great time to Refinance Your Home or Buy a New Home — the Mortgage Rates are so low, these days! It’s always worth a shot to find out what the costs of switching over to a new mortgage would be, to see if that’s the right move for you.

Whether you are building your own house, buying a new property, gathering funds to do a renovation project, or Refinancing your current Mortgage at a much Lower Rate, you’ll be looking for Funding — Money, Money & More Money! Here are some commonly asked questions regarding funding for a Mortgage or a Home Improvement Loan.

Where should I go first to get a Mortgage?

You can go to the Loans Department of your regular bank, or you can go directly to a Mortgage Broker. (Click on the Mortgage Company Ads on http://www.buildyourownhouse.ca to see if that’s the easiest way for you to get the money you need… At the very least, it’ll tell you how much you’re qualified for, and the on-line Lenders have Rates the Banks have a hard time competing with. It’s all about Saving Money, so check into it all, first — it’s a big financial decision! You can always take your information you’ve gotten On-line to the Bank — if they can’t or won’t match it, there’s your decision right there! ha,ha!).

Keep in mind that it is generally easier to work with a Broker, since they have the ability to be a lot more flexible than a conventional bank. Also, their rates will often be considerably lower than what the banks are offering, too, so shop around - this could save you a fair bit of money. Brokers can often get a mortgage for clients that a bank won’t even touch, and they’ll do it at your convenience, for the most part, so you can have a more relaxed meeting with them.

What questions will a Broker ask somebody who’s looking for a Mortgage?

There are three main things you will be required to provide:

i.Verification of Income

ii.How much and where the Down Payment is coming from

iii.Personal information for Credit Checks (Birthday, Social Security Number, Address, Job Letters, Pay Stubs, 3 years worth of Tax Returns, 3 months worth of Bank Statements, any current Retirement Savings Funds…)

Your Banker or Broker will want to confirm your ability to qualify by doing a GDS Ratio (Gross Debt Ratio) and a TDS Ratio (Total Debt Ratio).

A Gross Debt Ratio is determined by taking the Mortgage Payment, the Property Taxes, and a Heat Component (really hot areas will be exempt from this, I’m guessing!), which is usually around $50.00. These numbers are added together. That number is multiplied by 12, then divided by your Gross Income Amount. This number can’t exceed 32% of your Gross Income. Some banks &/or brokers may have different criteria, but this is a commonly used method to see if a client can qualify for a mortgage.

The Total Debt Ratio takes the above information (the GDS Ratio) along with all other debts and payments (whatever else you have to pay per month - credit cards, support payments, etc.) to make sure that the Grand Total of all of your payments, including the new mortgage and taxes, won’t exceed 40% of your Gross Income.

N.B. Don’t get too hung up on the math - that’s the job of the banker or broker. This is just info to give you a good understanding of how they get their numbers.

What if someone has a job that is technically referred to as “Part-time”, but they make a “Full-time” wage. Can they qualify for a Mortgage?

You can apply through a Mortgage Broker (probably your best bet) to see how much your Gross Income will allow you to qualify for. It is particularly beneficial if you have a solid work history (have been at the job for a few years, or more). A Broker will know how to present the documentation to help you get a mortgage. This is particularly important, now, since so many companies and Government Services hire ‘Part-time’ or ‘Contract’ employees. These can be career positions, and you can be there for fifteen years, and still be flatly turned down by the regular banks. Don’t give up on your dream to own your own home because you’re in a situation like this - call a Mortgage Broker, and give it a shot. If that still doesn’t work, try another one. What’s the harm? At the very least, you can get an honest answer of what you need to do in order to become qualified. Either way, you’ll be that much closer to owning your own place, and that’s the goal!

Is there an easy way to calculate a Mortgage?

There’s a formula that I use that is relatively accurate, give or take a hundred dollars, or so. At the very least, you’ll get a ballpark idea of your monthly payment (not including the Tax portion), and whether you can qualify for that amount. Remember that when you’re qualifying for Mortgage money, if you’re even $80.00 over what they think you can pay, you won’t get the mortgage. It’s best to Pre-Qualify for a mortgage, and ask how much you will qualify for before you go house-hunting. Keep in mind that as the Interest Rates get lower, the more you’ll be able to qualify for. Don’t go crazy, though, since all the costs go up as you increase in house size, and the monthly operating costs might end up being higher than you thought, then you’ve got a big house and a crappy lifestyle. Stay within your means; stay happy and comfortable.

The Formula - remember, it’s a ballpark number…

On a 25 year Term, you would take the Percentage Rate (say, 5%) and multiply that out by the number of thousand (say, $100,000.), which would give you a mortgage payment of about $500./month (5 X 100 = $500.), plus Taxes. So if you’ve found a house for $165,000.00, and the rate is 5%, (based on a 25 yr. Term), the payment would be around $825.00, plus taxes, per month. (5 X 165 = 825)

We use this formula all the time - it’s functional to see if you can even come close to being able to afford a particular property. If you always find yourself looking at the properties worth $300,000., when you can actually afford a $75,000. property, do the math, figure out what you can really buy, and get that. It’s better to buy something already in your range, save your money, wait until your place has gained in equity, then make the move up. Have your Broker or Banker let you know how much you can spend, and have that up-dated every year, or so, depending on how long it takes you to find a place to purchase, especially when the rates are fluctuating so much. Also, your Broker will tell you the exact payment.

Can I qualify for a Mortgage based on the lowest rates out there?

Different Lending Institutions will have different rules, but you will generally have to qualify under their 3 Year Rate, which will be higher than the lowest rates available. Some institutions will use the 5 Year Rate (primarily regular banks).

What’s the difference between an Open and a Variable Rate Mortgage?

An Open Mortgage is one that can be paid out at any time, but you will pay a higher Rate for this privilege. This is a good choice if you’re not sure how long you’ll be staying in the home. You’ll save on the possible Penalty Payments you would have to pay if you had a Fixed Rate Mortgage, and had to move before the pre-chosen Time Period had elapsed.

A Variable Rate Mortgage (my favorite!) is not fully Open, but it can easily be converted into an Open Mortgage, so you would still save on any potential Penalty Payments. With this Mortgage, you’ll usually get better than Prime Rates, and the flexibility to move if something better comes along…! The other thing I really like about this one is that you can usually make payments directly on the Principle, which will reduce your mortgage faster than almost any other method. Your monthly mortgage payment will be as low as possible, so with the extra money that you might have kicking around, put it in a Savings Account, then make the payments annually (or more - ask you Broker how often and when you can pay off the Principle).

One thing about this type of Mortgage that might seem off-putting, initially, is the fact that the interest rates actually fluctuate within the mortgage. This is not necessarily a bad thing, especially if the rates go down after you’ve established the mortgage. The important thing to remember is that the amount you pay per month will always be the same - the only thing that changes is the amount that will come off the Principle. If interest rates start to rise, make an extra effort to set aside some money to pay directly to the Principle.

My biggest Financial Pet Peeve is the whole notion of making two payments per month (or Bi-Weekly Payments) that are really high in an effort to pay off the Mortgage faster (usually a 15 year term). This drives me crazy, since it often puts a lot of unnecessary financial pressure on a family. That’s a lot of money to come up with in a month, and if disaster strikes, they’ll be in serious trouble very quickly. I always think that it’s better to establish the lowest possible monthly expenditures, then if you still have a big wad of cash left over, great - put that toward the mortgage. Using the Variable Rate Mortgage will give you the lowest mortgage payment.

Here’s a quick example: If you have a mortgage of $100,000. @ 5% (using a 25 Year Term), using the Variable Rate Mortgage, your monthly payment would be about $500/month, plus taxes. If you have the same mortgage in a Fixed Rate Mortgage (also a 25 year term), @ 6%–remember that the Variable Rate is lower - the monthly amount would be about $650, plus taxes. (Note that a Fixed Rate Mortgage is calculated differently from a Variable Rate Mortgage) If you were to sign up for the two-payment a month plan, that’s $1300/month. The spread ($500/month to $1300/month) is $800. Multiplied out by a year is $9,600 - that would be a huge Lump Sum Payment directly on your Principle.

Keep in mind that only a tiny amount of your regular monthly mortgage payment goes toward the Principle in a new mortgage - have a good look at your Statement, the next time it comes in. Even if you were to put half that amount on the Principle, you would still be making a major dint in it. And your financial life won’t be so stressful, which will make the rest of your life much nicer, too, since financial stress is one of the leading causes of divorce, but that’s a whole other story…

What’s a Fixed Rate Mortgage?

A Fixed Rate Mortgage is a mortgage that will have the same rate for the amount of years you have chosen to lock in at. Typically, there are 1 Year, 2 Year, 3 Year, 5 Year, 10 Year, 15 Year, and 25 Year time periods. If you choose to move before the time period is up, you will be required to pay a Pay Out Penalty, so keep that in mind if you’re not completely sure how long you’ll be there.

What’s the best way to get money for a Home Renovation Project?

Check first with the Financial Institution that’s carrying your Regular Mortgage. They may be able to provide the money you need to renovate. You could borrow on your Equity (the spread between how much you owe for the property and its current appraisal rate) in the form of a Home Improvement Loan or a Home Equity Loan. Keep in mind that you can use a Home Equity Loan for other stuff, as well. Your bank should be able to offer you a Blended Rate, and should waive the Pay Out Penalties. If they won’t offer that, or give you any loan, call a Broker, and see what they can do. They’re not miracle workers, but they can often help when the regular route won’t come through for you.

The easiest way these days is to check out companies on the Internet. You’ll get your response a lot faster, and probably get a better rate, too! I’ll find some for you and post them here!

The bank wants to do an Appraisal on my house before they’ll give me a Home Improvement Loan. Is that standard?

Yes. (You’ll need this for the Home Equity Loan, too.) The financial institution needs to know the current value of your home to make sure that their backs are covered. Makes sense. You will probably have to get a ‘Before and After Appraisal’, quotes from the respective contractors to show proof of renovation, and a description of the type of renovations you’re planning. It’s much easier to borrow against the Equity, so try this route, first. Talk to your Lender before you get too involved to see what you can actually get, and when. If you have to pay for the whole job out of your own pocket first (as is often the case, which is craaaazy, since if you had the cash just sitting there, you wouldn’t be at the bank, anyway….ah, the joy of financing!), make sure that you find a source for material that will provide a payment plan (many home improvement stores will do this), and a contractor who doesn’t mind being paid at the end of the job when you’re money comes in.

N.B. Just a little aside - I’ve seen some ‘warnings’ out there that you should nevah’, evah’ pay your contractor up front or in the middle of a job, or only pay them when you are ‘completely satisfied’. Please. There are some people who are never satisfied with anything, even if they get exactly what they requested. This is such complete crap. You would never work for an employer for a year, then at the end of that year, he would sit back and decide whether he should pay you. That’s crazy. Be smart about it, though. Get everything in writing, both of you agree to it, then sign the quote. You will often be required to pay for materials up-front, since the contractor doesn’t know you anymore than you know him…Generally, you will make payments as the work progresses, which is easier than getting one big bill at the end, but if you have extenuating circumstances (like the bank won’t give you the money until the end of the project), then tell your contractor that at the beginning. All projects work more smoothly when there’s open and complete communication.

How do you get a Builder’s Loan?

Apply for a Builder’s Loan the same way you would apply for a regular mortgage. If you are a new Builder, you may require a ‘New Home Warranty’ on the property. That’s pretty difficult, if it’s your first house, so you may be calling a Broker right away! They’re usually more flexible in getting you the capital you’ll need to bring the house to fruition, but if you already have a good relationship with your banker, give them a crack at it. This might be easier in a rural area, where it is more common for people to build on their own, so the financial institution will already know how to manage this scenario.

When will we get our money?

The money is separated into 3 or 4 sections, or ‘Draws’. Generally, you will get the funding in Three Stages:

i.Sub-floor

ii.Lock Up

iii.Completion

Can we get money to get to the Sub-floor Stage?

This is where careful and creative financing comes in… hopefully, you’ll have that swack of cash in the bank (at least twenty thousand), and a fair bit of equity in your home. You’ll probably need to sell your current property before you start building your new house, so you can use the equity spread from that sale to get the new house started. If your land is already paid for, you’ll find this stage easier. Some Developers will allow a new builder to put 5% down on the land, then they can pay the balance when the mortgage money comes in. This is relatively rare, so if you find this deal and like the location, go for it.

Talk to your Excavator, Foundation Contractor and Framer to see if you can make partial payments until the First Draw comes through. They’re in the business, so they’ll understand your situation. A lot will depend on how busy they are and the relationship you establish with them. Some Suppliers (lumber, ICF Blocks, etc.) may have a payment schedule, too, so it doesn’t hurt to ask if you need to.

A Personal Line of Credit from the bank, along with your regular credit cards (again, if you have an Air Miles credit card, now is the time to use it — you’ll really rack up the points, then you can take a well deserved trip at the end of your house-building adventure!), personal loans, etc. will all come into play, now. You might want to make sure you have an alternate source of funds for a ‘just in case’ scenario. It’s best to plan out all the possibilities before you get started so that nothing will catch you off-guard.

What kind of Appraisals will the Bank do?

First, the Appraiser will inspect the Land, the House Plans, and your Proposed Budget. The amount of money provided for the Builder’s Loan will be based on the Cost to Complete the house, not including the value of the land. The Land will be included with the final appraisal for the Completion Mortgage (Take Out Mortgage).

The Appraiser will come out to your property to do Progress Inspections at the Three Stages - Sub-floor, Lock-up and Completion. You should anticipate a one to two week waiting period for the Draw Money to come through. During that time, the bank will most likely have a lawyer check the Title each time.

It’s an involved process, but it does work, so stick with it and figure it out! Remember that if one institution can’t get you the money, try a Broker or two…eventually, it’ll all work out!

One more thing — What is Escrow??? I know, you hear that all the time! It’s that seemingly very long period that your Lawyer holds onto your money while all the conditions are met on the House Deal. Make sure you ask your Lawyer for a good idea of the time-frame you might expect, and be sure not to leave yourself too tight (moneywise!) during this annoyink period!

Just so you know, a Real Estate Lawyer will be very pleasant to deal with … they don’t seem to deal with a lot of animosity, like many other types of Lawyers, and that probably accounts for their serene expressions! ha,ha,ha! They’re there to help you get into or out of your home, so don’t worry — it won’t hurt a bit!

Ailsa Forshaw is a Writer, Builder, Website Owner & Manager, Teacher, Mother… all in Alberta, Canada. She is Married with Two Lovely Children, and one gorgeous wee dog. Her Website, http://www.buildyourownhouse.ca, is chock full of all sorts of useful & fun information to help anyone become Financially Successful, Slim, Trim, and Happy… what more could you want?? Pop in for a wee visit!

http://www.buildyourownhouse.ca
http://www.theScottishDiet.com

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Mortgage: Effective Household Investment for Financial Autonomy

Mortgage: Effective Household Investment fBy Natasha Anderson

If finances had a copyright, we would have bought it by now. But it is hardly sold anywhere near the place we live. So, when we decide to take a mortgage it becomes highly perplexing for it is something you are not used to. Taking out a mortgage is not like an everyday errand. Mortgage in the simplest terms mean long-term loan used to finance the purchase of real estate. As the borrower, or mortgagor, you repay the lender, or mortgagee, the loan principal plus interest, gradually building your equity in the property. In a mortgage, you can use your property but not the title of it. When you pay the mortgage, you own the property.

You must have heard that interest rates on mortgage are at their lowest. There is no doubt that they are declining, lending new opportunities to homeowners to get the financial funding they require. Mortgage has become more competitive and easy to get. Competition among loan lender is rising therefore it has lot of potential for homeowners. So it is no surprise to know that mortgage is mounting among people.

Today’s consumers have many different mortgage types to select from. Mortgages have been flavoured with different interest rates for the benefit of the mortgage applicants. The more recognized mortgage types are fixed, variable and balloon mortgage.

Mortgage has been publicized everywhere as a real good loan plan for every homeowner. However, it is essential to realize that mortgage is in itself a very exhaustive term. There are innumerable sub categories.

Mortgage types are meant to be for your benefit. Two major types of mortgages are available - repayment and interest only mortgage. Repayment mortgage is the traditional, old fashioned mortgage where the property is guaranteed and is yours only at the end of the loan term provided you repay the loan. The monthly payment on Mortgage compiles capital repayment and interest payments. Capital repayments repay the loan amount your have taken. Interest payments provide repayments for the interest on the loan. Every month you keep on paying a little of both the loan and the interest till the whole loan is repaid.

Interest only mortgage is a relatively new term. In an interest only mortgage the capital is not repaid directly. The capital on a mortgage term is repaid at the end of the mortgage term while simultaneous investments are made to an investment fund. The idea is to make this fund flourish so that at the end of the term there is enough money to pay the mortgage and also leave capital for your personal usage. The term ‘interest only mortgage’ might seem inviting but the capital has to be paid at the end of the mortgage term.

Interest only mortgage comes in all shapes and sizes. However, this kind of mortgage is not meant for every borrower. Each Interest only mortgage is meant to cater to the needs of a specific kind. It is very fundamental to learn about the interest only mortgages before you apply for one. The interest only mortgages are endowment mortgage, individual savings account mortgage, pension mortgages.

In this highly elaborate work structure of mortgages it is pivotal to find the precise mortgage. Precise mortgage type requires some basic steps which begin with knowing what you want. Loan borrower must be very clear about their requirements and their limitations. Once you know which mortgage type to take - make comparisons. Compare the mortgage types. Mortgage is essentially a buyer’s market. Shop around. Compare the APR. The real comparison is through comparing the APR, which is the annual percentage rate. The APR takes all the costs into account: the application fee, the mortgage lenders valuation and so on.

A mortgage broker is a good idea with respect to mortgage. A mortgage broker is a licensed company or an individual that gets the best mortgage plan available at the best possible rates. Mortgage broker signifies convenience. They will do the legwork for you. Usually mortgage brokers don’t cost any extra fee because they usually work on the fees given by the mortgage lender. However, sometimes you can get a better deal by going to the mortgage lender directly.

Mortgage and bad credit are very compatible. The only thing a loan borrower can do is to be open and honest about their bad credit status. Hiding your credit status would only go against your mortgage claim, when there are in fact easier ways to get a mortgage with bad credit.

Mortgage is like easy if you make the right choice. Getting a good mortgage is directly dependent on your knowledge of a mortgage. To know every nook and cranny of mortgage can be not possible. Since even the most judicious professionals may also not be aware of some of the mortgage details. However, basic mortgage knowledge will not only protect you against fraud and abuse but also stimulate financial gains. So maybe you don’t have the copyright to financial sense; you can still find a mortgage.

After having herself gone through the ordeal of loan borrowing, Natasha Anderson understands the need for good quality loan advice. Her articles endeavor to provide you the wise counsel in the most elementary way for the benefit of the readers. She hopes that this will help them to locate the loan that beseems their expectations. She works for the Uk secured loans web site.

To find a Secured loan or mortgage that best suits your needs visit [http://www.ukfinancewprld.co.uk]

Article Source: http://EzineArticles.com/?expert=Natasha_Anderson
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Check Out Energy Rebates

EnergyStar.gov — Check Out Energy Rebates

This is a government site that offers lots of energy saving tips as well as explains what energy saving grants or credits might be available.

Twin Cities Foreclosure Trends-From our MLS & Realty Trac

Besides the board of realtor sites:  http://theThing.mplsrealtor.com and market data posted elsewhere at http://www.MplsRealtor.com I have a subscription to Realty Trac.  My subscription gives me additional data about foreclosures and trends within certain zip codes.  This is in addition to my daily subscription to Finance & Commerce (a business newspaper that prints all the foreclosure information as well as very timely articles regarding the business community).  If you are looking for someone who has experience and access to information about distressed sales, we need to be working together.  Whether buyer or seller-I can help you understand the market we are in and the options and opportunities available to you.  Give me call today.

Real Estate Information

These are a couple of my newsletters that have a ton of valuable information. Go check them out.

Foreclosure Market Trends Newsletter
http://www.realtytrac.com/MarketTrends/NewsLetter.aspx?guid=131bd355-1b69-4bd1-99cd-2f0c9a936810

Real Estate Cyber Space Tips
http://www.REcyber.com/cybertips/r11627

Loans Guide

Loans GuideBy Bill Stone

Many people are confused by the different types of loans available. Here is a helpful loans guide of the most common loans available today.

Bad Credit Personal Loan

A Bad Credit Personal Loan is a loan designed for the many people with a bad credit rating. However created, your past record of County Court Judgements, mortgage or other loan arrears can live on to deny you access to finance that other people regard as normal. If you are a home owner with equity in your property, a Bad Credit Personal Loan can bring that normality back to your life. Secured on your home, a Bad Credit Personal Loan can give you the freedom, for example, to do the home improvements or buy the new car you really wanted. With a Bad Credit Personal Loan you can borrow from £5,000 to £75,000 and up to 125% of your property value in some cases.

Bridging Loan

A bridging loan as the name implies is a loan used to “bridge” the financial gap between monies required for your new property completion prior to your existing property having been sold. Bridging loans are short term loans arranged when you need to purchase a house but are unable to arrange the mortgage for some reason, such as there is a delay in selling your existing property.

The beauty of bridging loans is that a bridging loan can be used to cover the financial gap when buying one property before the existing one is sold. A bridging loan can also be used to raise capital pending the sale of a property. Bridging loans can be arranged for any sum between £25000 to a few million pounds and can be borrowed for periods from a week to up to six months.

A bridging loan is similar to a mortgage where the amount borrowed is secured on your home but the advantage of a mortgage is that it attracts a much lower interest rate. While bridging loans are convenient the interest rates can be very high.

Business Loan

A business loan is designed for a wide range of small, medium and startup business needs including the purchase, refinance, expansion of a business, development loans or any type of commercial investment. Business loans are generally available from £50,000 to £1,000,000 at highly competitive interest rates from leading commercial loan lenders. They can offer up to 79% LTV (Loan to Valuation) with variable rates, depending on status and length of term.

They are normally offered on Freehold and long Leasehold properties with Bricks and Mortar valuations required. Legal and valuation fees are payable by the client. A business loan can be secured by all types of UK business property, commercial and residential properties.

Car Loan

The main types of car loans available are Hire Purchase and Manufacturer’s schemes. Hire purchase car finance is arranged by car dealerships, and effectively means that you are hiring the car from the dealer until the final payment on the loan has been paid, when ownership of the vehicle is transferred to you.

A Manufacturers’ scheme is a type of loan that is put together and advertised by the car manufacturer and can be arranged directly with them or through a local car dealership. You will not be the owner of the vehicle until you have repaid the loan in full, and the car will be repossessed if you default on repayments.

Cash Loan

Cash Loans also known as Payday Loans are arranged for people in employment who find themselves in a situation where they are short of immediate funds.

A Cash Loan can assist you in this situation with short term loans of between £80 and £400.

Loans are repayable on your next payday, although it is possible to renew your loan until subsequent paydays. To apply for a Cash Loan you must be in employment and have a bank account with a cheque book. A poor credit rating or debt history is initially not a problem.

Debt Consolidation Loan

Debt consolidation loans can give you a fresh start, allowing you to consolidate all of your loans into one - giving you one easy to manage payment, and in most cases, at a lower rate of interest.

Secured on your home debt consolidation loans can sweep away the pile of repayments to your credit and store cards, HP, loans and replace them with one, low cost, monthly payment - one calculated to be well within your means. With a Debt Consolidation Loan you can borrow from £5,000 to £75,000 and up to 125% of your property value in some cases. It can reduce BOTH your interest costs AND your monthly repayments, putting you back in control of your life.

Home Loan

A Home Loan is a loan secured on your home. You can unlock the value tied up in your property with a secured Home loan.

The loan can be used for any purpose, and is available to anyone who owns their home. Home loans can be used for any purpose such as, home improvements, new car, luxury holiday, pay of store card or credit card debt and debt consolidation.

With a Home Loan you can borrow from £5,000 to £75,000.

Home Improvement Loan

A Home Improvement Loan is a low interest loan secured on your property. With a Home Improvement Loan you can borrow from £5,000 to £75,000 with low monthly repayments. The loan can be repaid over any term between 5 and 25 years, depending on your available income and the amount of equity in the property that is to provide the security for the loan.

A Home Improvement Loan can help you with a new kitchen, bathroom, extension, loft conversion, conservatory, landscaping your garden or new furniture. You can even use it on non-house expenditure like a new car or repaying credit card or other debts.

Home Owner Loan

A Home Owner Loan is a loan secured on your home. You can unlock the value tied up in your property with a secured Home Owner loan. The loan can be used for any purpose, and is available to anyone who owns their home. Home owner loans can be used for any purpose such as, home improvements, new car, luxury holiday, pay of store card or credit card debt and debt consolidation. With a Home Owner Loan you can borrow from £5,000 to £75,000.

Payday Loan

Payday Loans also known as Cash Loans are arranged for people in employment who find themselves in a situation where they are short of immediate funds.

A Payday Loan can assist you in this situation with short term loans of between £80 and £400.

Loans are repayable on your next payday, although it is possible to renew your loan until subsequent paydays. To apply for a loan you must be in employment and have a bank account with a cheque book. A poor credit rating or debt history is initially not a problem.

Personal Loan

There are two categories of personal loans: secured personal loans and unsecured personal loans - See individual titles below. Homeowners can apply for a Secured personal loan (using their property as security), whereas tenants only have the option of an unsecured personal loan.

Remortgage Loan

A remortgage is changing your mortgage without moving your home. Remortgaging is the process of switching your mortgage to another lender that is offering a better deal than your current lender thereby saving money. A remortgage can also be used to raise additional finances by releasing equity in your property. You can borrow from £25,000 up to £500,000. Rates are variable, depending on status.

Secured Loan

A secured loan is simply a loan that uses your home as security against the loan. Secured loans are suitable for when you are trying to raise a large amount; are having difficulty getting an unsecured loan; or, have a poor credit history. Lenders can be more flexible when it comes to secured loans, making a secured loan possible when you may have been turned down for an unsecured loan. Secured loans are also worth considering if you need a new car, or need to make home improvements, or take that luxury holiday of a lifetime. You can borrow any amount from £5,000 to £75,000 and repay it over any period from 5 to 25 years. You simply select a monthly payment that fits in your current circumstances.

Secured Personal Loan

A Secured Personal Loan is simply a loan that is secured against property. Secured personal loans are suitable for when you are trying to raise a large amount; are having difficulty getting an unsecured personal loan; or, have a poor credit history. Lenders can be more flexible when it comes to Secured personal loans, making a Secured personal loan possible when you may have been turned down for an unsecured personal loan. Secured personal loans are also worth considering if you need a new car, or need to make home improvements, or take that luxury holiday of a lifetime. You can borrow any amount from £5,000 to £75,000 and repay it over any period from 5 to 25 years.

Student Loan

A student loan is way of borrowing money to help with the cost of your higher education. Applications are made through your Local Education Authority. A student loan is a way of receiving money to help with your living costs when you’re in higher education. You start paying back the loan once you have finished studying, provided your income has reached a certain level.

Tenant Loan

A tenant loan is an unsecured loan granted to those that do not own their own property. A tenant loan is always unsecured because in most cases, if you are renting your accommodation, you do not have an asset against which you can secure your loan. Tenants sometimes find that some loan companies will only lend money to homeowners. If you are a tenant you need to look for a company, bank or building society willing to give you an unsecured loan.

Unsecured Loan

An unsecured loan is a personal loan where the lender has no claim on a homeowner’s property should they fail to repay. Instead, the lender is relying solely on the ability of a borrower to meet their loan borrowing repayments. The amount you are able to borrow can start from as little as £500 and go up to £25,000. Because you not securing the money you are borrowing, lenders tend to limit the value of unsecured loans to £25,000.

The repayment period will range from anywhere between six months and ten years. Unsecured loans are offered by traditional financial institutions like building societies and banks but also recently by the larger supermarkets chains. An unsecured loan can be used for almost anything - a luxury holiday, a new car, a wedding, or home improvements. It is good for people who are not homeowners and cannot obtain a secured loan for example; a tenant living in rented accommodation.

Unsecured Personal Loan

An Unsecured personal loan is a personal loan where the lender has no claim on a homeowner’s property should they fail to repay. Instead, the lender is relying solely on the ability of a borrower to meet their loan borrowing repayments.

The amount you are able to borrow can start from as little as £500 and go up to £25,000. The repayment period will range from anywhere between six months and ten years. An Unsecured personal loan can be used for almost anything - a luxury holiday, a new car, a wedding, or home improvements. It is good for people who are not homeowners and cannot obtain a secured loan for example; a tenant living in rented accommodation.

Bill Stone writes for Direct Online Loans who help homeowners find the best available loans via the www.directonlineloans.co.uk website.

Article Source: http://EzineArticles.com/?expert=Bill_Stone
http://EzineArticles.com/?Loans-Guide&id=1151093

Outstanding Video-An Inspiration To All-Be The Best You Can Be!

Twin Cities Home buyer book

Thinking about buying a home but don’t know where to start? Why not start by reading the home buyer hand book that we have provided below. It is a great place to start to get the information you need. When you’re ready, we would love to help you find and finance a new home.

Open Source Documents-Unbelievable Resources-Find YOUR topic of Interest

If you’ve never visited http://www.Archive.org, you are missing a wonderful site.  From this site, you will find many resources that are out of copyright and you can download and use them as you wish.  You will find all the classics and some fun things as well.  Just for fun, I have the download of a book called “Little Gardens” which is a book about setting up a garden on a city lot.  This is just one of the MANY fun things you’ll find.  You can download and watch old music, movies, and cartoons as well.  Plan to spend some time on the site should you decide to visit, as it is very cool.  Click here to download the book Little Gardens

Sell Your Home Faster-Learn The Home Selling Secrets Of Successful Sellers

Here is a special report that outlines over 450 ideas on how to sell your home faster.  This report is just one of the many home buyer, home seller, and investor reports that I can make available to you.  Read this report and call me to arrange a time to see how I can help.  Download Now

Avoiding HUD Home Headaches: Tips On Buying HUD Foreclosures!

Bidding & Buying on Minnesota HUD homes—it seems to be the hot ticket in town.

However - Remember these key points to avoid problems and advise buyers:

•    Only primary residence buyers allowed in the first round of bidding.
•    Determine if the home is being offered as eligible for Minnesota FHA financing:

o    Has an existing FHA appraisal that must be used (unless expired)
AND
o    The sales price has usually been based on the existing appraised value.  Bidding above the sales price may result in them paying the difference out-of-pocket between their bid and appraised value.

•    HUD does not automatically provide title insurance.  Make sure that the lender has disclosed this additional     expense to avoid surprises at closing.  Only if HUD has agreed to pay closing costs, could the insurance be provided at HUD’s expense.

•    If HUD is offering a repair escrow, that this amount can be ADDED to the MN FHA loan, but HUD doesn’t pay for it.

•    Lender documents must be to the title company up to 10 days prior to closing date in some states.

•    HUD signs closing packages first.  Then once the loan proceeds and the title company receives buyer down payment and closing costs, the buyer is allowed to sign.  Make sure that the lender is aware and has the ability to fund the loan BEFORE they have a completed loan package.

•    Closing delays are common due to “title clearing” issues. Foreclosed homes can have several liens due to utilities, taxes; etc that must be dealt with before closing can take place.  Minneapolis HUD Homes are a great investment when the buyer is prepared from the beginning for all potential challenges, such as rescheduling of moving trucks, and possible rate lock extension fees.

When you work with experienced professionals like John Mazzara with RE/Max Associates Plus in Edina Minnesota and Patti Mazzara with Venture Development Inc, a MN Mortgage Broker, you will get the guidance and straight-forward answers that make the process easy to understand. Let our experience help you through your home purchase.  Visit http://www.minneapolisstpaulhomes.com and http://www.ventureloanapp.com/

Extension And Expansion Of Home Buyer Credit-4/30/2010

A Big WOW!!  The credit has been expanded to include homeowners who have owned their home for the past 5 years. No longer do you need to be a first time buyer.  The dollar limit is $8000 for first time buyers and $6500 for move up buyers.  This GREAT news.  Combine this with 50 year lows in interest rates, and you’d be crazy not to consider making a move.  If you feel secure in your job, think hard about buying  home at this time.  We can help you make the right move. Visit this site-which is from the National Association Of Home Builders  http://www.federalhousingtaxcredit.com/faq2.php This site give you all the rules and regulations as they now apply.

Why Foreclosure Is Often Preferred By The Loan Servicer Instead Of Offering A Loan Modification

Have you ever wondered why a foreclosure occurs when a better solution might have been a modification?  Would you like to read the facts and figures and see how mortgages are bundled, sold and serviced?  You will soon see it is isn’t pretty, we are in the midst of a crisis, and it is likely to get worse before it gets better.  That being said, you can probably guess why-it’s about the money.  It is a little more complex than that-the report is 60 pages-but is explains the incentive and disincentives that are at conflict within the mortgage market today.  Once you understand how all the pieces go together, you can see that something “different” needs to be done.  I am a strong free market believer, but in this case, the government needs to have a mandate and rule that is guided towards keeping people in their homes.  Left to current industry solutions, the mortgage mess will continue to play out and get worse.  If you click on the link below, you will find the free report from the National Consumer Law Center.

http://www.consumerlaw.org/issues/mortgage_servicing/content/Servicer-Report1009.pdf

Home Buyer Tax Credit Information Update

It’s now official!! The tax credit has been extended and expanded. YOU NEED TO HURRY! You now have until the end of April 2010. The following summary of the credit is provided by the National Association Of Realtors. The following two documents cover the changes in the new law. Now get out there and buy a home!!

NAR FAQ: Homebuyer Tax Credit Changes
NAR Issue Brief: Homebuyer Tax Credit Changes

2008 First Time Homebuyer Credit Questions and Answers

2008 First Time Homebuyer Credit Questions and Answers. Click Here

First Time Homebuyer Credit form 5405

Download this First Time Homebuyer Credit form 5405 to claim your credit. Click Here

Homebuyer Protection Alert!

Recent Federal legislation can impact your closing date. When completing your Purchase Agreement, even if you are prepared to move forward and close quickly, a more conservative timeframe of at least 30-45 days from the time of the contract acceptance would be a more realistic expectation at this time.

Listed below is information on two pieces of legislation that stand to impact your closing date, and a few bullet points that explain the reasoning behind and effects of each measure.

HVCC: Home Valuation Code of Conduct
HVCC was designed to ensure that appraisals are conducted objectively and without pressure from parties with an interest in the transaction. Under HVCC:

• The appraisal and selection of the appraiser will be ordered by someone not directly involved in the origination of the mortgage. This could be either someone else within the mortgage company or a third-party appraisal management company.
• A copy of the appraisal must be provided to the homebuyer/borrower no less than three days before closing. The minimum time expectations for receipt of the appraisal should be a few weeks and not days. (While receipt of the appraisal may be received in shorter timeframes, conservative expectations are warranted.)
• Communication between the appraiser and the originating mortgage professional is prohibited. It is imperative that the agents involved in the transaction be prepared at the time of inspection to offer supporting value information if warranted.

HERA: Housing and Economic Recovery Act

HERA was designed to ensure that the borrower(s) involved in the transaction are given accurate disclosure information (Truth in Lending Statement pertaining to Annual Percentage Rate or APR) regarding the loan they are applying for and adequate time to re-evaluate their decision to proceed in the event of any changes that would impact their costs to finance.

Under HERA:

• No fees may be collected for the transaction other than those for running a credit report at the initial time of application. Additional fees may be collected only after four business days.
• Should the APR change by more than .125% on a fixed rate loan or .250% on an adjustable rate loan, the lender must disclose the new APR and the borrower must have a minimum of three business days to review the information before the transaction may proceed.
• Items that can trigger re-disclosure requirements include a change(s) in the loan amount, closing date, loan program, any fees that impact the APR or interest rate from the rate indicated on the original loan application.
• In cases where documents are sent by mail to the borrower related to re-disclosure of APR and/or providing a copy of the appraisal, anticipate six business days (three to allow for mailing and three to allow adequate time to review them) before a closing can occur.

MN First Time Home Buyer and Minneapolis Home Buyer Alert!

Tax Credit Expires 11/30/09 - Don’t Get Left Behind

MN Mortgage Broker, Patti Mazzara, warns MN First time home buyers not to miss out on the first time home tax credit that is about to expire. The first time home buyer tax credit which can be used on a Minneapolis home loans when Minneapolis home buyers close before November 30, 2009.

Unless you have either been under a rock for the past 12 months or you never work with first time homebuyers (FTHBs), you are no doubt aware the clock is ticking on the IRS tax credit for FTHBs. My purpose here is to give you some additional information on what you can do to move listings, motivate buyers, and more importantly close deals.

General Points to Consider - Buyer and Seller
The expiration date of the tax credit is November 30, 2009. Close December 1, as of now, and any qualifying buyer will not receive the tax credit. With the 30th falling on the Monday following Thanksgiving, where possible work towards a closing date of November 24th. This will provide some cushion if anything pops up in the closing process that could delay a closing.

Recent legislation mandates that if the Annual Percentage Rate or APR changes outside acceptable tolerances from the initial application, some documentation needs to be re-disclosed and time needs to pass before the closing can occur. Items that can impact APR can include a change in interest rate or fees required to close. If a buyer delays locking the application and interest rates increase during the loan process, this could delay the closing. This is just one reason to plan accordingly and schedule an earlier closing date than the last possible day.

Protect your clients on both sides with extended closing dates of 45-60 days. Expectations are high that more FTHBs will be going under contract in the next month. Interest rates have fallen to levels not seen since May. The result is that many lenders’ pipelines will be swelling with people seeking to take advantage of lower rates and the tax credit. Where feasible, work to get people under contract soon and plan accordingly to allow for any processing delays that could result.

Seller Points to Consider
Many FTHBs are motivated to purchase but may lack the necessary funds to close or may fall short in qualifying income. One way to assist with either or both situations and make the property more attractive is to promote that the seller will pay to reduce the borrower’s interest rate and/or closing costs. In many cases, this will not only cost the seller less than a price reduction but also bring additional prospects to consider the house.

Most FTHBs today are choosing to obtain loans that are guaranteed by the FHA, VA, or USDA. In the case of both FHA and USDA loans, the seller can pay up to 6% of the sales price or appraised value. For VA loans, the maximum seller concession is capped at 4%.

Consider approaching all sellers today with homes that would appeal to FTHBs and get them to commit to paying closing costs and/or reducing the buyer’s interest rate. This has often worked for builders in generating sales and it can work for your sellers, too.

Sellers who do not move homes before the end of November may find themselves waiting until the spring buying season kicks in to find their buyer. Make sure sellers know they need to promote their property now or risk waiting months while potentially seeing their property’s value decline in the process.

Buyer Points to Consider
In the same light as just mentioned, many buyers may feel they lack the funds required to close. When buyers are interested in a property, encourage them to submit an offer with the concessions needed to get the mortgage approved. They may just find that the seller is willing to negotiate.

Get all potential buyers pre-approved. As the time to close will be at a premium during the months of October and November, any work that can be done to expedite the application process will be golden. Prepare your buyers by advising them not to wait until they have a home under contract. Any documentation submitted today for pre-approval should be good through the end of November. Also, with a pre-approval in hand, both you and they will know exactly what they can qualify and shop for.

If you want to help with the application process and prevent the need to possibly re-disclose loan documents, encourage your buyers to lock their interest rate early in the loan process. This will be helpful for all parties and help the buyer focus on closing and providing any additional documentation that may be needed.

Some Questions on Who May Qualify
I have received many questions regarding who may and who may not qualify for the FTHB tax credit. I am attaching to this letter some FAQs on examples I have either dealt with or read about. As always, I encourage anyone with specific questions to consult with an accountant for final clarification.

Renters Have Much to Gain by Pursuing Home Ownership

Read by clicking here: Renters Press Release

Neighborhood Stabilization Program- Hennepin County Redevelopment Tool

We work within the parameters of this program. One of our lenders will accept this form of funding. READ more about it and see if it might work for you. We would love to help you find and finance a home within the areas that qualify.

http://www.hennepin.us/neighborhoodstabilizationprogram

Down Payment Assistance Programs (DAP) Lender Approved In MN

On of our lenders has pre-approved various down payment assistance programs. These programs MAY have changed and MAY be out of money when you contact them. Things change all the time. With that being said, we can use these programs in conjunction with FHA, My Community and the Home Possible loan programs. We are a Minnesota mortgage broker and may be able use these programs for YOUR transaction. Call us to begin the loan process and we can work together to find you a combination of funding sources that would work for you. Click Here

First Time Home buyer Loan Programs & Other Special MN Loan Programs

Here is a matrix that is very helpful explaining just some of the mortgage programs and their guidelines.  There ARE more loan options than these as well.  MN loan options are constantly coming and going-guidelines change.  We don’t work with all the programs, but we do work with many of them.  Call us to help you navigate through the home purchase process and select the right loan for you.  Look at the Matrix of programs provided. Click Here

10 THINGS YOU CAN DO IMMEDIATELY TO SLASH DEBT AND SPENDING

Any financial planning process begins with a change in financial behavior and expectations. The degree of change varies based on financial priorities, but in the end, it’s about adopting new habits and abandoning others.

Before you take any of the following steps, it makes sense to talk to an expert who can help you see your whole financial picture. A CERTIFIED FINANCIAL PLANNER™ professional can examine all your sources of income and expenses and find the most efficient ways to cut expenses, pay off debt and boost the money you have for saving and investing.

In the meantime, here are some ideas:

Refinance if you can: Mortgage rates are still at historically low levels. You’ll need at least 10 percent equity (20% of equity will save you the PMI insurance cost) in your home and a credit score exceeding 720 to qualify for the best rates, but start negotiating with your current lender first and see how well you do.

Track your spending for a week: Either on paper or on the computer, write down every dollar you spend in the average week (and cut off credit card use during that week). At the end of that week, start marking out non-essential items just to see how much you could live without. Start with coffee and restaurant or carryout meals and work backward from there.

Make a budget: Once you’ve established how your income covers the essential expenses you must plan for, and a few inexpensive treats that should stay in, build a budget that includes specific amounts you can allocate toward debt. Keep a running total of your spending going forward, and revisit how that budget is working on a monthly basis until you start to see some positive results, and then you can review the performance of that budget a little less frequently.

Reset your entertainment expectations: Find ways to save money with friends – cook more meals at home or rent a movie instead of going out to see one. Also, get used to checking entertainment listings for free events that interest you.

If you can do it safely, take over home and auto maintenance yourself: The do-it-yourself movement is in a new phase with the economic downturn. For any home or auto maintenance chores you may have during the year, learn as much as you can about those tasks and estimate the cost of materials and your time before doing them yourself. Previous generations made do-it-yourself a necessity. See if that option is right for you and you might save considerable money doing it. Also, for bigger jobs, pair up with friends and family and you can help each other save money.

Set a new gift policy with your adult friends and family: Does everyone on your gift list over the age of 21 really need a present for birthdays and major holidays? Suggest to family and friends to have a gift drawing, a budget limit, a moratorium on gifts, or some other alternative where you trade off gifts for quality time. Even though the holidays are a few months away, it’s not too early to think about reining in the traditional holiday overspending.

Go debit: Debit cards wearing a bankcard logo are typically welcome at most stores where credit cards are accepted. This way, you pay cash without carrying cash. If you don’t have such a card, you can get one from your bank to replace your traditional ATM card, but remember to tell them to limit your buying power on the card to only what you have in your account. And use the overdraft protection to avoid fees.

Revamp your shopping list: Give this a shot: start a central weekly shopping list on a single piece of paper and add a dollar value for each. Write everything you think you need to buy on that single sheet, from groceries to clothes for the kids. That way, you’ll see all your proposed spending in front of you, and you can get a closer look at what your true priorities are. You’ll be surprised at all the “essentials” that are not really that essential that you can cross off before you spend.

Talk to your family about spending: When you’re talking to kids about budgeting and lowering your expenses, you have to walk a fine line between discipline and fear. But setting money priorities is part of growing up, and it’s essential to discuss and agree upon them as a family.

Buy used for yourself: Make someone else’s poor luck your good luck. If you need clothing, a car or a new watch to replace the old one that’s past fixing, it might be worthwhile to buy second-hand. The best places to find these gems are on the internet on places like craigslist. Plenty of people have unloaded items in relatively good shape to bring in cash during the recent downturn. You might do very well, and if anyone asks, don’t call it used; call it “vintage.”

October 2009 — This column is produced by the Financial Planning Association, the membership organization for the financial planning community, and is provided by John Mazzara http://www.Investments.mn 952-929-2577, a local member of FPA.

Minneapolis First Time Home Buyer

If you are looking for help with a down payment on your home purchase consider the following areas of Minnesota that have help for home buyers.

Brooklyn Center
Brooklyn Park
Champlin
Crystal
Edina
New Hope
Richfield
Woodbury

Each area’s program is a little different so MN Mortgage Broker Patti Mazzara will help you to make sure that your income and property type/location fit the guidelines. Some of these programs require the applicant to be a First Time Home Buyer buying a foreclosed property but there are programs that do not. Some areas of the Twin Cities are actually offering money from more than one program allowing home buyers to qualify more down payment money than one program might allow.

Call Patti Mazzara at Venture Development Inc. located in Edina MN and visit www.VentureLoanApp.com. We have a link on our website to fill out an application online.

Minnesota Real Estate Newsletter Gives Access To Great Computer & Life Tips

I maintain a number of real estate sites, blogs, and newsletters. One newsletter that provides a number of computer tips to help you function better with a computer is http://www.REcyber.com/cybertips/r11627 The site is full of cyber space tricks and great places to visit. We have link to this site on the list of MN Real Estate links, but I wanted to highlight this particular newsletter because it different from what most agents provide. From this newsletter, you can also access all the back issues-from 2001 and beyond. It is really quite a useful resource-spend some time there if you have a chance.

Minnesota Mortgage Broker Can Outline Your Options

Minnesota Mortgage Broker Can Outline Your Options
Renters Have Much to Gain by Pursuing Home Ownership

By Patti Mazzara, Vice President
Venture Development Inc.

Edina, MN – Buying a home vs. renting is a big decision that takes careful consideration, as most mortgage consultants will agree. But the rewards of home ownership are great. For many years, purchasing real estate has been considered an extremely profitable investment. It is an achievement that offers a sense of pride, financial stability and potential tax advantages.

Yes, there are certain responsibilities associated with owning a home. Landlords will often argue the benefits of renting, and for obvious reason. If you are renting, you’re helping them make their mortgage payment.

The numbers are staggering if you look at it this way. If you are paying $1,000 per month for an apartment, and you know your rent will increase 5% every year, then over the next five years you will pay your landlord $66,309. If you are currently renting a house, you may be paying much more than that each month. Either way, you gain no equity by shelling out this monthly housing expense and you certainly won’t benefit when the property value goes up!

However, if you were to purchase your own home or condominium, you would be well on your way toward building equity within that same five-year period. By choosing a fixed-rate loan program, you can have the comfort of knowing that your monthly mortgage payment will never go up. In fact, you would have the option of refinancing to a lower interest rate at some point in the future should interest rates drop, and this would cause your monthly mortgage commitment to go down.

In addition to building equity, there are tax advantages that come into play with home ownership. Depending on your tax bracket, owning a home is often less expensive than renting after taxes. Interest payments on a mortgage below $1 million are tax-deductible, and your mortgage consultant should help you evaluate the tax advantages of various loan scenarios, and share this information with your tax consultant to glean feedback on your behalf.

To find the loan program that is right for you, your mortgage consultant will need to evaluate your monthly household income, current assets and savings, as well as any monthly obligations you may have for credit card payments, car payments, child support, etc. These prequalification factors, along with the report of your credit score, will determine how much house you can afford and what interest rate you will pay for financing. It is also important to let your mortgage consultant know what your future goals are, because this will help narrow down which loan option is the best fit for your long-term needs.

There are many different types of loan programs available, including “low” and “no” down payment mortgage programs. These types of programs require the borrower to provide less than 3 percent of the loan amount as down payment. FHA lenders rule that the mortgage payment, including principal, interest, taxes and insurance (PITI) should not exceed 31 percent of your gross income, and the PITI plus other long-term debt (car payments, etc.) should not exceed 43 percent of your gross income.

Housing is an expense that takes a big bite out of the monthly budget. If you are a renter and feel that “home” is more than just someplace to hang your hat, think about the advantages of purchasing real estate. It may be time to take the step into building your personal net worth as a home owner.

Patti Mazzara is with Venture Development Inc., a MN Mortgage Broker.  We work with Minneapolis and Saint Paul Minnesota home buyers.  Visit our website:  www.ventureloanapp.com to see why we are the Twin Cities Mortgage Broker first time home buyers call.

Government Regulation Clogs the Pipes

It’s no secret that many facets of lending and real estate have changed as a result of the credit crisis. In addition to tightened lending practices that resulted from rising mortgage delinquencies, Washington has been heavily involved in altering the way lenders do business today.

Two individual pieces of legislation impacting our business need to be taken into account when determining closing dates for purchase transactions.

Home Valuation Code of Conduct – The Home Valuation Code of Conduct (HVCC) went into effect May 1, 2009. Intended to shield appraisers from undue influence from loan officers and lenders, this legislation installed a “firewall” between those individuals directly involved in the origination of the loan from the selection of and contact with appraisers.

HVCC also requires that borrowers receive a copy of the appraisal a minimum of three days in advance of closing. Part of the kicker here is that “received” is considered, in effect, three business days after the appraisal has been mailed to the borrower.As HVCC requires a firewall between the originator and the appraiser, the time to receive an appraisal has increased, in some cases by as much as two weeks or more. While this may not always be the case, it is important to take into consideration when considering closing dates. Today, conservative closing dates are mandatory to properly manage expectations of all parties.

Housing and Economic Recovery Act – The Housing and Economic Recovery Act (HERA) amends and impacts several aspects of obtaining a mortgage, the disclosures required for borrowers, and the timing of their delivery. This impacts the minimum time required to close, and should any changes be made to a loan application that could impact the Annual Percentage Rate (APR), this could impact the closing date.

Other than paying for a credit report, lenders may not accept any additional fees from a borrower until four business days after disclosures have been provided to or mailed to a borrower. This has the potential to delay several aspects of the application process.

Finally, upon making application, a borrower is provided a Truth in Lending (TIL) statement, detailing the total expected costs that could be incurred over the life of the loan. Should anything change in the loan application that could change the APR by more than .125%, a new TIL must be reissued to the borrower a minimum of 3 business days before closing. Items impacting the APR could include a borrower accepting a higher interest rate than initially qualified by floating their rate at application, a change to the loan amount, a change in product, a change in closing date, and any changes to fees.

Minnesota Mortgage Broker, Patti Mazzara, recommends that purchases are ideally allowed no less than 45 days to complete the transaction. If you are looking to buy a home in the Twin Cities, MN - visit www.VentureLoanApp.com and ask to work with the Patti Mazzara.  We also help Minnesota home owners refinance their current adjustable rate mortgages into fixed rate mortgages.

Minnesota Mortgage Broker Discusses Life After Bankruptcy - Is It Possible?

Edina, MN – Bankruptcy is an uncomfortable subject for a variety of reasons. The most obvious is the potential havoc it can wreak on your finances when obtaining a mortgage loan. Running a close second is the negative stigma which is often attached to the process. This negativity is important to mention because strong emotions can sometimes lead to unsound financial decisions with devastating results.

Bankruptcy becomes a viable option for someone who is “upside down” in terms of cash flow. In other words, when a person has more money going out each month than coming in, bankruptcy should be considered if no reversal of this negative cash flow is within sight. The longer someone waits to explore the various options available, the more serious his or her situation may become.

One of the worst things people can do in this situation is to borrow more money to try and pay off their debts. On paper, this is clearly an unwise financial decision. In the real world, however, it is very common for individuals to pursue this strategy in an attempt to buy time and hold off on filing for bankruptcy. On the surface, this is certainly a noble notion; however it can often compound the problem and serves only to delay the inevitable.

For many homeowners in the midst of this upside down cash flow, speaking to a qualified mortgage professional like Venture Development http://www.ventureloanapp.com is a much better option. An experienced loan officer can objectively look at your finances and help you determine if restructuring your mortgage would not only help, but possibly even alleviate any need for bankruptcy.  Please visit our web page to learn more about debt consolidation http://www.ventureloanapp.com/debt_consolidation.html

If bankruptcy is the only option, seek out a reputable bankruptcy attorney and credit counselor. A qualified mortgage specialist can provide references for you as well, as he or she works with these professionals on a regular basis. Reliable references are essential in this case because experienced professionals greatly increase the odds of a successful bankruptcy experience. It’s that simple.

When filing for bankruptcy, be completely honest and accurate regarding every aspect of your financial situation. This includes any changes to your income which may occur throughout the process. Bankruptcy is a federal procedure, adjudicated by real judges, and scrutinized by representatives who coordinate with the Department of Justice, the FBI, and the IRS.

Here are some additional steps you can take to make the bankruptcy process as painless as possible:

•Save all paperwork regarding your bankruptcy, and keep it organized. This will prove beneficial after your bankruptcy as you now have all of the pertinent information in one place. Also, be sure to write down your discharge date or keep a copy of the discharge paper that is stamped and dated. It’s surprising how many people forget to do this.  Keep these records available in the event that you will you will be required to show the bankruptcy documents for a future home purchase or refinance.

•Establish a household budget. This can be accomplished in many ways, but there are several inexpensive computer programs available which do an excellent job.

•Throughout the bankruptcy, do your best to not only live below your means, but to save as much cash as possible. You never know what you may need it for once the process is completed.

•Be prepared for a barrage of junk mail. There will be sharks on the loose who are hoping to capitalize on your need for credit.

Tips for Rebuilding Credit:

•If you must buy a car, focus on transportation as opposed to style. Buy an inexpensive, used car, and try to get a loan for it. It’s a good idea to figure out what your budget allows in terms of a dollar amount first. This means obtaining financing prior to looking for a car.

•Get a secured credit card. Secured credit cards allow for the cardholder to deposit a said amount of money into an account, thus establishing the spending limit of the card. Missed payments result in deductions from the account. Some of these cards will reward responsible borrowers by upping the limit without an additional deposit. Some will even convert the account into a traditional credit card. (Be wary of offers of “easy credit” or any card which asks you to call a 900 number. You will be charged for the call.)

•Meet with a credit repair specialist. Not only can they help you clean up the damage to your credit report, they can advise you on specific ways to rebuild the credit you lost as well.

While it does take time, there is definitely life (and credit) after your MN bankruptcy. Some mortgage lenders will even lend to you within a year or so after a bankruptcy. If you’re in serious financial trouble, the trick is to get the help and advice you need from professionals you trust.

Call us – Your Twin Cities Mortgage Broker!  We help people in Chapter 13 purchase and refinance in Minnesota.

The Coming ARM Bomb

Just when you thought it was safe.  From all the data I’ve been reading, the next leg of foreclosures will involve ARM’s in the Alt A, Prime, and Subprime markets.  Expect the foreclosure crisis to continue for a number of years.  My guess is we return to a normal market in 2013.  Hope it’s sooner.  Here’s some concurring opinions and data to back it up.

http://www.businessinsider.com/henry-blodget-coming-soon-the-alt-a-mortgage-reset-bomb-2009-8

http://3.bp.blogspot.com/_pMscxxELHEg/SJ2TM6xk9FI/AAAAAAAACa4/z1O-B6zuGkQ/s1600-h/ClaytonAltA.jpg