Five Mortgage Tips

Here are some quick tips on mortgage shopping to help you keep your sanity:

1. Shop, Shop, Shop: Do not just jump on the first mortgage offer that seems remotely appealing. If you have nothing to compare it to, then how do know it is a great deal? Shop several lenders before you make a move on establishing your mortgage. Try to obtain at least comparisons so that you will be able to determine what the average pricing should be for your mortgage.

2. Don't Take the Bait: If something sounds too good to be true, then most likely it probably is too good to be true. Do not let yourself be drawn into a mortgage based solely on one appealing factor, such as a low introductory rate. Remember that introductory means that it will change after some determined period of time.

3. Think Small: Do not just limit yourself to the big national lenders. Consider local and community banks that offer mortgage lending. If you are a member of a credit union, there may be benefits to you for doing your loan through them. Try to include a couple of different types of lenders n your comparison shopping to see what the difference may actually be.

4. Read, Learn & Listen: Gain your own knowledge about mortgages. Learn how interest rates are set, how mortgage brokers are paid, and what standard mortgage fees are so that you aren't gullible. Gullible mortgage shoppers can find themselves getting ripped off.

5. Consider A Professional: Consider hiring a broker">mortgage broker. They have the resources to shop your loan a lot faster and easier than you will be able to. They do this in return for a small fee paid by you directly or it is figured into the costs that the lender charges you for processing your mortgage. It pays off in the long-run to save a lot of time and hassle on your part to go down the mortgage road with a professional.

Advantages to a Bad Credit Mortgage

A bad credit mortgage may leave you with a bad feeling in your stomach, but in reality, despite the higher interest rate, this is really a smart next step towards reaching your financial goals. When you consider the benefits of home ownership and credit repair, the short term obstacles of a bad credit mortgage are well worth the risks. You won't be throwing money away on rent, on time mortgage payments are the fastest way towards credit repair, and you'll truly be on your way to improving your financial situation through smarter investment of your money. Take advantage of bad credit mortgages to move forward. The short term pains are worth the long term gains.

Choosing Between Bad Credit Mortgages

When considering your options for bad credit mortgages, look out for the following three pitfalls that can sneak up on you:

1. Fees and Penalties – Sub prime loans can not only cost more to process, they can also incorporate higher late fees and payment penalties of which you should be aware.
2. Prepayment – Some bad credit mortgage companies need you to stick with their program to ensure they make their allotted profit - and this can mean prepayment penalties (a fine for paying off the mortgage too quickly). This can mean a huge loss if you refinance too soon, so watch out for length and amount of prepayment penalties.
3. Rewards – Some mortgage companies and banks will reward you for improved money management. For instance, if you make a number of payments on time, your interest rate may be reduced. These kinds of incentive rewards are great for folks determined to turn over a new and better credit leaf.

How to Apply for a Mortgage Online

The internet has improved information sharing, especially about home buying, home ownership and mortgage applications. Nowadays you can go online to almost any lender and learn the information they will need, the application process and the rates and terms available to you.

This information and free data has also made the marketplace more competitive which benefits all consumers. After all, with online lenders you can get dozens of mortgage and loan quotes from the comfort of your home without ever visiting a local bank branch.

By arming yourself with knowledge about the process, and by keeping the personal information you need on hand, your mortgage application process will be simple and straightforward.

Downloading a Mortgage Application Form Online

If you are interested in looking at different mortgage applications before going through the process of filling them out, you can look online or visit your local lenders for hard copy examples.

In many cases this is a great way to begin your information gathering. You'll need various forms and paperwork like pay stubs, bank account statements, IRA statements and the like when you submit a mortgage application so getting one in hard copy is a sensible place to start.

You can download mortgage applications online and print them out with relative ease. If you don't have a printer, head out to your local library and print it there. You can also visit your local lenders and ask for a mortgage application to take home for review.

Being prepared will ensure your mortgage application process goes smoothly.

TIPS WHEN THINKING ABOUT A MORTGAGE LOAN

Consider Trying to over pay the mortgage!

For example, if you borrow £100,000 at 6% over 25 years, you'll pay it back at £643 a month. The total charge for credit will be £93,000.

But if you can overpay by £100 a month you'll clear the loan in less than 19 years, giving you 6 years of mortgage-free living and saving a staggering £25,000 in interest and saving you thousands of pounds.

2/ Consider whether you really need such a large mortgage.

It makes me smile that people with 0-2 kids want a mansion, when two generations ago their grandparents were sleeping six to a small property, and they managed just fine.

3/Start saving asap.

Every pound saved is a pound towards your deposit. A pound towards your deposit is a pound you'll not be paying interest on. People think it is great if they get a 95-100% mortgage. But it's their lender who are laughing at the bank.

4/Shop around for mortgage quotes.

This one is very obvious but it is surprising how many people take the first mortgage offer that their bank or broker offers. You should be looking to get at least 4 quotes.

5/Check your credit report.

Because lenders place so much on this you should check it out before applying as it has been reported that as many as 50% of all credit reports contain inaccuracies. Allow time to review and correct any as this could save you 1000's of pounds. You can get your credit report for free from EXPERIAN

6/Get your mortgage Pre-Approved.

This gives you additional bargaining leverage. A home seller may be more likely to accept your offer with pre-approval than another buyer without it.

7 /Read the weekend newspapers.

These normally list some of the best mortgage rates available in their weekend money columns.

8/ Look at the list below for the UK's largest mortgage lenders.

The Tip here is that if they were not offering a competitive deal they would not have such a large share of the mortgage market.

9/ Look at the mortgage facts page on the right to see the rates various mortgages were costing on the last update. (remember these are historical mortgage figures)

Mortgage Tips for a Falling Market

When a real estate market falls, it's unwise to play by the same mortgage rules as those that apply in a fast-moving market. In a hot market, you might have to waive the contingency for a loan. In a slow market, buyers can demand that sellers pay loan points or subsidize mortgage payments and still retain the right to walk away from the deal if the loan falls through.

I've put together a series of tips about to get the best mortgage when the market is depressed. These mortgage tips will help you to consider a few alternatives that you might otherwise overlook such as whether you should look at an FHA mortgage, or figuring out the best time to lock your loan, in addition to giving you practical advice about how to ask for seller concessions.

1031 Exchange or Real Estate Investment Trust?

Well, there is a way, and it's been around for quite some time. It's called a Real Estate Investment Trust, or REIT. A Real Estate Investment Trust is a way for the small investor to invest in big real estate. A Real Estate Investment Trust is an organization that is set up to manage and invest in real estate professionally. You can purchase a Real Estate Investment Trust (REIT) via the stock exchange in the form of a stock, or privately. Private Real Estate Investment Trusts typically require that certain suitability criteria be met. Also, private REITs are typically longer-term investments, with liquidity considerations. Public Real Estate Investment Trusts can be bought and sold on the stock exchange and are considerably more liquid than their private counterparts.

Investing in a Real Estate Investment Trust can come in many forms. You can purchase a Real Estate Investment Trust that focuses on large-scale commercial real estate, for example. This would allow you to take part in major real estate deals involving 100 plus story buildings, that would otherwise be available to the ultra rich. Some Real Estate Investment Trusts may have their focus in apartment buildings or even new housing construction. The point here is that you can choose your Real Estate Investment Trust sector through one of these REITs. If you want a more professionally managed approach there are a large number of REITs actively managed through the purchase of mutual funds. This can provide for diversification, and individual real estate sectors.

Properly set up Real Estate Investment Trusts are tax-advantaged. This means that they are not taxed at the corporate level. However, they must be set up properly. It is required that REITs invest 75% of their funds in real estate. These requirements are met by income derived from mortgage or rent interest. Essentially, you're relying on other parties for their expertise in the real estate arena. Going at it alone is tougher than ever these days. You have the typical headaches, like qualifying for a 1031 exchange, property taxes, escrow, title insurance, and so on. But, that's really the easy part. When the real estate market only went up, the biggest worry for speculators was how to take advantage of a 1031 exchange and save on capital gains. Now, there's much more to worry about, as real estate not only goes up, but it can certainly come down.

It's important to keep in mind that Real Estate Investment Trusts also come with inherent risks. If real estate values plummet, and you have a large percentage of your assets exposed to Real Estate Investment Trusts you may experience declines, as well. This is where diversification is very important. The standard Real Estate Investment Trust me diversify you within different types of real estate, but you should always practice further diversification. Investing in different asset classes, sectors, and the life will provide you with further diversification. Make sure to work with a qualified investment advisor or do your due diligence when investing in any type of Real Estate Investment Trust.