Buying your 1st home can be an exciting and scary process. However, by following these 7 steps, your home purchase will be smooth and easy.

There are 7 essential steps involved in the home ownership process.

1. Find a good Realtor/Buyer’s Agent - Most 1st time home buyers don’t realize that they can hire a Realtor for FREE. So, you have nothing to lose, but everything to gain from hiring a Realtor. As a Buyer’s Agent, the Realtor will look out for your best interests throughout the entire process. You no longer have to be scared. The Realtor will be you with every step of the way to help you find your dream home, negotiate your contract, explain financing options, schedule your inspections, go over your closing documents, etc.

2. Get Pre-Approved for a Mortgage Loan - Your time is very valuable, and Realtors don’t want to waste your time showing you properties that you can’t qualify for. That would cause alot of frustration. So, that’s why getting pre-approved is essential to a smooth home purchase. Most 1st time home buyers don’t realize that they can buy a home with NO MONEY DOWN. There are also down payment assistance programs available where the down payment assistance money does not have to be paid back. Please note that every mortgage company/bank offers different loan programs. There are many different loan programs out there, and the programs do frequently change.

3. Assess Your Wants vs. Needs - Buyers should write down the items that they definitely need in a home vs. the items that they would like to have. Be realistic. Many buyers have unrealistic goals. Every real estate market is different. Your Realtor will be able to tell you what type of home you can expect to get in your price range.

4. Shop for a Home - Based on my previous experience, buyers should try to narrow down their home choices to their top 3-6 homes. If buyers look at too many homes, they begin to get confused, overwhelmed, and frustrated. They can’t remember what one home looked like vs. what another home looked like. I’ve had many, many clients who fell in love with the 1st home they visited. However, they still wanted to look at more homes because they wanted to see what else was out there. But in every instance, the buyer went back and bought the 1st home they saw. The moral of this story is that most buyers know within the 1st few minutes of seeing a home if it’s the right one for them. If you fall in love with a home, you don’t need to keep looking because you will go back and buy the one you love.

Once you’ve found the home that you would like to purchase, your Realtor will handle the following 2 items.
5. Negotiate the Contract
6. Schedule your Home Inspection, Appraisal, Survey

7. The final step is to close on the home. You will have alot of paperwork to sign at the closing. Your Realtor will also be there. Depending upon which state you live in, the closing may be held at an attorney’s office, and the attorney will go over all the documents with you. You will receive your keys at the closing.

I am a licensed NC & SC Real Estate Broker/Realtor. I specialize in representing home buyers. For more free tips and advice (or to search for homes), please visit my website: http://www.NJoyHomeBuying.com

Glossary of Reverse Mortgage Terms

203-b limit - the dollar limit in each county for how much of a home’s value can be used to determine the amount of money you can get from a federally insured HECM reverse mortgage; the name comes from Section 203-b of the National Housing Act

AARP model specifications - rules recommended by AARP for analyzing and comparing reverse mortgages

acceleration clause - the part of a contract that says when a loan may be declared due and payable

adjustable rate - an interest rate that changes, based on changes in a published market-rate index

annuity - a monthly cash payment you get from an insurance company for the rest of your life.

appraisal - an estimate of much a house would sell for if it were sold; also called its market value

appreciation - an increase in a home’s value

Area Agency on Aging (AAA) - a local or regional nonprofit organization that provides information on services and programs for older adults

cap - a limit on the amount an adjustable interest rate may go up or down during a specified time period

closing - a meeting where documents are signed to “close the deal” on a mortgage; the time a mortgage begins

condemnation - a court action saying a property is unfit for use: also, the government taking private property to use for the public by the right of eminent domain

creditline - a credit account that lets a borrower decide when to take money out and also how much to take out; also known as a “line-of-credit” or “credit line.”

current interest rate - in the HECM program, the interest rate currently being charged on a loan; it equals the one-year rate for U.S. Treasury Securities, plus a margin (see below)

deferred payment loans (DPLs) - reverse mortgages that give you a lump sum of cash to repair or improve a home; usually offered by state or local governments

depreciation - a decrease in the value of a home

eminent domain - the right of a government to take private property for public use; for example, taking private land to build a highway

expected interest rate - in the HECM program, the interest rate used to determine a borrower’s loan advance amounts; it equals the 10-year rate for U.S. Treasury Securities, plus a margin (see below)

Fannie Mae - a private company that buys and sells mortgages; a government-sponsored business that is watched over by the federal government

Federal Housing Administration (FHA) - the part of the U. S. Department of Housing and Urban Development (HUD) that insures HECM loans

federally insured reverse mortgage - a reverse mortgage guaranteed by the federal government so you will always get what the loan promises; also, a Home Equity Conversion Mortgage (HECM)

fixed monthly loan advances - payments of the same amount that are made to a borrower each month

home equity - the value of a home, subtracting any money owed on it

home equity conversion - turning home equity into cash without having to leave your home or make regular loan repayments

Home Equity Conversion Mortgage (HECM) - the only reverse mortgage program insured by the Federal Housing Administration, a federal government agency

initial interest rate - in the HECM program, the interest rate that is first charged on the loan beginning at closing; it equals the one-year rate for U.S. Treasury Securities, plus a margin

leftover equity - the sale price of the home minus the total amount owed on it and the cost of selling it; the amount the homeowner or heirs get when the house is sold.

loan advances - payments made to a borrower, or to another party on behalf of a borrower

loan balance - the amount owed, including principal and interest; capped in a reverse mortgage by the value of the home when the loan is repaid.

lump sum - a single loan advance at closing

margin - in the HECM program, the amount added to the one-year Treasury rate to determine the initial and current interest rates, and to the 10-year Treasury rate to determine the expected interest rate

maturity - when a loan must be repaid; when it becomes “due and payable”

mortgage - a legal document making a home available to a lender to repay a debt

non-recourse mortgage - a home loan in which the borrower can never owe more than the home’s value at the time the loan is repaid

origination - the process of setting up a mortgage, including preparing documents

property tax deferral (PTD) - reverse mortgages that pay annual property taxes; usually offered by state or local governments

proprietary reverse mortgage - a reverse mortgage product owned by a private company

reverse annuity mortgage - a reverse mortgage in which a lump sum is used to purchase an annuity that gives the borrower a monthly income for life.

reverse mortgage - a home loan that gives cash advances to a homeowner, requires no repayment until a future time, and is capped by the value of the home when the loan is repaid

right of recission - a borrower’s right to cancel a home loan within three business days of the closing

servicing - administering a loan after closing, such as maintaining loan records and sending statements

shared equity - an itemized loan cost based on a percent of a home’s value at loan maturity; for example, a 5% shared equity fee on a home worth $200,000 at maturity would be $10,000

Supplemental Security Income (SSI) - a federal monthly income program for low-income persons who are aged 65+, blind, or disabled

tenure advances - fixed monthly loan advances for as long as a borrower lives in a home

term advances - fixed monthly loan advances for a specific period of time

Total Annual Loan Cost (TALC) rate - the projected annual average cost of a reverse mortgage including all itemized costs

T-rate - the rate for U.S. Treasury Securities; used to determine the initial, expected, and current interest rates for the HECM program

uninsured reverse mortgage - a reverse mortgage that becomes due and payable on a specific date

What is a reverse mortgage?

A reverse mortgage is a financial instrument that allows homeowners over 62 years old to access money that they have built up as equity in their home. They are designed to strengthen a senior’s personal financial situation without a monthly payment burden during the lifetime of the loan.

Does my current mortgage need to be paid off?

No! These loans are designed for owners with equity, but the home does not need to be completely paid off. In some cases we see no money taken from a reverse mortgage, but simply use it to eliminate their mortgage payment.

Any mortgage that is in place will have to be paid off as a part of the reverse mortgage transaction.

Can the lender take my home?

No. The home stays in your name, and you have complete control of your property. You are required to keep the property maintained, and pay the taxes and insurance, just like any other loan, but you would do that anyway! As long as the home is your primary residence, you are protected.

What if I can’t stay in my home due to illness or other reasons?

If all the homeowners permanently leave the home, then the loan becomes due and payable. Extended vacations or hospital stays are not a problem. Absences of over 12 months should be discussed with the lender.

What can I do with the money?

There are NO restrictions on how funds are used. Common uses for reverse mortgage funds include:

• Supplementing retirement income
• Buying a new car
• Making home repairs
• Planning your estate
• Traveling
• Paying for your grandchildren’s education
• Covering Medical expenses

How do I get my money?

You have options in how you take the money. You can choose a lump sum, a monthly payment amount, a line of credit or a combination of these.

Will my reverse mortgage affect my Social Security?

No. Reverse mortgages will not affect Social Security or Medicare. These programs are not based on assets of the recipient, and so are not affected by the addition of a reverse mortgage. Other benefits such as SSI could be affected depending on the particulars of the program.

How is a reverse mortgage different than a regular mortgage?There are three primary differences;

• There are no income requirements
• There are no credit requirements, and
• No loan repayment for as long as you live in the home

Aren’t reverse mortgages expensive?

There can be significant costs associated with a reverse mortgage, however most of these fees can be financed as a part of the mortgage. For those that are concerned with fees, some programs offer reduced or no fees.

What else do I need to know?

• You can never owe more than your home is worth.
  • Reverse mortgages are “non-recourse” loans meaning that the lender can never look to anything or anyone beyond the value of the home. Your estate will not owe anything to payoff the mortgage balance. In addition, some programs allow for “setting aside” a protected portion of your home’s value that will stay with your estate.

• There are no restrictions if you wish to sell the home.
  • The balance of the reverse mortgage is paid off as a part of the sale just like any other loan.

• You can’t be pressured into a reverse mortgage
  • ALL of these programs require counseling from an independent counseling agency. In addition, we welcome you to bring your advisors with you as we are discussing the programs. We would also be happy to provide you with booklets from AARP –Home Made Money, a consumer’s guide to reverse mortgages, or Fannie Mae’s Money from Home – A Guide to Understanding Reverse Mortgages.

We believe this can be a program that can improve your life dramatically, but we want to make sure you are making an informed decision. We also have ongoing seminars “Real Estate in Your Golden Years” - Call for dates and times! An

What Everyone Needs to Know About Reverse Mortgages

A Reverse Home Mortgage Can Turn Your Home Equity into a steady income

A Reverse Mortgage or Reverse Home Mortgage is a great financial product for seniors to use in their retirement plan.

People consider selling their homes or taking loans or borrowing against it get cash. This is commonplace. But it could lead to making loan payments on a equity loan

A Senior can get all the great perks of an equity loan with a reverse mortgage, but they can still keep the “occupancy or ownership” of the home PLUS as a bonus, you don’t need to pay the loan back! Reverse mortgages can be set up so that you typically would not have to pay a penny back until you sell your home, pass away(die), or move out. Most reverse mortgage are not dependent on health, age, credit level, income level, or anything else that could make applying for a loan difficult.

Typically, one can “convert” their regular mortgage to a reverse mortgage easily. In fact, most banks would love fo you to do this since it’s a great benefit to them. Once you convert it, you have no restrictions on how can you use the cash.

It’s a perfect way to stay in your home and get cash, if you have allot of equity

What’s is the Catch??

There is no “catch”. The principle is that you are not required to make any repayments until the term of the loan is up. Interest is accrued over the length of your loan, but is included in the final repayment amount. As for how you spend it, we leave that entirely up to you. If you think you may live in the house for longer that five years, then a reverse mortgage may not be for you.

Requirements

To qualify for a reverse mortgage in the United States, the borrower must be at least 62 years of age. There are no minimum income or credit requirements, but there are other requirements and homeowners should make sure that they qualify for the loan before they invest significant time or money into the process. For most reverse mortgages, the money can be used for any purpose; however, the borrower must pay off any existing mortgage(s) with the proceeds from the reverse mortgage and, if needed, additional personal funds. A pending bankruptcy which has not been finalized may, however, slow the process. Some types of dwellings, such as lower-value mobile homes, do not qualify. Before borrowing, applicants must seek free financial counseling from a source which is approved by the Department of Housing and Urban Development (HUD). The counseling is a safeguard for the borrower and his/her family, to make sure the borrower completely understands what a reverse mortgage is and how one is obtained.

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Found your dream home? Just need the right loan? Let FSH1.com do the work for you! Our affiliates can give you a wide range of home loans/equity loans options on primary residences, second/vacation homes and investment properties.
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Find your Current Situation relating to Home Financing or Debt Consolidation to decide which loan is best for you:

• You currently have a lot of equity in your home and your mortgage interest rate is higher than today’s cash out refinance rates: A cash out refinance will allow you to finance the loan at a lower interest rate than a home equity loan. A cash out refinance will pay off your current first mortgage and provide you with additional money to use at your discretion such as paying off existing loans.

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You currently have a lot of equity in your home and your mortgage interest rate is much lower than today’s rate. A Home Equity Loan is your best bet. Home equity loans generally have a higher interest rate than a cash out refinance, but you will only be paying the higher interest rate on the new loan amount, since you will keep your first mortgage with the lower interest rate. Click here

You currently DO NOT have a lot of equity in your home. A Home Equity Loan is your best bet. A home equity loan allows you to borrow up to 125% of your home’s value. Visit fidelitycenters.com to create your own online home loan center.

You currently DO NOT own a home. You should investigate an unsecured personal loan. Depending on your credit score and your income, you may be able to lower your monthly payments, your total interest payment, or both. Unsecured Credit Cards and Personal Loans - Any Credit History

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The Home Buying Process
For years people shopped for a home with a real estate agent and didn’t involve the lender until after a house was selected. Today, there’s a much smarter way to shop.

They can help you determine how much home you can afford so you and your agent know your price range right away. Plus we can:

Pre-approve you for a loan — a valuable negotiating tool when you’re bidding on a home*

Here are 4 steps we recommend for selecting and purchasing a new home. Follow them and you’ll enjoy a better home buying experience. You’ll be hanging curtains and arranging furniture in your new home a lot sooner.

Determine your price range
Get pre-approved for a loan
Select a real estate agent
Shop for a home

*Pre-approval subject to satisfactory appraisal and title review and no change in financial condition.

Determine your price range
Use our “How Much Home Can You Afford” Calculator to figure out the loan amount and home price you could likely obtain from based on today’s rates and programs.

Get pre-approved for a loan
Decide how you’d like to work with us — in person, by phone or online. Then start by having us pre-approve you for a loan.*

Select a real estate agent
A real estate agent can help you throughout the buying process. What’s more, since an agent’s services are usually paid through a commission from the seller, they don’t cost you anything. A good agent will help you decide exactly what you want in a home, what’s essential and what’s less important, learn your likes and dislikes, and save you hours of fruitless searching. Agents are the first to know when new homes come on the market and can advise you throughout the home-buying process.

Shop for a home
Here’s the fun part. But remember to be a critical buyer. This is going to be your home — possibly for years. Here are some tips:

		Look beyond the cosmetics. Make sure the most expensive things to repair or renovate, things like the structure, plumbing, wiring, and heating and cooling system are all in good shape.
		Think about how the home suits your needs. See our Home Checklist.
		Do you like how the home feels? Is it you?
		Drive around the neighborhood — is this an area you want to live? (Research businesses and other features of the neighborhood with Map Blast.
		Are other homes around the one you’re considering comparable in value? Avoid buying a home considerably more valuable than neighboring homes — you may have trouble with the appraisal. You may also have trouble getting your value out of the home when you want to sell.

Make an offer
Found a home? Decide what price you want to offer and present the price to the seller.

		Use a standard form real estate purchase contract (your agent will provide this). The agreement will have important clauses protecting you and the transaction.
		In choosing a price, consider recent selling prices for comparable homes in the same area, how long the house has been on the market, how hot or slow the market is, and whether the home needs any major repairs. (Your real estate agent can help assess all these. You can also try homegain.com.*)
		See what closing costs the seller might be willing to pay. An eager seller may share more of them.
		Be sure the purchase contract releases you without penalty if a home inspection turns up major problems or the home doesn’t appraise for the sales price.
		Write a realistic closing date into the agreement. While our loan process can be very fast (see our 10 Day Close Program), you’ll need time for the home inspection and negotiations resulting from that.
		If you need to sell your current home, try to make your contract conditional upon the sale of your house. If this request is rejected, give yourself a later closing date.

Once your offer has been accepted, you’ll need to provide earnest money. This is a cash deposit (several hundred dollars to several thousand depending on the value of the home and the market) towards the down payment that shows your commitment to buying the home.

Identity theft is becoming an increasingly used buzzword in today’s high tech world of online banking and bill paying, and with the advent of services like Paypal and shopping cart.

We hear about identity theft in the news all the time, and we think we very well may be at risk, but we’re not sure what to do to help prevent it. Well, there are some things you can do that are very simple that will help prevent you from ever becoming a victim of this potentially disastrous crime.

Unfortunately, even though identity theft is a federal crime, that still doesn’t scare theives away from bilking millions of dollars of year from unsuspecting, hard working people like you and I. It’s not something that any of us want to deal with, but it is prudent to exercise caution whenever possible to reduce your risk.

At this point, we may all have a story about a friend, acquaintance, or family member who was an unwitting victim of some form of identity theft, and the good thing is, these bring the reality closer to home, and have made more people aware that is a growing problem. There are a few types of identity theft, and I’m sure there are even more than I am listing here that not a whole lot of people are aware of.

The types of identity theft are :

1.) When one’s personal information is stolen from their person, such as a wallet with credit cards and other identity revealing financially negotiable instruments.

2.) Something called “phishing” where bogus emails are sent from a scam artist claiming to be a bank or some other type of financial institution, claiming they need you to “sign in” and provide personal information that can allow them to filter money from your account, or charge purchases to a credit card.

3.) Mail related identity theft is where a thief can either intercept your mail and get your personal information or even fill out a change of address form for you so they may receive your mail and do with it what they please.

4.) Internet fraud through unsecured websites when you provide credit card or personal information, a thief may be able to hack sites that are not secured and gain your personal information, or even infect your computer with a virus which hijacks personal information.

Like I said, the four mentioned above are probably not even the tip of the iceberg when it comes to identity theft, but they are the main categories of ways that these savvy and increasingly sophisticated scam artists are getting away with stealing money from people. So, what can you do to help prevent being a victim of these types of identity theft? Well, the good thing is, there are several ways you can help reduce your risk.

First and foremost, make sure you do not ever respond to an email that is requesting you to log in somewhere to verify your information, even if it appears to be from a company you do business with on a regular basis. Spammers skilled in the art of “phishing” are very adept at making these emails look like the real deal, and unfortunately many people have been duped into disclosing important personal information.

What you can do to help combat this problem is visit the company’s offical website on your own, not through any links in the email of course, and report this suspicious email to them. Most large companies have measures in place to protect their clients, and they want to be aware of any bogus emails going out to people with their trusted name attached.

There are also large efforts in the making to prevent these types of emails from coming through to your email inbox, and instead going to your spam bulk file, making them more idenitfiable as a potential security threat, and also reducing the likelihood that one will be defrauded by them.

I saw an improvement in this, but just recently, my inbox has been indundated with spam emails requesting personal information, so it seems the scam artists have found a loophole and are taking advantage, although it may not last long.

Another important prevention measure is to not only be aware of bogus emails, but also to make sure any website that asks for credit card information for a purchase has a security seal of approval. These secured sites usually will have some sort of symbol that they are secured by Verisign or another online security system that signifies it should be safe to pay with. If the site looks fishy, stay clear.

Whenever you receive mail that has credit card information, or is a solicitation for a credit card offer, make sure you tear it up into pieces. Another scam to gain access to your credit or accounts is for thieves to go through your garbage and fill out your credit card offers with a change of address, get the new credit card mailed to them, and start using it to make purchases. Also, it is wise to always have up to date virus protection on your computer, as some viruses are designed to hijack your personal and credit information.

When making purchases with credit or debit cards in any retail establishments, if your credit card number prints on the receipt that they keep, ask to scribble out the whole thing.

Workers or other people may have access to your credit card information, or have just enough information to make online or over the phone purchases with your credit, and this is yet another way your identity can be stolen for the financial benefit of thieves.

While this list of measure you can take to help prevent identity theft is not all inclusive, it is a good start to ensuring your security and making sure your hard earned money stays in your pocket only. They are good principles to live by in this day and age of online banking and financing.

Exploring All of Your Loan Options
by: John Mussi

When you’ve decided that you need to get a loan, you might be wondering exactly what type of loan you should get. In general, most people find themselves limited to only a few loan options because that’s all that they’ve ever known… there are a variety of options available depending upon your needs, however.

To help you in exploring all of your options when searching for a loan, below you’ll find basic information on several common types of loans that you might find when shopping around for a loan.

Secured loans

Secured loans are those loans which have collateral providing a guarantee that the loan will be repaid even if the borrower is unable to make their payments. The object used as collateral can vary greatly depending upon the purpose of the loan and the value of the collateral… common types of collateral include real estate deeds, automotive titles, home equity, and even jewellery and antiques.

Unsecured loans

Unlike secured loans, unsecured loans do not have any collateral serving as a guarantee of repayment. These loans tend to have a higher interest rate than secured loans, but since there is no collateral securing the loan you don’t have to worry about the bank or lender repossessing your collateral if you are unable to make your scheduled payments.

Auto loans

Automotive loans are a type of secured loan that is used to purchase new and used cars, trucks, and other vehicles. Unlike some other types of secured loans, the purchased item in an auto loan (the vehicle) serves as its own collateral to guarantee the loan.

The bank or auto loan lender gains a lien, or legal claim on the automotive title, to the vehicle until the loan has been repaid; once the loan has been paid in full, the lien on the title is legally released and the borrower completely owns the vehicle.

Mortgage loans

Much like an automotive loan, mortgage loans allow the purchased item to serve as collateral for the loan itself. In the case of mortgage loans, the purchased item is a house or other piece of real estate… because of this, most mortgage loans have a loan term of 10, 20, or even 30 or more years.

Mortgage loans are usually subject to a variety of fees at the closing of the deal, which are known as closing costs, and may also require that insurance be kept on the real estate until the loan has been completely repaid.

Home improvement loans

Home improvement loans are those loans that are granted with the express purpose of financing repairs, improvements, and expansions on real estate. The equity in the home or real estate often serves as collateral for the loan, and the improvements that are made tend to increase the value of the property in the end. Depending upon the lender, home improvement loans can either be loans for a specific amount or a credit line with a limit of that amount.

Homeowner loans

Homeowner loans are somewhat like home improvement loans in that they use home equity as collateral, but the subject of the loan is much more open. Instead of using the money from the loan to repair or improve specific real estate, homeowner loans can be used to consolidate personal or business debt, purchase a vehicle, or other purposes.

Because of the ease of working with home equity, homeowner loans usually have lower interest rates and more flexible loan terms than some other secured loans.

–

You may freely reprint this article provided the following author’s biography (including the live URL link) remains intact:

About The Author
John Mussi is the founder of Direct Online Loans who help homeowners find the best available loans via the www.directonlineloans.co.uk website.

Find the best rates for any types of loans online right here on www.financial-services-help.com!
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Our car loans, even with bad credit are so successful because it makes perfect sense. Everyone wants to save money and auto refinancing is one of the easiest and fastest ways to do that.

Millions of Americans are paying too much for their auto loans because of past credit problems. Here is what MSNBC recently had to say about the benefits of auto refinancing

You will be able to enjoy the experience of choosing the right new car or used car for you with a check in hand or deposit in your bank account from one of our respected auto loan lenders. We have researched the web for an excellent selection of the top-rated online loans. Buying a dream car or refinancing a used car? Find the best prices on car loans online here. We offer online loans in all 50 US states. Thousands of our customers rely on our online loans experts to get affordable financing and to support their dreams of owning a business, home, or a car. Our group of car loans lenders will work hard to find you the lowest interest rate even for individuals with varying credit profiles of bad good or poor credit!

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Apply for car loans online, including bad credit car loans (above), payday loans, home equity loans, personal loans, motorcycle loans, auto refinancing, student loans and online loans of all types. Check out our many loan sources below.

What you should know about Home Closing Costs

In the past year, Americans spent about $110 billion on purchasing homes. Americans tend to pay astronomical amounts in closing cost. There are many fees that you are required to pay in the closing of your home loan, and then there are fees thatt are just plain made-up. These fees vary from state-to-state and are ironed out in the Good Faith Estimate, which your mortgage lender should provide for you. It is important to remember that it is an estimate, not the actual cost. You should compare at least three different good faith estimates to insure you are not getting ripped off. Remember…protecting yourself is up to you.

Closing costs consist of four main categories of fees that you should recognize:

1. Origination Fees
2. Title and Closing
3. Government Fees
4. Prepaid Expenses

Here is a breakdown of the closing costs, what each fee means, and how much the average closing cost is in the United States. The information provided is based on a $200,000 home lone amount in the United States. This is just the average, and your closing cost may be higher or lower depending on a lot of factors; including your loan amount, bad credit, or even if you are a first time buyer.

Closing Costs

1. Origination Fees

• Points - points you pay to buy down your interest rate. On average, for every point you buy in lowers interest rate by 0.25. (Average $715)
• Application fee - lender’s cost to process your loan application. (Average $420)
• Commitment fee - this guarantees a loan at a later date even though the credit is not being used at the time. (Average $560)
• Document preparation - document prepared by the lender for getting you a loan. (Average $180)
• Funding fee - money used to transfer your loan money. This is not used in Houston, Texas example. (Average $30)
• Origination or lender fees - money charged by the lender for preparing your loan. (Average $1110)
• Processing - money charged by the lender for processing your loan. (Average $365)
• Tax service - money collected by your lender and placed in your escrow account and then it is put toward your property taxes. (Average $65)
• Administrative Fee - usually covers document preparation. (Average $400)
• Underwriting - fee charged for taking a risk with your home loan. (Average $245)
• Wire transfer - money used to transfer your loan money. This is the same as funding fee in this example. (Average $30)

2. Title and Closing

• Appraisal - used to determine the market value of the home to be purchased. It is also used by the bank to determine how much you can be approved for. (Average $325)
• Attorney, closing or settlement fee - money used for preparing and evaluating papers for your home loan closing. (Average $345)
• Credit report - money used by lenders to gather information about your credit history. (Average $12)
• Flood Certification - insuring the property does not lie within a flood zone. (Average $12)
• Pest, other inspection - money used for pest inspections and any other inspections necessary on the property. (Average $50)
• Postage/courier - money used by the title company to transfer your papers. (Average $30)
• Survey - used to determine the official boundaries of the property. (Average $175)
• Title insurance - protects the title company as well as the buyer from anything missed in the title search. (Average $750)
• Title work - money used to research the property at the courthouse. (Average $225)

3. Government Fees

• Recording fee - money used to pay the county clerk to record the purchase of the property. (Average $97)
• City/county/state tax stamps/intangible tax - tax charged to change ownership of the property. (Average $1365)

4. Prepaid/Escrow

• Prepaid - items prepaid before closing. For example insurance premiums. (Average $1460)
• Escrow - money set up in an account to be used to pay real estate taxes. (Average $700)

The average closing cost in the United States is $2,736. Texas ranked number 2 on the list of most expensive closing costs following New York.

The table below depicts a state-by-state average of closing costs for the United States:

Source: Bankrate

The total cost that you can expect to bring to the table at your closing is about 3% - 6% of the loan amount. For the most part, buyers typically pay the closing cost. Buyers can request that the sellers pay closing costs, but it may affect the purchase price.

Be sure to do your homework and shop around. Miscellaneous fees could cost you hundreds, even thousands. You should never be afraid to ask questions. Not only is this quit possibly the biggest purchase of your life, it is also an investment. So invest in a mortgage broker you can trust.

Steps To Refinancing Your Home

When it comes to refinancing your home, it helps to know the steps you will have to accomplish in order to get your home refinanced. Understanding what you will have to do can prepare you to help streamline the process, and make it go more quickly and smoothly. 1. Know what you want to do. You should understand your objectives, and the reasons why you are applying for a refinance. Understand what you are refinancing your home for, whether it is debt consolidation, home improvements, or shortening your loan term.

2. Fill out your application. Next in the home refinancing steps is filling out your application. This will let you know whether or not you qualify for refinancing your home.

3. Determine what type of loan you want. You need to decide your preferred loan terms ? whether you get an ARM or a fixed rate ? and how long you want your terms.

4. Have your home appraised. Your home has to be appraised as part of the steps to refinancing so that the lender knows how much your home is worth.

5. Work on getting full approval for your home refinancing. You need to have your home fully approved. A copy of your appraisal will be sent to the lender, and at that time an interest rate will be finalized, and then you?ll end up with your formal loan documents.

6. Additional documentation. Before everything is completed in drawing up your documents, you may be required to submit further documents regarding your loan funding.

7. Notary signing. You will have to sign with a notary to fund your home mortgage refinance loan. This is an official who is authorized to witness your signing.

8. Actual loan funding. Once everything is notarized, the documents receive their final finish and the funding for your home refinance loan is sent.

Needed documentation

For most loans here are the documents you will likely need for refinancing loans:

• Copy of your home’s deed
• Information on your current mortgage
• Copy of your homeowner’s insurance policy
• Copies of your pay stubs from the past 30 days
• W-2 form copies from the last two years
• A complete asset list
• List of your credit and loan accounts that are open

Visit http://www.refinancesmarts.com to obtain more information on the Home Refinancing Steps you should take when refinancing your mortgage.

What Is A Home Loan Refinance Mortgage Broker?

When it comes to getting a home loan refinance, sometimes it helps to go through a mortgage broker. This can be especially helpful if you have bad credit. Most mortgage brokers can help you with a bad credit home loan refinance. If you have good credit, a mortgage broker has access to a variety of lenders. You can go to one place and find the best possible loan for your situation, rather than shopping around for a home loan refinance that has the terms that you want.

What is a Mortgage Broker?

A mortgage broker is someone who works with lenders in order to help you get financed for a loan. A home loan refinance mortgage broker works to help you find a lender that will fund your home loan refinance. The broker acts as a go-between you and the lender. It is important to realize, however, that you are not getting your mortgage refinance from the broker. He or she is merely facilitating your home loan. Your refinance mortgage will actually be serviced by a lender. Once the broker gets you and the lender together, his or her work is mainly done.

What Does the Mortgage Broker Do?

A home loan refinance mortgage broker can help you with all of the paperwork necessary to get your refinance mortgage approved. He or she will help you understand what documentation you need to gather, as well as help you fill out the necessary forms. A mortgage broker can take you through the steps of the home loan refinance process. Additionally, a home loan refinance mortgage broker can help you determine the kinds of terms that work best for you. He or she can help you look for good interest rates, as well as loans with lower closing costs and loans with a term-length that is acceptable to you.

Finding a Mortgage Broker

Most places have a mortgage broker nearby who can help you with your home loan refinance. You can usually locate them in the phone book under ?brokers? or ?real estate.? When looking for a home loan refinance mortgage broker, you want to make sure that you are comfortable with him or her, and you should look for someone who takes the time to understand your situation. When your mortgage broker better understands you, you can get a better refinance home loan.

Visit http://www.refinancesmarts.com for help in finding a good Home Mortgage Refinance Broker.

Bad Credit Auto Loan Refinancing Tips

Lots of people know that it’s quite possible to refinance their homes, but did you happen to know that it’s also possible to refinance your car? Indeed, for most people who have high interest sub prime auto loans, bad credit car finance may be a wise decision. How would you know if refinancing car with bad credit is a good idea? And once you decide to refinance, how would you go about doing it to actually improve you loan situation?

Just like when you refinance your home loan, when you refinance your car loan the old loan is paid in full and it’s replaced by a new loan. Auto loan refinance for people with no credit, such as if you when you bought your vehicle and you credit score was below 610, the rates on your car loan could very well be much higher than the rate you would qualify for today. By financing your car loan with poor credit, or even an auto loan with bankruptcy, your monthly payments could go down quite a bit. Additionally, over the span of the loan you could save thousands of dollars in interest payments.

You could be a candidate for car loan finance if:

Your auto loan has been deemed ’season’; which is, if you have had it for at least one year?

You make your payments in a timely manner.

You vehicles value is more than the actual amount that you owe on it.

If all of the above statements happen to be true, then it could be time to look into finding the lowest rates finance available for people with bad credit.

First, be sure that you’re fully aware of what your credit rating currently is. These are easily attainable online. You are entitled to one free credit report each year. Your current credit score would also be available for a small fee.

Secondly, find out the value of your vehicle. Having your automobile appraised isn’t a requirement for refinancing your car with bad credit but you should know the value. Most car loan refinance companies demand that your loan should be at least $7,000 so your car value has to be at least that amount. Check your local bookstore and online for there are many resources available out there for estimating your vehicles worth. Two of the most used sources are more than likely the Edmunds Buyer Guides and Kelley Blue Book. Be certain to have a realistic view when looking at your cars condition because you can be sure that your lender will.

Third, research available lenders, It could be that your current lender would be open to automotive finance for people with bad credit or auto loan refinance for people with no credit, and even car loans with bankruptcy. However, you should always shop around for the best place that will give you the lowest rates and will allow you to refinance the smallest amount as possible. When the two conditions are met you will also then get the lowest monthly payment available.

Fourth, just like any other loan, make sure that all of the offers given to you are in writing. Take the time you need to read all of the fine print and compare each of the proposals. This is an important decision and all of your options need to be weighed carefully.

Finding a lender to help you get a car loan with bad credit may take a bit of time and effort. The savings to your check book and over the course of the loan, however, can more than easily make the time and effort very worthwhile.

Online Auto Loans Company specializes in http://www.autoloan123.net/ (bad credit auto loans) and http://www.autofinancing123.com/ (car refinancing) at lowest interest rates on new or used car purchase regardless of your credit history. Fill out an online auto loan application form to get instant quote and you can qualify for your http://www.carloan123.net/ (car loan) in less than 2 minutes through a secure server.

Key Aspects of Refinancing a Mortgage

Refinancing is the term that describes taking out a new home loan to pay off your existing one. Refinancing is done for a variety of reasons, but generally the purpose is to save money by obtaining a lower interest rate, or to exchange some of the equity in the property for cash.What’s involved in Refinancing? Refinancing is very similar to the process of getting a first mortgage, and the same rules and eligibility criteria apply. You will need a favorable credit rating and income-to-debt ratio, just as with the original mortgage. The cost of refinancing is an important point to consider when deciding whether or not it’s a good financial decision. Refinancing requires paying closing costs, points, and origination fees, appraisal fees for your property, and possibly a prepayment penalty depending on the terms and conditions of your mortgage. In general you can expect refinancing to cost between three and six percent of the amount of principal you have left to pay on your existing mortgage. Reasons to Refinance There are three situations in which refinancing will almost always pay off. First, if you have an adjustable rate mortgage and mortgage rates start rising, refinancing is usually the safest course of action. You can refinance to a fixed rate mortgage before interest rates get out of hand, and avoid the high monthly payments that go along with the higher rate. Refinancing out of an adjustable rate mortgage is also a good idea if you decide you prefer a lower-risk loan. The second reason to refinance is to obtain a lower interest rate and save money on your monthly repayments. This can be a good idea regardless of what kind of mortgage you currently have, but there’s more to consider than interest rates. In some situations, refinancing won’t be the best option, even if interest rates are in your favor. Finally, refinancing to decrease the terms of your mortgage is a good option if your financial situation changes to allow you to afford higher monthly payments. Refinancing in this situation can save you thousands of dollars in interest, even if you end up with a slightly higher interest rate than you currently have. Many people choose to refinance for another reason. They may not be concerned with saving money on the mortgage, but instead want a “cash-out” mortgage, where some of the equity in their home is exchanged for cash. This is usually done to pay off other debts with higher interest rates or to finance a large purchase. Refinancing for this reason often seems like a great idea, but it’s important to explore your options thoroughly before making the decision. When to Refinance-and When to Hold Off In general, refinancing is a good idea in any situation where doing so will save money. Interest rates are not the only issues to consider. Other factors such as the amount of equity you have in your home, how long you plan to live in the home, and how many years are left on your mortgage, also come into play when determining whether refinancing will pay off in the long run. Refinancing will usually pay off if one of the following situations is true: You’re refinancing out of a high-risk mortgage (such as an adjustable rate mortgage) to take advantage of favorable fixed interest rates or because you prefer a lower-risk mortgage You’re refinancing from a fixed rate mortgage to a new fixed rate mortgage with shorter terms or a lower interest rate In addition, for refinancing to pay off, you should also be planning to remain in the home until you’ve recovered the costs of refinancing with the savings you make on the new mortgage payments. In some situations however, refinancing won’t necessarily pay off even in cases where one of the above situations applies. For example, if your credit rating has decreased since you obtained the first mortgage, you may not qualify for an interest rate that’s low enough to make refinancing financially worthwhile. The amount of equity you have in your home also plays an important role in determining how feasible refinancing will be. If you’re planning on a cash-out refinance, for example, you’ll likely need private mortgage insurance if the amount of equity you retain in your home drops below 20%. Finally, remember that cash-out refinancing should be approached with caution, particularly if you plan to use the cash to finance a large purchase or pay credit card debt. When you use the money in this way, you’re turning unsecured debt into debt that is secured against your house. Using equity to pay off credit card debt, for example, can lead to problems if you end up creating more debt after refinancing. About Author: Craig Elliott is a freelance writer who writes about topics pertaining to the mortgage industry such as Mortgage Rates | Mortgage Lender

How Much is to Much for Mortgage Closing Costs
by: Jennifer Hershey

Something that is very important for you to take into consideration when purchasing or refinancing your home is the closing costs.

I would love to tell you that closing costs are not expensive, but believe me they are. Once you add up all the fees’ involved, such as points, taxes, title insurance, county costs and various other fee’s, it really begins to add up.

The first thing you need to understand is that nobody works for free, so be prepared to pay at closing.

The total amount of fees’ depends on quite a few things. For instance, the percentage of loan origination fees’ (points) the lender is going to be charging you. Another large fee is the title search and insurance. The title fee varies by state and is determined by the amount of the home.

Closing costs on average should not exceed 5% of the total amount of the purchase price, and this does not include the down payment.

The total amount of these fees’ does not all go to the lender. Generally only the loan origination fee and the application fee go to the lender.

The rest of the fee’s such as the appraisal, credit report, interest for the period in between closing and your first monthly payment, home owner’s insurance, title insurance, pro rated property tax, etc., go to their appropriate institutions.

Before you go to closing, the lender is required by law to send you a Good Faith Estimate (GFE).The GFE discloses an accurate estimate of all the fee’s you will be responsible for at closing.

Make sure you go over the GFE with a fine tooth comb, and if there are any fees’ you don’t understand, call your lender or broker and ask for an explanation.

As I stated earlier, you must be prepared to pay closing costs. Closing costs are not cheap, but you should not pay a penny more than what is required.

If your closing costs are somewhere between two and 5% of the amount of the mortgage, you should be in good shape.

If they are drastically higher, consider finding another lender.

Remember, do your homework. Put yourself in a position to understand all the jargon that fills up all the paperwork you will be signing.

Also, take your time and shop around, always look for the best rate at the lowest possible price.

About The Author
Jennifer Hershey has more than twenty years of experience in the Mortgage Industry as a loan officer. She is the owner of http://www.explainingmortgages.com/

1) Use your Assets

If you have assets with some significant equity, such as a home or a car you may be able to use these to get control of your debt. For example, you could get a loan on your home sufficient to pay off your debts. You could be saving a considerable amount of money on interest if you pay off high interest credit card debt in return for lower cost debt.

If you have a car, consider selling it, paying off your debts and buying a cheaper car. Be careful though! Your don’t want a “cheaper” car that will cost you a fortune in repair costs.

2) Get a Second Job

Use the money from this job to only pay off your debts. List your debts noting the interest rates. Pay off the debts with the highest rates first and work your way down the list.

3) Put your Credit Cards on Hold

One of the best steps you can take to get out of debt is to immediately stop using Credit Cards. At the very least destroy all your cards keeping just one card for emergencies.

Cut back on your expenses and/or use freed up cash to pay down your debts. Pay off the debts with the highest rates first and work your way down the list.

5) Get a Consolidation Loan

A consolidation loan can make lots of sense. Get a loan to pay off all your many debts and have just one payment to make. The new loan usually has a smaller payment and a lower interest rate.

6) Use the Services of a Credit Counselor
Be careful when contemplating the use of a credit counselor. There are many unsavory companies as you can see by in the following news stories:

There are two types of credit counselor, for profit and “nonprofit”. We do not distinguish between the two as they provide similar services and both charge a fee. Credit counselors can assist you in acquiring the discipline you need to get control of your debt. Be careful! Many people do not fully understand all the ramifications involved such as:

• Impact on your credit rating. The credit bureau will record that a plan is in place.
• Are your payments too high? Your payments should be high enough to significantly reduce your debt but not so high that you have “no life”. If you do not have money left over at the end of the month to pay for the small pleasures in life you may find that you end up defaulting on your payments.
• For how long should you pay? Most experts feel that the term should be three to four years. It is a stipulation in the new Bankruptcy Reform Bills that the term be 3-5 years. Terms longer than this have a very high failure rate, because people cannot see a “light at the end of the tunnel”.

7) Informal Proposal - Payments over time.

In some cases you can make a proposal to your creditors to set up a payment plan that will allow you to pay your creditors in an orderly way and thus help preserve your credit rating. This operates similar to a debt consolidation loan except you do not borrow the money to pay off your creditors.

Informal Proposal - Lump sum payment.

You may be able to pay less than 100 cents on the dollar. For example, a relative may be willing to pay a lump sum to the creditor of say 50% of the amount owed in order for the balance of the debt to be written off. Your creditors will be more willing to accept this offer rather than have you file Chapter 7.

This works best when there are few creditors.

9) Chapter 13 Bankruptcy

You are probably a good candidate for Chapter 13 bankruptcy if you are in any of the following situations:

1. You have a sincere desire to repay your debts, but you need the protection of the bankruptcy court to do so. You may think filing Chapter 13 is simply the “Right Thing To Do” rather than file Chapter 7.
2. You are behind on your mortgage or car loan, and want to make up the missed payments over time and reinstate the original agreement. You cannot do this in Chapter 7 bankruptcy. You can make up missed payments only in Chapter 13 bankruptcy.
3. You need help repaying your debts now, but need to leave open the option of filing for Chapter 7 bankruptcy in the future. This would be the case if for some reason you can’t stop incurring new debt.
4. You are a family farmer who wants to pay off your debts, but you do not qualify for a Chapter 12 family farming bankruptcy because you have a large debt unrelated to farming.
5. You have valuable nonexempt property. When yo