Thursday, April 28, 2011

Accessing Your Credit Report 

The information disclosed in a credit report impacts a borrower’s ability to qualify for a mortgage loan.  Credit quality also impacts the mortgage interest rate a borrower can obtain.  Therefore, it can be a good idea to obtain a free copy of a credit report prior to completing an application for a mortgage.  Reviewing your personal credit history provides an opportunity to correct credit inaccuracies and derogatory items.

The Fair Credit Reporting Act (FCRA) requires each credit reporting agency to provide a free copy of a credit report once per year from  This central site provides a free credit report from each of the nationwide consumer credit reporting agencies: Equifax, Experian and Trans Union

The three national credit agencies are independent, so the information found in each bureau’s report may differ.  It is important to check the information in all three agencies’ reports to 
ensure that each one contains correct information regarding your credit.

Free Credit Repair Service

If you discover an unsatisfactory credit score, one of our mortgage experts can discuss available options for improving your credit history.  We offer free credit repair services that often will grant access to the best mortgage rate possible.  We provide a dispute and repair process at no cost to our mortgage clients.
 If you have any questions regarding information on your credit report or need advice on credit repair, give one of our experienced originators a call for a free credit consultation.
 (303) 716 - 3238

Thursday, April 14, 2011

Comparing Mortgage Rates

You do not have to pay a high rate on your mortgage.  Mortgage rates that are too high can cause a lot of stress on a family.

Even if you have been using the same bank or financial lender for years, when it comes to mortgage rates you will want to compare several different lenders.  This can seem like a daunting task, but when you consider the money you will be saving it will be well worth your trouble.  If you do not compare other lenders, you will never know what you could be missing.

There are some great websites that allow you to compare many lenders at once.  This can take a day or two to complete and you can eliminate this with other sources.  Another great advantage is that you can enter your information one time and you will have many results.

When you call each lender separately, you will have to keep giving out the same information and this can be tedious.  When you use a website you will input your information one time and then have many results you can sift through.

Mortgage rates can vary and the rates can change on a daily basis.  This is a good reason to watch the current trends.  If it is predicted that the mortgage rates are going to be lowered for a short time frame, now is the time to react.  You do not want to procrastinate and end up spending more money for your home.

A family that wants to own a home needs an affordable mortgage.  Anything can happen in the future and you want to make sure that your mortgage payment is something you can honor even if your financial situation changes.  The future is a top concern and the instability of the job market.

Your lender can work personally with you to take a look at your financial history and this can give you some guidelines and boundaries to work with.  This can help you to stay within your means and you will never have the stress of knowing you cannot pay your mortgage.

Mortgage rates are a very important aspect of purchasing a new home.  This can be the numbers that make or break many people and they deserve your fullest attention during the process.

Author: Paul Mangion
Did you enjoy this article by Paul Mangion and are looking for Canadian mortgage rates? Please visit our website today where you will find advice from a Canadian mortgage broker so you can get the help you need.
We offer many different solutions for everyone.
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To get the right Mortgage Loan Broker for your Mortgage Refinancing, ask these questions.

1. What array of lending institutions do you as a Mortgage Loan Broker have in your lending panel?

Make sure that the person you are dealing with is a Mortgage Loan Broker or Refinance Mortgage Broker who has access to a panel of lenders as opposed to a Mortgage Representative who only represents one lender and that lender's choice of products.

2. What is the best type of home loan that would suit my cashflow cycle and financial structure?

Make certain that the Mortgage Loan Broker or Refinance Mortgage Broker demonstrates how the particular type of home loan will maintain your financial arrangement and maximise the use of your cashflow. It is imperative that the method in which the loan repayments are needed to be made does not restrict the effective usage of your cashflow in reducing the amount of home loan interest payable.

3. Is it advisable to focus on the loan  products with the lowest home loan interest rates?

If the reply is a distinct yes, ask why and move forward with caution! There is nothing wrong with cheap loan  interest charges as long as the lender shows an established track record of low interest rates and funding!

Home loan products that seem to offer a grand deal may contain high penalties, payments and charges, or may not offer the flexibility of usage that you call for in the future. To prevent selecting a loan you may well later regret, treat with caution a recommendation structured chiefly on low interest rates.

4. What are the best home loan products to fit my immediate situation and goals, and how will they maintain any future objectives I may have?

Make certain the Refinance Mortgage Broker recommendation contains a minimum of 3 home loan products that are also representative of a reasonable comparison between the products. Beware of a comparison that contains 1 product that appears to be far better to the additional 2! Look for product features and product versatility that will allow you to amend the home loan product to meet your future objectives and plans.

5. Aside from the fees and charges associated with the new loan, what additional costs and charges am I liable to incur?
Finance Institutions, Service Providers and Government Departments often charge fees/cost connected with the financing process and often these may be a pricey surprise for the unsuspecting. A worthwhile Mortgage Loan Broker or Refinance Mortgage Broker will provide you with a Loan Costing Sheet itemising all costs, charges & fees connected with the proposed home loan process.

6. How do you get paid and what is your payment arrangement?

Requesting an explanation in writing of how your service provider gets compensated for their act will assist identify and minimise conflicts of interest. If the recommended Lender's commission is by far the uppermost payment of all lenders on the broker's lender panel, move forward with caution as this may possibly denote a conflict of interest.

7. Do you provide your clients with a Mortgage Broking Contract?

Not every Mortgage Loan Brokers service is specific in what it will deliver as opposed to what it is that you require as a final product. Therefore it is highly suggested that a Mortgage Broking Agreement be drawn up among the parties outlining the scope of services/products to be supplied and charges connected with the Mortgage Refinancing.

8. Do you perform FREE Yearly Reviews and what further services do you give?

Find out how keen the broker is to stay in touch with you and check that your mortgage is meeting with your needs. What extra services does the broker give either directly or via referral that might be of benefit to you and are there discounts to be had if you bundle these services with that of the home loan?

9. Where may I turn if we have a disagreement that cannot be resolved?

Do you offer an External Dispute Resolution Service (EDRS)? Request the service provider to give details of the complaints procedure offered by their business, outlining who you might complain to and the EDRS they are an associate of? A valuable Mortgage Loan Broker will present you with a personalised Finance Services Guide at first meeting that will define all the fine points of their complaints procedure as will their Mortgage Broking Contract.

10. Are you an MFAA certified Refinance Mortgage Broker?

By dealing with a broker who is a certified MFAA associate, you are doing business with a broker that has satisfied minimum standards of education, experience and ethics to uphold their association status.

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Author: Kezz Roby
About the Author: Kevin (Kezz) Roby is a Professional Credit Advisor, Licensed Financial Planner and Mortgage Planner who specialises in the development and implementation of Lifestyle Financial Plans and Mortgage Plans that effectively reduce lifestyle and mortgage debt while building wealth and sustaining a desired lifestyle.

Tuesday, April 12, 2011

What Happens To My Mortgage When I Sell My Home?

If you own a home, you undoubtedly are carrying a mortgage on it. A mortgage is simply a loan from a bank or financial institution for percentage of the value of the home, which you pay to the person you purchased the home from when you bought it. Depend on the type of mortgage you have, the amount due on the loan should have decreased during the time you lived in the home and made monthly payments.

When you go to sell your home, the simple question is what happens to the then due balance on the mortgage? The simple answer is the financial institution is going to be paid out of the proceeds of the sale before you see anything. As a result, it is critical that you calculate in the loan repayment amount when determining if it makes sense to sell a home. If you have a home worth $300,000 and owe $280,000 on the mortgage, you are going to realize little or no profit after the costs associated with the sale and probably shouldn't sell it.

If you have plenty of equity built up in the home, your mortgage can still end up costing you more than you originally expected. Many modern mortgages have restrictive penalties built into them. These penalties are designed to encourage you to hold onto the home for a set period of time, usually a couple of years, so the bank can recover a certain amount of interest up front. Put another way, the bank is trying to lock in a certain amount of profit on the loan.

When it comes to these restrictive penalties, lending institutions get pretty creative. Many will include a penalty if you sell or refinance the property within the first two years of the loan period. The penalties can be anything from the equivalent of three months of payments to a preset amount or even a percentage of the loan. State law often influences these issues, so you need to read your mortgage loan documents closely.

Regardless, you mortgage is going to be paid off as part of the sales process. The exact amount will depend upon the nature of your loan.

Raynor James is with the FSBO site - - homes for sale by owner. Visit our "Sell My Home" page to sell your house or our home buying page to view and buy homes, houses, condos, land and real estate.

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Author: Raynor James
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Sunday, April 10, 2011

FHA Home Loans: What You Need To Know About It

There are several types of loans available to homebuyers. However, mortgage loans are not always affordable and those who are not earning enough to make the down payment or monthly mortgage dues will not be able to buy a home for their own. Thankfully, there is the FHA home loan. But what is FHA home loan and how is it different from other forms of loans?

FHA home loans:

This is a type of loan issued by a federal authorized lender and it is guaranteed by the Federal Housing Administration. This is specifically for borrowers who have low to moderate income. This is extremely helpful for these homebuyers because they would not be able to make the expensive down payment. This is its primary purpose, to make home ownership affordable for everyone. This can be a fixed or adjustable rate mortgage.

How to qualify?

Just like most of the mortgage types, FHA loan is not for everyone. There are certain guidelines and requirements you need to follow. However, you will be pleased to note that this is among the easiest kind of mortgage loan to qualify for. How so? Well, it is because it is flexible and affordable, considering that it will only require you to make a 3% down payment.

There are a few requirements you have to satisfy though. One is that you need to have a stable or an increasing source of income for at least two years. It is preferable that your employer is the same throughout this period. One has to satisfy certain credit requirements. If you have filed for bankruptcy, it should be at least 2 years old. If you have undergone foreclosure, it should at least be three years old. And to make sure that you can pay off your mortgage, its payment should be about 30% of your gross income.

How to apply for FHA loan?

Before applying for an FHA loan, see to it that you have all the essential documents. Among the documents you need to present are your bank statements. See to it that they are the most recent. You should also prepare copies of proof of assets. This could be a policy for your life insurance and pension plans. You will also ‘need to present your driver’s license and social security number.

You should also prepare your income tax returns. You can ask the IRS if you do not have a copy. Your lender will also need to determine your debt-to-income ratio, which is why you have to prepare documents that will be needed in the computation. This may include divorce paper and the like. Once you have prepared all the essential documents, submit your FHA loan application

FHA loans made it possible to low to moderate-income earners to purchase a house. If you want to own a home and you feel that you cannot afford one, check if you qualify for this. There are a few requirements you have to present to qualify. However, everything is easier compared to other types of loans.

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Author: Roby Smith

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