| Mortage and Loan Advice
1. Before you start looking for a home get yourself pre-approved. Why? Because knowing you have you are guaranteed a mortgage gives you peace of mind and you are in a much stronger position to negotiate. Also, pre-approval is easy. You will receive a written pre-approval that is as good as money in the bank.
2. Decide in advance a comfortable monthly dollar amount. If you already completed step one you know what level of mortgage you qualify for. This way you save time by being able to focus at home in your price range.
3. Answer the following questions. How long will you own this home? Is your income going to change in the near future? In other words, will you be making more or less money in the near term? This will be critical in deciding to go for a larger or smaller home and mortgage.
4. Find out what the prepayment privilege options are. If you can pre-pay a percentage of your mortgage this will shorten your payment term and cut years off your mortgage. Make sure you find out about prepaymentprivileges because this can save you thousands of dollars in interest.
5. Is your mortgage portable? Is your mortgage assumable? A portable mortgage is one that you can carry with you when you buy your next home. An assumable mortgage is one that the future buyer of your home can take over. Portability will save you time and expense so you do not have to go through the entire process again. An assumable mortgage will make it easier to sell your home in the future.
6. Deal with a Mortgage Expert. There is no cost or obligation to find out information and a professional who specializes in mortgages can save you time and money by helping you select the best mortgage loan
Lower Credit Card Interest Rate
Did you know that you have over a 50% chance of getting a lower credit card interest rate? That’s right. A recent consumer group study showed that fifty-seven percent (57%) of people who simply telephoned their credit card company and asked for a lower interest rate got one right away. The amount was from 7 to 10 points lower than their current credit card interest rate.
Now, keep in mind that getting a lower rate on your credit card depends on a few key factors. Check the following points and see if you meet some or all of the conditions.
1. Good credit rating. This means that you do not have any late payments on your credit report and also have a good credit score.
2. Debt to income ratio. The lower your debt to income ratio the better and with your credit card the smaller the balance the better, too.
3. Minimum monthly payment. This means that you do not send in just the minimum payment required each month.
4. Payment record. Your payment record should be excellent with this particular credit card company.
5. Non-secured credit card. The credit card that you want to reduce your interest rate on should not be a secured credit card. (These are in the “sub-prime” category)
OK, if you think you would qualify for a lower credit card interest rate then your next step is to do some research and find out what the credit card issuers offer. You can save a lot of time and do it through this site. Again, keep in mind that the interest rates that these credit card companies advertise are reserved for applicants with excellent credit and a high income.
When you call make sure you explain that you are an excellent customer and you are getting better offers from other credit card banks. Now, just in case they happen to say no it does not mean they will say no in three or six months time. As long as you keep paying your bills on time your credit score will continue to improve so keep calling every six months and you should be able to be successful at getting a lower rate on your credit card.
Mortgages Free Advice
When you sit down with a lender please be sure to get the answers to these 10 questions before you go any further in the loan process.
• What is the interest rate on this mortgage?
Ask for the annual percentage rate (APR) of the loans interest, this is usually higher than the originally quoted rate because of the addition of fees involved procuring a loan. You must beware of APR found in advertisements. Often these are used in bait and switch schemes to get customers in the door. Always ask for an itemized list of rates, points and fees.
• What discount and origination points will I be charged?
Often lenders may charge prepaid mortgage interest points. Find out the kind of points they will be and their effect on your loan.
• Will you give me a good faith estimate of my closing costs up front?
There are fees that are a part of every loan for services provided by the lenders and other companies involved in the loan process. Have the lender give you a good faith estimate within a week of receiving your loan application. Experts advise to be wary of any lender that refuses to supply you one.
• What are the fees if any, involved in locking in an interest rate?
Interest rates are constantly fluctuating, and it is possible that it could change between applying for a loan and its closing. Often you can “lock in a rate” that will keep your interest rate the same from the day you apply. Please make sure that you find out if there are any fees involved with this.
• What is the minimum down payment of this loan?
A typical down payment is between 5 to 20 percent of the loan, and the more money you can put down, you may be able to lower your rate and improve the loan's terms. Often if you do not have enough for the minimum down payment you are required to private mortgage insurance (PMI).
• Is there a prepayment penalty on this loan?
Often prepayment penalties are added to lower the loans interest rate. There are many types of prepayment penalties that can be added to a loan. Make sure that if your loan has a prepayment penalty on it that you know exactly what they are.
• What documents will I need to have?
Usually you will need to show proof or income and assets though there are “no-doc” loans that do not require any documentation. These types of loans are only open to those with excellent credit and require a larger down payment and can carry higher interest rates.
• What qualifying guidelines are included with this loan?
These requirements relate to your income, employment, assets, liabilities and credit history. First-time home buyer programs, VA loans and other government-sponsored mortgage programs typically offer easier qualifying guidelines than conventional loans.
• How long does it take to process a loan?
It can take as little as two weeks to 60 days or more. Be sure to have the mortgage lender give you the most accurate guess they can so you can determine how long to lock in your loan.
• >What might delay approval of my loan?
If provide complete and accurate information to the lender the process usually runs smoothly. Be sure to tell your lender immediately of any changes to your income or any new debt or marital status while your loan is processing. There could be delays if the underwriter discovers any undisclosed credit problems so be sure to be as accurate as you can.
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