7 Steps To Choosing The Best Real Estate Loan For You

A home loan will be your financial responsibility for years to come, so it can be one of the most important decisions you make. Even tiny changes in an interest rate – changes as small as half a percent – can cost or save you thousands of dollars over the term of your loan. To enjoy an affordable home, follow these seven simple steps:

1) You’d Better Shop Around!
Any market has thousands of mortgage brokers, and each broker has access to hundreds of home loan programs. Whatever your circumstances, there is a home loan out there to suit you. The more mortgage brokers and financing professionals you speak to, the more likely it is that you will encounter someone who really knows the home loan program right for you.

2) Pick out the TERMS of your loan -- BEFORE comparing rates.
Home loan terms range from 30, 40 to 50 years and some are interest only, meaning that you will only make interest payments each month and will never pay off your mortgage. Another factor to consider when debating terms is rate. Some loans have guaranteed fixed rates for the entire term of your mortgage. Other loans are Adjustable Rate Mortgages (ARMs), meaning that your interest rate will adjust after a guaranteed rate period is over. When considering terms, also think about what pre-payment penalty you are willing to accept. This penalty applies if you decide to refinance your home loan or sell the house within a certain period of time -- usually one to two years or longer.

3) Shop the rate and closing costs -- carefully
Have a mortgage broker pull a tri-merge credit report and then get a copy of the report. Take the report and a copy of your tax returns with you when visiting financing professionals. Be prepared to answer all questions honestly and be prepared to tell the mortgage broker the price range and the home loan terms you will need. Ask for two Good Faith Estimates (GFE) – one with minimal closing costs and one with standard closing costs.

4) Compare Total Monthly Payments.
Your GFEs will estimate TOTAL monthly payments on a home loan. These estimates only guess what your taxes, hazard insurance, homeowner’s association dues and other costs will be. Since mortgage brokers have no control over these costs, some will underestimate them to make their GFEs attractive. For this reason, always compare only the line item costs associated with each loan. Line items costs include principal, interest, and mortgage insurance.

5) Compare Closing Costs.
Closing costs can contribute significantly to the cost of buying a home. Some mortgage brokers will underestimate these costs to make an estimate seem competitive. Worse, closing costs and associated fees have confusing labels, making them harder to compare. In general, compare the “Items Payable in Connection With Loan” or the “Items Payable in Connection With Loan” on your GFE – these are the costs that your broker may have control over.

6) Compare Closing Costs AND Rate.
Does it make sense to choose the home loan with lower interest but higher closing fees? Or would a home loan with much smaller closing costs but higher rates cost you less? To decide, tally up how long it would take to “make up” the difference. For example, if one home loan saves you $100 a month through lower payments but costs $1000 more in closing costs, it would take 10 months to “make up” for the closing costs.

7) Lock Your Rate!
Just because you are quoted a great rate, that does not mean that interest will stay in place until you are ready to buy, so lock in your rate 30-45 days before closing.

Deciding to buy a home is exciting, but choosing a mortgage can be nerve-wracking. To make a smart choice that really will support you financially, be sure to compare smart by following these tips. Then, you can enjoy your new home – with the right financing.

Wealthy Real Estate Investors Use A Process Known As “flipping Properties” To Quickly Make A Real Killing In The Real Estate Market.

Wealthy real estate investors use a process known as “flipping properties” to quickly make a real killing in the real estate market. The process is simple. Flipping properties simply means buying a piece of real estate under contract and then reselling it at a markup within days or months of the initial purchase. In most cases, investors resell these properties to investors rather than homebuyers.

This type of investing offers many benefits for the smart investor:

* It allows for big savings. Since the property passes through hands quickly, the savvy investor will spend less money on managing the property.

* It allows for big profits. Flipping properties is very lucrative because it allows the investor to instantly mark up a property price and enjoy thousands or even tens of thousands of dollars in profits on a single deal. Investors in the know even maximize their profits by purchasing homes that are priced below market value and then reselling for full market value. As you can imagine, the profit potential here is virtually unlimited, since you can buy cut-price properties at tax sales and directly from cash-strapped homeowners and resell at a huge profit.

* It leads to fast cash. Many would-be investors are wary of the real estate market, because they assume that selling, buying, and managing properties takes months and years. Flipping properties allows you to see cash up front – in just a few days on desirable real estate.

* It helps others. Most investors are interested in the bottom line, but flipping properties is actually a very good way to help out others. Investors who are successful at this help other investors by uncovering the valuable properties that can make others money. That’s why the markup makes sense – by flipping properties, you are providing a great finding service for others. In some cases, investors are also able to help out homeowners in financial distress, by helping them to get cash for their homes.

Smart investors are already making incredible profits by making use of this simple investment secret. However, the uninitiated do need to be wary. Profits are not assured. To be a successful investor, you need to be able to spot deals and uncover the homes that will actually sell fast. Telling the real estate gems from the duds is not an easy process, and one that requires a good eye and some skill-building. Luckily, investors can now get expert help at www.FreeRealEstateMentoring.com, which offers free information tha investors can implement instantly for explosive profits.

Helping Your Huge Investment: Real Estate Secured Loan

Buying a real estate has been a business of big investment. Resident of UK finds it to be a better investment option. But, most people do not have such a large amount available to buy a real estate. Real estate secured loans is one of the best options available in …UK to help borrowers getting loan to buy real estate.

As the name suggests, real estate secured loans are secured by nature. And that is why lender doesn’t hesitate in giving this loan to borrowers. The positive point here is that even though it is a secured loan, borrowers don’t need any additional collateral to put against their loan amount. It is because the purchased real estate itself serves as the collateral for their secured property loan.

A borrower needs to prove his credibility before taking real estate secured loan, as there is very large amount involved. Few things, such as, credit history, repayment capacity, size of property and potentiality of borrower’s income are decisive in availing real estate secured loan. If borrower fulfills such conditions positively, he gets the loan easily and at favorable rates. Unless, he might get some problems or will have to pay higher interest rates.

In real estate secured loan, repayment period is longer. Borrower is free to repay the loan in period between 30 to 40 years, which means that monthly installment would be smaller. The amount which can be borrowed through real estate secured loan is usually very large. Normally, amounts ranging from ₤500000 to multi-millions can be availed easily.

Finding a worthy real estate secured loan lender is really tough task. Borrower’s little unawareness about lenders can put him to pay higher interest rate for a very long period. Through applying online, borrower can access various information related to lenders and their interest rate. Several websites provides borrower free quotes, and even application fee to apply for this loan can be saved. Comparing several loan quotes online can help you in finding a better lender to avail real estate secured loan. It also saves borrower from various complicated paper and documentation works.

While lending real estate secured loan, lenders often require borrower to put certain percentage of borrower’s money as real estate down payment. This percentage is generally 10-20% of the total value and can vary from lender to lender. Borrowers are required to consult their loan officer before getting into any such deal. Considering few important point carefully not only saves borrower from paying higher interest rate, but also gives them a better deal to fulfill their need to buy real estate while being at ease.