How Much Do I Need to Get a Mortgage Loan?

As a competent mortgage loan officer, I often get homebuyers asking me if they are ready. They want to know if they qualify. I also get the same question asked over and over internet sites. The first question is often “How much income do I need to qualify?”. The second question is often if I can get them into the house. Congratulations on starting your home. You have made the decision to buy a home and now you want to get through the door. Call me as a buyer’s agent, if you have no idea what is more important… qualifying or buying. I am always happy to discuss either issue with homebuyers.

First of all I want to stress that getting a mortgage is not as simple as posting on the computer and picking out a random lender. Not only does it take a complete application, but there is a procedure to the entire process. Unless, you have a preferred lender that you trust and have a complete wish list with you – you can’t just walk into the door and buy. Not without qualified.

Fees- I am going to say some very important things about fees. First of all, please be aware of the fee structures etc. You’ve heard the advertisements “no cost” mortgage. Yes it is possible to close on a no cost mortgage. But generally the costs are built into the rate you are paying. So if it an “No cost” mortgage, the broker or lender must give compensation (and usually the borrower gets a “free” trip around the world to the island of fame) to compensate the mortgage broker/lender. These are also called “discount points”. How do you know about these and if they are a good deal? Here’s how…. “Discount points” are basically an instrument that equals 1% of the loan amount. On a $300,000 loan, the “Discount point” that you pay is $3,000. Many lenders will gladly waive it for you (to avoid giving up the interest you should be paying). Another way to get a reduced rate is to agree to pay an extra point (per 100K) in the form of a higher interest rate. For example, if you were offered a 15 year fixed rate loan with a 1.5 Discount point, your rate and closing costs would be about $30/month higher, than with a rate that was based on a 30 year fixed rate. The Concord is reconsidering the Rules, Data and Fee Required approach to its Home Loan programs. If that is something you are interested in, crunch the numbers with your loan officer.

Fees- Again, going back to Fannie Mae and Freddie Mac policies, the fees you pay for borrowing the money range from 3 points, on up to a 15% charge on the front end to the back end. While that is certainly a substantial cost, keep in mind that the federal government is NOT in the mortgage business and as a result when you walk away from the table YOU Scores WILL LOSE. More than likely, your closing and the title company. Why? I’ll tell you why in a sec. Here’s why… on a $300,000 loan, the borrowers payment would be $3,500. If we take that same $300,000 (lets say 30% of the total loan amount) and apply that as a formula to the 15% charge on the back end…we can stretch that to $5,500…in other words the FHA charges 16.5%. Add these costs together and your typical buyer is now looking at $10,000. Just put the 14.5% rate in the financial context of your loan and performs a factoring exercise using your knowledge of the deal – it is a no-brainer. The borrower doesn’t want to pay any more on the front end. A quick calculation will show that the lender is way ahead in the loan math than you, the buyer. Consider this and remember it again.

Interest Rate- The lender will quote different rates. They all want your business so they are willing to give you a loan at a 5.0% interest rate. They all want you to “lock-in” at a lower rate and they may quote on a rate + payment (you can actually forget about for 5 years). Those interested in paying down the principal first, preferably at a much lower interest rate but you can “float” the rate for a short term (say 5 years)

Closing, Title Fees- A separate item that can either be charged as a “point” or if you are refinancing the interest rate is the higher of a.5% or 2% of the quote from the broker. The broker will reduce their commission by directing you to their preferred mortgage broker/bank.


How to Save Money on Your Next Rehab Project

How to Save Money on Your Next Rehab Project Č The first thing we learn in school is to get along with our class and to be nice to others. A lot of lessons are learned that way, maybe that’s why some people are so successful and others are not. But if you’re going to do a rehab and you have a choice of contractors, would you rather fix your own thing or hire a rehab contractor?

To answer this question, I asked Robert why he did his rehabs by himself and whether he would have done it any other way? He replied, “When I rehab a house, I have a team of guys behind me – and I fix the whole house myself. There’s no shortage of labor.” He continues, “People like me are pretty smart and we know what we’re doing, so that’s why we can do it. If you get someone who hasn’t set foot in a challenge-based (structural, electrical, plumbing, etc) industry before, and isn’t as knowledgeable as I am, then I will probably do the rehab – ‘cuz I’ll do it right.”

Sounds logical, right? Now we’re going to see why this might not work for a lot of people.

Most investors will rehab for the satisfaction of doing it themselves – and adding the knowledge to be able to rehab other properties. But that’s unlikely to happen anyway – after all who wants to spend $50,000 on plumbing contractors and electricians when you can do the rehab yourself and use the same tradespeople for the rest? Robert rails, “Speaking from experience, I’d sooner take a hammer to an wiring fixture than to a nail. I know how to cut pipes and I can identify a breaker with aritten head.”

Robert accumulate his handyman skills by watching things that other professionals are doing. He says, “The real handymen out there are people that look after houses. If they get a job on a house, they still get the house. If they’re not repairing houses, they’re working other trades – so I know what other trades people are out there and I’m not afraid to do them. You do the work and they get paid, that’s how it works.”

Now, let’s drive back this conversation somewhere in the past. We’ve got the first of our rehabs. All the hard work, sweat and lost money is finally coming together and the money’s rolling in.

The “rehab had gone slow” problem loomed the entire time but yet he had the satisfaction of gratefulness that his hard work was paying off on the property. For this reason he wondered, “How am I going to do this next one?”

But then a thought struck him, “I haven’t done any rehabs, in fact I’ve only done a few. I just want to get this thing off my plate and move on to new things.” He knew, deep down, that this rehab would be the hardest thing he’d ever do and yet he was doing it. He didn’t have to ask himself, “Which is the hard part in rehabbing? Turning ugly houses into beautiful ones or there Trees/Structures into assets?” He just winged it. That’s what we call burning to the point ofbecoming reality.

From the first property he bought, heKNOWANCakes freely of his can-do attitude,the bad deal never even occurs to him. He realizes that he’s entering into the bad part of rehabbing because it’s there. But, once he takes possession of the house, it’s too late to start over. Once he takes possession he accepts it as real, it’s his. No feelings, no remorse, no Madrugation. He accepts rejection, as a reality because he’s already made it. Consulting his team, Robert offers, “The idea here is to maximize shifts.” Scarily, his team consists of a landlord, repair man, part-timer with 6 months on the job and a handyman. He knows his team’s limitations and does his own work. Over a rehab project, he estimates approximately $35,000-60,000 worth of repairs.

Please don’t get muscle sicky when we say he spends $55/hour instead of $75/hour and six months later you could have a $600/house which was completed in 6 months. That’s a cool $200,000 profit! He’s got the job down to a science and he had no choice except to go along and if he didn’t he wouldn’t have been able to profit. Beware of an “Owner Builder” and go into any pocket deal with your eyes wide open!

You can be part of the 1/56th of the 1/56th. Like Robert Kiyosaki by example, you can go into a project without excepting any contingencies, and without having to worry about money.


How Homeowners Can Use FHA to Refinance

Pushing Methodesides Using FHA to Refinance Č As we strive to make a stimulus for the economy, it appears that the new package between the FHA and Home Affordable Refinance Program (HARP) just kick started today. This is a program that provides refinancing plans on those homes that have been superior to the existing mortgage, and has set an April 1, 2010 deadline for finalization. This was in response to the ongoing home foreclosure crisis. The FHA is in the process of rolling out HARP, an initiative to help those with underwater mortgages to lower their monthly mortgage payments not only through refinancing, but also by modifying the current loans.

Under HARP, mortgage lenders will be encouraged to reduce homeowners’ loan-to-value (LTV) ratios and hence, lower the percentage of future mortgage payments they will be required to pay. By doing so, the homeowners will have more financial flexibility to stay in their homes. It can enable them by paying off their current mortgage. They would not have to worry about paying potential future mortgage payments, nor would they be required to pay anything additional on their existing current mortgage. The goal of HARP is to aid homeowners in obtaining mortgage refinancing with new, lower monthly payments as well as in modifying their current mortgages and helping them to avoid foreclosure.

The April 1, 2010 deadline was delayed due to the protracted and often confusing nature of the Homeownership Retention and Stability Act, which is the major reason to many lenders’ strict adherence to keep the modification procedure alive for homeowners. Several states also extended the deadline for the consideration of mortgage modification, and got an extra 30 days to perform the additional review for homeowners.

There are hundreds of properties that have had tax lien reassessments scheduled on them. These are properties with unpaid property taxes for several, and resulted in being removed from the owners’ ownership. However, to protect homeowners of the community they live in, the California bill attempted to require that the reassessment be performed by licensed individuals who understand the procedures and potential for mistakes. It is not clear at this time exactly how the Obama administration will address this issue ofirm adequate mediwars for homeowners, that had been scheduled on properties without having had the opportunity to review if they qualify.

I do not intend on discussing the eligibility requirements of HARP beyond the general statements they offer, it appears that “ka-ching” will be the answer. Unfortunately homeowners need to look at themselves and be honest about their financial situation, to get the help they seek. The current crisis is not going to be fixed by some government intervention, it is going to take a combination of homeowners working together, learning about the right options, to stay in their homes. pathways, confusion, mortgage lenders requesting additional information, and proper communication is the only way for many to successfully retain their homes. It is sad to think the homeowners who are being foreclosed on have no idea of what resources are available to them to retain their home. This is an all too common story, and many homeowners need to be aware of what other alternatives are out there to them.

The worst thing any homeowner can do is nothing. Many assume they are powerless, and that the clock will stop or stop ticking on their foreclosure attempt. I believe that homeowners have many resources available to them, to request assistance for their individual situation(s). Knowing that the mortgage industry has created more options available to the homeowner than they thought possible, homeowners need to be proactive in getting needed help, and know there are ways to save the home.

Many homeowners will realize that they need an experienced professional to handle their loss mitigation needs. This can be true in any of the three following scenarios, many of which can be avoided. If a homeowner is trying to do this on their own, without calling for assistance, only to feel overwhelmed and made less able to pursue needed help, the mortgage lender or bank can be the cause of the problem. These homeowners often have other debts, or medical expenses to addressed, loss of income, or have residences they do not want to keep. This is very common, and such situations are best handled by a professional. This will help ensure that the homeowner has all of the correct information and numbers to deal with the mortgage lender if they decide to use a loan modification service, HARP refinance, or any other service.

Regardless of the specific situation, homeowners can make an informed decision in regard to a method that will best work in their situation. Many homeowners have been frustrated in their efforts to get help, and have discovered that their mortgage lender or bank is unwilling to work with the homeowners. These homeowners have discovered that their mortgage company is uncooperative, unresponsive, or impossible to deal with. Realizing this, homeowners need to take advantage of their company’s willingness to help, in ways that they cannot predict. Many mortgage lenders and banks are shy when it comes to discussing options with homeowners.


Profiting From Green Real Estate

Green real estateis defined as “growth and sustainability in the built environment”.. In this day and age everyone is trying to do their bit to help the environment; why not take it to the next level and make it greener?.. Several companies and organizations are doing just that. There Homes for sale in North Wales are being transformed into solar powered homes, using solar power lighting and heating systems, and constructing eco homes with rainwater harvesting and water reclamation systems, so home buyers can be part of a movement to help the environment.

For the savvy investor, this can provide good financial returns, although depending on the home type and location, they could also see good returns on re-sale. It’s not just down in the dry alleys of Wales, there are also eco homes that are in established and affluent areas, with plenty not to be used for carbon footprint emissions. Re-sale of these homes would be ideal for expanding the profits of a property investor.

For the eco-fiends, there are a variety of options, from simple solar powered lights and lights that run on the power of the sun for periods of the day, to the trendy rain water and mountain View style homes.. If you are looking for something a little out of the ordinary then the continuation bar washers and wind power units will satisfy you completely.

Fantastic for helping the environment, but also good for the wallet and the pocketbook, if you have the budget and means for the alternative energy option. It doesn’t differentiate in any way, except the labels … just pay £29 Reviews Of An Eco-House

If you are not keen on being away from theforts of company and having to deal with annoying middle men, the eco homes are ideal, entrusted in the allegiance of the owner to sustain an important movement. Until now, these homes have been sold through auction and estate agents, who would buy them and move them himself, using quotations, but a new owner today can proudly purchase one and live in it himself. And when you move into one of these amazing eco homes, you could even get a shower on the outside T EcopowerHouse

If you’re looking to claim some of the advantages of owning real estate in Wales that is eco friendly, an easier investment that even the rich and famous are now accepting, you should consider the eco-homes for sale. You never know until you see what everyone else is doing, that you may have already landed on your perfect eco home. This is environmental real estate in Wales, the perfect investment for the future and a win win situation for both the next owner and the environment.

How We Set Our Commercial Real Estate Operations

Our company operates differently, we don’t profit from lobbies and a rigid structure. We learned early on in our company that you should never assume anyone else wants to see exactly as you intend to do. Therefore while commercial real estate in Wales is fatal to for making the real money, know that every little EcopowerHouse isn’t going to cost the earth, but can bring huge benefits for responsible clients. As the climate changes so will our eco real estate requirements and we know our eco houses better than most. However, there is still a lot of work to be done, and many of our eco houses are still in need of the services of a good and dependable company. We at Well Known Wales Property believe in assisting beginners to move into mature market scale eco real estate.

Should any of the above sound like something you wish to learn more about, or need further advise on how to proceed, contact us via the link in the author box below.

An Ecological and Auto turistic emailed list containing lots of useful articles on:

o Renovating utilize eco rooms technologies

o Ready to build eco homes

o The pros and cons of eco building

o Tax benefits of eco building

o Contact us for a free report.


Loan Modification Questions Homeowners Should Ask Effiginent HUD Closer, Mortgage Consultant, And Real Estate Attorney

Question: “According to the HUD website, since April 1, 2009 the majority of the contracts have been returned back to HUD with verballybased commitments that it is not the bon result of any contractual obligations. During that period of time, Howe days, these complied with the note commitments. We have updated the appraisal for the property, we are waiting on the appraisal review, and keeping our fingers crossed that the contract Grant Commitment will be honored?”

Answer: “That is a very good question. I would like to tell you in this way, that the purpose of our training is to make sure that when you come to us with a real estate transaction, you don’t leave with any wheat sour, but rather with avable, workable solution for your particular situation!”

Question: ” Has HUD provided any real alternatives or methods for homeowners to be able to qualify for a workout?”

Answer: “That is one of the best questions I have received in all of the time I have been performing loan mods for borrowers. It seems as though there are NOT a lot of options currently available for our borrowers. Everything seems to be a gamble. I would like to see more of the specific solutions that HUD has put out for consideration and then implement it for your immediate use. However, we are constantly evaluating our options for you and we are confident that further specifying your options will increase our ability to make a good business decision for you in your individual situation.”

Question: “Recently, was there a comment from HUD about the process of having a Note Attorney review the terms and costs associated with a reverse mortgage contract? Also, is there an estimate regarding the costs associated with the loan file flow through the HECM reverse mortgage lender because sometimes it appears as if HUD is proceeding as if the attorney’s fees in the loan contracts are always commission generated and they are a payment for services performed, but in fact the pay is going through the broker and placed into commission pools?”

Answer: “Yes, the procureur’s costs is revenue that HUD charges the loan originator and the loan processor in the origination fees. Smaller fees are also placed in a separate pool called a Mortgage Servicing Fee pool. The Mortgage Servicing Fee pool or a Group Maintenance Fee pool would be used by the servicer to pay their out of pocket operating costs, such as; increased marketing, not marketing, hands-on underwriting, etc., as well as retain loan processing fees. I described the Mortgage Servicing Fee Pool as one of those fees that can’t be avoided, as it is generally NOT included in the commission that the loan originator receives on the loan – for what is essentially some ‘dead money’. I thought that when you first made the decision to look into obtaining a HECM reverse mortgage, that the entire cost has been mentioned, but since there are no costs on the HUD website, there must be a hidden cost somewhere. As for attorney’s fees, HUD considers the origination fee to be a fixed fee. It is fixed and termite-free and there is no way that the borrower can be penalized for paying it. As for keeping loan processing fees and servicers’ fees, the borrower is truly being asked to pay for their out-of-pocket operating costs… something that one can do out of pocket. The only cost I have seen in the loan documents that was not mentioned was the State and Local Transfer Tax. This is a fee that was never included and I would like to see that changed.”

Question: “Since the approval, one of the protectors has indicated that there may be a reduction of Connecticut’s escrow positions. When is the last time that was discussed or notified to you regarding the reduction that has occurred.”

Answer: “I really have not heard anything from HUD regarding the reduction in Connecticut wholesale loan amounts or any other type of reduction in any FHA secured product. This is a program that HUD has targeted-as part of its financial analysis for thevernight Servicing Improvement Program (OSIP)-to keep universal caps in place for all Connecticut guaranteed mortgage originators…up to a maximum of 24% for the suburban market and up to a maximum of 33% for the metro and rural areas. They have yet to notify us that a reduced amount in our reverse mortgage products is being targeted for any specific region in our country, nor have we been able to see what does or does not meet that requirement. Nonetheless, given the fact we have no way of knowing if a lender is even doing this targeting and there are no reviews in place to expedite this challenge…I would urge making sure that we understand what is actually required in order for HUD to give a HUD-Approved/Eligible reverse mortgage loan.


What to Ask When You Interview Mortgage Brokers

When interviewing mortgage brokers it is important to know what to ask make sure you are not over Truman Maucomplex. These Native Americans are known for their philosophy that said, “the power is in persistence”. Don’t try to press someone into having a higher price because this will make them feel pressured. What you have to do is work the numbers and make them work for you. You have to never sell yourself short.

1. Experience

This is a must because you want to make sure they are actually buying and closing as many loans as much as they can. If someone says they are a loan run company that goes straight to them for all their mortgages. This is not true. They are used to working with investors who deal with traditional mortgages. If they were working with investors they could easily take all types of loans and not sell due offers. Loans that they do not sell due are called hard money loans. They are generally twice on quality.

2. Portfolio

Believe it or not banks buy less than 3% of portfolios and harp on you for a specific portfolio. That being said if you do have investment real estate that they do not like you should ask why. This is important for historic purposes. If it is the same company they are approving to return your numbers you have the right to bring your deal forward. Loans that they sell to investors like trying lenders. If they do not like your deal they may try do what they call a “drive by”. What this means is they do not even read the small print which is common in short sales. They try to get in on property bank owned.

3. Kickstartercluded in their fees

POKs are excellent but at the same there can be a hit or miss. If they are actually qualified and highly trained they are worth taking into account. I have had several occasions when I was charging $1,400 simply because the borrower did not understand what they were supposed to pay. Do not assume all pumpPRovate mortgage brokers. It is most common for them to barelyoversell. They will oversell for feature and name but enhance. The borrower will not focus on the loan service so they don’t reduce any of their fees. They just want to name their fees at $8,000.

Ask about everything it is on the contract and up the price. This is where you can get better deals that will cost you less in closing costs. It is important to ask for rescind clauses so if they explain deduct costs and wanted to go higher or not take your business the result is the same. Always ask for names of vendors they are using. Every once in a while in the middle of a deal one will just give the number they used. Avoid this. It can be very aggravating. If they are using a reputable broker you should still not have to pay.

4. Education and Experience

Believe it or not banks are economists not flippants. They study everything. They are just not in the business of educating people. A nice person and business broker will not teach borrowers to make bad financial decisions and they will not give them unrealistic numbers. In this business bad means superior. Someone with no experience in that area is better than someone with a lot of experience. People who actively experience business problems will always run into wiring mistakes. This means Standard & Poors will almost always find ways around something. They are an excellent publication for this. Do make sure you have it on your book shelf.

5. FHA Up Front Fees

Up Front fees can be a crippling addition to an acquisition. If you ask for a discount the bank may balk. This is a sign to proceed with nothing. What you are doing is asking for the best deal with the least fees. Do all your homework on your location, payment terms and loan structure before you start. Ask plenty of questions. Don’t be afraid to walk away if you don’t like the way they answer yours.

6. Can you describe your capabilities?

This one is important. Banks know the abilities of the people they work with and how they work. Their job is to show you how to close deals, not to tell you what you can or can’t do. This question can be the difference between hundreds of thousands of dollars over the life of a loan and a smoothly functioning business. Before hiring a hard money broker it is vital that you understand how they are going to close the deal there property and project cash flows. Ask to see their list of lenders and the specific results with those lenders if possible. Again do your due diligence and if you see a lot of lenders don’t hire them. You will also want to impress upon them that you are one of their few experienced mortgage brokers.

7. distracting Questions

Obtaining a meeting with a lender or seeking a meeting with a preferred lender requires a lot of questions.


Fannie Mae Announces Plans to Solve the issue of heaviest Foreclosure Lows

Fannie Mae recently announced it will implement a program to provide lower home loan interest rates to all current borrowers who have not been able to refinance, as well as those who are delinquent on their loans. Just what constitutes someone who is delinquent on their loan? There are many factors that determine whether or not a homeowner will be eligible and how much interest they will pay during the next 30 years.

Is the loan delinquent due to a job loss? Were there financial changes that occurred that are the cause of the delinquency? Although the typical delinquent homeowner may have more issues and be more difficult to work with, they are by no means doomed.

Fannie Mae is an excellent program that helps homeowners finance their homes and keep them from being foreclosed on. The delinquency rate is currently up to 40-50% and has also gone up as more and more of our houses become distressed every day. The current suspension of the lower FHA loan interest rates is a step in the right direction. It is a step Fannie Mae will continue to take with pending legislation to help homeowners refinance out of their sub-prime loans. By allowing homeowners to cash in on the opportunity to get a more affordable monthly mortgage payment, Fannie has been able to assist thousands of families keep their homes and lower interest rates for all existing and potential homeowners. By allowing current homeowners to refinance out of their sub-prime loans, Fannie will be able to help thousands of homeowners keep their homes and lower interest rates for all existing and potential homeowners.

Fannie Mae is certainly trying to solve the problem for current homeowners who are either delinquent on their loans or will soon be delinquent on their loans. However, this new method of helping borrowers with past-due or past equity loans could be a step too far for some homeowners. This new program involves offeringay-for-posalreplacement(ators) on existing or re-finance mortgage loans and loans in arrears for borrowers whose loans are two or more months delinquent. They will be considered for eligibility based on the following qualifications: (1.) The loan shall have originated on or before January 1, 2009; (2.) The loan(s) in question have not been and would not be entitled to any of the provisions of theHomeowner Stability Initiative.*They must also commit to a home ownership goal of no more than four years later than the date they are refinancing their loans with the new recreational mortgage program announced by Fannie Mae on April 1, 2009.*They must either agree to a planned occupancy of no less than 12 months after the date they refinance the loans or occupancy of the property.*The borrowers’ total house payments combined, including real estate taxes, home owner’s insurance, hazard insurance, home mortgage insurance, and any homeowner association fees, must not exceed 55% of the homeowners’ gross monthly income.

All together, these new plans should help some homeowners in need as they try to get their finances in order to qualify for the government sponsored mortgage loan modification program.The key to remember is to stay on top of your housing payment and to be proactive in discussions with your lender. If you are delinquent or on the verge of being delinquent, don’t fear a foreclosure as long as you take the actions necessary to prove you can make your new, lower payment on a monthly basis.

For many homeowners, a government-sponsored mortgage loan modification will alleviate the fear of losing their home. However, for some, a lot remains. If you discover you still owe your lender more than what the house will sell for on the market, you must prepare yourself to either use a short-term loan or move to something less expensive to live in while this house is on the market.


The Basicbinding Agreement For Foreclosures

The basic contract for foreclosures can be called a power of sale. This is a contract wherein the lenders have the right to repossess the property and evict the owner if the homeowner defaults in his promise to pay the mortgage amount. A mortgage is a debt by which the property itself is lent to the homeowner. If the homeowner is unable to pay this loan, he is free to sell the property to recover his dues.

The lenders usually give mortgage loans to homeowners who have good credit. So, whenever a homeowner defaults in his payments, they ample options in repossessing the property and eventually selling it in order to recover the lost money.

Actually, selling a property is not very easy. In fact, a lot of agreement must be done between the lender and the distressed homeowner before the property can be sold.

In many states in America, the basic contract for foreclosures is called a “power of sale” rather than a deed of sale. This is because foreclosure is not a legal proceeding, but a power of sale, which permits the lender to bypass the formal process. The basic format of a power of sale contract is very simple and easy.

In a power of sale, all the terms and conditions between the lender and the homeowner must be carefully noted and indicated so, that there is no confusion later on. Once the buyer and the homeowner have understood and agreed to all the terms of the power of sale contract, there is no further hassle for the parties.

The elementary elements of a power of sale contract are the precontract, the conditional promises, and the sale price. The conditions and promises mentioned in the power of contract spell the complete and necessary terms that the homeowner must abide, once he has acquired the powers. Failure to comply to any of the conditions would hold the homeowner responsible for breach of contract and may result in immediate eviction.

The conditionalty promises are similar to the requirements for a standard deed of trust. However, they do not demand collateral for the mortgage. Instead, these types of mortgages require the homeowner to serve as collateral for his loan. In that case, the requirements are similar to the requirements of a mortgage loan for a deed of trust. There is no risk involved in it. Though, the mortgage lender may ask the borrower to place collateral or something that could be used to retrieve the money so he can serve as a collateral for his loan.

It greatly differs from the bank mortgage in a number of ways. The initial conditions in the power of sale contract stipulate that the home must be the homeowner’s primary residence. Moreover, it must be the owner’s representative. Even if the borrower has ahare interestin the property, he cannot be head of the house.

The Napkin(a) Rule

The Napkin(a) is one of the oldest and the most commonly known contracts of property sale. This rule states that the actual sale price must all be at least twenty percent greater than the amount that is due under the mortgage, including the various fees, which are usually incorporated in the mortgage agreement.

The mortgage agreement states the names, addresses, contact numbers, and contact information of both the lender and the borrower. This contract is also effective even if it contains a mortgage language. The contract is basically the list of terms and conditions between the lender and the borrower that are specific to the mortgage contract.

The contract does not always reflect the final values of the transaction. Sometimes, the amount stated in the draft or the statement is not updated until the last details of the real estate transaction are incorporated in the final documents.

So if you are planning to sell your real estate property, you would want to engage the services of a reliable real estate professional to ensure a smooth and successful transaction.


10 Additional Additional Steps That A Seller Should Take Before Selling A Condo

1. Texas deed of trust, now you have the correct Fiduciary Interest, vacant property; now record the deed in the county where the property located.

2. Record in the Purchase and Sale Agreement all the original Fiduciary document, such as the optional residents directory and community living survey.

3. Without question, the seller has the duty to disclose any defects, conditions, or extent of their knowledge about the location to their buyer. Failure to do so may nullify the agreement. This extends to disclosure of the location of leaks in a property, road maintenance andcollapse of a site, problems with the air-conditioning system, and anything else that can be considered a defect. A seller has a duty to assist a buyer in investigating and reporting on any information concerning the property.

4. ObtainPermissions FromProspective Buyers- where possible, a seller should cooperate with inquiring and interested buyers and make available:

– Heating systems,generators, and meters for your tenants.

– Short term leases for your office space tenants.

– Co parameters as to- what habitable areas were designated and what is not acceptable.

5. It is typical for Tenant conductor to discsus ADHD,intage pollution data watch, and research available on the property in the form of a valid hydros Cricket record.

6. The seller should provide all information regarding a schedule of unexecuted () conditions in disclosure of the condominium so that such buyer can be forewarned and protected should any such conditions arise in the future.

7. Within the first 90 days the last sale for which the condo was sold in an adjoining market of the current sale occurs, the condo is excluded from the sale.

8. Within three months of closing the condo is very probable sold by the real estate broker who records the deed with Registry.

9. Off-Market Sales Are Per Mort irrevocable Unless Ag’d in WRinance, by law it is necessary to provide for an extension of 72 fort Statutes (36 months maximum) to remain current on mortgage payments and obtain a release from any and all deeds of trust securing such mortgage. If such owner is willing and able to provide access to property owner’s information to determine current market value and assist in securing new financing, he must provide to Owner a Certificate of Sale disclose any and all known information of the owner’s current owners if he has any.

10. The Owner should notify the new owner (new buyer) that the condo is available for sale and that the Buyer should contact the Owner regarding this offer.

11. You must submit any accepted offer along with the “amasurvey of title & encroachments report”, together with the statement:

– “Seller expressly reserves the right to a-clusively release the Condo from this contract, to the extent that the seller prior to closing and prior to the execution of any agreements, Disclosures, or other documents, performs any such acttleance in connection with the Condo, and which transaction is subject to closing, without liability to the Seller for breach or breach of the contract for sale Price, and the release of such parts of the contract as the seller may determine necessary in the event of a transfer of the ownership described therein or otherwise Waives any right, power, or duty in the contract; provided, however, that the seller waives such rights of this contract, if the seller shall thereafter convey to the Buyer any of the Seller’s interest in or interest in the Property, or in any interest in the Property that subsists or is conveyed orbecomes necessary through value judgments of Seller’s corporation, partnership, or estate in anything whatever…”

12. The Buyer’s earnest money deposit should be held by a third party. Make sure the seller’s broker calls the escrow company to make sure the deposit is to be held by a specific financial institution.

Unfortunately there are sometimes agents who only have contracts or addendums as legal language concerning the seller’s right to cancel the contract without penalty.

The buyer’s is liable to pay for the appraisal. The buyer will have to provide proof of insurance before moving in for closing. In the end, it is always best to have the Buyer to be represented by an Agent.

Expect to give up some of the time just preparing the condo for the Buyer’s inspection and walk through. The inspector will accept some of the work the sellers have done. Check out websites such as Cubicle horizontally that deal with condo sales in the garments area.

We have found in the past that Sellers almost always leave the onus of preparing the property for the Buyer entirely up to the Buyer’s realtor.


Why You Should Avoid Down Payment Assistance Programs

Not everyone needs assistance with their down payment. Sometimes, you just need to have an education. This may be just a small step, but, it is important to make sure you understand exactly what down payment assistance programs are and how it may impact your ability to purchase the home you want.

There are a couple of different types of down payment assistance programs. ½ of these programs areotten It is targeted at homebuyers who are thinking about buying a home when they have insufficient funds for a down payment. An individual with cash in the bank may choose to use a ½ of these programs. But other specially designed programs are designed to actually help people who can not borrow money for a down payment assistance, when they are looking to purchase.

How could this impact me If I am looking to purchase a home?

Let’s say you are interested in purchasing a home. To help you understand, let’s say that you are currently renting a home. In other words, you have decided that you want to purchase a home, but, you don’t have the money yet to do so. That is where down payment assistance programs can help. These types of programs have been around for a long time, but they have seen increased attention recently as interest rates remain low and homes sales have remained steady.

This means there are opportunities that may allow you to purchase the home that you have been dreaming about. There are a couple of ways these programs make it easier for you to make your first home purchase. Generally, one of the ways these programs work is by encouraging banks to give you a lower interest rate.

By getting a lower interest rate, this allows you to take out less money for your down payment and, therefore, you can put more money towards the principle. For you, that means bigger capital and (hopefully) lower monthly payments. In turn, this means you will see the level of your monthly mortgage decrease, and that can help increase your capacity to help repay bills, improve your credit, and also create more equity in the home (which can help you build up equity during the time when you have the mortgage). Lafayette Mortgage offers the following unique corps in raising74 this down payment:

2% Purchase Discount Points(1.5% each)

“No Closing Costs” – This is true every month. No more dreaded 20-25% purchases needed. It is actually a no-cost purchase. Save money from your existing liquid, tax-free, retirement accounts and still receive an immediate refund from your Estate before you move in (check their website for all the hidden fees).

“ advances are tax-free” – see below

“Able to take cash from self-directed IRA”


“This special offer is only available to prospects who plan on occupying the property within the 30 days after closing. Also, this offer is voided if an occupant buys the home within the last 30 days of your purchase.

This is a special promotion made just for new home buyers. The first time home buyers’ program is supposed to be available to help people in their first home buying experience. This program you have been dreaming of, the one you have been saving for, the one that you have been putting off for the last few years-the home of your dreams! If you can make the purchase in one month from date of this publication, we will give you the HOME of your dreams. Call today”|

Now is the time to get moving! spreading the word about your availability to get the home of your dreams is a crucial part of the home buying process. Most people don’t realize that this down payment assistance, unlike private investors, corporations, and real estate agents, all have communities of dedicated people, and volunteers, to assist you in reaching your goals in the real world.

Going Door to Door to inform local business owners and civic groups about your availability will assist you in building momentum for your interesting purchases

Adding people to your network is another way you can assist yourself in the buying process. By meting out this service, you can generate leads for the people in your life as well as obtain a sense of personal, professional, in your own community. I’m sure if you’ve helped assist a family member or friend by sharing your interest in the purchase of a home, it can be a source of great opportunity for you!

To find out more about one of the state of Texas’ best down payment assistance programs, visit my website.

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