Real Estate Financing – You Can Get A Home Mortgage With Bad Credit

As the real estate market continues to grow rapidly and new technology gains ground, widely accepted beliefs that were true a few years ago may not be true today. Don’t jump into anything blindly or sign a real estate contract or home mortgage loan contract or any other type of contract without giving it some serious thought. Before you commit to a real estate purchase you’ll need to find a lender for the real estate financing of your potential home or investment property.

Your income and your debts will typically play the biggest roles in determining what price range you should be looking at. Fifteen-year mortgages are an ideal option if you can handle the higher payments and if you’d like to have the loan paid off in a shorter period of time. Thirty-year fixed-rate mortgages offer consistent monthly payments for all of the 30 years that you have the mortgage. And if the market is good, you can benefit considerably from locking in a lower rate for the full term of the loan.

Most adjustable rate mortgage programs offer what is called “rate cap” protection, which limits the amount the rate can be increased each year and over the life of the loan and all adjustable rate mortgages are amortized over 30 years. Make sure to get an estimate of your real estate financing closing costs from the lender you’ve chosen. By law, the lender is required to give you a statement within three days of receiving your loan application. Any of the loan programs for down payments of 20% or less require you to purchase Private Mortgage Insurance (PMI).

A mortgage application can be resubmitted many times; it’s not uncommon for this to happen. Interest rates can go up if a picture is painted of a rosy economy and that it is flourishing, like more jobs being available. This can lead to inflation which will make the rates go up. Any money that you receive from a lending institution will show up on your credit report and the payments will factor into your debt-to-income ratio.

A reported FICO credit score is not a requirement for most conventional or government loans like FHA loans or VA loans. Potential borrowers can submit information about income, assets and equity to determine just how much a down payment should be. This is usually processed through an automated underwriting system. Twenty-year fixed-rate mortgages allow you to make a consistently higher monthly payment throughout all 20 years you have the mortgage. The shorter term means you pay off the loan off quicker and pay less interest and build equity faster than with a 30 year loan.

Check with you CPA pr other tax advisor for the most current tax information; your property taxes may be deductible. If you’re working with a home builder within a sub-division or housing development and just making carpeting, lighting and appliance selections for a brand new home, you’ll probably be able to get a standard mortgage loan. If you’re hiring contractors, electricians, plumbers, and painters, you’ll probably need a construction loan, which provides funds to pay the subcontractors as the work goes along. If you plan to borrow money from other sources, some lenders may impose limits on how much of your down payment can come from other sources.

When financing real estate with a conventional loan it’s important to know that a low FICO credit score does not mean you won’t qualify for a home loan or home mortgage. The FICO credit score is just one of many factors that are considered in loan or mortgage applications. Although the FICO score is taken into account there are no minimum scores required.

Ask other homeowners for advice about what real estate and mortgage pitfalls to look out for. Work with a reputable mortgage broker or lender to create a customized loan program with the best combination for you of rates, points, and closing costs to meet your needs. Before you finish with any real estate financing make sure you read every real estate contract and loan or home mortgage contract carefully before you sign on the dotted line. Each and every line is important – look for anything that’s vague or not clear and don’t be afraid to question what you don’t understand.

Easy Guide To Real Estate Financing

Besides the fact that it’s probably the average person’s largest financial transaction, buying or selling a home is one of those areas where mistrust and misconceptions are sure to be present. You can begin your real estate financing education by asking friends, family, co-workers, real estate agents, real estate brokers, mortgage brokers and real estate professionals for help, search online for local lenders and get current interest rate quotes. Now before you apply for any real estate financing, if you have a lot of bad credit because of consumer debt like credit cards or personal loans, you’ll want to try to eliminate or reduce this debt since it may affect your ability to qualify for a commercial or home mortgage and make the estimated monthly payment.

Keep in mind when you’re getting financing or refinancing that most people move or refinance within seven years. An adjustable-rate mortgage (ARM) means that the interest rate changes over the life of the loan, according to the terms that are specified ahead of time. If you’re working with a local builder within a sub-division or housing development and just making carpeting, lighting and appliance selections for a brand new home, you’ll probably be able to get a standard mortgage loan. But if you’re hiring contractors, electricians, plumbers, and painters, you’ll probably need a construction loan, which provides funds to pay the subcontractors as the work progresses.

Twenty-year fixed-rate mortgages allow you to make a consistent higher monthly payment throughout all of the 20 years you have the mortgage. The shorter term means you pay the loan off quicker and therefore pay less interest and build your equity faster than with a 30-year loan. The disadvantages of a fixed-rate mortgage include a possibly higher cost; these loans are usually priced higher than an adjustable-rate mortgage.

Your property taxes may be deductible so make sure to consult with your CPA or other tax advisor for the current tax information. Insiders know that the advertised mortgage rates are not always what you’ll get from the lender; it could be market fluctuations, economic news, any other of a dozen reasons, but interest rates can change throughout the day. If you’re having a problem getting a loan or home mortgage you might consider a lease-option on a property; a lease-option on the real property will allow you to set a good purchase price now, then apply a portion of the rent each month toward your down payment, building your equity in the process.

Work diligently with your mortgage broker or lender to develop an individual loan or mortgage program based on your credit worthiness. 15-year mortgages are an ideal option if you can handle the higher payments and if you’d like to have the loan paid off in a shorter period of time, for example, if you have plans to retire. There are plenty of options that are ideal for those people who have a few bad credit indications on their credit report.

The interest rate for an adjustable rate mortgage may be adjusted up or down at predetermined times which will make the monthly payment increase or decrease. If rates in the current market are high, you’ll probably get a better price with an adjustable-rate loan. Interest rates can go up if a rosy picture is painted indicating the economy is flourishing, for example more jobs being available; this can lead to inflation which will send the rates up.

If you’re a first-time home-buyer it’s possible that you may qualify for a lower down payment or a lower interest rate. You might want to check with mortgage brokers, online mortgage companies, your county housing department or your employer to see if they know of any programs available. A fixed-rate mortgage means the interest rate and principal payments remain the same for life of the loan but the taxes will probably change.

Make sure to get lots of advice about real estate financing, mortgages, interest rates, mortgage rates, mortgage refinance, bad credit mortgages, etc., and think about what makes sense to you. Thinking positive about real estate financing is important and so is being realistic. It is always good to know the truth about advertised current mortgage rates when you need real estate financing.

Las Vegas Real Estate Financing-A Quick Overview

Whether you’re thinking of moving to Vegas with your family or considering investing in some commercial property there are plenty of companies specializing in Las Vegas real estate financing that can help – Here’s a quick overview.

Who and where you get financing will depend on what type of housing you are looking at. Single family dwellings, condos, and townhomes all qualify for different types of financing.

There are financial institutes that specialize in the residential Las Vegas real estate financing needs. Down payments, interest rates, and terms all depend on a number of factors. Besides traditional mortgages there are other types of Las Vegas real estate financing available that have relaxed down payments, relaxed terms, and even relaxed credit requirements.

Besides the residential market there are investments in commercial properties and once again there are Las Vegas real estate financing options that aren’t always traditional.

One of the reasons that Las Vegas real estate financing has more flexibility is that there is an unwritten understanding that income can come from a variety of sources and not all income may be reported on the tax form. Right or wrong it isn’t up to the company’s that have Las Vegas real estate financing on their minds to decide. They just want to lend money and make money.

And there is some great news for anyone that has had some credit troubles in the past and thus considered a higher risk. You will have no problem obtaining financing through one of the many Las Vegas real estate financing conglomerates. They’ll simply charge you a higher rate of interest, give you less flexibility on defaulting, and be happy to take the property back if you miss a payment. And you too can earn a piece of Las Vegas.

When it comes to Las Vegas real estate financing these institutes are also happy to base their loan to you on your declared income. There is no need to provide a pay stub or proof of employment. That means that if you want to own a home in the Vegas area there’s a very good chance that you can using a Las Vegas real estate financing institute.

Now if you are about to play with the big boys down on the strip and invest in some commercial properly your Las Vegas real estate financing agent is going to come from a different deck of cards. Generally speaking those that deal in Las Vegas real estate financing for residential purposes don’t play in commercial.

Commercial loans require different down payments, different collateral, and different requirements to obtain the loan. Each circumstance is different so you’ll need to make an appointment with a an agent that deals with Las Vegas real estate financing on the commercial end to see what they can do for you.

A quick search online will reveal many many Las Vegas real estate financing experts that can help you obtain the funds you need to close that deal. So what are you waiting for?

Copyright © 2007 Joel Teo. All rights reserved. (You may publish this article in its entirety with the following author’s information with live links only.)