Eligibility For Mortgage Loan After Foreclosure

You may be thinking that you no longer qualify for a mortgage since you have a foreclosure in your credit report. But this isn’t true !

You can still qualify for a mortgage after foreclosure. However, you may not enjoy very good interest rates and you will shell out more than the mount you opt for. So, it is best to improve your credit rating prior to applying for a mortgage immediately after foreclosure. Instead you try to explore the different ways in which you can improve your credit rating.

Given below are a few suggestions in which you can do so :

Apply for new credit accounts

Apply for a secured or an unsecured credit card or a department store card and make sure you make regular payment for your bills each month. If you are able to do so, it sends positive signals to your creditor and indicates that you are financially responsible.

Budget your finances

Once you have faced foreclosure, you will probably not want to repeat the same financial errors again. You can work out a budget that can be used to keep track of your finances.

Determine your home affordability

When you apply for a mortgage, you may come across lenders or mortgage brokers that will force you to inflate your income so that you can take out a mortgage of a bigger amount. But you should avoid such manipulation. Make use of a mortgage calculator that can help you to ascertain your home affordability.

Save enough cash for down payment

The more you save for down payment, the better it is. This is because you will have to repay less. And if the mortgage you are taking out is not very big, the amount you pay each month is also less. While you are trying to improve you payment habits, you can keep aside some cash that can be used for your down payment later.

Check out prevailing conditions in the market

It is not just important to rebuild your credit. You must also take into account the prevailing condition of the mortgage market. If the prevailing condition of the market has pushed the price of homes quite low, keep in mind that in case you need to sell off your house, it won’t be enough to pay off your mortgage.

One of the main factors that the lenders see is how you have been using your cash since you faced foreclosure. One aspect that you need to keep in mind is that if you have faced foreclosure and you are planning to take out a mortgage, majority of the lenders will lend not more than 75% to 80% of the purchase price of the home.

If you have further queries, kindly check out topmortgageadvice.com

Busy !

Been so caught up with work and all the things that has happened in my family that I have almost forgotten I had this blog.

How are you doing with your current mortgage loans ? Any ideas on improvement and how to lower the rates especially ?

Of particular interest is in refinancing and your contributions will be appreciated.

Let me know !

Online Search for Mortgage Tips

Whatever that is written on this mortgage blog is also based on sources and searches from the internet as well as from personal experience.

Ideally, you should learn to Bing or Google for more sites to gather more information if you are actively seeking mortgage and equity loan information, suggestion or advice.

My advice is that once you have gathered sufficient information or have built up more questions, you can approach your local financial institution for a private consultation on your mortgage needs. Afterall, a mortgage on your home is not a small issue and involves money, and proper planning on repayment to ensure that you can adequately afford your loan and not default on payments.

Also, different countries and even different regions within the same country may have different rules and regulations, and premiums based on living standard and localised needs. So, reading about mortgages online is just to provide you with a general overview of what to do. Most important is you still need to go to your localised lending insitutions as they are the ones who will understand your needs better that suits your community.

And I would also suggest meeting up more than 3 lenders so that you get a better picture as this is a long term committment that can help you or cause you more unhappiness if you do not manage your home mortgage loan prudently.

So, to conclude, online is a good start but you should not end there. ultimately, approach your local lender !

On My Blog

For those who visited my blog, you guys are probably looking for a solution to your home mortgage needs. Might with any unpleasant situation with your current loans ?

Or you are currently already servicing a loan and is looking into tips to refinance or reservice it.

Well, you have certainly come to the right blog !

Go through my blog, browse through the topics available to gain further insight into the world of smart mortgage loan financing.

Get tips and ways to lower your rates, refinance them for better management or find new ideas on how to manage them.

Of course, I am not a guru in this topic but I want to share with everyone the information that I have gathered based on personal life experience as well as what I have found on the net and from my finanical consultants.

If nothing else, I hope you will find my HMEL blog a good read :)

Have a great life people ! Lead a life free of debt and not be led by the nose by your loans :)

Refinance for Less Monthly Payments

When you refinance, you are, obviously, taking advantage of a lower interest rate to save money.

There is, however, more than one way to save money. You can keep the length of the mortgage the same as it currently is and lower your monthly payment amount, or you can keep your payment the same, and shorten the length of your loan.

If your financial situation has improved since the original purchase of your home, you may even consider increasing your monthly payment in order to dramatically shorten the term of your loan, saving money in the long run on interest payments.

Whether you choose refinance to lower your monthly payments or refinance to shorten the term of the loan has many determining factors. If you can handle the amount of the monthly payment, shortening the term saves money paid on interest and may allow you to pay off your mortgage in full by a point when the extra money would be valuable, such as retirement, or children going to college.

If your current monthly payments are causing problems, such as limiting the amount you can save toward retirement, or preventing you from replacing a car that is in need of work, you may choose to lower your monthly payments, freeing up some cash for things that you need right now.

Whatever the case may be, use a free online mortgage calculator to work out your finances. Call your local mortgage specialist for a free reevaluation of your current mortgage loan. Mortgage calculators are easy to create and you can readily find some simple videos which can teach you how to create one via Excel.

Refinancing Involves Writing a New Mortgage

Refinancing involves writing a new mortgage. This means a couple of things which we will briefly discuss below in this post.

The most important thing to realize is that the lender will not just fork over a new, lower interest rate. You will be asked to bring in income documentation, and your credit score will be checked, just like with your original mortgage. This means, of course, that there will be fees involved. You will have to pay closing costs on this mortgage just as you did initially.

The other important point about writing a new mortgage is the fact that, if your financial situation has changed, you may not qualify for a mortgage, or you may not get a lower interest rate. For example, if at the time of the initial mortgage, you and your spouse both worked full time, and now, one of you has decided to stay home, it does not matter if you are paying the mortgage on time every month, the lender will notice the change in income.

If you are concerned that, due to lower income, you may not qualify for a refinance, you should hop online or talk to a lender in person. If you have lived in your home for a while, you may have paid a good bit down on the principal. Remember, you are refinancing the amount left on the loan, not the original purchase price.

If unsure, check with your local mortgage consultant, current lending institution or even do a search online ! make sure you are properly equipped with the right knowledge and information before going for any mortgage refinancing. Otherwise, you may end up with more issues on hand than you can handle and may end up with more debt and possibility of default issues.

I hope this helps !

Low Cost Home Loan

Low cost home equity loans are now available through the Internet which makes searching even easier these days.

Before the Internet, a prospective homebuyer had to use his or her telephone to research the types of low cost home loans and their terms. Now a person can do the same research within minutes through a home computer. A person can compare rates, terms, and services of several lenders and decide which one offers the best deal.

Before a person does research, figure out personal desires and personal budget. Some sites will offer worksheets and calculators to help determine income base and what a person can afford. Someone can be prequalified for low cost home loans before a person begins house hunting. That way they can have a realistic idea of what kind of home financing to get. Then a person will avoid the disappointment of finding the house of their dreams that they cannot qualify for. It is important to look at all options before making any decisions. A good financial consultant will be able to explain all the options for each specific situation. Know all the details of each option presented therefore avoiding regrets later when the home equity loan is signed.

With prequalification in hand, a person can confidently go house hunting. When a person finds that dream home, they are ready to settle the deal and apply for the financing. Although each low cost home loan process can take a few days, by using the Internet to apply, a person will save many trips to the loan office and many days. They will get personal attention by applying for a low cost home loan over the Internet. When a person turns in the forms, he or she will instigate a response that will quickly make them a homeowner! But be patient during the process because sometimes it takes a while for paperwork to get done and frequently there are 'snags' in the process therefore delaying ownership.

Rather than rashly selecting one lender, check out the terms and services of several home loan plans. This is good stewardship of time and money. Know what the latest terms and definition of low cost home loans so that a person can more intelligently decide which low cost home loan fits the personal situation and income.

Today, home ownership is more available than ever especially with the availability of finding a low cost home equity loan.

Where to Find Mortgage Rates and Related Info

One of the best source of information to find and compare rates and loan terms on mortgages and other types of loans is the internet.

Loan comparison websites, for instance, allow consumers and mortgage shoppers to compare tons of mortgage loan packages with the simple click of a mouse. These loan comparison websites compare loan packages from a variety of different lenders, along with contact information for the various lenders. While these websites can be very useful, it is important to know where these sites get their results. Some loan comparison websites provide results only from lenders who pay to appear on their sites, so it is important to check several different loan comparison websites to be sure you find what is truly the best deal.

It is also possible to get a good mortgage loan deal from a mortgage broker. Independent mortgage brokers have access to hundreds or thousands of mortgage loan packages, as well as the knowledge and experience to help you choose the right one for your individual needs.

Major national and regional banks and finance companies also avail on their own websites where they advertise their current loan specials and offer potential borrowers the opportunity to apply online for the loans they need. It is easy to compare and contrast the loan terms and conditions between the different banks and finance companies online.

No matter what source you use, shopping around online is a great way to find the perfect mortgage for your individual needs. Just do not be too hasty in jumping into a loan. Take some time to compare the terms and decide on the one that suits you.

Modification Programs to Lower Your Mortgage Payment

Most low salaried people spend half of their income on the monthly mortgage fee they owe and are not able to adequately support themselves and their families. Finding ways to lower your monthly mortgage payment is the first thing you would do when under the pressure of your low finances and when you are strictly out of any further cash.

Wouldn’t it be great for you and your family if you could pay less each month from the credit payment left? Jumping by the dollars that you are able to skip for mortgage payment, you can easily control your other expenses and even afford to provide your family with high-priced meals once a month. You will then even manage to pay the mortgage on time.

All of this is possible through simple loan modification programs provided by various companies. 1stForeclosureprevention.com provides you with many of such amendments such as settling for a lower mortgage payment from your lender, avoiding negative credit impact for you and giving you a chance to pass up any possible foreclosures. They provide you with many loan modification programs through which you can regain your financial strength and avoid any negative bangs.

The best thing is that there are no particular conditions to apply for a mortgage modification. You should just have to familiarize yourself with the program that you are applying and have complete knowledge about its working. If you don’t understand, the program will itself give you support or you could contact a professional to help you get by it. It is not important for you to have a greater credit or a stable financial situation. Even if you are involved in a possible foreclosure, these programs will help you lower your payment.

It is necessary for you to know the market and choose the modification procedure or processing service which will allow your mortgage adjustment in a good way and also on a certain agreed time. This course maybe the only one chance you have to save your property or your home and it is essential that you take it seriously. Loss mitigation specialists have the specific staff and information to handle the constraints set by your lender.

The alteration will lessen your monthly imbursement for mortgage and even sometimes reduces the current interest rate. Although one condition is that you may only apply for only ONE loan modification during however long your mortgage lasts. To slow down any likely property foreclosures, these programs force refunding the mortgage dealers that they now call for. The institution which provides the mortgage may be forced to offer you with the program but the task can be a difficult one.

There are many sets of files and paperwork that are to be arranged and organized in order for the processing to continue. You have to carry out formalities yourself and deliver the paperwork to the right agent within the mortgage institution for the dealing. It is essential that you perform the task well and reduce any risk of failure so that your request is not denied. Current financial circumstances do not permit you to be denied as it could cause a negative impact on you and your financial credibility.

A loan revision can indicate the difference between staying losing your home in the mortgage and staying happily with your family in your own home. Help is readily available for you once in your mortgage life to reduce your monthly payment and you should take advantage of the offer to help you get the control of your money back.

Mortgage Reduction is possible if you choose to become educated about options available to you as a home owner. The Mortgage Reduction Now website is intended to be a source of knowledge for those struggling to make monthly mortgage payments or those facing foreclosure.

Articles ON Mortgages and Loans

Well the good news is, finally there's someone who will offer me articles on my subject matter so that I don't have to crack my head all day and night to keep my mortgage and equity loan blog up to date.

Thanks Greg !

Really appreciate this and I welcome all contributions !

Remortgage Your Home Loan

Remortgage is nothing but switching your present mortgage to another lender, as he is offering a lower payment for the same mortgage. In brief it is just saving your money. Remortgaging generally involves changing the mortgage lender.

Many lenders offer this sort of good deals. By remortgaging you can also save a lot of interest . The important thing is the cost in the penalties which you will have to pay to your old mortgager. This is easy to search .There is huge ignorance by the people on the savings possible due to lack of remortgage financing knowledge.

In the olden days mortgage refinancing was very complicated. One had to go around and see through even the minute details of the lender. But nowadays due to the rising competition there are many lenders who want to steal away the customers of their competitors and for this they offer better deals. All they need to do is give better options to the broker and come up with good schemes to attract more and more customers. The best way to make a deal is to shop around and take quotes from different lenders when you buy financial product. For choosing the best remortgage deal you will be looking for the cheapest interest rates.

You need to watch out the tie ins also. This is to be done with the insurance of the mortgage or with the penalties you pay. Dont look to remortgage just for the reason to save a little money because this may lead you to pay a very huge expense for the deal. All the above points should be noticed properly with full concentration and should be considered before any step ahead.

The bottom-line of remortgaging a deal for the best to happen is one that doesn’t bring you down.

When Choosing a Mortgage Loan

The most difficult thing about a mortgage is selecting one of them from the thousands available.

However the main part of selection depends upon the type of mortgage loan you want. And to simplify things further one can first decide what types of mortgage you don’t require. This will give you a list of mortgages in which you have the slightest interest also.

After the list is ready you can then look for the best available lenders in market presently who are able to offer the type of mortgage you want. And if you do not have any experience in this field you can consult an independent financial advisor or a broker who can provide you with the best type of mortgage that suits your need.

Basically the presence of so many mortgage companies available in the market today makes it clear that there is a lot of scope to invest your money. This is what is advantageous for the investor and gives him a strong position in comparison with the lender. The common mistake that is made by the ones who take mortgages today is that they think they are getting enough just after seeing their first loan proposal and immediately accept it.

You must be patient and calm while you make your choice. Lenders make you feel that the loan amount is very small for however big it may be. But the fact is that they need u even for the smallest amounts of loan. Always look for the best deal and also make sure that the comparison between the mortgages is very accurate and try to get best deal possible.

Most important thing to be checked is the interest rate of the mortgage loan being taken by you. Application fees and valuation cost also matter. Also don’t go with the lenders who try to gain your confidence by providing a very low interest rate. This is done so that they can get you into paying high rates.

Just be careful and be precise when going through all the documents and fine prints as you are the one signing on the dotted line. Do not end up with a mortgage loan you will regret later on.

Types of Mortgages

They are a few types of mortgages, which makes it a challenge when for shopping for a home loan. Let us review the following :

1. Mortgage on low interest rate
Every homebuyer has a desire to get a low interest mortgage. The best way to get it is by appointing a mortgage broker. A broker will have all the details about the small lending institutions which offer lower interest rate compared to the big banks and finance companies. However he will also look for his commission so you have to look into the details carefully. When the broker identifies good mortgages for you, it’s your decision to check all the details before you say yes.

2. Mortgage on only interest
This type of mortgage is like a credit line. You only need to pay the interest of the mortgage. The reason to use this is to get rid of small financial crisis or if you have an investment property like a land whose market price is increasing. Otherwise one should stay away from such loans.

3. Reverse mortgage
This in real is not a mortgage. It allows you, the property owner to have a value of his property without selling. One remains the owner with current obligations. Reputable lenders don’t need your house, they are just interested in the repayment. They are many types of reverse mortgages which are similar in some ways, like the owner is responsible to pay his property tax, repairs and insurances. These are the important things about the reverse mortgages that one should be aware of.

4. Fixed Rate Mortgages
This type of mortgage is chosen by most people worldwide.The rate of interest provided is guaranteed for a particular time period. Basically this type of mortgages have a term of 3-5 years. You can also have this type of mortgage for a period as short as 6 months.

Who is To Say You Cannot Apply For a Mortgage Loan ?

So even if you have a previous bad credit report, you will still be able to apply for a housing loan.

Have a good talk with any of the loan representatives.  As this market is very competitive, you should be able to find a suitable one.  However, the only thing is the premium will higher than for a person with good credit standing.

In any case, you can still reconsolidate / refinance / remortgage your existing loan.  Just be sincere in answering all the queries.

Of course, if you have intention to default again, please do not do it as it will be very detrimental to your records.

Everything You Need To Know About Remortgages

A mortgage is a type of a loan or lien that is given by a bank or some other financial institution against some piece of property. The loan is supposed to be cleared off within the time frame allotted, and until then the lending institution remains the owner of that property.

Remortgaging is the process of renegotiating the current mortgage with the institution; i.e. renewing the loan with the present financial institution or finding another lending company to help in buying out the present mortgage loan. It is basically a contract of repayment that is advantageous to the current owner of the property. Obviously, the best mortgages are the ones with interest rates that are lower than the property owner's present mortgage rates.

One needs to take care of a few things before applying for a remortgage. There are a lot of things one should check, like the best quotes for interest rates. People who have good credit scores receive low interest rates and the ones with bad credit histories receive high rates, so the ones belonging to the latter group should be a little careful when looking for refinancing deals.

Fees are also attached with remortgaging. There are many financial companies that may not charge fees whilst some who will charge very less. If it’s a new lending company that you are with you might have to pay appraisal fees because the mortgage company will have to appraise the property to see if and how the value matches the amount for remortgage.

Note that the owner of the property should actually remortgage if the process allows him/her to save money. If the amount is not too huge, the owner can look for lending institutions who don't charge fees. The process of remortgaging actually saves money in a monthly basis due to a decrease in the interest, payment and the duration of the refinancing.

Once the owner of the property zeroes in on a particular lending company after deciding on the interest rates, expenses per month and the credit history as well there are a few processes that need to be followed to complete the step of remortgage.

1. Proof of Employment. All kind of earning statements are to be submitted. If there are any other sources of income like trust fund, money won in lottery, etc are also to be shown.
2. A statement of expenses is also to be submitted. The income and expenses, monthly and annually should meet the guidelines of the lending company.
3. Examination of credit history is done after which an appraiser is sent to the property to determine the value of the remortgage amount.

After these steps and the completion of paperwork at the lending company the remortgage loan is approved.

Whatever the case may be, always do your math so that you will end up with repaying a lower interest that is less taxing on yourself.

The Right Mortgage Loan

Buying a home is probably one of the biggest property investments you will ever make. In addition to finding the right home at the right price, you also need to find the right home mortgage loan financing.

Whether you are a first-time homebuyer or a seasoned investor, finding the right deal can be a trying process.

Questions like the following will probably pop up in your mind :

Where should I start to look for a mortgage loan ?

What is the right mortgage loan for me?

Which company offers the best rates ?

The right mortgage loan for you will vary based on your unique situation and your financial comfort.

There are many options available :

Fixed rate mortgage loans - Lock in a low fixed rate that is guaranteed to never change. Popular terms include 15, 20, 30, and 40-year loans.

Adjustable rate loans - Flexible loan terms for your short-term goals.

FHA mortgage loans - Guaranteed by the government, FHA loans offer low down payment options and more flexible guidelines than traditional mortgages.

Low downpayment loans - Buy property with less than 20% down.

Vacation and investment mortgage loans - Loans specialized for the mortgage investor.

Ensure you do adequate research as you are going to be the one who will ultimately have to bear due consequence on whichever type of  loan you eventually decide to take on. You may end up with more than you can chew if you run into bad credit and have to look into mortgage refinancing again.

Some Basic Home Loan Tips You Should Take Note Of

Here are a compilation of tips you should take note of when going for a home loan, having gone thru one myself :

1) A home mortgage / equity loan is one of the cheapest loan you will ever get. As such don't pay it off early. Your strategy should be to borrow as much as possible, for as long as possible and pay it off as slowly as possible.

Be sure that you pay all other borrowings before paying down your  home loan -- (since all other debt is more expensive).

2) No bank announces that the lock-in has ended and rates are going up. None informs borrowers there is a way to avoid the automatic rate increases -- and lower payments to the bank.

3) When you move your home loan to another bank, it is called "refinancing". When you keep your home loan at the same bank, it is called "re-pricing".

After the lock-in has ended, do one or the other -- refinance or re-price your loan. Continuing with the home loan after the lock-in period is almost always more expensive than refinancing or re-pricing.

4) It is often worthwhile to re-price with the same bank to avoid legal and other fixed costs from switching.

Tell your bank you intend to re-price. You may be surprised by the bank's attitude. It will not be offended. It will become more friendly and helpful since they don't want to lose your business. To keep you as a customer, the bank will come up with an attractive re-pricing package.

5) You will get the lowest rates by bargaining. Two good ways to increase your bargaining power are: (i) Don't refinance alone. Do it with a group of friends. (ii) Shop around. Show banks the lowest rate you find -- and then ask if they can improve on it.

6) A common sales pitch is “free partial repayment” within the lock-in period. It is not as special as it sounds since you cannot finance the partial repayment with a bank loan. You must make the payment with cash or otherwise.

7) Nearly all banks are willing to go lower than their published rates.

Most acknowledge that their quoted rates are “subject to negotiation” and “the relationship manager may be able to lower rates further”.

8) Be especially wary of one-time offers. A marketing gimmick is for banks to tell customers about “special offers that have not yet been made public”. The deals are supposedly reserved for "special customers like you".

While it is correct that the offers have not been advertised, they are often complex and usually more expensive than a simple pegged-rate home mortgage / equity loan.

If you have any interesting tips to contribute, feel free to do so !

Never Take Things in Life For Granted When Applying For a Loan

For my readers :

Just a short advice :

Never take things for granted.

If you are out looking for a mortgage or home equity loan, do your due diligence in understanding what it is, what it entails to take up such a loan and lastly ensure that you are able to repay your monthly instalments on time and not let it lapse.

Do your due diligence or you may end up with more than you can handle, for instance, defaulting and given a bad credit report or even a repossession of your property by the lending institution.