Loans by Zach

Selling your house is going to be a good help for you financially. However, it is not going to be a good financial worth as it is a second hand property. Because of this, you can sell it at a very cheap price compared to the original.

However, you can still increase the value of your home by doing some minor repairs on the house. This is for the reason that you the house is going to look presentable among the buyers and will be convinced that your house should cost more than what it has to be. Here are some simple repairs that you can do in the house, especially at the exterior part of the house.

Roof. What you can do is to check your roof for some holes. Once you have found that there are some holes, and then you can fix those by putting placing some sealants. If you have noticed that the roof is also losing its vibrant color, you can get a waterproof paint and repaint it. In this way, you are not only making it convenient for the buyer but will also add value for the house.

Flower boxes. If the house has flower boxes, it is better if these are going to be repainted if they are faded. These will surely add value to your house especially if the buyer loves plants and flowers.

Walls. You can do two things on the wall. First of all, you can check if there are some cracks caused by placing nails or because of other reasons, you can put again some wall sealants. Doing this will surely hide the cracks and give your house a total make over. At the same time, you may also want to repaint the walls for added aesthetic value.

Hinges. If you think that hinges are not important in adding value to your home then you are wrong. Keep in mind that you want to make sure that the buyer will perceive your house as a functional house. By fixing door hinges, your home can give a feeling to your home as if it is a brand new house and will be agreeable in paying more for your home.

Knobs and handles. Just like in hinges, you want let the buyer feel that the house works like it is brand new. By putting functional door knobs and kitchen cabinet hinges, you will let the customer know that your house is a good buy and really a value for their money.

Keep in mind that when it comes to real estate, face value and its functionality matters. So better add more face value to your property now so you will gain more profit in selling your house than what it should only cost.

Adding Value To Your Property Through Simple Repairs
By Maria

Foreclosure and short-sell deals can get you into a home on the cheap. Are you prepared for a potentially convoluted transaction?

As the inventory of foreclosed homes on the market piles up, you might be tempted to jump in and get yourself a great deal on some real estate. That’s a realistic proposition-as long as you know how to avoid getting burned on a foreclosure purchase.

In the best-case scenario, buying a foreclosure or short-sell home is a win/win situation: you get the property for a nice price, and the former owner and lender can cut their losses and move on. Unfortunately, these transactions don’t always turn out that way. If you aren’t adequately prepared for your distressed property purchase, you may end up wishing you’d never gotten involved.
Get prequalified for purchase mortgage

Before you fall in love with the foreclosure on the corner, talk to a few lenders about financing. Obtaining a purchase mortgage is more difficult than it used to be, so start this process early. Get prequalified, and evaluate the affordability of your purchase mortgage payments, as well as taxes and insurance. Quiz prospective lenders on how to streamline your purchase mortgage approval.
Skip the auction

Buying at an auction limits your ability to inspect the home, and generally requires you to pay in cash. Inexperienced homebuyers should generally avoid the foreclosure auction. Limit yourself to buying a distressed home before the auction in a short-sell transaction, or after the auction when it’s a bank-owned property.
Inspect with an expert

Foreclosures are often beat up. The former homeowner may have sabotaged the property out of frustration, or the home may have been vandalized after it had been vacated. To minimize the chances of getting caught off guard with huge repair bills, bring a contractor with you to inspect the home. Get an estimate of potential repair costs before you sign a contract”>purchase contract.
Take a walk

Don’t make the mistake of focusing so much on the home that you forget to inspect the neighborhood. The housing crisis has changed the character of some areas, particularly those that have a high percentage of foreclosed properties. Problems with vandalism, homelessness, and gangs are things that you want to know about before you buy. Take a few walks around prospective neighborhoods at various times of the day. Assess the quality of surrounding homes and talk to the residents.

You won’t have a problem finding foreclosure deals, but you might have a problem finding the right one. In this real estate market, it pays to be patient. It’s not so easy, after all, to undo a rash purchase decision. You’d have to put the home back on the market and try to sell it off quickly. That scenario virtually guarantees that you’ll get burned financially, because you won’t be able to recoup closing costs and sales commissions in your asking price.

Helpful Hints for Buying a Foreclosure
By Catherine Brock

When you are looking at how to successfully refinance things may seem very complicated and confusing, but it really is a lot simpler when broken down. To make this work well you just need some planning with a calculator, pencil, and paper.

The first thing to understand is that refinancing means to finance again. You are getting a completely new loan, which you pay off your current one with, and then just start making payments on your new loan.

If your loan is anything other than a mortgage things are really simple for you! Find a lower interest rate, or terms that suit you better, and take them.

For a mortgage things are a little more complicated. So, how to successfully refinance?

When you got your original mortgage you probably remember all of the opening costs, the appraisal fees, the insurance, etc. All of these things will have to be done again. On top of this, you will have fees to close your current loan. Check your loan terms to see if you have a fee for closing out your loan early as this can be a real problem. You want to try your best to add up all of your initial opening costs. For a general estimate many say to expect to pay 3-6% of the new loan amount plus any prepayment penalties on your old one. So, why would you want to do this with all of these upfront costs? Let’s look at what you can save.

As a general rule of thumb it will probably be worth it if you can find a two percent lower interest rate. When you find this lower rate you want to break out your calculator. See how much this rate will save you each month and then figure out how long until you’ve started saving more money each month than you initially spent on opening costs. Will you still be living in the house at that time? Many people estimate this takes three years on average.

Now you know the simple secrets. If you break it down and add all the numbers together you’ll know how to successfully refinance.

How to Successfully Refinance
By Jennifer Quilter

Your credit rating can help determine whether you get a loan and what interest rate you pay, so getting your score as high as possible can save you big bucks.

The difference in interest rates for mortgage loans is nothing to sneeze at. Someone with a FICO score, or credit rating, of 760 to 850 could pay $188 less per month on a $216,000 30-year fixed-rate mortgage than someone with a score of under 658, according to MyFICO.com. The amounts are based on interest rates of 5.99 percent for the higher rating and 7.31 percent for the lower rating.

Credit scores are grouped into five basic categories, according to MyFICO.com. In general, about 35 percent of the score is based on your payment history, about 30 percent on how much you owe, 15 percent on the length of your credit history, 10 percent on new credit and 10 percent on types of credit used. The mix can vary depending on your situation.

Credit ratings evolve over years, but there are ways to raise your credit score a few points at a time.

Pay your bills on time.
“I’m not sure a lot of people understand that,” said Jack Guttentag, professor of finance emeritus at the Wharton School at the University of Pennsylvania and the man behind The Mortgage Professor Web site (mtgprofessor.com). “They always say, ‘I always pay it eventually.’ ”

Pay more than the minimum on your credit cards every month.
Your score could go up a few points as your credit card balances go down. Just a few larger payments can help if you previously were paying the minimum.

Limit the number of new credit-card accounts you open.
An exception is for people who are trying to re-establish credit after a bankruptcy or other financial crisis, according to MyFICO.com. “Opening new accounts responsibly and paying them off on time will raise your score in the long term,” says the Web site, which is published by Fair Isaac, the company that invented the FICO score.

Keep your balance well below the credit limit on revolving accounts like credit cards.
Your credit score will likely be higher if you have small balances on four or five credit cards (as an example) than larger balances on two or three cards, especially if the balances are close to the credit limits, Guttentag said.

Pay off any uncollected items.
Your credit score is being hurt if you’re withholding payment because of a dispute with the lender, no matter how “right” you are.

And finally, always remember that paying down your revolving credit, or credit cards, is the best way to improve the portion of your credit score that looks at how much you owe.

There’s no doubt about it: Lenders have tightened the guidelines they use to evaluate loan applications. That means borrowers who want to refinance their mortgage to take advantage of low interest rates may wonder whether they will qualify for a new loan. This summary should help you understand what lenders look for when they evaluate mortgage refinance applications:

How much you make and how much you owe
Lenders weigh your monthly income and debt payments through a debt-to-income (DTI) ratio. Conventional wisdom is that lenders look for a DTI that’s no more than 38 percent. However, some programs are more flexible and allow a larger DTI ratio.

DTI is a complicated calculation, so you should discuss your income, debts and housing costs with at least a few lenders to determine if you’ll qualify to refinance your mortgage. If you have a high debt-to-income ratio, you may want to concentrate on paying off some of your debts prior to refinancing.

Also keep in mind that most lenders will require that you document your income with recent paycheck stubs, W-2 Forms or federal income tax returns.

How much you want to borrow and how mch your home is worth
Another factor that contributes to whether you can qualify for a mortgage refinance is your loan-to value (LTV) ratio. To calculate your loan-to-value ratio, divide the amount you want to borrow by the current value of your home. For example, if your home is worth $250,000 and you want to borrow $210,000, your LTV is 84 percent.

Most lenders look for a loan-to-value ratio of less than 80 percent to refinance. However, again, some loan programs are more flexible.

One example is the new Making Home Affordable program, which allows refinancing with up to 105 percent LTV. This program is open to borrowers who have a good track record of making their mortgage payments and whose loan is owned or backed by Fannie Mae or Freddie Mac.

A second example is the streamlined refinancing program offered by the Federal Housing Administration (FHA), which doesn’t require an appraisal. This program is open to borrowers who have an FHA-insured loan.

Have you paid your bills?
Your credit score also can be an important factor in your ability to qualify to refinance your mortgage. While there is no specific minimum credit score that you’ll need to refinance, keep in mind that if your credit is impaired, the interest rate and terms you’ll be offered might not make refinancing an attractive option. If you have a strong credit score (and a good track record of paying your bills on time), you’ll likely be offered a lower interest rate and better terms.

Remember, lenders will look at a combination of the factors mentioned above —your debt-to-income ratio, loan-to-value ratio, and credit history—along with other aspects of your financial situation to determine whether you’ll qualify to refinance your mortgage. Either way, it is best to speak directly with a lender or multiple lenders to determine your options. You can get no-obligation rates and offers from multiple lenders through LendingTree.

Also keep in mind, if you do qualify to refinance, you should still consider whether refinancing makes sense for you.

Qualifying to refinance your mortgage
By LendingTree

Home buyers can choose from many different types of mortgages. The basic models are fixed rate mortgages and adjustable rate mortgages or ARMs. More choice is created when lenders vary the term of the loan, the way the principal amount you owe is paid off or amortized, or add features such as a conversion option or prepayment privilege.

“In addition to the traditional 30-year fixed rate mortgage, there are dozens of mortgage loan products available, from adjustable rate mortgages to interest-only and negative amortization loans,” says LendingTree Chief Consumer Officer Ed Powell.

The factors you should take into account when choosing your mortgage include:

* What you can afford to pay each month based on your current income.
* Whether you expect your income to rise, fall or stay the same over time.
* Whether you plan to stay in the house long-term or move in a few years.
* Your tolerance for risk.
* Whether you expect interest rates to rise, fall or stay about the same.

Taken together, these factors narrow the range of mortgages that you should consider.

Take this scenario: you and your partner both earn good money and expect your salaries to rise. You plan to move in three to five years and expect interest rates to stay about the same or even fall during that period.

Under these circumstances, you might choose a fully amortized five-year ARM or fixed rate loan with pre-payment options.

A five-year mortgage is a good choice because the term matches the length of time you expect to own the house. If you sell after three years, your early redemption penalty will be minimal. If you decide not to move, you can refinance when the mortgage matures.

A fully amortized loan with prepayment options allows you to pay down the principal amount you owe and build equity quickly – a good idea for anyone who can afford it.

An adjustable rate loan might suit you if you are confident that interest rates are on their way down. But if you don’t like taking any risks, you’ll probably want to protect yourself against the possibility that rates will increase by taking a fixed rate loan.

Here’s another, quite different, scenario that leads to a different mortgage choice: your income is low and/or fixed. You plan to stay in your home for many years, and expect interest rates to rise.

You will likely choose a traditional 30-year fixed rate mortgage. The 30-year term and fixed rate allow you to lock in affordable monthly principal and interest payments for the long term. You know your installments will be manageable, and you will be chipping away at the principal of the loan and building equity slowly but steadily.

With all the options available, there’s bound to be a mortgage that suits you and your situation. Powell suggests you talk to a loan officer at your bank about the choices. “Taking the time to learn about the process is worth it, because you’ll be a better advocate for yourself,” he says.

Finding the best mortgage for you
By LendingTree

Buying a first home can feel intimidating. However, by understanding the process, you can have a great experience buying your first home.

1. Begin the loan process.
One of the first steps in buying a home is finding out how much you can afford. Lenders call this prequalification, because they determine roughly for how much of a mortgage you qualify. To get prequalified, you contact a lender and provide basic financial information, such as your credit history, income, assets, etc. The lender then determines roughly how much of a loan you are qualified for. You can also get prequalified through LendingTree. Prequalification is not binding, however. The next step is to get preapproved, which occurs when the lender verifies your financial information. By getting prequalified and preapproved, you are in a better position to shop for your first home.

2. Find a REALTOR.
Once the mortgage process is started, you are now ready to contact a REALTOR. They can help you to find the right community and the home that best meets your needs. To find the best REALTOR to help you buy your first home, get recommendations from people you know, or you can search online.

3. Find your home.
Now that you have a REALTOR, the next step is to start your property search. Allow plenty of time to look at as many homes as you can so you can find the perfect first home. When you find the house you would like to buy, the next step is to make an offer. Your REALTOR assists with the paperwork and helps you make an offer that the seller may accept.

4. Get a home inspection.
Once the owner accepts your offer, you now have a contract on your first home. But the process isn’t over yet. You must arrange a home inspection to make sure there are no problems with the house. The inspector will provide you with a list of potential problems that you can ask the seller to fix. You and the seller then negotiate on what needs to be fixed before closing on your first home.

5. Moving arrangements.
The next step is to make moving arrangements. Whether you are moving yourself or hiring a moving company, you should set this up in advance. If you plan to move yourself, get boxes and rent a moving truck to transport your possessions to your first home. If you plan to hire movers, call them well in advance so that they can be scheduled for the day that you need them to move into your first home.

6. Arrange homeowner’s insurance.
You need to have homeowner’s insurance on your first home. Start by calling your insurance agent. Your agent will ask you questions regarding your home, such as the address, square footage, type of roof, number of bathrooms, etc. The agent gives you a quote and then coordinates with your lender. At closing, you pay the premium as part of your closing costs.

7. Packing.
Now it is time to start packing! A great way to get started is to go one room at a time. Start with a room that is used the least in your current residence and start packing there. This is also a great opportunity to get rid of anything that you no longer want. You don’t want to move anything that you do not need, so if there is something that needs to be thrown away or donated, now is the time to do that.

8. Address change and utilities.
You will want your mail to arrive at your first home, so don’t forget to change your address with the post office. This can now be conveniently done online. Also, it is necessary to have the water, electricity, gas, cable, etc. turned on in time for your move-in day.

9. Walk-through.
Prior to possessing your first home, you have a walk-through. This is a chance for you to make sure that everything from the inspection was fixed. It is also a chance to see that your first home is in move-in condition.

10. Closing and move.
The final step in the process of buying your first home is closing and then actually moving in. At closing, you sign the papers from the lender and any others that the state requires that make the home yours. You will also have to pay closing costs. Once the paperwork is done and your check is signed, you can move your possessions in to your first home. After weeks of preparation, the house is now yours.

Buying your first home
By LendingTree

Shopping for a mortgage can be intimidating. It’s natural to feel anxious about doing something new for the first time, and getting your first mortgage is no exception.

Fortunately, there are a few simple things you can do to make sure you’re being well-prepared before you start looking for your first home loan. Here are five tips to help first-time mortgage borrowers.:

1. Lock Your Interest Rate. Interest rates on mortgages can increase or decrease from day to day or even hour to hour. Discuss the interest rate outlook with your loan officer and try to learn as much as you can about how ups and downs in interest rate quotes might affect your mortgage payment and your ability to qualify for that loan. To protect yourself from interest rate rises, ask about a rate lock, which can reserve a specific interest rate for you for a set time period. If you decide to lock your rate, make sure your lock period won’t expire before your closing date. (Read more about locking your interest rate.)

2. Consider FHA. If you’re a first-time home buyer, you might want to shop for an “FHA loan,” which is a mortgage that’s insured by the Federal Housing Administration (FHA). FHA loans offer competitive interest rates, allow smaller down payments and have easier qualification guidelines compared with other types of loans. The minimum down payment for an FHA loan is just 3.5 percent of the purchase price of the home, although FHA loans do require that you pay mortgage insurance.

3. Take the Tax Credit. If you haven’t owned a home in the past three years, you may be able to qualify for the federal First-Time Home Buyer Tax Credit, which is worth up to $8,000. The credit is refundable, which means you’ll even get a rebate of sorts from the federal government if the income tax that you owe is less than the full amount of the credit. The credit is subject to income limitations and you’ll have to act fast since it’s set to expire after Nov. 30, 2009. Some lenders may allow you to use the credit as a down payment, to pay settlement fees or other closing costs or to pay discount points to reduce the interest rate on your loan.

4. Educate Yourself. A plain-vanilla 30-year or 15-year fixed-rate mortgage is fairly easy to understand. But other types of loans can be more complicated. If you want to consider an adjustable-rate mortgage (ARM) or other less common type of loan product, do your homework and make sure you fully understand how your loan works before you sign the loan documents.

5. Shop Around. Interest rates, loan products and loan terms vary among lenders. That means all borrowers, whether novice or not, should shop around for loan offers. Ask about the benefits and risks of each loan and be sure to compare the quoted points and estimated closing costs as well as the interest rates on different loans before you decide which would best fit your personal situation.

5 tips for first-time mortgage borrowers
By LendingTree

Mortgage loans are not “one size fits all” type of deals. Because every borrower’s situation is unique, lenders have created several loan programs to fit various needs. For those looking to make a long-term home purchase or for those interested in safety, fixed rate mortgages are typically the best way to go. These offer predictable monthly payments that never change over the course of the loan. The most common terms are 15 or 30 years.

For first-time homebuyers or subprime borrowers, adjustable rate mortgages (ARMs) may be the easiest way to break into the housing market. These loans provide low interest rates during the first several years, making the payments more affordable, making it easier for borrowers with smaller incomes or poor credit scores to qualify for financing. ARMs do carry a danger – the interest rate will eventually go up and without careful planning, many borrowers are caught unprepared to make the higher payments, putting them at risk of default.

There are also jumbo loans for those buying homes worth more than the Fannie Mae conforming limit (currently set at $417,000 for most U.S. areas.) There are also balloon loans provide for low payments for several years, after which the entire loan balance comes due. This makes it easier for some borrowers to qualify for mortgage money and they refinance after several years in order to avoid the “balloon” payment. There are all sorts of loans and with the help of a qualified lender, you can find one that is just right for you.

Choosing the Best Loan Program
By Mortgage101

FHA energy efficient mortgages are special loans that are backed by the Federal Housing Administration to encourage the construction and purchase of homes that utilize less energy in day-to-day functioning.

The purpose of energy efficient mortgages

FHA energy efficient mortgages are designed to do several things. These include:

* Enable the purchase of energy efficient homes — FHA energy efficient mortgages are available for those who are in the market to buy energy efficient homes or make such improvements to them at the time of purchase.

* Refinance homes to make improvements — FHA energy efficient mortgages can also be used to refinance existing home loans so energy efficient improvements can be made to a property.

Who funds FHA energy efficient mortgages?

FHA energy efficient mortgages work like other government-backed loans. This means a borrower must go through an approved mortgage lender who will underwrite the loan. The FHA simply insures it.

Qualifications for FHA energy efficient mortgages

There are a number of qualifications that must come into play for people to be eligible for FHA energy efficient mortgages. They include:

* Regular qualifications — Buyers must qualify for standard FHA-backed loans to obtain this type of mortgage.

* Cost effectiveness of the improvements — FHA energy efficient mortgages are designed to make minor to moderate improvements. The cost of improvements cannot exceed 5 percent of the property’s value.

* Size of the property — FHA energy efficient mortgages are available for properties that are one to four units in size.

FHA Energy Efficient Mortgages
By Mortgage101