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October 29, 2010

Residential Bridge Loan Terms – What Are Normal Terms to Bridge Home Mortgage Loans?

Filed under: Mortgage Loan Program — Tags: Bridge Loan, Bridge Loans, Equality, Existing Home, Existing Mortgage, Finance, Home Mortgage Loans, Interest Rates, Loan Terms, Lot, Lower Monthly Payments, Many People, New Homes, Present Value — admin @ 2:27 pm

Milt Wapner asked:

For most homeowners who seek to purchase new homes, selling the old one in order to finance their purchase of the new one is normally what is being done. However, you need to consider the fact that selling a house isn’t as easy as it seems.

For this, many people take out home bridge loan in order to finance their purchase of the new home even before they get to sell their old home. This means that you can get your hands on cash that you can use to buy a new home.

There are quite a lot of benefits that bridge loans can provide you with. However, before you take out bridge loans, you need to remember that it also has terms that you need to follow in order for you to fully understand how bridge loans works and how you can pay it off.

Basically, bridge loans will be able to allow you to temporarily own both homes. By using the equality in your existing home, you will be able to use this in order to provide down payment to the new home you are planning to purchase.

Now, after your old home is sold, a part of the home bridge loan is paid off. Your monthly payments will also adjust which will only cover your new home. This means lower loan and lower interest rates as well as lower monthly payments.

Normally, most bridge loan can provide you with 85% of the present value of the home. It will also pay off your existing mortgage and the remaining equity will be used to pay off a part of the mortgage of your new home.

These are the things that you need to remember about bridge loan terms. By remembering these things, you will be able to get your new home in no time at all.

Annie

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July 31, 2009

Home Mortgage Loan – 5 Things to Avoid at All Cost If You Want That Loan

Filed under: Finance — Tags: Bankruptcies, Credit Card Debt, Credit Report, Credit Risk, Current, Foreclosures, Home Mortgage Loan, Inadequate Income, Loans, Lot, Mortgage Lender, Outstanding Debts, Paperwork, Proof, Standpoint — admin @ 11:05 pm

Julian Lim asked:

Applying for a home mortgage loan can be a real mine field. Find out about the things that may disqualify you for that mortgage loan.

There are several things that you will have to provide proof to any lender before you will be approved for any home mortgage loan that you apply for. The 5 things that can shoot you down are: Inadequate Income, Too Many Outstanding Debts, Poor Credit, Improper Documentation and Lack of Information.

Inadequate Income

Your income, or lack of enough of it, is one of the determining factors that a lender will use when approving any home mortgage loan. From the lender’s standpoint, if you are barely making enough to make ends meet currently, you will not be able to afford the mortgage payments and they are likely to end up having to foreclose on the property.

Too Many Outstanding Debts

This can also cause you to be turned down for a mortgage. When a lender sees that you have a lot of credit card debt, too many open lines of credit or owe too much on current loans, they might turn you down based on this. If you cannot afford to pay your current debts, you are going to be considered a bad credit risk.

Poor or Bad Credit

This is one of the fastest ways to get denied a home mortgage loan for. Any lender who sees too many late and/or missed payments on debts, charge-offs or recently opened lines of credit will take a second look at the buyer’s other information to decide if they are a good credit risk or not. Foreclosures and bankruptcies on your credit report are not good either. The only thing worse than having poor or bad Credit is having no credit at all! All of these will either disqualify you altogether or cause you to have to pay a higher interest rate, more points and make a larger down payment.

Improper Documentation

This one simply refers to the paperwork that you need to give to the lender when you apply for and during the processing of your home mortgage loan. You will be denied a mortgage if any of your personal or financial documents prove to be false. This refers to your Birth Certificate, Credit Reports, Income/Employment Information or any other information that you provide the lender. Providing false information may lead you to have to deal with serious legal charges. This is not saying that people have totally gotten away with buying property with stolen money, credit information or false/stolen identities, as that has happened. Most lenders go to great lengths to verify that all information given to them is correct and accurate.

Lack of Information

This is another really quick way to be denied for a home mortgage loan. If you either do not give the lender enough information to work with or simply refuse to do so, you will get turned down due to not enough information. This is referring to personal, financial, employment, familial and any other information that the lender needs to be able to make the best possible decision about your credit-worthiness or lack of.

BRANDEN

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