April 24, 2016
Thousands of people look into hiring a mortgage broker across the country but unfortunately it isn’t all plain sailing. While brokers can do a tremendous amount of hard work, sometimes their clients are getting the short-end of the deal. There are a few issues associated with mortgage brokers and it’s important for you to be aware of what those are. Read on to find what issues you may run into and how you can avoid the traps too.
Your Broker Might Be Inclined In Recommending One Particular Lender
One of the many pitfalls associated in using a mortgage broker has to be the fact that some have close ties with certain lenders. Now, this isn’t always a bad thing because the lender may be able to offer a great deal for many. Unfortunately every buyer is different in what they need and what they can afford and choosing a broker with an association with a lender can be troublesome. Some brokers aren’t keen on recommending other lenders simply because of their relationship with one.
Check Out the Credentials of a Mortgage Broker Melbourne
While there are a few pitfalls with a broker, many of them are extremely good and there are simple ways for you to protect yourself also. The first and most important way to help protect you from bad brokers has to be to research the broker. This means checking out the credentials to ensure the mortgage broker is fully licensed and certified. Brokers with no credentials aren’t worth choosing because they can’t help you.
Their Reputation Is Crucial
A good broker comes with a solid reputation and if your broker doesn’t, then you know they aren’t trustworthy. Despite a broker being certified that doesn’t make them perfect and you need to be aware that some are out for themselves. You might think all brokers are out for number one but actually most are not. However you need to take a very close look at the broker’s reputation because that will tell you so much.
Enquire About the Fee Process
Every mortgage broker Melbourne handles commission fees differently and it will be important to understand how your chosen broker works. For some they will charge a flat fee but others will charge absolutely nothing; it does vary depending on the broker. However, you need to be fully aware of what they charge and how much. Being clear on all fronts will be much easier in the long run because there will be no issues later on.
Don’t Fall Into the Traps
If you don’t know what you’re doing a mortgage broker can easily fool you and as a result you’ll end up losing everything. However, if you know what the pitfalls are and how you can avoid them you hopefully can find a great mortgage. It isn’t impossible and if you are willing to take the time to check out who you are using, you should be fine. Use the right mortgage broker like http://www.mortgagebroker247.com.au/.
March 5, 2016
Home equity loans are so named because they permit homeowners to the equity of their property without having to sell it. The equity of a home is calculated by deducting what is owed for the home from its market value. Home equity loans were once called 2nd (or even 3rd) mortgages. Home equity increases in two ways. The first is mortgage payments that reduce the amount that you owe for the home and the second is market appreciation over time that increases the gross value of the property you own.
Home equity loans carry low interest rates because all moneylenders view this as a very stable form of investment on their part. Even in times of a struggling economy, there is always the hope that eventually the prices will rise again. Mortgage lenders also have access to agencies like the Federal National Mortgage Agency that help to reduce the risk by moving it away from the lender. However, note that while the interest rate on home equity loans is lower than other types of loans, it is still higher when compared to the first mortgage. It is also possible to convert home equity loans into first mortgages through refinancing.
Reverse mortgages are similar to home equity loans as they to provide homeowners with the cash value of the equity. The difference is that home equity loans are paid out in a lump sum while reverse mortgages are paid out monthly or quarterly. Senior people who would like some extra cash use reverse mortgages but they do not wish to sell their home. In such a case, upon the death of the individual the estate sells the home or the title passes on to the mortgage lender who can sell that property. More details in our post here: http://www.freehomesfinder.com/getting-a-home-loan-after-declaring-bankruptcy/
In case you are interested in home equity loans but the equity value of your home is too low right now then you can always go for the 125% equity home loan.
The 125% equity home loan is like a 2nd mortgage that permits you to take a loan of up to 25% more than the value of your home. This means that if your home is valued at $200,000 and the pending mortgage you have to repay is also $200,000, then you can still take a loan of $50,000.
Many lenders offer 125% home equity loans, and you can easily find them on the Internet. Note that lenders will have their qualifying criteria and loan terms. Most of your options will depend on your credit score. This is not as general as good or bad credit score but there will be limitations like you must have a minimum credit score of so much. Credit score will also decide the maximum amount of 125% home equity loans that you are offered.
Most of the time you will not be required to get a property appraisal for 125% home equity loans. Also, lenders will use the purchasing cost of the home as its equity value rather than current value if you have been living there for less than a year.
March 5, 2016
The recent economic down-turn had resulted in many people filing for personal bankruptcy. Many of these individuals fear that this meant the end of their dream of owning a house. They think that with a bankruptcy on their credit records, no lender would be willing to finance their home purchase. The fact is, it is not impossible to get a mortgage after bankruptcy. There are some things to consider that help in improving one’s chances of getting a mortgage.
A home buyer can qualify for an FHA mortgage in as little as two years after a bankruptcy, and in four years for a conventional loan. After the waiting period has passed, financing for a home purchase can be sought. During this waiting period, things can be done to improve one’s credit rating so that lenders will look more favorably upon the borrower.
Many factors affect the rate that the borrower can get on his mortgage if he or she has had to declare bankruptcy. For someone starting fresh from bankruptcy, the interest rates available will not be very favorable. Still, a lower interest rate can be obtained if a larger down payment is put down. Also, if bills have been paid on time since the bankruptcy discharge, that will be looked upon favorably by the lender. Improvement in the credit score is another aspect that the lender considers.
After the bankruptcy discharge, the credit report should be reviewed to make sure that every debt has been closed and discharged. Items to watch out for are debt items that remain open because some creditors may continue to report them. That can erode a person’s credit score even more.
A person can start improving his credit score by paying all of his credit card bills on time. One strategy is to open a store credit card that is unsecured and which carries a high interest rate and pay for all charges in full during the grace period. The high interest rate will not matter because the borrower will not carry the balance over to the next billing cycle. The whole point in this is to build up positive credit activity so that lenders will see that the borrower can handle debt more responsibly now. One should only use less than 30 percent of the available credit.
When the borrower applies for the mortgage, he should be ready to provide all documentation relating to his bankruptcy. The process of applying for the loan is the same as the loan application process of borrowers who did not file for bankruptcy. The borrower just has to convince the lender that he is a good risk.
Getting a mortgage after bankruptcy is not impossible. The borrower will need to work on improving his credit score during the waiting period after the discharge. Proof of steady employment and income, a low debt-to-income ratio, and a low loan-to-value of the house to be purchased will all work for getting that mortgage. With some careful planning, the dream of owning a house can be kept alive.
Visit http://www.mortgagebroker247.com.au/homeloans/ if you need more help.
March 5, 2016
While the interest rates have increased recently and apparently will continue to increase people shortly, have been taking shelter in fixed rate mortgages. This is being halted due to the withdrawal of that option by many banking institutions. After the latest interest rate increase banks appear to be doing away with that option for the mean time, if not permanently. This is likely to have major ramifications for the housing market as it one of the main aspects that have allowed first time buyers to enter the market. Without the knowledge that interest rates aren’t going to cause your repayment amounts to rocket, it can be far too risky to enter the market now.
The effect on the housing market is possibly not going to be felt for a while, but it will mount up, and a drop in property prices is going to be felt throughout the country. The loss of the fixed rate mortgage option is going to lower the number of potential buyers drastically. The increased interest rates are also likely to lead to some homes being repossessed and placed on the market by lenders. This will lead to a fall in the value until a point where a natural equilibrium is reached. The changes may not be apparent at the moment, but the inflation of property prices should be slowing in the wake of the interest rate increases.
The decrease in property value means that people who have mortgages currently will not be able to leverage the difference in value when applying for a second mortgage. This could exacerbate an already difficult situation for people who are in financial difficulty and who were planning on utilising the extra value to gain a loan. All the factors are pointing to a huge slowdown in the property market and after a period a market reversal. Currently, it’s very much a seller’s market, but with the financial clamp being applied it is likely that more and properties will be placed on the market to cover debts.
There are many people who helped to inflate the property market by taking mortgages out on their homes to buy a property to let it. For those people who were contemplating joining, this group are likely to be dissuaded by the increase in interest rates which cannot be avoided anymore. Many potential buyers were largely inattentive to the increases since they believed they could make use of a fixed rate option to avoid the effects. As the mad rush of sellers begins to dry up due to a lack of suitable loans those how have invested in property are likely to feel the pinch. There are still going to be fixed rate mortgages available, but far fewer people may be able to access them.
March 5, 2016
Fraud happens even when you have gone through a reliable mortgage broker. Unfortunately, this is something which causes trouble for thousands of people all over the world and it is such a serious problem. The worst part is very few people actually realize they are a victim of fraud until they lose everything, including their home. So, are you a victim and, if so, what can you do?
Ask The Mortgage Lender To See Your Original Mortgage Note
It doesn’t matter if you have gone through a mortgage broker to find a mortgage or gone straight to a lender, you must find out if you have been a victim. The way in which you can do this is to go to your lender and ask to see all of the legal and all the original documents, so that you can go through them and find out the truth. You can of course get a lawyer or attorney to help you at this part just in case you aren’t too sure about how to spot fraud.
What To Do If You Believe You Are A Victim Of Fraud?
First thing first, you need to talk to someone who knows all about this. Your best bet is to talk to an attorney who specializes in fraud, particularly mortgage fraud. Now, you might be surprised to hear this but mortgage fraud is quite a common problem and one which is causing more people distress. You are probably best to ask an attorney or lawyer for help because usually they know what to look for and how to take the necessary steps to protect you from further legal issues. Don’t panic just yet, you may be extremely worried but the worst thing you can do is panic because you need to get things straightened out quickly. You may even need to consult your mortgage broker Melbourne again.
Talk To Your Mortgage Broker Melbourne
You may also benefit from speaking to your original broker if you went through one or get the attorney to talk to them. Usually a mortgage broker will only be too happy to help so don’t be afraid to pass on their information to your lawyer. They may also be able to help tell the lawyer information that could be helpful for you later on.
Make A Police Report
You might not think there is much you can do once you have been a victim of fraud but there are some steps to help prevent the situation from getting worse. You and your attorney should head over to the police station and make a full and frank report. This can and will be very important when it comes to stopping a foreclosure and losing your entire credit history. If your mortgage broker Melbourne knows something useful they can go along to the police station and make a report also.
When you have been the victim of fraud you need to do what is within the legal limits of the law to be compensated for this injustice. This isn’t just happening to you, it is happening to thousands of people and you need to ensure no one else becomes a victim. Get help from a reputable lawyer and hopefully the authorities will be able to straighten this matter out. Hopefully your mortgage broker may be able to lend a hand in these matters.
Find out more tips and ideas in this link: http://rismedia.com/2016-02-18/5-tips-to-halt-mortgage-fraud-in-its-tracks/
March 5, 2016
Today, more people are turning to a mortgage broker to help them find a mortgage. Why not? It does appear to be a good time to look into refinancing. It isn’t as tricky as you think and there might never be better time. So, why is now the time you should consider to look into refinancing?
Low Mortgage Rates
The biggest and best reason why it’s a good time to refinance is down to the interest rates. At the moment the mortgage rates aren’t as high as what they used to be meaning that more people have the ability to get a mortgage with lower rates. This is really good and something which can help most people. A mortgage broker Melbourne can help you find a mortgage which comes with low interest rates and may be right for you today.
Rising Home Price
Right now it does seem as though the real estate market is fairly good. It appears to be stable for the time being and it looks extremely positive as well. Yes, the market can change considerably but right now it is looking really good. However, if you are interested in refinancing you might want to know that the home prices are average which means you can buy a home now and as the prices rise you can see a good return. House prices are on the rise and it is increasingly looking as though they aren’t going to slow down any time soon. A mortgage broker might be able to find a good home for you.
Fewer Fees to Pay
There are lots of government programs and schemes that allow new buyers and those with good payment history the chance to refinance. This is something you are going to want to look into today especially since you have a lot of options available. Yes, it does seem to be like such a risky adventure but it may be something which works for you. You may want to contact a mortgage broker Melbourne to find out more.
Should You Refinance
To be honest, this decision is never an easy one. There are a lot of things you have to give serious thought to before deciding to refinance. For some this is going to be a good move for you and something which right now has never been better. Then again, for others, it may not be exactly right. It does vary because while right now may be the best time to look into refinancing, it might not be the right time for you personally. However, if it is, then it could be something you want to take a closer look at. Why not talk to a mortgage broker for more information?
Make the Right Move
Refinancing can be great for many people especially when they want to move to their dream home. A lot of people are wary of this for a variety of reasons but then again it may be something that interests you greatly. If this is the right move for you why not grab the opportunity with both hands? Take to a mortgage broker Melbourne to find a suitable mortgage and make the move.
Read more in our post here: http://www.freehomesfinder.com/home-mortgage-services-due-diligence-can-prevent-fraud/
March 5, 2016
There are plenty of great mortgage brokers Melbourne to choose from but unfortunately this will not stop fraud. Dodgy or illegal mortgage services are doing what they can to try and take your personal information. For those who haven’t been a victim of fraud you won’t know the devastation it can cause and while you may think it’ll never happen to you, it could. This is why due diligence is important because it may just prevent you from becoming a victim of fraud.
Always Check Out the BBB
The Better Business Bureau has a record of every legitimate business within Australia and this can give you a lot of assistance. When you are searching for a new mortgage service you need to look into the company you’re potentially considering. This doesn’t take a long time and it can give you a real insight into the people you’re trusting. The BBB will be able to help you determine whether or not a mortgage broker is legitimate or a fraudster. Hopefully you will be able to avoid the fraudsters and keep your personal information safe.
Choose Only Reputable Companies
You have to take the smart approach when it comes to choosing new mortgage services. Yes, you can look at the BBB but there are other steps to consider taking. Doing a very quick and basic search online for the name of the mortgage brokers Melbourne can yield a lot of results. If there is something dodgy about this company or it doesn’t feel like a legit company you can find it. You can look at the feedback being left by customers as well as read reviews and just a general search of forums for any negativity. This is one great option to consider when you want to choose reputable companies and stop fraud in its tracks. Find out more tips here.
Take the Necessary Steps to Protect Yourself and Stop Fraud
When it comes to using a mortgage broker or service you need to ensure you’re protected at every corner. Sometimes you aren’t going to meet honest people and this means it is up to you to do what you can to prevent someone taking your information. The above steps are just a few methods to try but there are many more out there and you really need to do your homework to prevent fraud. This can often be hard but it doesn’t need to be impossible not when you take precautions.
Do Your Homework When Choosing a Mortgage Broker
Let’s be honest, fraudsters aren’t going to make it easy for you to find out they are trying to steal from you. They make a living being a scammer and that does mean you have to be very careful when choosing a new mortgage service. However, due diligence is going to help you stop and prevent fraud before it makes you a victim. By researching and doing everything within your powers to find out about a mortgage service you can get to know who you are choosing. Hopefully the mortgage brokers Melbourne you choose will be an honest and reliable professional.
Always visit http://www.mortgagebroker247.com.au/ for more informations and help.
March 5, 2016
A mortgage broker Melbourne is really one of the very best services you can look at today when you want to get onto the property ladder. However, with so many different types of properties available it can be very confusing as to which type of mortgage to choose. Even when you look at residential mortgages, there are still thousands who are confused over what these are exactly. What do you know about mortgage services for residential properties?
Residential Mortgages Are Different To Commercial Mortgages
Most people will already know this but it never hurts to double check. Residential mortgages are for homes and commercial mortgages are for businesses and despite the two being very similar in nature, they are different. You cannot use a commercial mortgage to buy a residence and you need to ensure you understand this. These two are completely different and the types of mortgages required as well as the requirements for buyers will be extremely different. Mortgage brokers Melbourne can often explain the differences. Read more here.
Mortgage Brokers Melbourne May Be Able To Help
It is very hard to find a suitable mortgage in this day and age as there are quite a few but that is why brokers are needed. Their job is to find out about your financial history as well as current history and then understand the different requirements for your mortgage before searching the market for a suitable mortgage. This can often be the tricky part because every buyer will need something different from the next and that does mean it can take time to find a suitable option. However, when you use a mortgage broker Melbourne it can be made much simpler.
Every Mortgage Is Different
Most mortgages run pretty much the same as the next but there are three main elements to a mortgage which are different. For starters the term of the mortgage can vary usually from twenty years to thirty five years, though this can vary depending on how much your monthly payments are. The monthly payments are your next crucial part of the mortgage because the payment amount must be affordable for you. The last part of the mortgage is the interest rate. Now, this varies from every mortgage, but it is important to remember this. Usually mortgage brokers Melbourne can help to find the lowest rates.
Are Residential Mortgage Services Needed?
Mortgage services, such as a broker, might not seem all that necessary at times but they can be. Mortgage brokers Melbourne does the things which you can’t – they search a closed market and go to various lenders to find and negotiate for the best deal. You can in fact go to one lender or bank to another but you don’t always have the chance to negotiate the terms. This is why brokers are used and why they are in great demand also.
Trust In a Reliable Broker
When you want to find a new mortgage and get more value for your money you need to find a trusted mortgage broker. There are many so don’t rush into this decision. Take your time and hopefully you will be able to find the right broker for you. A mortgage broker Melbourne may well be able to find the best mortgage.