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Is Refinancing Similar to Modifying your Loan?

With so many terms cropping up in the lending industry, it is not at all surprising that consumers are getting a bit confused. In some cases consumers use certain terms interchangeable, furthering the misconceptions that similar sounding loan products are actually identical. Two loan products that routinely become confused are the refinanced loan and the modified loan. Although nothing alike, the procedures are sufficiently similar to warrant the frequent mistaking of their identities. During a refinance, a borrower contacts a mortgage lender and seeks to apply for a new loan product to replace the one he/she currently holds. The borrower will have the property secured by the loan he/she is trying to take out. In the process, the borrower must have the property appraised, prove personal creditworthiness, and pay either points or accept a higher interest rate in return for the new loan.

When a loan modification is done, however, the borrower applies to the current lender. Since the borrower is in the pre-foreclosure state, the creditworthiness is not sufficient to qualify for a conventional refinance loan. Additionally, in a loan mod scenario there are no points to pay. It is not the creation of a new loan but simply the changing of the terms of an already existing loan.

In order to qualify for a refinance of a home loan, a borrower must have adequate credit. To qualify for a loan mod, the home must be close to foreclosure. Some refinance loans do not require that a borrower proves any income while during a modification there must be a complete disclosure of all incomes and expenses. As you can see, the similarity that has some consumers confused about the loan modification versus refinance loan products rests solely in the resemblance of terminology. When comparing the loans products side by side, they are entirely dissimilar. This is also demonstrated in the attitude lenders have toward these loans. Getting a refinance loan is a means of incurring new business and generally speaking these loans are heavily advertised. Loan modifications, on the other hand, are a final effort at preserving a mortgage in danger of becoming a bad debt in the books of the bank, and therefore it is not widely advertised.

Consumers who need more information about this revolutionary means of saving their home from foreclosure are urged to compile their financial data and then contact their lender for a serious discussion about the options open to the borrower. To modify your loan, you can also visit the site www.loan-modification.com which is a very resourceful site/forum. Keeping in mind that borrowers who could qualify for a refinance will not be considered for a modification, it is wise to first seek to exhaust all other options before approaching the bank about a loan mod of the terms pertaining to the mortgage you currently hold.

Is Refinancing Similar to Modifying your Loan? / Author: Lender411

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First-Time Home Buyers Need Expert Help

Without a doubt purchasing a home is an intimidating experience for first time home buyers. This is also a big financial decision for you, as an individual. There may be much you don’t know or understand about buying your new home. To get you started, here are a few tips and tricks about the home buying process.

The first key is to realize that you are new to the home purchase market and get some people on your side that have more experience than you do. Start by finding a real estate agent that has a top-notch reputation in your community. The seller is the one who will have to pay the commission. In other words, it is not going to hurt you to get some good help.

Don’t sign up with the first person you talk to, and think twice about employing your friend who just got his real estate license, or your favorite aunt who sells a a few houses a year. Interview several agents and treat the interview as if you were hiring someone to work for you. Find out how long they have been in the business, what areas they specialize in and get some references, preferably former clients. Then, be sure and call those people and see what they think of the service they experienced. Finally, once you decide on someone, listen to them, and rely their advice.

Make Plans for the Financial End of Things

The next step after finding an agent is to go to a mortgage lender. You’ll want to ask around and find a mortgage company that you trust. Ask lots of people about their experiences, again, asking more than just family and friends. If you don’t have much experience in the world of mortgages, avoid getting a mortgage over the internet. Instead, use a local company where you can ask tons of questions and get every little detail explained in this complex process.

Request from your lender an exact idea of what you can expect to pay each and every month. You will have to sign tons of paperwork, and make sure that you read each document carefully. Your lender should be happy to go over each document with you. If you don’t understand something, don’t be afraid to ask. If you feel like your question is not being answered or is being brushed off, you are free to find another lender for your home purchase.

Shop with Restraint

Now it is time for the fun part: finding the right home. You have already established what you can pay with your mortgage advisor, so stick to houses in your price range. Know what neighborhood you would like to live in, and walk through as many houses as you can in that area. View new homes and resale homes. A new home usually costs more but it does come with warranties, and the feeling of moving into a brand-new house can not be matched. Nearly new homes, however, will usually give you more house for your money. Slowly whittle away at the list of possibilities and revisit the good options until you feel absolutely comfortable with a choice.

Stay involved with your purchase process. Since you have taken the time to select a great real estate agent and lender, trust the things that they tell you. Having a good team of people available to help makes all of the difference when looking for a home.

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First-Time Home Buyers Need Expert Help / Author: Karen Bellas

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Benefits of Buying a Home

There is little doubt that choosing to buy a home is a big commitment. For the majority of people their home will comfortably be the most expensive thing they will ever buy. The system of buying property can also be stressful and involve a long drawn out process. However despite this owning property does have a number of advantages which is why in the UK the majority of people prefer to buy rather than rent a home.

One major advantage of buying rather than renting a home is greater security. Renting is often seen as a temporary measure although some people will choose to rent over a longer period. The disadvantage of renting over a long period of time is that since the home is not yours you can be affected by the needs of other people. For example you may be asked to move out at relatively short notice if the landlord decides they want to sell the property or if they no longer want to rent it out. Rent payments may also be increased at short notice to an unaffordable level.

Therefore people choosing to rent may find that they have to move home every year or even more often than that. Along with the inconvenience of actually moving, changing homes on a regular basis can make it harder for people to settle and make long term plans.

Choosing to buy rather than rent also has a number of financial benefits. Buying a home can be seen as a long term investment. Many people will aim to have paid off their mortgage before they retire meaning that when they do retire they are essentially living ‘rent free’. In the post war period property prices have risen at a faster rate than inflation meaning that buying property can offer a greater capital return than building society interest rates and share prices.

A further financial benefit is that the value of the home can be used to take out secured loans. Owning your own home gives you access to loans often a better rate of interest as lenders consider secured loans to be less risky. Some homeowners may also choose to remortgage their property and withdraw equity from the value of their home. Having the option to remortgage can offer a better alternative to taking out a loan.

Homeowners also benefit from being able to maintain their home exactly how they want it. People renting a property are unlikely to have much say in the way the home is decorated. Landlords may also enforce certain rules such as no pets or keeping the home to a level of cleanliness. By owning their home people have greater freedom to make the property really feel like home rather than just somewhere they happen to live.

WOW Property are a group of fixed fee UK estate agents. Choose WOW Property to search for a new home and to sell your home online.

Benefits of Buying a Home / Author: Rich Bendall

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How to Avoid the Pitfalls of Buying Property Overseas

Buying a property overseas can be a stressful and unpredictable experience, but if you avoid the most common mistakes it will be a whole lot smoother. Here are some top tips from a panel of experts.

Anyone who has bought a property knows what a complex and fraught process it can be. Factor in the numerous problems that can arise when buying property in another country, and the potential for drama increases significantly.
Language barriers, legal complications, exchange rate miscalculations and dodgy builders are just a few of the obstacles that can be encountered if you don’t do things properly. So, to make sure you don’t repeat the mistakes of others, Homes Overseas has asked a selection of industry experts what the most common pitfalls are that UK buyers encounter, and collected their suggestions on the best ways to ensure you avoid them.

Research
Firstly it’s important to know your motivation for buying. Are you simply buying a holiday home for your own occasional use? A rental property, perhaps? Or are you purely going for capital gain?

When you have thought this through you can start making sure you buy in the right location. Andrew Hawkins of Chesterton International says: “Many people don’t research the local area enough. Have a really good look around and check that all the facilities and amenities you need are nearby. Don’t be close-minded in terms of a location. Give yourself time to look at all the options and think about areas and countries that you may not have considered. You may find a similar location with prices a lot lower; for example Abruzzo, in Italy, as an alternative to the more expensive Tuscany.”

If you’ve settled on an area, make sure you thoroughly familiarise yourself with it. Charles Roberts of IRG Portugal says: “Visit in August and then in January - or other times throughout the year - so you have a good feel what the area is like in different seasons.”

When you know where you want to buy, you need to find the right agent. Miles Beacroft, sales director of Titan Properties advises: “Go to a qualified independent agent who can show you a full portfolio, and don’t get trapped by unskilled unprofessional expats who have limited access to stock.” He adds that it is a good idea to use a local agent who lives and works in the area as “they are unlikely to run away or be able to hide. They will be honest and upfront”.

Next on the checklist is to dispassionately decide what kind of property you want, and how much you can spend. Look at lots of properties, even if you think you might have fallen in love with the first one you see. When you settle on the one you want go back and look a second, third, and even fourth time if necessary - don’t be pressured into rushing what is a big decision. This is especially important if you are on an inspection trip, where it is vital to keep researching properties on sale through other agents. Remember the agent you travelled with is not your new best friend - he is there to make money, and any offence he may feel at you being ‘disloyal’ is felt most keenly in the wallet.

“Don’t run the risk of buying a home, moving in, then looking around some more and wishing you had bought another - it happens a lot,” says Beacroft, while James Barnes of Robson Barnes says: “A common mistake is buying too cheap at the start and wishing you’d splashed out when you initially bought. If you’re buying off-plan, think about what you’ll be doing when the property is completed and whether it is worth buying a larger apartment than you initially wanted.”

Barnes adds that a good tip is to be as realistic as possible when planning how much time you can spend in the property: “Don’t overestimate how much you will actually use your property. Take into account how long it takes to get there, how much time you can take off work and realistically, how often you will be at the property.”

Legal
The legal aspect of buying overseas property can be a minefield. Each country has its own system, and although some are based on British law, it is vital that you employ an independent local lawyer, preferably one who has a good command of English - not to mention the language of the country you are buying in. This is probably the single most important piece of advice that anyone can give you.

“One of the most common mistakes people make is not getting proper legal advice. You need to make sure that you take the same legal precautions that you would when buying in the UK,” says Roberts, who is backed up by Beacroft, who advises: “Ensure your lawyer is local, and ask for referrals from clients to see if they are any good. Find out if they respond in timely fashion and whether they know the area and developer well.”

Financial
When it comes to financing your property, make sure you remember all those little additional costs, which soon add up. Hawkins says: “Be aware of the extra costs. Remember that there will be legal fees and other buying costs. On the flipside, some countries do not have stamp duty.”

Beacroft has a handy formula for this: “Do the total budget: house price, plus ten per cent buying costs, plus mortgage set up, plus furniture and running costs.”

According to Roberts, a common mistake is not taking into account currency fluctuations. “Currency rates fluctuate and you need to be prepared in the eventuality of a currency changing. You can fix the exchange rate through various agencies, so do this when you buy.”

Beacroft agrees, noting that “a lot of customers come out and use the airport exchange rates as they have never heard of the big foreign exchange companies - they end up costing themselves a lot of money”.

Rental
If you are going to rent your overseas property, the core message is the same - do your research and be realistic. Barnes says many people underestimate costs and overestimate projected rental revenue. “Make sure you are realistic about how much your property will be rented out and err on the side of caution when projecting figures,” he says.

If you’re buying your rental property off-plan, bear in mind that construction schedules are not set in stone, and that completion dates will affect when your rental stream can start. Roberts says: “Don’t buy off-plan expecting to have the property to use and rent when finished. Be realistic about when all facilities will be completed, not just your particular property. Or, if you want to be able to use your property as soon as possible, buy at a resort that is complete or almost done.”

Hopefully this article hasn’t scared you off buying your dream home overseas. It can be a daunting experience, but if you follow the advice given here and use common sense it could end up being the best thing you’ve ever done.

George Sell for Homes Overseas - Overseas property for sale, overseas property investment advice andinternational property news.
International property experts since 1965.

How to Avoid the Pitfalls of Buying Property Overseas / Author: George Sell
 
Occupation: Freelance Journalist
George is a freelance journalist specialising in property, travel and sport. A former editor of Show House and Viva España magazines, he writes for a wide range of magazines and newspapers. His dream overseas property would be a renovated farmhouse in Asturias.
http://www.homesoverseas.co.uk

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Real Estate Investor Tips for Rehabbing…

Sprucing up the tail and trying to make it look like the head. Doing it right without falling in love with it. Rehabbing and going into debt 101.

There are four ways to do it and one way will take you under for the count.

The first way would be a major cleanup and cleanout. Park a pickup, dump truck and or a dumpster outside. Dispose of all personal contents, soiled carpeting and furniture. Cut the grass, attend to the landscaping, de-odorize, repair leaks, and generally make it look like it has potential. This first level will make it presentable to wholesale to another investor. If you are going to keep, it enables you to see beyond the trash and envision the potential.

The second step would be to repair the obvious small items, and major items that are a must to make the property habitable and be able to gain occupancy permit. The remaining would be to freshen up the interior and exterior with a new coat of paint and clean all the surfaces. This will now enable you to rent the property and or a rent to own. In many cases, if you supply the materials, you can horse trade with the tenants to do more of the work. Be sure of their capabilities and your liabilities.

The third step is not for the beginner and or the faint of heart. Many properties that are bought really right need lots of major repair work that is why the price as it was. This may require a need roof, windows, HVAC, electrical, bathrooms and kitchens?

If you have bought a property as such, it is best to get some hard bid numbers now along with a appraisal of what the property may be worth after these improvements are completed? If…the after repairs, the value is not going to workout as planned, it may be best to re-wholesale it and or improve in stages?

You have to remember why you decided to get into this business?

The fourth stage is not the stage that you may want to do, unless you are planning on living there the rest of your life. This is the main downfall of most new real estate investors. They “fall in love” with the property. They get photos from Architectural Digest along with their life savings and proceed to set new records.

The property becomes grossly over priced to a point that they cannot resale to even break even and also the proposed monthly rent is out of line with market prices. To learn more, please visit my web site. Thank you…

www.truthofrealestate.com/profits

Real Estate Investor Tips for Rehabbing… / Author: Clint

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