USDA Loan in Harrisburg (888) 464-8732

What questions should I ask a mortgage lender in Harrisburg ? If you’re dealing with a mortgage broker there’s some questions that you should ask both on your first meeting with the mortgage broker and throughout working with your mortgage broker to make sure that you’re getting the best service possible.

USDALoanInfoPA is going to go through 10 different questions that you can ask your mortgage lender in Harrisburg. Be aware that your USDA Loan or Mortgage broker  will be getting the loan that you need and the service that you want.

The first question that I think everyone should ask a mortgage broker is a pretty straightforward one.

How Much Will a Mortgage Broker Cost?

Most mortgage lenders in Harrisburg actually work for free.

So it doesn’t actually cost you anything in order to do it.

They get money because they are paid by the banks when you successfully get a loan.

So they get a small commission of the loan that you apply for and if you get it.

How To Choose A Mortgage Lender

So most mortgage brokers in Harrisburg will work for free and it won’t cost you anything.

However, there are some mortgage brokers out there who do require deposits or who do require you to pay.

So, it’s important to ask, “How much will this cost me?” when assessing which mortgage broker you want to go with.

How much do Mortgage Lenders earn in commission from me and from my loan?

This is less to understand exactly how much they make.

You can see what percentage of commissions they make and things like that by visiting USDALoanInfo.

But it’s more to understand whether or not they’ll be willing to give you this information.

A transparent mortgage broker is someone that’d be willing to give you this information and you know that they have your best interest at heart.

Top Mistake People Make When Applying for a Mortgage | Home Loan Application Mistakes

If they skirt around this issue and they don’t tell you how much they earn.

Well then that would send out red flags for me because I can’t trust them to put my best interest at heart because there are some circumstances where one loan will earn them more money than a loan that could potentially be better for me but not as good for them.

Mortgage Interest

So, I’m just trying to establish whether or not this mortgage broker in Harrisburg is someone that I can trust.

And by asking them the big question, the money question,”How much will you earn from me?” That’s a great way to understand whether or not you can trust the mortgage lender.

So ask that question and see how they respond.

Do Mortgage Lenders Invest Themselves?

Now, I don’t think a mortgage broker has to be a property investor in order for them to be able to get you a good loan and for them to help you successfully invest in property.

However, if they are interested in property in Harrisburg, if they do invest themselves, then that is going to go a long way to help you because they understand what it’s like to be in your shoes.

They understand what you’re trying to get out of this and they’ve done it themselves so they can help you miss some of the pitfalls and things like that.

If they don’t invest themselves, then I would want to ask them, “Have you worked with many people that invest in property?” Because as mortgage brokers, some of them just work with people who are buying their own home.

What Is A FHA Home Loan?

Some of the mortgage lender folk who work with people who are doing particular investment strategies.

So, some might work with people who invest in positive cash flow property or who invest in rural areas, who invest using developments.

Unfortunately, yes. Wait a minute, did you say USDA? As in, United States Department of Agriculture? We've heard of USDA Prime Steaks, but USDA Sub-Prime Loans? What are you talking about?

We're talking about a previously almost unknown and little-used program founded in 1949 to encourage the development and sales of homes in mostly rural parts of the country by, see if this sounds familiar, not requiring any down payment on the loan.

Just like the "low-doc" and "no-doc" and "interest only" loans of the mid-2000s, over which we still have a major hangover and which have certainly contributed to the record number of foreclosures we're seeing, any loan which requires no down payment means nothing at risk for the borrower except the possibility of bankruptcy or having a foreclosure on their record, and lots of people don't know how bad those can be unless they've been through it.

When the program was first founded it made a lot of sense, but even in the current market, where lots of plans to increase business by not requiring down payments has all but completely blown up in the past two years, this program was bound to be discovered and amplified in a way that was never intended, so that since we began the financial crisis which seems to be trying to end, the program has attracted interest way beyond what it ever had before. Through September of this year, we're looking at almost four times the number of USDA-guaranteed loans than were approved for all of 2007.

What does all of this boil down to for us? DON'T DO IT! Yes, I know, if you live in an expensive part of the country it takes forever to save up a down payment. If you go bankrupt, it takes ten years before that's no longer on your record, too.

That's all you need to know about USDA loans. Instead, decide right now to live within your means, which includes saving and investing 20% of your gross income in a combination of your 401K and other market investments, some of which might eventually be in real estate investments if they are appropriate for you. If your means aren't enough, please be patient. Good investing is a lot more like watching paint dry than winning at the roulette table. Too bad that doesn't make for a very good movie!

So I would want to find a mortgage broker who either had that experience themselves or who had clients that they had got similar deals for ’cause that way I know that they can negotiate on my behalf and they can get this deal across the line.

What details do Lenders need from me?

It’s one thing to call up a mortgage broker and just to get an estimate of your borrowing capacity but if you’re going through pre-approval and stuff like that, then you’re going to need to provide the mortgage broker with more in-depth details.

You might need pay slips; you might need proof of identity, all of that sort of stuff.

If you ask them up front, “What details do you need from me?” And when you go to your meeting with them you actually provide them with those details, well that just makes things so much easier.

5 Things to Look For in a Mortgage Quote

Remember, a mortgage lender is only paid once the deal goes through and once you actually get financing.

So the easier you make it for them, the more likely you are going to get better service.

What can I do as a client to make this go as smoothly as possible?

You have the goal of getting financed for your property, the mortgage lender has a goal of you getting financed for your property and no one wants it to be difficult.

And so, if you can ask the mortgage broker, “Look, how can I work with you? How can I make things easy for you?” They’re the experts; they know what they’re doing.

They can tell you exactly what they need and then you can work hard to provide that for them so that they can get everything across the line as quickly as possible.

Home Loan Pre Approval

You know, I have customers,I deal with customers and even though I’m not a mortgage broker myself, I know that when there’s difficult customers that you don’t want to deal with, it just makes life so much harder and you don’t want to work hard for those people.

And when there’s customers who are really nice to you and who try really hard to help you provide them with the service you provide, you will bend over backwards to do anything you can for those customers to get them across the line, to help them as much as possible.

So, be one of those customers that the mortgage broker wants to bend over backwards to help you because you have their interest at heart as well.

You want to see them get paid.

You want to see them do an easy mortgage so they get paid easily.

And so you can develop a relationship into the future.

Which lenders can I borrow the most from?

Most people go into a mortgage broker looking for the cheapest interest rate possible.

What is the cheapest interest rate I can get? And the fact of the matter is a mortgage broker is likely to show you the banks that will lend you the amount of money you need and will also have the cheapest interest rate as well.

However, they might not showy ou banks that will lend you more money than you potentially need at the moment.

Now, it’s important to ask, “Which lenders can I borrow the most from?” because this will help you to project into the future.

Maybe you don’t need to know that for this loan right now but maybe, in the future, you might need to borrow money again and you know, or roughly my borrowing capacity is this.

Or if you find out which lenders you can borrow more from, and you find that you can actually borrow an extra $300,000, well you might split up your deposit and invest in two investment properties instead of just one.

And so asking them, “Which lenders can I borrow the most from?” is a great question to ask to really understand your position.

Because, yes, interest rate is important but how much you can borrow is also important as well.

Can I see a full list of my borrowing options?

Most mortgage brokers will provide you with, usually, like a top three or sometimes only a top one.

And I always like to think, “Can I see a full list of my borrowing options?”Again, this is less to say you want to go through all of this in minute detail and see.

You’re probably going to still choose from one of the top three ones.

But you just want to see that they’re giving you the full amount of information.

And most mortgage brokers are good people but there are some dodgy mortgage brokers out there who are just trying to get the deal that gives them the biggest commission.

Second Mortgage Rates

And so by asking to see a full list of what your borrowing options, you can then look at that and you can then assess, “Okay, well which loan do I think is going to be best for me?” rather than just taking the recommendation of the mortgage broker who may or may not be thinking about themselves.

So, again, most mortgage brokers are great people out there to help you but it’s always a good idea to get a full list of your borrowing options that are available.

Will this put a mark against my credit file?

And so this is when you’re trying to work out how much you’re going to borrow and stuff like that.

When you go into a bank and you try and find out how much you can borrow, often, the bank will do a credit check and this puts a mark against your credit file.

And what happens is if you have a lot of these marks against your credit file, even though it’s nothing bad, this can actually stop you getting a loan.

Va Mortgage

So, talk to your mortgage broker and when you’re looking at, “What can I borrow?”or your looking at getting pre-approval, just understand, “Will this put a mark against my credit file?” ‘Cause it’s not bad to have a couple or whatever.

But if you’re getting lots and lots of marks against your credit file, then that could be an issue.

So just make sure and you know when a mark’s being put against your credit file and when a mark isn’t being put against your credit file.

How soon can I revalue or borrow again?

So if you’re investing in a property to renovate it or to develop it or even if you’re investing in a property that’s potentially under market value, you want to know how quickly can you revalue that property so you can get equity and then hopefully draw equity out of the property to go ahead and invest again.

There are a lot of lenders out there who don’t allow you to revalue within a 12-month period.

So, speak to your mortgage broker about the lenders that will allow you to revalue faster.

And basically, this will give you an idea of how quickly you can revalue to consider going again.

Usda Financing

You’re also going to want to ask them, “After I invest in this property, how soon can I borrow again or what do I need to do to put myself in a position to be able to borrow again and to purchase the next property?” Because hopefully, your goal isn’t just to purchase one property but to grow your property portfolio and to achieve that financial freedom and that financial security that you’re striving for.

Will My Loans be ‘cross-collateralised’?

Now, I have heard a lot of stories about investors whose loans have been cross-collateralised and it’s cause major problems when they’ve gone and sold their property because the bank shave been able to take that money and pay off debt.

And basically, you want to avoid this at all costs from what I hear.

And so, it’s good to ask your mortgage broker, “Will my loans be cross-collateralised in any way?” Generally going with the same lender for two loans does it by default, even though it doesn’t say they’re cross-collateralised.

So, it’s just something that you want to look at the fine print, you want to understand, “Are these cross-collateralised?” And if they are, try and avoid it, try and get loans that aren’t going to be cross-collateralised.

Mortgage Advisor

So there you have some questions to ask your mortgage broker next time you go and see a broker to find out how much you can borrow or get pre-approval or get financed for another property.

If you are in the market, looking at properties and you want to see some high rental yield properties, then I’ve got 10 property listings that I’ve gone out and found for you guys.

You can see what high rental yield properties look like that are likely to generate a positive cash flow.

Did You Know – You Can Get Pre-Approved for a USDA Loan in Harrisburg?

Mortgage Rates Canada

Walk into any high street bank or building society and mention that you’re looking for a mortgage, and you’re likely to be bombarded with leaflets, if not hurried into a private office to meet their mortgage advisor. Mortgages are big business – and every large financial institution will offer several types of loan for buying property. It’s a good idea to check out as many different lenders as possible before making a decision – experts repeat the phrase ‘shop around’ like a mantra these days and you could save yourself a lot of money by comparing what’s on offer. Your own bank may be a good place to start – if you’ve banked with them for a while and have a good financial record they may be more confident about loaning you a large amount of money such as a mortgage. However, with relatively low interest rates and a booming market, these days the competition among lenders is fierce and you may find a better deal elsewhere. Don’t feel that you have to use the same bank for your mortgage as for your personal account. There are a number of websites that produce tables of comparative mortgage offers – just type ‘mortgage’ into your search engine and see the amount of results you pull up. ‘Which’, the magazine of the Consumer’s Association, is a reliable source of information on the current market. Check their website for guides on ‘Which mortgage’ at www.which.co.uk The financial pages in newspapers carry adverts as well as news on the latest deals – beware though of being seduced by adverts promising low rates without giving all the details – there’s more to finding the right mortgage than just picking the best rate. The bank are likely to advertise their lowest rate, and you are likely to have to meet certain criteria before qualifying for that particular deal. Check for things like hidden clauses or Higher Lending Charges – these are one-off charges applied to some deals that are supposedly to cover insurance protection for the bank when they lend to you. They will not, however, provide the lender with any security! Ethical investment is also a consideration for some borrowers – Muslim banks, for example, are forbidden from charging or paying interest. You can find out more about ethical banking and investments at www.eiris.org The Islamic Bank of Britain complies with Sharia Law, contact them at www.islamic-bank.com

How To Pick A Mortgage Lender When Buying A House

Usda Programs

- [Voiceover] What Iwant to do in this video is explain what a mortgage is.

I think most of us have atleast a general sense of it, but even better than that,actually go into the numbers and understand a little bitof what you are actually doing when you're paying amortgage, what it's made up of and how much of it is interest versus how much of it isactually paying down the loan.

Let's just start with a little example.

Let's say that thereis a house that I like.

Let's say that that is the house that I would like to purchase.

It has a price tag of, let's say that I need to pay $500,000 to buy that house.

This is the seller ofthe house right here.

And they have a mustache.

That's the seller of the house.

I would like to buy it.

I would like to buy thehouse.

This is me right here.

And I've been able tosave up $125,000 dollars.

I've been able to save up$125,000 but I would really like to live in that house so I go to a bank.

I go to a bank, let me geta good color for a bank.

That is the bank right there.

And I say, "Mr.

Bank, can you lend me "the rest of the amountI need for that house?" Which is essentially $375,000.

I'm putting 25% down.

This number right here, that is 25% of $500,000.

So I ask the bank, "Can Ihave a loan for the balance? Can I have $375,000 loan?" And the bank says, "Sure.

You seem like a nice guy "with a good job whohas good credit rating.

"I will give you the loan but while you're paying off the loan you can'thave the title of that house.

"We have to have that title of the house "and once you pay off the loan, "we're going to give youthe title of the house.

" What's gonna happen here isthe loan is gonna go to me, so it's $375,000.

$375,000 loan.

Then I can go and buy the house.

I'm gonna give the total $500,000, $500,000 to the seller of the house, and I'll actually moveinto the house myself, assuming I'm using itfor my own residence.

But the title of the house, the document that says who actually owns the house.

This is the home title.

This is the title of the house.

Home title.

It will not go to me.

It will go to the bank.

The home title will go from the seller, or maybe even the seller's bank, because maybe they haven'tpaid off their mortgage.

It will go to the bankthat I'm borrowing from.

This transferring of thetitle to secure a loan.

When I say "secure aloan," I'm saying I need to give something to thelender in case I don't pay back the loan or if I just disappear.

This is the security right here.

That is technically what a mortgage is.

This pledging of the titleas the security for the loan, that's what a mortgage is.

It actually comes from old French.

Mort means dead, andthe gage means pledge.

I'm 100% sure I'm mispronouncing it, but it comes from dead pledge because I'm pledging itnow but that pledge will eventually die once I pay off the loan.

Once I pay off the loan thispledge of the title to the bank will die and it will come back to me.

That's why it's called adead pledge, or a mortgage.

And probably because itcomes from old French is the reason we don't saymort-gage, we say mortgage.

But anyway, this is alittle bit technical, but normally when peoplerefer to a mortgage they're really referringto the loan itself.

They're really referringto the mortgage loan.

What I want to do inthe rest of this video is use a screenshot froma spreadsheet I made to actually show you the math, or actually show you what yourmortgage payment is going to.

You can download thisspreadsheet at khanacademy, khanacademy.

Org/downloads/mortgagecalculator Or actually, even better, justgo to the downloads folder and on your web browseryou'll see a bunch of files, and it will be the filecalled MortgageCalculator, MortgageCalculator.

Xlsx.

It's a Microsoft 2007 format.

Just go to this URL, thenyou'll see all the files there and you can just download this file if you want to play with it.

What it does here, in thiskind of dark brown color, these are the assumptionsthat you can input and then you can change thesecells in your spreadsheet without breaking the whole spreadsheet.

Here I've assumed a 5.

5% interest rate.

I'm buying a $500,000 home.

It's a 25% down payment, that's the $125,000 that I had saved up, that I talked about right over there.

And then the loan amount.

Well, I have 125, I'mgonna have to borrow 375, it calculates it for us.

And then I'm gonna get apretty plain vanilla loan.

This is gonna be a 30 year.

When I say term in years, thisis how long the loan is for.

So 30 years.

It's gonna be a 30 yearfixed-rate mortgage.

Fixed rate, which means theinterest rate won't change.

We'll talk about that a little bit.

This 5.

5% that I'm payingon the money that I borrowed will not change over thecourse of the 30 years.

We will see that the amount I've borrowed changes as I pay down some of the loan.

This little tax rate that I have here, this is to actually figureout what is the tax savings of the interest deduction on my loan.

We'll talk about that in a second, you can ignore it for now.

Then these other thingsthat aren't in brown, you shouldn't mess with these if you actually do open up thespreadsheet yourself.

These are automatically calculated.

This right here is amonthly interest rate.

So it's literally theannual interest rate, 5.

5%, divided by 12.

And most mortgage loans arecompounded on a monthly basis so at the end of every monththey see how much money you owe and they will charge you this much interest on that for the month.

Now given all of these assumptions, there's a little bit ofbehind-the-scenes math, and in a future video Imight actually show you how to calculate what theactual mortgage payment is.

It's actually a prettyinteresting problem.

But for a $500,000 loan--Well, a $500,000 house, a $375,000 loan over 30 yearsat a 5.

5% interest rate, my mortgage payment isgoing to be roughly $2,100.

Right when I bought the house, I want to introduce alittle bit of vocabulary, and we've talked about thisin some of the other videos.

There's a asset in questionright here, it's called a house.

And we're assuming it's worth $500,000.

We're assuming it's worth$500,000.

That is an asset.

It's an asset because itgives you future benefit; The future benefit ofbeing able to live in it.

Now there's a liabilityagainst that asset, that's the mortgage loan.

That's a $375,000 liability.

$375,000 loan or debt.

If this was your balance sheet, if this was all of your assetsand this is all of your debt, and you were essentiallyto sell the assets and pay off the debt, if you sell the house you get the title, you can get the money, thenyou pay it back to the bank.

Well actually, it doesn'tnecessarily go into that order but I won't get too technical.

But if you were to unwindthis transaction immediately after doing it, then youwould have a $500,000 house, you'd pay off your $375,000 in debt, and you would get, inyour pocket, $125,000, which is exactly what youroriginal down payment was.

But this is your equity.

The reason why I'm pointing it out now is, in this video I'm notgonna assume anything about the house price,whether it goes up or down, we're assuming it's constant.

But you could not assume it's constant and play with thespreadsheet a little bit.

But I'm introducing thisbecause as we pay down the debt this number's going to get smaller.

So this number is getting smaller.

Let's say at some pointthis is only 300,000.

Then my equity is going to get bigger.

So you could do equity ishow much value you have after you pay off the debt for your house.

If you were to sell thehouse, pay off the debt, what do you have left over for yourself.

This is the real wealth in thehouse, this is what you own.

Wealth in house, or theactual what the owner has.

What I've done here is-- Actually before I get tothe chart let me actually show you how I calculate the chart.

I do this over the course of30 years, and it goes by month.

So you can imagine that there's actually 360 rows here in the actual spreadsheet, and you'll see that ifyou go and open it up.

But I just want to show you what I did.

On month 0, which I don't showhere, you borrow $375,000.

Now, over the course of that month they're going to charge you.

46% interest.

Remember, that was 5.

5% divided by 12.

46% interest on $375,000 is $1,718.

75.

So I haven't made anymortgage payments yet.

I've borrowed 375,000.

This much interest essentiallygot built up on top of that, it got accrued.

So now before I've paidany of my payments, instead of owing 375,000 atthe end of the first month, I owe $376,718.

Now, I'm a good guy, I'm notgonna default on my mortgage so I make that first mortgage payment that we calculated right over here.

After I make that paymentthen I'm essentially, what's my loan balanceafter making that payment? Well, this was before making the payment, so you subtract the payment from it.

This is my loan balance after the payment.

Now this right here, thelittle asterisk here, this is my equity now.

So remember, I startedwith $125,000 of equity.

After paying one loan balance,after my first payment, I now have $125,410 in equity, so my equity has gone up by exactly $410.

Now you're probably saying,"Gee.

I made a $2,000 payment, "roughly a $2,000 payment, "and my equity only went up by $410 "Shouldn't this debthave gone down by $2,000 "and my equity have gone up by $2,000?" And the answer is no because you had to pay all of this interest.

So at the very beginning, your payment, your $2,000 payment, is mostly interest.

Only $410 of it is principal.

So as your loan balance goes down you're going to pay less interest here, so each of your payments are going to be more weighted towards principal, and less weighted towards interest.

And then to figure out the next line, this interest accrued right here, I took your loan balanceexiting the last month, multiplied that times.

46%.

You get this new interest accrued.

This is your new pre-payment balance.

I pay my mortgage again.

This is my new loan balance.

And notice, already by monthtwo, $2 more went to principal.

and $2 less went to interest.

And over the course of 360months you're going to see that it's an actual, sizable difference, and that's what thischart shows us right here.

This is the interestand principal portions of our mortgage payment.

So this entire heightright here, this is-- Let me scroll down a little bit.

This is by month.

So thisentire height, you notice, this is exactly our mortgagepayment, this $2,129.

Now, on that very first monthyou saw that of my $2,100, only $400 of it, this is the $400.

Only $400 of it went toactually pay down the principal, the actual loan amount.

The rest of it went to pay down interest, the interest for that month.

Most of it went for theinterest of the month.

But as I start paying down the loan, as the loan balance getssmaller and smaller, each of my payments, there'sless interest to pay.

Let me do a better color than that.

There's less interest.

We goout here, this is month 198, over there that last monththere was less interest, so more of my $2,100 actuallygoes to pay off the loan until we get all the way to month 360.

You can see this inthe actual spreadsheet.

At month 360 my final payment is all going to pay off the principal.

Very little, if anything,of that is interest.

Now, the last thing I wantto talk about in this video, without making it too long, is this idea of a interest tax deduction.

A lot of times you'll hearfinancial planners or realtors tell you the benefit of buying your house is it has tax advantages, and it does.

Your interest is tax deductible.

Your interest, not your whole payment.

Your interest is tax deductible.

I want to be very clearwhat deductible means.

First let's talk aboutwhat the interest means.

This whole time over 30 yearsI am paying $2,100 a month, or $2129.

21 a month.

Now the beginning, alot of that is interest.

So on month one, 1,700of that was interest.

That $1,700 is tax deductible.

As we go further and further, each month I get smaller andsmaller tax deductible portion of my actual mortgage payment.

Out here the tax deductionis actually very small, as I'm getting ready topay off my entire mortgage and get the title of my house.

I want to be very clear on this notion of what tax deductible even means, because I think it ismisunderstood very often.

Let's say in one yearI paid, I don't know, I'm gonna make up a number, I didn't calculate it on the spreadsheet.

Let's say in year one Ipay $10,000 in interest.

10,000 in interest.

Remember, my actual paymentswill be higher than that because some of my payments went to actually paying down the loan.

But let's say 10,000 went to interest.

And let's say before this, let's say before thisI was making 100,000, let's put the loan aside.

Let's say I was making $100,000 a year, and let's say I was payingroughly 35% on that 100,000.

I won't go into the whole tax structure and the differentbrackets and all of that.

Let's say if I didn't have this mortgage I would pay 35% taxes, which would be about $35,000in taxes for that year.

This is just a rough estimate.

When you say that $10,000is tax deductible, the interest is tax deductible, that does not mean that I canjust take it from the $35,000 that I would have normallyowed and only pay 25,000.

What it means is I can deductthis amount from my income.

When I tell the IRS howmuch did I make this year, instead of saying I made $100,000,I say that I made $90,000 because I was able to deduct this, not directly from my taxes, I was able to deduct it from my income.

So now if I only made $90,000 -- and this is, I'm doing agross oversimplification of how taxes actually get calculated -- and I pay 35% of that, let'sget the calculator out.

Let's get the calculator.

So 90 times.

35 is equal to 31,500.

So this will be equal to $31,500.

$31,500.

Off of a 10,000 deduction,$10,000 of deductible interest, I essentially saved $3,500.

I did not save $10,000.

Another way to think about it, if I paid 10,000 interestand my tax rate is 35%, I'm gonna save 35% ofthis in actual taxes.

This is what people meanwhen they say deductible.

You're deducting it from the income that you report to the IRS.

If there's something thatyou could take straight from your taxes, that'scalled a tax credit.

If there was some specialthing that you could actually deduct it straight from yourtaxes, that's a tax credit.

But a deduction justtakes it from your income.

On this spreadsheet Ijust want to show you that I actually calculated, in that month, how much of a tax deduction do you get.

So for example, just offof the first month you paid $1,700 in interest of your$2,100 mortgage payment, so 35% of that, and I got 35%as one of your assumptions, 35% of $1,700, I will save$600 in taxes on that month.

So roughly over thecourse of the first year I'm gonna save about $7,000 in taxes, so that's nothing to sneeze at.

Anyway, hopefully you found this helpful and I encourage you togo to that spreadsheet, and play with the assumptions, only the assumptions in this brown color unless you really know whatyou're doing with a spreadsheet, and you can see how thisactually changes based on different interest rates,different loan amounts, different down payments, different terms.

Different tax rates, that will actually change the tax savings, and you can play aroundwith the different types of fixed mortgages on this spreadsheet.

Usda Eligibility Map

USDA Loan in Pennsylvania (888) 464-8732

USDA Loan in Sharon (888) 464-8732

What questions should I ask a mortgage lender in Sharon ? If you’re dealing with a mortgage broker there’s some questions that you should ask both on your first meeting with the mortgage broker and throughout working with your mortgage broker to make sure that you’re getting the best service possible.

USDALoanInfoPA is going to go through 10 different questions that you can ask your mortgage lender in Sharon. Be aware that your USDA Loan or Mortgage broker  will be getting the loan that you need and the service that you want.

The first question that I think everyone should ask a mortgage broker is a pretty straightforward one.

How Much Will a Mortgage Broker Cost?

Most mortgage lenders in Sharon actually work for free.

So it doesn’t actually cost you anything in order to do it.

They get money because they are paid by the banks when you successfully get a loan.

So they get a small commission of the loan that you apply for and if you get it.

USDA Loans, Mortgages For Rural Farmers and Low Income Farming Households

So most mortgage brokers in Sharon will work for free and it won’t cost you anything.

However, there are some mortgage brokers out there who do require deposits or who do require you to pay.

So, it’s important to ask, “How much will this cost me?” when assessing which mortgage broker you want to go with.

How much do Mortgage Lenders earn in commission from me and from my loan?

This is less to understand exactly how much they make.

You can see what percentage of commissions they make and things like that by visiting USDALoanInfo.

But it’s more to understand whether or not they’ll be willing to give you this information.

A transparent mortgage broker is someone that’d be willing to give you this information and you know that they have your best interest at heart.

Home Loan Application Mistakes

If they skirt around this issue and they don’t tell you how much they earn.

Well then that would send out red flags for me because I can’t trust them to put my best interest at heart because there are some circumstances where one loan will earn them more money than a loan that could potentially be better for me but not as good for them.

No Down Payment Mortgage

So, I’m just trying to establish whether or not this mortgage broker in Sharon is someone that I can trust.

And by asking them the big question, the money question,”How much will you earn from me?” That’s a great way to understand whether or not you can trust the mortgage lender.

So ask that question and see how they respond.

Do Mortgage Lenders Invest Themselves?

Now, I don’t think a mortgage broker has to be a property investor in order for them to be able to get you a good loan and for them to help you successfully invest in property.

However, if they are interested in property in Sharon, if they do invest themselves, then that is going to go a long way to help you because they understand what it’s like to be in your shoes.

They understand what you’re trying to get out of this and they’ve done it themselves so they can help you miss some of the pitfalls and things like that.

If they don’t invest themselves, then I would want to ask them, “Have you worked with many people that invest in property?” Because as mortgage brokers, some of them just work with people who are buying their own home.

How To Choose A Mortgage Lender

Some of the mortgage lender folk who work with people who are doing particular investment strategies.

So, some might work with people who invest in positive cash flow property or who invest in rural areas, who invest using developments.

How's it going everyone? Matt Leighton, welcome back to another video. In this episode, we are talking mortgages,lending. I'm here with Rich Conlon from Atlantic CoastMortgage. Say what's up Rich. Hi, Rich Conlon, Atlantic Coast Mortgage. Loan Officer. Born and raised in Vienna, Virginia. Love the area. Still live in the area. Just here to help out with my man Matt andhelp answer any questions. Awesome, whenever someone has a mortgage questionfurther than "What is the rate?", I just tell them to talk to Rich. I know a little bit about mortgages. Buttoday we're talking about the top mistake people are making when they're applying fora loan. You see all these loan commercials. It's funny, when we get the primer, one-sheeterson the list of things NOT to do. One of them is like, "Don't go and buy a boat". Don't buy a new car. I'm thinking to myself, nobody in the historyof loans has ever gone under contract and then bought a boat the day after. I'm sure it has happened. But it obviously is not the number one mistakepeople are making when they're trying to buy a home. That's where Rich comes in. Rich, you're on the spot here. What is the number one thing people are doing,that they shouldn't be doing when they're applying for a loan with you guys? It's simple, it's before you even get to contract. It's just waiting until the last minute toget pre-approved. We understand circumstances sometimes that'sjust how it is. The big thing is, after meeting your agent,talking about price ranges and goals, the next step, it can't hurt to just reach outto a lender or two or three and start identifying what you can actually qualify for. That's the best thing. The earlier the better. Main reason is that it allows time to findany potential pitfalls that can come back in the underwriting process a week beforeclosing. Last minute surprises are the worst. Nobody wants that. Getting pre-approved early is always better. It allows time to figure out if there areany extra hoops to jump through. That just gives you better piece of mind. When you're out with your agent. Definitively what you can and can't qualifyfor. In addition, we always like to provide youwith estimates on homes that you're going to go see so when you're looking at them,the wheels are turning. What are my payments going to be like? There's a ton of benefits to getting preapprovedearly, rather than waiting for the last minute. And it is beneficial from the very beginningall the way to settlement. It will make your transaction much more transparent,seamless, and less stressful. It takes a village. And it just helps when everything is linedup. Yeah certainly execution is the number onething. You can look online at how to apply for amortgage, what pitfalls to avoid, how to do this, how to do that. At the end of the day, actually going out,going on your lender's website and getting preapproved. You know when I'm working with buyers, I alwaysask two very important questions. Number one: are you already working with areal estate agent. Very important. I've not asked that in the past and it's comeback to bite me, believe it or not. Well, it's very easy to believe actually. And number two, are you pre-approved witha local lender? If you are looking for homes and you are notpre-qualified, you are not a serious buyer. You are wasting your time. You might say "well, I'll just get a letteronce I write a contract, it's fine". Well, my buyers already have that letter andthey will beat you to the punch and get their offer in before you. Nobody likes to get bad news. You don't want to waste your time fallingin love with something that you ultimately don't qualify for. We find that our clients 99% of the time arepre-approved early just makes your guy's time much more efficient and you know what youcan qualify for. All of your processes are so streamlined justto a T that if you do them, you will get qualified, you will have your letter. The reason you screw up is you go off astray,you don't return calls, you don't return emails. We're a referral-based company so communicationis key. Delivery, setting expectations and obviosulymeeting those expectations. Pre-approvals we can do in as little as 24-hoursand especially in this market. Spring time, summer time, that's what it takes. Speed kills. That's how we like to operate. And communicating to you and your agent sowe can all move quickly. Awesome, there you have it from Rich Conlon,Atlantic Coast Mortgage here in Northern Virginia. If you have any questions about the top mistakeor any mortgage and lending related questions, I'll list Rich's information in the descriptionbelow. Thank you very much for watching. Until next time, create a productive day. Take care.

So I would want to find a mortgage broker who either had that experience themselves or who had clients that they had got similar deals for ’cause that way I know that they can negotiate on my behalf and they can get this deal across the line.

What details do Lenders need from me?

It’s one thing to call up a mortgage broker and just to get an estimate of your borrowing capacity but if you’re going through pre-approval and stuff like that, then you’re going to need to provide the mortgage broker with more in-depth details.

You might need pay slips; you might need proof of identity, all of that sort of stuff.

If you ask them up front, “What details do you need from me?” And when you go to your meeting with them you actually provide them with those details, well that just makes things so much easier.

USDA Loans, Mortgages For Rural Farmers and Low Income Farming Households

Remember, a mortgage lender is only paid once the deal goes through and once you actually get financing.

So the easier you make it for them, the more likely you are going to get better service.

What can I do as a client to make this go as smoothly as possible?

You have the goal of getting financed for your property, the mortgage lender has a goal of you getting financed for your property and no one wants it to be difficult.

And so, if you can ask the mortgage broker, “Look, how can I work with you? How can I make things easy for you?” They’re the experts; they know what they’re doing.

They can tell you exactly what they need and then you can work hard to provide that for them so that they can get everything across the line as quickly as possible.

How Much Mortgage

You know, I have customers,I deal with customers and even though I’m not a mortgage broker myself, I know that when there’s difficult customers that you don’t want to deal with, it just makes life so much harder and you don’t want to work hard for those people.

And when there’s customers who are really nice to you and who try really hard to help you provide them with the service you provide, you will bend over backwards to do anything you can for those customers to get them across the line, to help them as much as possible.

So, be one of those customers that the mortgage broker wants to bend over backwards to help you because you have their interest at heart as well.

You want to see them get paid.

You want to see them do an easy mortgage so they get paid easily.

And so you can develop a relationship into the future.

Which lenders can I borrow the most from?

Most people go into a mortgage broker looking for the cheapest interest rate possible.

What is the cheapest interest rate I can get? And the fact of the matter is a mortgage broker is likely to show you the banks that will lend you the amount of money you need and will also have the cheapest interest rate as well.

However, they might not showy ou banks that will lend you more money than you potentially need at the moment.

Now, it’s important to ask, “Which lenders can I borrow the most from?” because this will help you to project into the future.

Maybe you don’t need to know that for this loan right now but maybe, in the future, you might need to borrow money again and you know, or roughly my borrowing capacity is this.

Or if you find out which lenders you can borrow more from, and you find that you can actually borrow an extra $300,000, well you might split up your deposit and invest in two investment properties instead of just one.

And so asking them, “Which lenders can I borrow the most from?” is a great question to ask to really understand your position.

Because, yes, interest rate is important but how much you can borrow is also important as well.

Can I see a full list of my borrowing options?

Most mortgage brokers will provide you with, usually, like a top three or sometimes only a top one.

And I always like to think, “Can I see a full list of my borrowing options?”Again, this is less to say you want to go through all of this in minute detail and see.

You’re probably going to still choose from one of the top three ones.

But you just want to see that they’re giving you the full amount of information.

And most mortgage brokers are good people but there are some dodgy mortgage brokers out there who are just trying to get the deal that gives them the biggest commission.

Fixed Rate

And so by asking to see a full list of what your borrowing options, you can then look at that and you can then assess, “Okay, well which loan do I think is going to be best for me?” rather than just taking the recommendation of the mortgage broker who may or may not be thinking about themselves.

So, again, most mortgage brokers are great people out there to help you but it’s always a good idea to get a full list of your borrowing options that are available.

Will this put a mark against my credit file?

And so this is when you’re trying to work out how much you’re going to borrow and stuff like that.

When you go into a bank and you try and find out how much you can borrow, often, the bank will do a credit check and this puts a mark against your credit file.

And what happens is if you have a lot of these marks against your credit file, even though it’s nothing bad, this can actually stop you getting a loan.

Lowest Mortgage Rates

So, talk to your mortgage broker and when you’re looking at, “What can I borrow?”or your looking at getting pre-approval, just understand, “Will this put a mark against my credit file?” ‘Cause it’s not bad to have a couple or whatever.

But if you’re getting lots and lots of marks against your credit file, then that could be an issue.

So just make sure and you know when a mark’s being put against your credit file and when a mark isn’t being put against your credit file.

How soon can I revalue or borrow again?

So if you’re investing in a property to renovate it or to develop it or even if you’re investing in a property that’s potentially under market value, you want to know how quickly can you revalue that property so you can get equity and then hopefully draw equity out of the property to go ahead and invest again.

There are a lot of lenders out there who don’t allow you to revalue within a 12-month period.

So, speak to your mortgage broker about the lenders that will allow you to revalue faster.

And basically, this will give you an idea of how quickly you can revalue to consider going again.

Rural Development Loan

You’re also going to want to ask them, “After I invest in this property, how soon can I borrow again or what do I need to do to put myself in a position to be able to borrow again and to purchase the next property?” Because hopefully, your goal isn’t just to purchase one property but to grow your property portfolio and to achieve that financial freedom and that financial security that you’re striving for.

Will My Loans be ‘cross-collateralised’?

Now, I have heard a lot of stories about investors whose loans have been cross-collateralised and it’s cause major problems when they’ve gone and sold their property because the bank shave been able to take that money and pay off debt.

And basically, you want to avoid this at all costs from what I hear.

And so, it’s good to ask your mortgage broker, “Will my loans be cross-collateralised in any way?” Generally going with the same lender for two loans does it by default, even though it doesn’t say they’re cross-collateralised.

So, it’s just something that you want to look at the fine print, you want to understand, “Are these cross-collateralised?” And if they are, try and avoid it, try and get loans that aren’t going to be cross-collateralised.

Refinance Home Loan

So there you have some questions to ask your mortgage broker next time you go and see a broker to find out how much you can borrow or get pre-approval or get financed for another property.

If you are in the market, looking at properties and you want to see some high rental yield properties, then I’ve got 10 property listings that I’ve gone out and found for you guys.

You can see what high rental yield properties look like that are likely to generate a positive cash flow.

Did You Know – You Can Get Pre-Approved for a USDA Loan in Sharon?

Usda Loan Rates

What is the best loan program for a first-timehomebuyer? How's it going everyone, Matt Leighton welcomeback to another video. In this video we're going to go over the bestloan program for a first-time homebuyer. I'm here with Sean Glennon. Sean, take it away, what's the best programfor a first-time homebuyer? Well, beauty is in the eye of the beholder. So it depends. Now there's a lot of first-time homebuyerpopular loan programs and it really depends on what you're capabilities are in terms ofdownpayment, whether or not you have gift funds to use toward the downpayment or closingcosts, what your income limit is, that's a big one. How many people are going to be on the loan,because a lot of these first-time homebuyer loans, what the big difference is betweenthem and other typical loan products is that there are restrictions. They don't want to be given 100% financingproducts to people who aren't making a ton of money and things like that so income limits,sales price limits, credit score limits, all that is going to be apart of these programsbut we can dive into some of the more specific. Let me ask you this, if you are a Veteran,and also a first-time homebuyer, is it a no-brainer that the VA loan program is the best program? Yes. Absolutely. Alright so obviously if you're a Veteran,first of all THANK YOU, and then go with the VA loan program, there is no competition. So with that being said, let's just focuson conventional and FHA because with FHA 3. 5% down, compared to Conventional, you can goas low as 5%? Or can you go lower than that? There's actually a new loan program you cango lower. When we talk loan programs, the first thingyou're going to want to do is get pre-approved to determine what you're qualifications areand what doors are opening or closing to you depending on whether you fit the bill forcertain programs. 100% financing, VA, USDA, and USDA is a ruralhousing loan so if you're looking in and around cities, it really won't be applicable to you. And VA only if you're a Veteran; are goingto be your best 100% financing products. Now there are certain loan programs in eachstate that usually have first-time homebuyer 100% financing needs. In Virginia, VHDA is the one that comes tomind as the most popular. But most people are going to fall into theumbrella as FHA or conventional loans. FHA is going to be 3. 5% down and is very friendlyon underwriting guidelines. Conventional is a little bit more strict,but recently they actually came out with a program that is trying to compete with FHA. It's called Fannie Mae's Home Ready Programthat allows for a 3% downpayment instead of the typical 5% downpayment. Yeah a lot of times you're seeing people diveto what's the lowest downpayment I can have? That has to be the best loan, maybe that'sright, maybe not because with FHA you do have the monthly insurance on the loan there'sanother program with the conventional. And let me ask you this, are people re-financingout of these loans? For instance, I had a client a couple weeksago they went in with a VHDA loan which is Virginia-specific, so if you're not in Virginia,you may not be aware, but they went in with that and I don't know a week later or whateverthe minimum time is that you can re-finance, they said oh yeah, that's what we're goingto do. Are you seeing this? Or is this kind of a unique situation? No, I've seen a lot of it. What a typical game plan is for a lot of peopleis, a disclaimer that you can't always bank on re-financing because you never know whererates are headed. But as long as rates stay solid or at leastin the range that we've seen them right now, or around where you originally purchased yourhome, it's very common for people to bite the bullet and get the VHDA or FHA loan whichcarries with it a little more in fees and mortgag insurance and things like that. But it allows them to get in the propertywith very little out-of-pocket and then once they get a little equity in the property orsave up a little money, they try to re-finance into a conventional loan to eliminate someof that burden with the mortgage insurance and things like that. Get themselves a much more healthy and manageablemonthly payment. Yeah the VHDA loan program is becoming morepopular here in Virginia but sometimes with these loan programs it's really hard to getinto, you have to be making $82k - $85k, be born in a certain ZIP code, and be left handedand live on Main Street or something like that where it's like it shouldn't have tobe that hard. Quickly go over maybe a broad overview ofwhat it takes to be eligible for a certain grant program like the VHDA. Well some of these grant programs, most ofthem are all going to have income limits. So that's the big one. If you're making $250,000, there's a goodchance you're not going to qualify for the local first-time homebuyer and grant programs. Income limits, sales price limits, heightenedcredit score minimums. When they're giving out 100% financing, that'sa high-risk loan so they want to give it to borrowers that are well qualified. There are a lot of niche things that go alongwith it and the grant program. VHDA is a little more broad, but county and local grant programseven more, very niche, sometimes you're in a lottery with others. It's a nice thing to have in your back pocketbut nothing I would recommend anyone bank on. Good to know. So we're going to wrap this video up withone final question. But you know obviously this is more Virginia-centered,there's VHDA loan program, in your own state, there might be other grants available. So maybe FHA is right for you or maybe talkto your lender and find out the grants available. Sean my question is, if you were to imagineyour last 100 first-time homebuyers, out of those 100, what's the most popular loan programthat you're seeing for first-time homebuyers? I would say if you had asked me for any yearin the last 8 or 9 years I've been in the business, the answer would be FHA. I would say since Fannie Mae last year rolledout there Home Ready Program with 3% down, most homebuyers do qualify for it and fallwithin the income limit. The area median income limit, you can actuallylook it up on Fannie Mae's website. As long as you fall under that, you qualifyfor, it does give a little more beneficial terms on the mortgage insurance terms, it'sa half percent lower on downpayment, and there's a little more flexibility with some of thethings that you can do down the line with the loan like remove the mortgage insurance. I would say FHA, historically, Fannie MaeHome Ready Program recently. Things are changing. So FHA for the longest time was the best optionout there, it may still be the best option depending on your circumstance, but you mayknow the best option, but your lender will know the best option. Be sure you're talking with local lendersout there and know all your options because a lot of things are changing in terms of guidelines,what I'll do is link and list a video up here in the corner that talks about recent changesin the market place that may affect which loan program that you being available to getinto and get a loan. You got it out. T-t-t-t-today Junior. What movie is that from? Billy Madison. Well on that note Sean, why don't you tellthe people where they can connect with you. You can email me at sglennon@hstmortgage. Comor call the office. Myself or anyone else in The Glennon Groupwill be happy to answer your call and help you with any questions. 703-766-4630. And my man Matt will hook it up down loan. Thank you very much for watching. Until next time, create a productive day. Take care.

Mortgage Lenders – Making The Right Choice

Mortgage Assistance

Walk into any high street bank or building society and mention that you’re looking for a mortgage, and you’re likely to be bombarded with leaflets, if not hurried into a private office to meet their mortgage advisor. Mortgages are big business – and every large financial institution will offer several types of loan for buying property. It’s a good idea to check out as many different lenders as possible before making a decision – experts repeat the phrase ‘shop around’ like a mantra these days and you could save yourself a lot of money by comparing what’s on offer. Your own bank may be a good place to start – if you’ve banked with them for a while and have a good financial record they may be more confident about loaning you a large amount of money such as a mortgage. However, with relatively low interest rates and a booming market, these days the competition among lenders is fierce and you may find a better deal elsewhere. Don’t feel that you have to use the same bank for your mortgage as for your personal account. There are a number of websites that produce tables of comparative mortgage offers – just type ‘mortgage’ into your search engine and see the amount of results you pull up. ‘Which’, the magazine of the Consumer’s Association, is a reliable source of information on the current market. Check their website for guides on ‘Which mortgage’ at www.which.co.uk The financial pages in newspapers carry adverts as well as news on the latest deals – beware though of being seduced by adverts promising low rates without giving all the details – there’s more to finding the right mortgage than just picking the best rate. The bank are likely to advertise their lowest rate, and you are likely to have to meet certain criteria before qualifying for that particular deal. Check for things like hidden clauses or Higher Lending Charges – these are one-off charges applied to some deals that are supposedly to cover insurance protection for the bank when they lend to you. They will not, however, provide the lender with any security! Ethical investment is also a consideration for some borrowers – Muslim banks, for example, are forbidden from charging or paying interest. You can find out more about ethical banking and investments at www.eiris.org The Islamic Bank of Britain complies with Sharia Law, contact them at www.islamic-bank.com

Second Mortgage

USDA Loan in Pennsylvania (888) 464-8732

USDA Loan in Carbondale (888) 464-8732

What questions should I ask a mortgage lender in Carbondale ? If you’re dealing with a mortgage broker there’s some questions that you should ask both on your first meeting with the mortgage broker and throughout working with your mortgage broker to make sure that you’re getting the best service possible.

USDALoanInfoPA is going to go through 10 different questions that you can ask your mortgage lender in Carbondale. Be aware that your USDA Loan or Mortgage broker  will be getting the loan that you need and the service that you want.

The first question that I think everyone should ask a mortgage broker is a pretty straightforward one.

How Much Will a Mortgage Broker Cost?

Most mortgage lenders in Carbondale actually work for free.

So it doesn’t actually cost you anything in order to do it.

They get money because they are paid by the banks when you successfully get a loan.

So they get a small commission of the loan that you apply for and if you get it.

Importance of Hiring a Good Mortgage Lender - A TRUE Story

So most mortgage brokers in Carbondale will work for free and it won’t cost you anything.

However, there are some mortgage brokers out there who do require deposits or who do require you to pay.

So, it’s important to ask, “How much will this cost me?” when assessing which mortgage broker you want to go with.

How much do Mortgage Lenders earn in commission from me and from my loan?

This is less to understand exactly how much they make.

You can see what percentage of commissions they make and things like that by visiting USDALoanInfo.

But it’s more to understand whether or not they’ll be willing to give you this information.

A transparent mortgage broker is someone that’d be willing to give you this information and you know that they have your best interest at heart.

5 Things to Look For in a Mortgage Quote

If they skirt around this issue and they don’t tell you how much they earn.

Well then that would send out red flags for me because I can’t trust them to put my best interest at heart because there are some circumstances where one loan will earn them more money than a loan that could potentially be better for me but not as good for them.

House Loan

So, I’m just trying to establish whether or not this mortgage broker in Carbondale is someone that I can trust.

And by asking them the big question, the money question,”How much will you earn from me?” That’s a great way to understand whether or not you can trust the mortgage lender.

So ask that question and see how they respond.

Do Mortgage Lenders Invest Themselves?

Now, I don’t think a mortgage broker has to be a property investor in order for them to be able to get you a good loan and for them to help you successfully invest in property.

However, if they are interested in property in Carbondale, if they do invest themselves, then that is going to go a long way to help you because they understand what it’s like to be in your shoes.

They understand what you’re trying to get out of this and they’ve done it themselves so they can help you miss some of the pitfalls and things like that.

If they don’t invest themselves, then I would want to ask them, “Have you worked with many people that invest in property?” Because as mortgage brokers, some of them just work with people who are buying their own home.

Mortgage Lenders – Making The Right Choice

Some of the mortgage lender folk who work with people who are doing particular investment strategies.

So, some might work with people who invest in positive cash flow property or who invest in rural areas, who invest using developments.

THE U. S. DEPARTMENTOF AGRICULTURE HASANNOUNCED MANY FARMSERVICE AGENCYOFFICES WILLTEMPORARILY REOPEN FOR THREE DAYS TOPERFORM CERTAINLIMITED SERVICES FORFARMERS ANDRANCHERS DURING THEGOVERNMENT SHUTDOWN. BEGINNINGTOMORROW -JANUARY17TH, 2-THOUSAND 500F-S-A EMPLOYEES -ARETO REPORT TO THEIROFFICES. IN ADDITION. THE FSAOFFICES WILL BE OPENFRIDAY JANUARY 18 ANDTUESDAY JANUARY 22ND. DURING BUSINESSHOURS - STAFF WILL BEON HAND TO ASSISTAGRICULTURALPRODUCERS WITHEXISTING FARM LOANS. AND PROVIDE 10-99 TAXDOCUMENTS TOBORROWERS -BY THEINTERNAL REVENUESERVICE DEADLINE. STAFF WILL ALSO BEABLE TO HELP WITHSPECIFIC SERVICESSUCH AS PROCESSINGPAYMENTS, CONTINUINGEXPIRING FINANCING STATEMENTS ANDOPENING MAIL TOIDENTIFY PRIORITYITEMS. IN OUR REGION -SERVICE CENTERS WILLBE OPEN IN:EKALAKA, MILES CITY, GLENDIVE, LEWISTOWN,SIDNEY, GLASGOW ANDBILLINGS. YOU CAN VIEW A FULLLIST OF LOCATIONSACROSS MONTANA. ONOUR WEBS.

So I would want to find a mortgage broker who either had that experience themselves or who had clients that they had got similar deals for ’cause that way I know that they can negotiate on my behalf and they can get this deal across the line.

What details do Lenders need from me?

It’s one thing to call up a mortgage broker and just to get an estimate of your borrowing capacity but if you’re going through pre-approval and stuff like that, then you’re going to need to provide the mortgage broker with more in-depth details.

You might need pay slips; you might need proof of identity, all of that sort of stuff.

If you ask them up front, “What details do you need from me?” And when you go to your meeting with them you actually provide them with those details, well that just makes things so much easier.

USDA Mortgages Versus FHA: Which Is Better For First Time Home Buyers?

Remember, a mortgage lender is only paid once the deal goes through and once you actually get financing.

So the easier you make it for them, the more likely you are going to get better service.

What can I do as a client to make this go as smoothly as possible?

You have the goal of getting financed for your property, the mortgage lender has a goal of you getting financed for your property and no one wants it to be difficult.

And so, if you can ask the mortgage broker, “Look, how can I work with you? How can I make things easy for you?” They’re the experts; they know what they’re doing.

They can tell you exactly what they need and then you can work hard to provide that for them so that they can get everything across the line as quickly as possible.

Mortgage Solutions

You know, I have customers,I deal with customers and even though I’m not a mortgage broker myself, I know that when there’s difficult customers that you don’t want to deal with, it just makes life so much harder and you don’t want to work hard for those people.

And when there’s customers who are really nice to you and who try really hard to help you provide them with the service you provide, you will bend over backwards to do anything you can for those customers to get them across the line, to help them as much as possible.

So, be one of those customers that the mortgage broker wants to bend over backwards to help you because you have their interest at heart as well.

You want to see them get paid.

You want to see them do an easy mortgage so they get paid easily.

And so you can develop a relationship into the future.

Which lenders can I borrow the most from?

Most people go into a mortgage broker looking for the cheapest interest rate possible.

What is the cheapest interest rate I can get? And the fact of the matter is a mortgage broker is likely to show you the banks that will lend you the amount of money you need and will also have the cheapest interest rate as well.

However, they might not showy ou banks that will lend you more money than you potentially need at the moment.

Now, it’s important to ask, “Which lenders can I borrow the most from?” because this will help you to project into the future.

Maybe you don’t need to know that for this loan right now but maybe, in the future, you might need to borrow money again and you know, or roughly my borrowing capacity is this.

Or if you find out which lenders you can borrow more from, and you find that you can actually borrow an extra $300,000, well you might split up your deposit and invest in two investment properties instead of just one.

And so asking them, “Which lenders can I borrow the most from?” is a great question to ask to really understand your position.

Because, yes, interest rate is important but how much you can borrow is also important as well.

Can I see a full list of my borrowing options?

Most mortgage brokers will provide you with, usually, like a top three or sometimes only a top one.

And I always like to think, “Can I see a full list of my borrowing options?”Again, this is less to say you want to go through all of this in minute detail and see.

You’re probably going to still choose from one of the top three ones.

But you just want to see that they’re giving you the full amount of information.

And most mortgage brokers are good people but there are some dodgy mortgage brokers out there who are just trying to get the deal that gives them the biggest commission.

Daily Mortgage Rates

And so by asking to see a full list of what your borrowing options, you can then look at that and you can then assess, “Okay, well which loan do I think is going to be best for me?” rather than just taking the recommendation of the mortgage broker who may or may not be thinking about themselves.

So, again, most mortgage brokers are great people out there to help you but it’s always a good idea to get a full list of your borrowing options that are available.

Will this put a mark against my credit file?

And so this is when you’re trying to work out how much you’re going to borrow and stuff like that.

When you go into a bank and you try and find out how much you can borrow, often, the bank will do a credit check and this puts a mark against your credit file.

And what happens is if you have a lot of these marks against your credit file, even though it’s nothing bad, this can actually stop you getting a loan.

Applying For A Mortgage

So, talk to your mortgage broker and when you’re looking at, “What can I borrow?”or your looking at getting pre-approval, just understand, “Will this put a mark against my credit file?” ‘Cause it’s not bad to have a couple or whatever.

But if you’re getting lots and lots of marks against your credit file, then that could be an issue.

So just make sure and you know when a mark’s being put against your credit file and when a mark isn’t being put against your credit file.

How soon can I revalue or borrow again?

So if you’re investing in a property to renovate it or to develop it or even if you’re investing in a property that’s potentially under market value, you want to know how quickly can you revalue that property so you can get equity and then hopefully draw equity out of the property to go ahead and invest again.

There are a lot of lenders out there who don’t allow you to revalue within a 12-month period.

So, speak to your mortgage broker about the lenders that will allow you to revalue faster.

And basically, this will give you an idea of how quickly you can revalue to consider going again.

Refinance House

You’re also going to want to ask them, “After I invest in this property, how soon can I borrow again or what do I need to do to put myself in a position to be able to borrow again and to purchase the next property?” Because hopefully, your goal isn’t just to purchase one property but to grow your property portfolio and to achieve that financial freedom and that financial security that you’re striving for.

Will My Loans be ‘cross-collateralised’?

Now, I have heard a lot of stories about investors whose loans have been cross-collateralised and it’s cause major problems when they’ve gone and sold their property because the bank shave been able to take that money and pay off debt.

And basically, you want to avoid this at all costs from what I hear.

And so, it’s good to ask your mortgage broker, “Will my loans be cross-collateralised in any way?” Generally going with the same lender for two loans does it by default, even though it doesn’t say they’re cross-collateralised.

So, it’s just something that you want to look at the fine print, you want to understand, “Are these cross-collateralised?” And if they are, try and avoid it, try and get loans that aren’t going to be cross-collateralised.

2nd Mortgage Rates

So there you have some questions to ask your mortgage broker next time you go and see a broker to find out how much you can borrow or get pre-approval or get financed for another property.

If you are in the market, looking at properties and you want to see some high rental yield properties, then I’ve got 10 property listings that I’ve gone out and found for you guys.

You can see what high rental yield properties look like that are likely to generate a positive cash flow.

Did You Know – You Can Get Pre-Approved for a USDA Loan in Carbondale?

Mortgage Rates Canada

- [Voiceover] What Iwant to do in this video is explain what a mortgage is.

I think most of us have atleast a general sense of it, but even better than that,actually go into the numbers and understand a little bitof what you are actually doing when you're paying amortgage, what it's made up of and how much of it is interest versus how much of it isactually paying down the loan.

Let's just start with a little example.

Let's say that thereis a house that I like.

Let's say that that is the house that I would like to purchase.

It has a price tag of, let's say that I need to pay $500,000 to buy that house.

This is the seller ofthe house right here.

And they have a mustache.

That's the seller of the house.

I would like to buy it.

I would like to buy thehouse.

This is me right here.

And I've been able tosave up $125,000 dollars.

I've been able to save up$125,000 but I would really like to live in that house so I go to a bank.

I go to a bank, let me geta good color for a bank.

That is the bank right there.

And I say, "Mr.

Bank, can you lend me "the rest of the amountI need for that house?" Which is essentially $375,000.

I'm putting 25% down.

This number right here, that is 25% of $500,000.

So I ask the bank, "Can Ihave a loan for the balance? Can I have $375,000 loan?" And the bank says, "Sure.

You seem like a nice guy "with a good job whohas good credit rating.

"I will give you the loan but while you're paying off the loan you can'thave the title of that house.

"We have to have that title of the house "and once you pay off the loan, "we're going to give youthe title of the house.

" What's gonna happen here isthe loan is gonna go to me, so it's $375,000.

$375,000 loan.

Then I can go and buy the house.

I'm gonna give the total $500,000, $500,000 to the seller of the house, and I'll actually moveinto the house myself, assuming I'm using itfor my own residence.

But the title of the house, the document that says who actually owns the house.

This is the home title.

This is the title of the house.

Home title.

It will not go to me.

It will go to the bank.

The home title will go from the seller, or maybe even the seller's bank, because maybe they haven'tpaid off their mortgage.

It will go to the bankthat I'm borrowing from.

This transferring of thetitle to secure a loan.

When I say "secure aloan," I'm saying I need to give something to thelender in case I don't pay back the loan or if I just disappear.

This is the security right here.

That is technically what a mortgage is.

This pledging of the titleas the security for the loan, that's what a mortgage is.

It actually comes from old French.

Mort means dead, andthe gage means pledge.

I'm 100% sure I'm mispronouncing it, but it comes from dead pledge because I'm pledging itnow but that pledge will eventually die once I pay off the loan.

Once I pay off the loan thispledge of the title to the bank will die and it will come back to me.

That's why it's called adead pledge, or a mortgage.

And probably because itcomes from old French is the reason we don't saymort-gage, we say mortgage.

But anyway, this is alittle bit technical, but normally when peoplerefer to a mortgage they're really referringto the loan itself.

They're really referringto the mortgage loan.

What I want to do inthe rest of this video is use a screenshot froma spreadsheet I made to actually show you the math, or actually show you what yourmortgage payment is going to.

You can download thisspreadsheet at khanacademy, khanacademy.

Org/downloads/mortgagecalculator Or actually, even better, justgo to the downloads folder and on your web browseryou'll see a bunch of files, and it will be the filecalled MortgageCalculator, MortgageCalculator.

Xlsx.

It's a Microsoft 2007 format.

Just go to this URL, thenyou'll see all the files there and you can just download this file if you want to play with it.

What it does here, in thiskind of dark brown color, these are the assumptionsthat you can input and then you can change thesecells in your spreadsheet without breaking the whole spreadsheet.

Here I've assumed a 5.

5% interest rate.

I'm buying a $500,000 home.

It's a 25% down payment, that's the $125,000 that I had saved up, that I talked about right over there.

And then the loan amount.

Well, I have 125, I'mgonna have to borrow 375, it calculates it for us.

And then I'm gonna get apretty plain vanilla loan.

This is gonna be a 30 year.

When I say term in years, thisis how long the loan is for.

So 30 years.

It's gonna be a 30 yearfixed-rate mortgage.

Fixed rate, which means theinterest rate won't change.

We'll talk about that a little bit.

This 5.

5% that I'm payingon the money that I borrowed will not change over thecourse of the 30 years.

We will see that the amount I've borrowed changes as I pay down some of the loan.

This little tax rate that I have here, this is to actually figureout what is the tax savings of the interest deduction on my loan.

We'll talk about that in a second, you can ignore it for now.

Then these other thingsthat aren't in brown, you shouldn't mess with these if you actually do open up thespreadsheet yourself.

These are automatically calculated.

This right here is amonthly interest rate.

So it's literally theannual interest rate, 5.

5%, divided by 12.

And most mortgage loans arecompounded on a monthly basis so at the end of every monththey see how much money you owe and they will charge you this much interest on that for the month.

Now given all of these assumptions, there's a little bit ofbehind-the-scenes math, and in a future video Imight actually show you how to calculate what theactual mortgage payment is.

It's actually a prettyinteresting problem.

But for a $500,000 loan--Well, a $500,000 house, a $375,000 loan over 30 yearsat a 5.

5% interest rate, my mortgage payment isgoing to be roughly $2,100.

Right when I bought the house, I want to introduce alittle bit of vocabulary, and we've talked about thisin some of the other videos.

There's a asset in questionright here, it's called a house.

And we're assuming it's worth $500,000.

We're assuming it's worth$500,000.

That is an asset.

It's an asset because itgives you future benefit; The future benefit ofbeing able to live in it.

Now there's a liabilityagainst that asset, that's the mortgage loan.

That's a $375,000 liability.

$375,000 loan or debt.

If this was your balance sheet, if this was all of your assetsand this is all of your debt, and you were essentiallyto sell the assets and pay off the debt, if you sell the house you get the title, you can get the money, thenyou pay it back to the bank.

Well actually, it doesn'tnecessarily go into that order but I won't get too technical.

But if you were to unwindthis transaction immediately after doing it, then youwould have a $500,000 house, you'd pay off your $375,000 in debt, and you would get, inyour pocket, $125,000, which is exactly what youroriginal down payment was.

But this is your equity.

The reason why I'm pointing it out now is, in this video I'm notgonna assume anything about the house price,whether it goes up or down, we're assuming it's constant.

But you could not assume it's constant and play with thespreadsheet a little bit.

But I'm introducing thisbecause as we pay down the debt this number's going to get smaller.

So this number is getting smaller.

Let's say at some pointthis is only 300,000.

Then my equity is going to get bigger.

So you could do equity ishow much value you have after you pay off the debt for your house.

If you were to sell thehouse, pay off the debt, what do you have left over for yourself.

This is the real wealth in thehouse, this is what you own.

Wealth in house, or theactual what the owner has.

What I've done here is-- Actually before I get tothe chart let me actually show you how I calculate the chart.

I do this over the course of30 years, and it goes by month.

So you can imagine that there's actually 360 rows here in the actual spreadsheet, and you'll see that ifyou go and open it up.

But I just want to show you what I did.

On month 0, which I don't showhere, you borrow $375,000.

Now, over the course of that month they're going to charge you.

46% interest.

Remember, that was 5.

5% divided by 12.

46% interest on $375,000 is $1,718.

75.

So I haven't made anymortgage payments yet.

I've borrowed 375,000.

This much interest essentiallygot built up on top of that, it got accrued.

So now before I've paidany of my payments, instead of owing 375,000 atthe end of the first month, I owe $376,718.

Now, I'm a good guy, I'm notgonna default on my mortgage so I make that first mortgage payment that we calculated right over here.

After I make that paymentthen I'm essentially, what's my loan balanceafter making that payment? Well, this was before making the payment, so you subtract the payment from it.

This is my loan balance after the payment.

Now this right here, thelittle asterisk here, this is my equity now.

So remember, I startedwith $125,000 of equity.

After paying one loan balance,after my first payment, I now have $125,410 in equity, so my equity has gone up by exactly $410.

Now you're probably saying,"Gee.

I made a $2,000 payment, "roughly a $2,000 payment, "and my equity only went up by $410 "Shouldn't this debthave gone down by $2,000 "and my equity have gone up by $2,000?" And the answer is no because you had to pay all of this interest.

So at the very beginning, your payment, your $2,000 payment, is mostly interest.

Only $410 of it is principal.

So as your loan balance goes down you're going to pay less interest here, so each of your payments are going to be more weighted towards principal, and less weighted towards interest.

And then to figure out the next line, this interest accrued right here, I took your loan balanceexiting the last month, multiplied that times.

46%.

You get this new interest accrued.

This is your new pre-payment balance.

I pay my mortgage again.

This is my new loan balance.

And notice, already by monthtwo, $2 more went to principal.

and $2 less went to interest.

And over the course of 360months you're going to see that it's an actual, sizable difference, and that's what thischart shows us right here.

This is the interestand principal portions of our mortgage payment.

So this entire heightright here, this is-- Let me scroll down a little bit.

This is by month.

So thisentire height, you notice, this is exactly our mortgagepayment, this $2,129.

Now, on that very first monthyou saw that of my $2,100, only $400 of it, this is the $400.

Only $400 of it went toactually pay down the principal, the actual loan amount.

The rest of it went to pay down interest, the interest for that month.

Most of it went for theinterest of the month.

But as I start paying down the loan, as the loan balance getssmaller and smaller, each of my payments, there'sless interest to pay.

Let me do a better color than that.

There's less interest.

We goout here, this is month 198, over there that last monththere was less interest, so more of my $2,100 actuallygoes to pay off the loan until we get all the way to month 360.

You can see this inthe actual spreadsheet.

At month 360 my final payment is all going to pay off the principal.

Very little, if anything,of that is interest.

Now, the last thing I wantto talk about in this video, without making it too long, is this idea of a interest tax deduction.

A lot of times you'll hearfinancial planners or realtors tell you the benefit of buying your house is it has tax advantages, and it does.

Your interest is tax deductible.

Your interest, not your whole payment.

Your interest is tax deductible.

I want to be very clearwhat deductible means.

First let's talk aboutwhat the interest means.

This whole time over 30 yearsI am paying $2,100 a month, or $2129.

21 a month.

Now the beginning, alot of that is interest.

So on month one, 1,700of that was interest.

That $1,700 is tax deductible.

As we go further and further, each month I get smaller andsmaller tax deductible portion of my actual mortgage payment.

Out here the tax deductionis actually very small, as I'm getting ready topay off my entire mortgage and get the title of my house.

I want to be very clear on this notion of what tax deductible even means, because I think it ismisunderstood very often.

Let's say in one yearI paid, I don't know, I'm gonna make up a number, I didn't calculate it on the spreadsheet.

Let's say in year one Ipay $10,000 in interest.

10,000 in interest.

Remember, my actual paymentswill be higher than that because some of my payments went to actually paying down the loan.

But let's say 10,000 went to interest.

And let's say before this, let's say before thisI was making 100,000, let's put the loan aside.

Let's say I was making $100,000 a year, and let's say I was payingroughly 35% on that 100,000.

I won't go into the whole tax structure and the differentbrackets and all of that.

Let's say if I didn't have this mortgage I would pay 35% taxes, which would be about $35,000in taxes for that year.

This is just a rough estimate.

When you say that $10,000is tax deductible, the interest is tax deductible, that does not mean that I canjust take it from the $35,000 that I would have normallyowed and only pay 25,000.

What it means is I can deductthis amount from my income.

When I tell the IRS howmuch did I make this year, instead of saying I made $100,000,I say that I made $90,000 because I was able to deduct this, not directly from my taxes, I was able to deduct it from my income.

So now if I only made $90,000 -- and this is, I'm doing agross oversimplification of how taxes actually get calculated -- and I pay 35% of that, let'sget the calculator out.

Let's get the calculator.

So 90 times.

35 is equal to 31,500.

So this will be equal to $31,500.

$31,500.

Off of a 10,000 deduction,$10,000 of deductible interest, I essentially saved $3,500.

I did not save $10,000.

Another way to think about it, if I paid 10,000 interestand my tax rate is 35%, I'm gonna save 35% ofthis in actual taxes.

This is what people meanwhen they say deductible.

You're deducting it from the income that you report to the IRS.

If there's something thatyou could take straight from your taxes, that'scalled a tax credit.

If there was some specialthing that you could actually deduct it straight from yourtaxes, that's a tax credit.

But a deduction justtakes it from your income.

On this spreadsheet Ijust want to show you that I actually calculated, in that month, how much of a tax deduction do you get.

So for example, just offof the first month you paid $1,700 in interest of your$2,100 mortgage payment, so 35% of that, and I got 35%as one of your assumptions, 35% of $1,700, I will save$600 in taxes on that month.

So roughly over thecourse of the first year I'm gonna save about $7,000 in taxes, so that's nothing to sneeze at.

Anyway, hopefully you found this helpful and I encourage you togo to that spreadsheet, and play with the assumptions, only the assumptions in this brown color unless you really know whatyou're doing with a spreadsheet, and you can see how thisactually changes based on different interest rates,different loan amounts, different down payments, different terms.

Different tax rates, that will actually change the tax savings, and you can play aroundwith the different types of fixed mortgages on this spreadsheet.

USDA Mortgage Loans

Mortgage Companies Near Me

I came across something the other day that really excites me. The U.S. Department of Agriculture (USDA) has a loan product called "Business and Industry". This loan guarantee program is designed to get business moving in smaller and rural communities. They don't actually make the loan, but similar to the SBA, they guarantee a loan through a commercial lending institution. I had never heard about this in the past but I have already submitted two different loan requests to two different banks.

Here are the main points to consider when thinking about obtaining a USDA loan guarantee.

  • The funds and the business have to have to be in an area that is less than 50,000 inhabitants. A small incorporated city within a larger SMSA will not work. It has to be a smaller rural community.
  • Loans can be for almost any business purpose. From equipment to working capital to real estate; and you can use it for investment property too.
  • Loans can range up to $25 million and larger in some cases.
  • You can get a fixed rate and have up to 30 years to pay the loan off.
  • They will give you up to an 80% loan guarantee.
  • The "extra" paperwork is limited but the loan must go to the USDA office to be approved.
  • Most existing commercial lenders are qualified to participate. In some cases, other kinds of lenders may qualify.
  • No balloon payments are allowed, so the bank will have to write a fully amortizing loan.
  • There are only a few unqualified uses of the funds or types of borrowers.
  • Once the bank has done its due diligence, the USDA will take anywhere from 30 to 60 days to make their decision. This depends on their work load. A pre-approval is available upon request.

This is good news for those who have projects in smaller communities. It seems that there are many aspects of this program that are a bit more "user friendly" than a typical SBA loan guarantee but most things are very similar in nature.

Like an SBA guaranteed loan, the USDA loans can be sold on the secondary market and a banker can get a return of over 10% in some cases. That just may entice your banker to lend you some money guaranteed by the USDA, or even the SBA.

I have found a number of banks who are willing to work with the USDA, so if you need a business loan in a small community, give me a call and let's see what we can do. Good luck.

Private Mortgage Lenders

USDA Loan in Pennsylvania (888) 464-8732

Mortgage Lender in Parker (888) 464-8732

What questions should I ask a mortgage lender in Parker ? If you’re dealing with a mortgage broker there’s some questions that you should ask both on your first meeting with the mortgage broker and throughout working with your mortgage broker to make sure that you’re getting the best service possible.

USDALoanInfoPA is going to go through 10 different questions that you can ask your mortgage lender in Parker. Be aware that your USDA Loan or Mortgage broker  will be getting the loan that you need and the service that you want.

The first question that I think everyone should ask a mortgage broker is a pretty straightforward one.

How Much Will a Mortgage Broker Cost?

Most mortgage lenders in Parker actually work for free.

So it doesn’t actually cost you anything in order to do it.

They get money because they are paid by the banks when you successfully get a loan.

So they get a small commission of the loan that you apply for and if you get it.

Factory farms slip environmental review for USDA loans

So most mortgage brokers in Parker will work for free and it won’t cost you anything.

However, there are some mortgage brokers out there who do require deposits or who do require you to pay.

So, it’s important to ask, “How much will this cost me?” when assessing which mortgage broker you want to go with.

How much do Mortgage Lenders earn in commission from me and from my loan?

This is less to understand exactly how much they make.

You can see what percentage of commissions they make and things like that by visiting USDALoanInfo.

But it’s more to understand whether or not they’ll be willing to give you this information.

A transparent mortgage broker is someone that’d be willing to give you this information and you know that they have your best interest at heart.

How to Find a Good Mortgage Broker or Lender

If they skirt around this issue and they don’t tell you how much they earn.

Well then that would send out red flags for me because I can’t trust them to put my best interest at heart because there are some circumstances where one loan will earn them more money than a loan that could potentially be better for me but not as good for them.

Mortgage Leads

So, I’m just trying to establish whether or not this mortgage broker in Parker is someone that I can trust.

And by asking them the big question, the money question,”How much will you earn from me?” That’s a great way to understand whether or not you can trust the mortgage lender.

So ask that question and see how they respond.

Do Mortgage Lenders Invest Themselves?

Now, I don’t think a mortgage broker has to be a property investor in order for them to be able to get you a good loan and for them to help you successfully invest in property.

However, if they are interested in property in Parker, if they do invest themselves, then that is going to go a long way to help you because they understand what it’s like to be in your shoes.

They understand what you’re trying to get out of this and they’ve done it themselves so they can help you miss some of the pitfalls and things like that.

If they don’t invest themselves, then I would want to ask them, “Have you worked with many people that invest in property?” Because as mortgage brokers, some of them just work with people who are buying their own home.

Home Loan Application Mistakes

Some of the mortgage lender folk who work with people who are doing particular investment strategies.

So, some might work with people who invest in positive cash flow property or who invest in rural areas, who invest using developments.

I came across something the other day that really excites me. The U.S. Department of Agriculture (USDA) has a loan product called "Business and Industry". This loan guarantee program is designed to get business moving in smaller and rural communities. They don't actually make the loan, but similar to the SBA, they guarantee a loan through a commercial lending institution. I had never heard about this in the past but I have already submitted two different loan requests to two different banks.

Here are the main points to consider when thinking about obtaining a USDA loan guarantee.

  • The funds and the business have to have to be in an area that is less than 50,000 inhabitants. A small incorporated city within a larger SMSA will not work. It has to be a smaller rural community.
  • Loans can be for almost any business purpose. From equipment to working capital to real estate; and you can use it for investment property too.
  • Loans can range up to $25 million and larger in some cases.
  • You can get a fixed rate and have up to 30 years to pay the loan off.
  • They will give you up to an 80% loan guarantee.
  • The "extra" paperwork is limited but the loan must go to the USDA office to be approved.
  • Most existing commercial lenders are qualified to participate. In some cases, other kinds of lenders may qualify.
  • No balloon payments are allowed, so the bank will have to write a fully amortizing loan.
  • There are only a few unqualified uses of the funds or types of borrowers.
  • Once the bank has done its due diligence, the USDA will take anywhere from 30 to 60 days to make their decision. This depends on their work load. A pre-approval is available upon request.

This is good news for those who have projects in smaller communities. It seems that there are many aspects of this program that are a bit more "user friendly" than a typical SBA loan guarantee but most things are very similar in nature.

Like an SBA guaranteed loan, the USDA loans can be sold on the secondary market and a banker can get a return of over 10% in some cases. That just may entice your banker to lend you some money guaranteed by the USDA, or even the SBA.

I have found a number of banks who are willing to work with the USDA, so if you need a business loan in a small community, give me a call and let's see what we can do. Good luck.

So I would want to find a mortgage broker who either had that experience themselves or who had clients that they had got similar deals for ’cause that way I know that they can negotiate on my behalf and they can get this deal across the line.

What details do Lenders need from me?

It’s one thing to call up a mortgage broker and just to get an estimate of your borrowing capacity but if you’re going through pre-approval and stuff like that, then you’re going to need to provide the mortgage broker with more in-depth details.

You might need pay slips; you might need proof of identity, all of that sort of stuff.

If you ask them up front, “What details do you need from me?” And when you go to your meeting with them you actually provide them with those details, well that just makes things so much easier.

5 Things to Look For in a Mortgage Quote

Remember, a mortgage lender is only paid once the deal goes through and once you actually get financing.

So the easier you make it for them, the more likely you are going to get better service.

What can I do as a client to make this go as smoothly as possible?

You have the goal of getting financed for your property, the mortgage lender has a goal of you getting financed for your property and no one wants it to be difficult.

And so, if you can ask the mortgage broker, “Look, how can I work with you? How can I make things easy for you?” They’re the experts; they know what they’re doing.

They can tell you exactly what they need and then you can work hard to provide that for them so that they can get everything across the line as quickly as possible.

Usda Guaranteed Loan

You know, I have customers,I deal with customers and even though I’m not a mortgage broker myself, I know that when there’s difficult customers that you don’t want to deal with, it just makes life so much harder and you don’t want to work hard for those people.

And when there’s customers who are really nice to you and who try really hard to help you provide them with the service you provide, you will bend over backwards to do anything you can for those customers to get them across the line, to help them as much as possible.

So, be one of those customers that the mortgage broker wants to bend over backwards to help you because you have their interest at heart as well.

You want to see them get paid.

You want to see them do an easy mortgage so they get paid easily.

And so you can develop a relationship into the future.

Which lenders can I borrow the most from?

Most people go into a mortgage broker looking for the cheapest interest rate possible.

What is the cheapest interest rate I can get? And the fact of the matter is a mortgage broker is likely to show you the banks that will lend you the amount of money you need and will also have the cheapest interest rate as well.

However, they might not showy ou banks that will lend you more money than you potentially need at the moment.

Now, it’s important to ask, “Which lenders can I borrow the most from?” because this will help you to project into the future.

Maybe you don’t need to know that for this loan right now but maybe, in the future, you might need to borrow money again and you know, or roughly my borrowing capacity is this.

Or if you find out which lenders you can borrow more from, and you find that you can actually borrow an extra $300,000, well you might split up your deposit and invest in two investment properties instead of just one.

And so asking them, “Which lenders can I borrow the most from?” is a great question to ask to really understand your position.

Because, yes, interest rate is important but how much you can borrow is also important as well.

Can I see a full list of my borrowing options?

Most mortgage brokers will provide you with, usually, like a top three or sometimes only a top one.

And I always like to think, “Can I see a full list of my borrowing options?”Again, this is less to say you want to go through all of this in minute detail and see.

You’re probably going to still choose from one of the top three ones.

But you just want to see that they’re giving you the full amount of information.

And most mortgage brokers are good people but there are some dodgy mortgage brokers out there who are just trying to get the deal that gives them the biggest commission.

Second Mortgage Rates

And so by asking to see a full list of what your borrowing options, you can then look at that and you can then assess, “Okay, well which loan do I think is going to be best for me?” rather than just taking the recommendation of the mortgage broker who may or may not be thinking about themselves.

So, again, most mortgage brokers are great people out there to help you but it’s always a good idea to get a full list of your borrowing options that are available.

Will this put a mark against my credit file?

And so this is when you’re trying to work out how much you’re going to borrow and stuff like that.

When you go into a bank and you try and find out how much you can borrow, often, the bank will do a credit check and this puts a mark against your credit file.

And what happens is if you have a lot of these marks against your credit file, even though it’s nothing bad, this can actually stop you getting a loan.

Loan Lenders

So, talk to your mortgage broker and when you’re looking at, “What can I borrow?”or your looking at getting pre-approval, just understand, “Will this put a mark against my credit file?” ‘Cause it’s not bad to have a couple or whatever.

But if you’re getting lots and lots of marks against your credit file, then that could be an issue.

So just make sure and you know when a mark’s being put against your credit file and when a mark isn’t being put against your credit file.

How soon can I revalue or borrow again?

So if you’re investing in a property to renovate it or to develop it or even if you’re investing in a property that’s potentially under market value, you want to know how quickly can you revalue that property so you can get equity and then hopefully draw equity out of the property to go ahead and invest again.

There are a lot of lenders out there who don’t allow you to revalue within a 12-month period.

So, speak to your mortgage broker about the lenders that will allow you to revalue faster.

And basically, this will give you an idea of how quickly you can revalue to consider going again.

Second Mortgage Rates

You’re also going to want to ask them, “After I invest in this property, how soon can I borrow again or what do I need to do to put myself in a position to be able to borrow again and to purchase the next property?” Because hopefully, your goal isn’t just to purchase one property but to grow your property portfolio and to achieve that financial freedom and that financial security that you’re striving for.

Will My Loans be ‘cross-collateralised’?

Now, I have heard a lot of stories about investors whose loans have been cross-collateralised and it’s cause major problems when they’ve gone and sold their property because the bank shave been able to take that money and pay off debt.

And basically, you want to avoid this at all costs from what I hear.

And so, it’s good to ask your mortgage broker, “Will my loans be cross-collateralised in any way?” Generally going with the same lender for two loans does it by default, even though it doesn’t say they’re cross-collateralised.

So, it’s just something that you want to look at the fine print, you want to understand, “Are these cross-collateralised?” And if they are, try and avoid it, try and get loans that aren’t going to be cross-collateralised.

Usda Programs

So there you have some questions to ask your mortgage broker next time you go and see a broker to find out how much you can borrow or get pre-approval or get financed for another property.

If you are in the market, looking at properties and you want to see some high rental yield properties, then I’ve got 10 property listings that I’ve gone out and found for you guys.

You can see what high rental yield properties look like that are likely to generate a positive cash flow.

Did You Know – You Can Get Pre-Approved for a USDA Loan in Parker?

Home Mortgage Loans

In 2015 there are several types of different mortgage loans that are available. How do you wade through them to find out which one will be the best option for you? One way is to learn about the pros and cons for each type and then narrow the field from there. To that end, we will discuss a few of them and their pros and cons.

Fixed Mortgages vs. Adjustable Rate Mortgages

When you are looking at taking out a mortgage then you first need to decide whether you want one that has a fixed rate or one that has a rate that is adjustable. Every single type of mortgage will be either one or the other. Incidentally, you might also have a mortgage that combines the two. Here is a quick breakdown of the differences.

  • Fixed Rate loans will have an interest rate that will remain the same for the duration of the loan. Due to this, your monthly payment will remain the same until the loan is completely repaid.

  • Adjustable Rate loans have a rate of interest that can and will fluctuate. In many cases you will have a fixed rate of interest for the first year and then will change on a yearly basis. Loans that have this first 'fixed' period are the hybrid loans.

Loans of both types do have their pros and cons just as all things do. A pro for adjustable rate loans is that the interest rate that they begin with is often lower than that of a fixed rate loan. However, the interest rates in the future will vary and this can turn into a con quickly. The monthly payments on an adjustable rate mortgage can and often do rise exponentially the longer they are carried. Alternatively, a pro for the fixed rate loan is that your monthly payment amount will never change. However, due to that the rate of interest is generally higher.

Jumbo Loans or Conforming Loans

Aside from the basic types of loans there is another thing that must be considered. That is the actual size of the loan that you need. The amount of money that you are requesting will put your loan into one of two categories: jumbo loans or conforming loans. What is the difference?

  • Jumbo Loans will be for an amount of money that exceeds the limits for conforming loans that are set forth by the Freddie Mac and Fannie Mae organizations. The lender of these types of loans will have a higher amount of risk than that which is experienced with a conforming loan. However, borrowers for this type of loan must have a credit history that is impeccable and must also come up with a substantial down payment as compared to what is necessary for a conforming loan. Additionally, interest rates for jumbo loans are typically higher when compared to the rates associated with a conforming loan.

  • Conforming Loans are those that meet the parameters set forth by the Freddie Mac and Fannie Mae organizations. Typically these guidelines have to do with the size of the loan. Both Freddie Mac and Fannie Mae are entities that are controlled by the government. They both sell and purchase securities that are backed mortgages. In plain English, they buy the loans from various lenders where they are generated and then they sell those loans to various Wall Street investors. Conforming loans will be those that fall within their regulated size limits as well as those conforming to their other criteria.

Now that you have this information, making the decision as to which type you need should be a little easier.

Alternative Commercial Mortgage Lenders - Hedge Funds & Private Equity

How Much Mortgage

- [Voiceover] What Iwant to do in this video is explain what a mortgage is.

I think most of us have atleast a general sense of it, but even better than that,actually go into the numbers and understand a little bitof what you are actually doing when you're paying amortgage, what it's made up of and how much of it is interest versus how much of it isactually paying down the loan.

Let's just start with a little example.

Let's say that thereis a house that I like.

Let's say that that is the house that I would like to purchase.

It has a price tag of, let's say that I need to pay $500,000 to buy that house.

This is the seller ofthe house right here.

And they have a mustache.

That's the seller of the house.

I would like to buy it.

I would like to buy thehouse.

This is me right here.

And I've been able tosave up $125,000 dollars.

I've been able to save up$125,000 but I would really like to live in that house so I go to a bank.

I go to a bank, let me geta good color for a bank.

That is the bank right there.

And I say, "Mr.

Bank, can you lend me "the rest of the amountI need for that house?" Which is essentially $375,000.

I'm putting 25% down.

This number right here, that is 25% of $500,000.

So I ask the bank, "Can Ihave a loan for the balance? Can I have $375,000 loan?" And the bank says, "Sure.

You seem like a nice guy "with a good job whohas good credit rating.

"I will give you the loan but while you're paying off the loan you can'thave the title of that house.

"We have to have that title of the house "and once you pay off the loan, "we're going to give youthe title of the house.

" What's gonna happen here isthe loan is gonna go to me, so it's $375,000.

$375,000 loan.

Then I can go and buy the house.

I'm gonna give the total $500,000, $500,000 to the seller of the house, and I'll actually moveinto the house myself, assuming I'm using itfor my own residence.

But the title of the house, the document that says who actually owns the house.

This is the home title.

This is the title of the house.

Home title.

It will not go to me.

It will go to the bank.

The home title will go from the seller, or maybe even the seller's bank, because maybe they haven'tpaid off their mortgage.

It will go to the bankthat I'm borrowing from.

This transferring of thetitle to secure a loan.

When I say "secure aloan," I'm saying I need to give something to thelender in case I don't pay back the loan or if I just disappear.

This is the security right here.

That is technically what a mortgage is.

This pledging of the titleas the security for the loan, that's what a mortgage is.

It actually comes from old French.

Mort means dead, andthe gage means pledge.

I'm 100% sure I'm mispronouncing it, but it comes from dead pledge because I'm pledging itnow but that pledge will eventually die once I pay off the loan.

Once I pay off the loan thispledge of the title to the bank will die and it will come back to me.

That's why it's called adead pledge, or a mortgage.

And probably because itcomes from old French is the reason we don't saymort-gage, we say mortgage.

But anyway, this is alittle bit technical, but normally when peoplerefer to a mortgage they're really referringto the loan itself.

They're really referringto the mortgage loan.

What I want to do inthe rest of this video is use a screenshot froma spreadsheet I made to actually show you the math, or actually show you what yourmortgage payment is going to.

You can download thisspreadsheet at khanacademy, khanacademy.

Org/downloads/mortgagecalculator Or actually, even better, justgo to the downloads folder and on your web browseryou'll see a bunch of files, and it will be the filecalled MortgageCalculator, MortgageCalculator.

Xlsx.

It's a Microsoft 2007 format.

Just go to this URL, thenyou'll see all the files there and you can just download this file if you want to play with it.

What it does here, in thiskind of dark brown color, these are the assumptionsthat you can input and then you can change thesecells in your spreadsheet without breaking the whole spreadsheet.

Here I've assumed a 5.

5% interest rate.

I'm buying a $500,000 home.

It's a 25% down payment, that's the $125,000 that I had saved up, that I talked about right over there.

And then the loan amount.

Well, I have 125, I'mgonna have to borrow 375, it calculates it for us.

And then I'm gonna get apretty plain vanilla loan.

This is gonna be a 30 year.

When I say term in years, thisis how long the loan is for.

So 30 years.

It's gonna be a 30 yearfixed-rate mortgage.

Fixed rate, which means theinterest rate won't change.

We'll talk about that a little bit.

This 5.

5% that I'm payingon the money that I borrowed will not change over thecourse of the 30 years.

We will see that the amount I've borrowed changes as I pay down some of the loan.

This little tax rate that I have here, this is to actually figureout what is the tax savings of the interest deduction on my loan.

We'll talk about that in a second, you can ignore it for now.

Then these other thingsthat aren't in brown, you shouldn't mess with these if you actually do open up thespreadsheet yourself.

These are automatically calculated.

This right here is amonthly interest rate.

So it's literally theannual interest rate, 5.

5%, divided by 12.

And most mortgage loans arecompounded on a monthly basis so at the end of every monththey see how much money you owe and they will charge you this much interest on that for the month.

Now given all of these assumptions, there's a little bit ofbehind-the-scenes math, and in a future video Imight actually show you how to calculate what theactual mortgage payment is.

It's actually a prettyinteresting problem.

But for a $500,000 loan--Well, a $500,000 house, a $375,000 loan over 30 yearsat a 5.

5% interest rate, my mortgage payment isgoing to be roughly $2,100.

Right when I bought the house, I want to introduce alittle bit of vocabulary, and we've talked about thisin some of the other videos.

There's a asset in questionright here, it's called a house.

And we're assuming it's worth $500,000.

We're assuming it's worth$500,000.

That is an asset.

It's an asset because itgives you future benefit; The future benefit ofbeing able to live in it.

Now there's a liabilityagainst that asset, that's the mortgage loan.

That's a $375,000 liability.

$375,000 loan or debt.

If this was your balance sheet, if this was all of your assetsand this is all of your debt, and you were essentiallyto sell the assets and pay off the debt, if you sell the house you get the title, you can get the money, thenyou pay it back to the bank.

Well actually, it doesn'tnecessarily go into that order but I won't get too technical.

But if you were to unwindthis transaction immediately after doing it, then youwould have a $500,000 house, you'd pay off your $375,000 in debt, and you would get, inyour pocket, $125,000, which is exactly what youroriginal down payment was.

But this is your equity.

The reason why I'm pointing it out now is, in this video I'm notgonna assume anything about the house price,whether it goes up or down, we're assuming it's constant.

But you could not assume it's constant and play with thespreadsheet a little bit.

But I'm introducing thisbecause as we pay down the debt this number's going to get smaller.

So this number is getting smaller.

Let's say at some pointthis is only 300,000.

Then my equity is going to get bigger.

So you could do equity ishow much value you have after you pay off the debt for your house.

If you were to sell thehouse, pay off the debt, what do you have left over for yourself.

This is the real wealth in thehouse, this is what you own.

Wealth in house, or theactual what the owner has.

What I've done here is-- Actually before I get tothe chart let me actually show you how I calculate the chart.

I do this over the course of30 years, and it goes by month.

So you can imagine that there's actually 360 rows here in the actual spreadsheet, and you'll see that ifyou go and open it up.

But I just want to show you what I did.

On month 0, which I don't showhere, you borrow $375,000.

Now, over the course of that month they're going to charge you.

46% interest.

Remember, that was 5.

5% divided by 12.

46% interest on $375,000 is $1,718.

75.

So I haven't made anymortgage payments yet.

I've borrowed 375,000.

This much interest essentiallygot built up on top of that, it got accrued.

So now before I've paidany of my payments, instead of owing 375,000 atthe end of the first month, I owe $376,718.

Now, I'm a good guy, I'm notgonna default on my mortgage so I make that first mortgage payment that we calculated right over here.

After I make that paymentthen I'm essentially, what's my loan balanceafter making that payment? Well, this was before making the payment, so you subtract the payment from it.

This is my loan balance after the payment.

Now this right here, thelittle asterisk here, this is my equity now.

So remember, I startedwith $125,000 of equity.

After paying one loan balance,after my first payment, I now have $125,410 in equity, so my equity has gone up by exactly $410.

Now you're probably saying,"Gee.

I made a $2,000 payment, "roughly a $2,000 payment, "and my equity only went up by $410 "Shouldn't this debthave gone down by $2,000 "and my equity have gone up by $2,000?" And the answer is no because you had to pay all of this interest.

So at the very beginning, your payment, your $2,000 payment, is mostly interest.

Only $410 of it is principal.

So as your loan balance goes down you're going to pay less interest here, so each of your payments are going to be more weighted towards principal, and less weighted towards interest.

And then to figure out the next line, this interest accrued right here, I took your loan balanceexiting the last month, multiplied that times.

46%.

You get this new interest accrued.

This is your new pre-payment balance.

I pay my mortgage again.

This is my new loan balance.

And notice, already by monthtwo, $2 more went to principal.

and $2 less went to interest.

And over the course of 360months you're going to see that it's an actual, sizable difference, and that's what thischart shows us right here.

This is the interestand principal portions of our mortgage payment.

So this entire heightright here, this is-- Let me scroll down a little bit.

This is by month.

So thisentire height, you notice, this is exactly our mortgagepayment, this $2,129.

Now, on that very first monthyou saw that of my $2,100, only $400 of it, this is the $400.

Only $400 of it went toactually pay down the principal, the actual loan amount.

The rest of it went to pay down interest, the interest for that month.

Most of it went for theinterest of the month.

But as I start paying down the loan, as the loan balance getssmaller and smaller, each of my payments, there'sless interest to pay.

Let me do a better color than that.

There's less interest.

We goout here, this is month 198, over there that last monththere was less interest, so more of my $2,100 actuallygoes to pay off the loan until we get all the way to month 360.

You can see this inthe actual spreadsheet.

At month 360 my final payment is all going to pay off the principal.

Very little, if anything,of that is interest.

Now, the last thing I wantto talk about in this video, without making it too long, is this idea of a interest tax deduction.

A lot of times you'll hearfinancial planners or realtors tell you the benefit of buying your house is it has tax advantages, and it does.

Your interest is tax deductible.

Your interest, not your whole payment.

Your interest is tax deductible.

I want to be very clearwhat deductible means.

First let's talk aboutwhat the interest means.

This whole time over 30 yearsI am paying $2,100 a month, or $2129.

21 a month.

Now the beginning, alot of that is interest.

So on month one, 1,700of that was interest.

That $1,700 is tax deductible.

As we go further and further, each month I get smaller andsmaller tax deductible portion of my actual mortgage payment.

Out here the tax deductionis actually very small, as I'm getting ready topay off my entire mortgage and get the title of my house.

I want to be very clear on this notion of what tax deductible even means, because I think it ismisunderstood very often.

Let's say in one yearI paid, I don't know, I'm gonna make up a number, I didn't calculate it on the spreadsheet.

Let's say in year one Ipay $10,000 in interest.

10,000 in interest.

Remember, my actual paymentswill be higher than that because some of my payments went to actually paying down the loan.

But let's say 10,000 went to interest.

And let's say before this, let's say before thisI was making 100,000, let's put the loan aside.

Let's say I was making $100,000 a year, and let's say I was payingroughly 35% on that 100,000.

I won't go into the whole tax structure and the differentbrackets and all of that.

Let's say if I didn't have this mortgage I would pay 35% taxes, which would be about $35,000in taxes for that year.

This is just a rough estimate.

When you say that $10,000is tax deductible, the interest is tax deductible, that does not mean that I canjust take it from the $35,000 that I would have normallyowed and only pay 25,000.

What it means is I can deductthis amount from my income.

When I tell the IRS howmuch did I make this year, instead of saying I made $100,000,I say that I made $90,000 because I was able to deduct this, not directly from my taxes, I was able to deduct it from my income.

So now if I only made $90,000 -- and this is, I'm doing agross oversimplification of how taxes actually get calculated -- and I pay 35% of that, let'sget the calculator out.

Let's get the calculator.

So 90 times.

35 is equal to 31,500.

So this will be equal to $31,500.

$31,500.

Off of a 10,000 deduction,$10,000 of deductible interest, I essentially saved $3,500.

I did not save $10,000.

Another way to think about it, if I paid 10,000 interestand my tax rate is 35%, I'm gonna save 35% ofthis in actual taxes.

This is what people meanwhen they say deductible.

You're deducting it from the income that you report to the IRS.

If there's something thatyou could take straight from your taxes, that'scalled a tax credit.

If there was some specialthing that you could actually deduct it straight from yourtaxes, that's a tax credit.

But a deduction justtakes it from your income.

On this spreadsheet Ijust want to show you that I actually calculated, in that month, how much of a tax deduction do you get.

So for example, just offof the first month you paid $1,700 in interest of your$2,100 mortgage payment, so 35% of that, and I got 35%as one of your assumptions, 35% of $1,700, I will save$600 in taxes on that month.

So roughly over thecourse of the first year I'm gonna save about $7,000 in taxes, so that's nothing to sneeze at.

Anyway, hopefully you found this helpful and I encourage you togo to that spreadsheet, and play with the assumptions, only the assumptions in this brown color unless you really know whatyou're doing with a spreadsheet, and you can see how thisactually changes based on different interest rates,different loan amounts, different down payments, different terms.

Different tax rates, that will actually change the tax savings, and you can play aroundwith the different types of fixed mortgages on this spreadsheet.

Mortgage Down Payment

USDA Loan in Pennsylvania (888) 464-8732

USDA Loan in York (888) 464-8732

What questions should I ask a mortgage lender in York ? If you’re dealing with a mortgage broker there’s some questions that you should ask both on your first meeting with the mortgage broker and throughout working with your mortgage broker to make sure that you’re getting the best service possible.

USDALoanInfoPA is going to go through 10 different questions that you can ask your mortgage lender in York. Be aware that your USDA Loan or Mortgage broker  will be getting the loan that you need and the service that you want.

The first question that I think everyone should ask a mortgage broker is a pretty straightforward one.

How Much Will a Mortgage Broker Cost?

Most mortgage lenders in York actually work for free.

So it doesn’t actually cost you anything in order to do it.

They get money because they are paid by the banks when you successfully get a loan.

So they get a small commission of the loan that you apply for and if you get it.

Can Collections Keep You From Getting A USDA Loan

So most mortgage brokers in York will work for free and it won’t cost you anything.

However, there are some mortgage brokers out there who do require deposits or who do require you to pay.

So, it’s important to ask, “How much will this cost me?” when assessing which mortgage broker you want to go with.

How much do Mortgage Lenders earn in commission from me and from my loan?

This is less to understand exactly how much they make.

You can see what percentage of commissions they make and things like that by visiting USDALoanInfo.

But it’s more to understand whether or not they’ll be willing to give you this information.

A transparent mortgage broker is someone that’d be willing to give you this information and you know that they have your best interest at heart.

Mortgage Lenders – Making The Right Choice

If they skirt around this issue and they don’t tell you how much they earn.

Well then that would send out red flags for me because I can’t trust them to put my best interest at heart because there are some circumstances where one loan will earn them more money than a loan that could potentially be better for me but not as good for them.

Home Mortgage Interest Rates

So, I’m just trying to establish whether or not this mortgage broker in York is someone that I can trust.

And by asking them the big question, the money question,”How much will you earn from me?” That’s a great way to understand whether or not you can trust the mortgage lender.

So ask that question and see how they respond.

Do Mortgage Lenders Invest Themselves?

Now, I don’t think a mortgage broker has to be a property investor in order for them to be able to get you a good loan and for them to help you successfully invest in property.

However, if they are interested in property in York, if they do invest themselves, then that is going to go a long way to help you because they understand what it’s like to be in your shoes.

They understand what you’re trying to get out of this and they’ve done it themselves so they can help you miss some of the pitfalls and things like that.

If they don’t invest themselves, then I would want to ask them, “Have you worked with many people that invest in property?” Because as mortgage brokers, some of them just work with people who are buying their own home.

Mortgage Lenders - How to Choose the Right One For You

Some of the mortgage lender folk who work with people who are doing particular investment strategies.

So, some might work with people who invest in positive cash flow property or who invest in rural areas, who invest using developments.

A question I hear quite a bit about the USDA Loan looks at collections. It's pretty common to hear "I have a few old collections, are they going to keep me from being able to get the Rural USDA Program."

It's always a good idea to know what is on your credit report and so it could be a good idea to head on over to annual credit report dot com and pick up a free copy. Then you can be sure that all the info on it is correct, if it isn't you can dispute it immediately.

Anytime you see a collection on your credit report you'll want to let your USDA Home Loan Representative know about them right away because certain types of collections can have a damaging impact on if your lending agency can get clear title. Which basically means that individual collection could end up as a lien on the property. Normally, simply paying off an old collection before you close will be okay. Just be sure to speak with your loan officer before paying off any old negative credit items, because it could work against you.

And any lien on title is required to be paid off before the USDA Loan can fund.

Now the Rural USDA Program relies on the lender to provide good quality loans and the USDA requirements say that the LENDER must make a decision if an open collection account would need to be paid at closing or before closing. In the current mortgage market, these rules will be different from lender to lender and will also change as time goes on as tougher regulations hold the specific loan agent responsible for their loan determinations.

Any time there is a collection on the credit report, be sure to provide a written letter explaining the what caused the collection and that those problems have been eliminated.

So I would want to find a mortgage broker who either had that experience themselves or who had clients that they had got similar deals for ’cause that way I know that they can negotiate on my behalf and they can get this deal across the line.

What details do Lenders need from me?

It’s one thing to call up a mortgage broker and just to get an estimate of your borrowing capacity but if you’re going through pre-approval and stuff like that, then you’re going to need to provide the mortgage broker with more in-depth details.

You might need pay slips; you might need proof of identity, all of that sort of stuff.

If you ask them up front, “What details do you need from me?” And when you go to your meeting with them you actually provide them with those details, well that just makes things so much easier.

Mortgage Lenders, How To Choose The Right Accredited Home Lender

Remember, a mortgage lender is only paid once the deal goes through and once you actually get financing.

So the easier you make it for them, the more likely you are going to get better service.

What can I do as a client to make this go as smoothly as possible?

You have the goal of getting financed for your property, the mortgage lender has a goal of you getting financed for your property and no one wants it to be difficult.

And so, if you can ask the mortgage broker, “Look, how can I work with you? How can I make things easy for you?” They’re the experts; they know what they’re doing.

They can tell you exactly what they need and then you can work hard to provide that for them so that they can get everything across the line as quickly as possible.

Refinance Loan

You know, I have customers,I deal with customers and even though I’m not a mortgage broker myself, I know that when there’s difficult customers that you don’t want to deal with, it just makes life so much harder and you don’t want to work hard for those people.

And when there’s customers who are really nice to you and who try really hard to help you provide them with the service you provide, you will bend over backwards to do anything you can for those customers to get them across the line, to help them as much as possible.

So, be one of those customers that the mortgage broker wants to bend over backwards to help you because you have their interest at heart as well.

You want to see them get paid.

You want to see them do an easy mortgage so they get paid easily.

And so you can develop a relationship into the future.

Which lenders can I borrow the most from?

Most people go into a mortgage broker looking for the cheapest interest rate possible.

What is the cheapest interest rate I can get? And the fact of the matter is a mortgage broker is likely to show you the banks that will lend you the amount of money you need and will also have the cheapest interest rate as well.

However, they might not showy ou banks that will lend you more money than you potentially need at the moment.

Now, it’s important to ask, “Which lenders can I borrow the most from?” because this will help you to project into the future.

Maybe you don’t need to know that for this loan right now but maybe, in the future, you might need to borrow money again and you know, or roughly my borrowing capacity is this.

Or if you find out which lenders you can borrow more from, and you find that you can actually borrow an extra $300,000, well you might split up your deposit and invest in two investment properties instead of just one.

And so asking them, “Which lenders can I borrow the most from?” is a great question to ask to really understand your position.

Because, yes, interest rate is important but how much you can borrow is also important as well.

Can I see a full list of my borrowing options?

Most mortgage brokers will provide you with, usually, like a top three or sometimes only a top one.

And I always like to think, “Can I see a full list of my borrowing options?”Again, this is less to say you want to go through all of this in minute detail and see.

You’re probably going to still choose from one of the top three ones.

But you just want to see that they’re giving you the full amount of information.

And most mortgage brokers are good people but there are some dodgy mortgage brokers out there who are just trying to get the deal that gives them the biggest commission.

Home Loan App

And so by asking to see a full list of what your borrowing options, you can then look at that and you can then assess, “Okay, well which loan do I think is going to be best for me?” rather than just taking the recommendation of the mortgage broker who may or may not be thinking about themselves.

So, again, most mortgage brokers are great people out there to help you but it’s always a good idea to get a full list of your borrowing options that are available.

Will this put a mark against my credit file?

And so this is when you’re trying to work out how much you’re going to borrow and stuff like that.

When you go into a bank and you try and find out how much you can borrow, often, the bank will do a credit check and this puts a mark against your credit file.

And what happens is if you have a lot of these marks against your credit file, even though it’s nothing bad, this can actually stop you getting a loan.

Conventional Mortgage

So, talk to your mortgage broker and when you’re looking at, “What can I borrow?”or your looking at getting pre-approval, just understand, “Will this put a mark against my credit file?” ‘Cause it’s not bad to have a couple or whatever.

But if you’re getting lots and lots of marks against your credit file, then that could be an issue.

So just make sure and you know when a mark’s being put against your credit file and when a mark isn’t being put against your credit file.

How soon can I revalue or borrow again?

So if you’re investing in a property to renovate it or to develop it or even if you’re investing in a property that’s potentially under market value, you want to know how quickly can you revalue that property so you can get equity and then hopefully draw equity out of the property to go ahead and invest again.

There are a lot of lenders out there who don’t allow you to revalue within a 12-month period.

So, speak to your mortgage broker about the lenders that will allow you to revalue faster.

And basically, this will give you an idea of how quickly you can revalue to consider going again.

Stated Income Loans

You’re also going to want to ask them, “After I invest in this property, how soon can I borrow again or what do I need to do to put myself in a position to be able to borrow again and to purchase the next property?” Because hopefully, your goal isn’t just to purchase one property but to grow your property portfolio and to achieve that financial freedom and that financial security that you’re striving for.

Will My Loans be ‘cross-collateralised’?

Now, I have heard a lot of stories about investors whose loans have been cross-collateralised and it’s cause major problems when they’ve gone and sold their property because the bank shave been able to take that money and pay off debt.

And basically, you want to avoid this at all costs from what I hear.

And so, it’s good to ask your mortgage broker, “Will my loans be cross-collateralised in any way?” Generally going with the same lender for two loans does it by default, even though it doesn’t say they’re cross-collateralised.

So, it’s just something that you want to look at the fine print, you want to understand, “Are these cross-collateralised?” And if they are, try and avoid it, try and get loans that aren’t going to be cross-collateralised.

Mortgage Rates Florida

So there you have some questions to ask your mortgage broker next time you go and see a broker to find out how much you can borrow or get pre-approval or get financed for another property.

If you are in the market, looking at properties and you want to see some high rental yield properties, then I’ve got 10 property listings that I’ve gone out and found for you guys.

You can see what high rental yield properties look like that are likely to generate a positive cash flow.

Did You Know – You Can Get Pre-Approved for a USDA Loan in York?

Va Mortgage

So let's say you want to invest in propertybut you don't have the minimum 20% deposit required. Well, you're likely going to haveto pay what's called Lender's Mortgage Insurance. But what exactly is Lender's Mortgage Insuranceand is it worth the cost? In this episode, I'm going explain Lender's Mortgage Insurance. What exactly it covers and why you would want to get it. Hey, I'm Ryan from onproperty. Com. Au, helpingyou find positive cash flow property and I've just moved house. If you're watching the video,you can see a bunch of boxes in the background behind me so I apologize that I don't havethe best setup today, but I did want to create some good content for you. And this is a questionthat a lot of people ask. A lot of people want to see lender's mortgage insurance explained. And I do feel like often times, banks and lenders and sometimes mortgage brokers don'treally explain exactly what lender's mortgage insurance is or they don't take enough timeexplaining it so you actually understand it. So we're going to get down to it, try andunderstand exactly what it is and why it could benefit us and whether or not it's worth payingfor. Lender's mortgage insurance is an insurancefee that helps to cover the lender when they're taking an increased risk on a loan. So, lender'smortgage insurance, some people believe that it's actually to cover you personally as theborrower of the loan, but it's not. It's for the lender to protect them if they're takingan increased risk on a loan. What exactly is an increased risk? Well, for most properties- most residential properties - banks want to see at least a 20% deposit in which casethey won't charge you lender's mortgage insurance. They like to see a 20% deposit because ifyou, for some reason, default on your loan and they need to sell their property, they'requite confident that they're going to get at least 80% of the value that you paid forthe property back when they sell the property and this will cover their loan. However, if you're only borrowing 5% of theproperty's value, then they're a lot less confident that if you default on the loanthey're going to get 95% of the value of the property back. So it's a higher risk loanfor them. And so, in order to cover this higher risk, they charge an insurance fee to coverthat extra risk. Obviously, a lot of people will take out this insurance, not everyonewill need it. That's the way that insurance works. So the banks will charge you a one-timefee and everyone else a one-time fee and I guess this insurance covers them against thosefew circumstances where people do default on a loan and they have more trouble sellingthe property and getting enough value back. So lender's mortgage insurance, it's a one-timefee that you pay and it goes to protect the lender because they're taking an increasedrisk on you to get the loan. This sounds like it's not very beneficialto you, right? It's a fee that you have to pay, generally, it's added on to the loanso your loan gets bigger, but you've got to pay it and it protects them as the banks. Well, what's the benefit to you as a borrower? Well, the benefits aren't obvious, but theyare there. The benefit of lender's mortgage insurance is that if you don't have the fulldeposit, then you can still get money from the bank. If lender's mortgage insurance didn'texist, then if you didn't have a 20% deposit, you might not be able to get a loan at all. So, those of you who are going out and wanting to invest with a 5%, 10%, 15% deposit, youwould need to keep saving. Or, the flip side of that is if they would still lend out themoney, they would need to hike up their interest rates an give you much larger interest rates,so you wouldn't have a great interest rate on your property. You'd be paying a certainamount of points above the standard interest rate because they're taking increased on that. So, even though lender's mortgage insuranceis a fee that you need to pay, at least, you can still get a loan and you can still geta loan at a good interest rate. If lender's mortgage insurance didn't exist, then youprobably couldn't do that. So, lender's mortgage insurance does have value to borrowers. However,it's just a bit less apparent than the value that it is for the lenders. So how much does lender's mortgage insurancecost? This is an impossible question to answer because there's so many different varyingfactors. For example, the value of the loan is a varying factor. The percentage of deposit- whether you've got 5%, 6%, 10%, 15%. That's all going to affect the value of the lender'smortgage insurance that you have to pay. Basically, the larger the risk the bank feels that they'retaking, the larger your lender's mortgage insurance is going to be. They may take intoaccount whether you've got proven savings or not. And if you don't have proven savings,your lender's mortgage insurance might be higher. They might also look into your credithistory and things like that, but I'm not really sure if that affects lender's mortgageinsurance. But another factor is that lender's mortgage insurance varies from lender to lender. So you may go to one lender with the same loan value, the same percentage of depositand you may have a slightly different figure than if you go to another lender. So if youwant to find out how much lender's mortgage insurance is going to cost for your specificsituation, then just go to Google, type in "lender's mortgage insurance calculator". You should get a few of those come up and you can punch in your figures and it'll giveyou a pretty close estimate to how much you're going to pay. But, obviously, you're goingto need to speak to your lender or speak to your mortgage broker to get a more accurateestimate of how much lender's mortgage insurance is going to cost. If you want to avoid paying lender's mortgageinsurance, the only ways I know how to do this is to save a larger deposit. So thatmight mean 20% for residential property, it might mean 30% for commercial property. Butmake sure you speak to lenders to find out how much you'll need to save. So you can savea larger deposit. You could buy cheaper properties so your deposit is now worth more as a percentageof the property. So if you get that percentage over 20% for residential, then you may beable to avoid lender's mortgage insurance. Or, you can get a family guarantor on yourloan. so if you've got parents or you've got immediate family who are willing to put uptheir property as security for your loan, then the banks can take some security forthem. It then becomes a less risky deal for the banks. And, therefore, you don't haveto pay a lender's mortgage insurance. So, having a family member go guarantor on yourloan is a way to reduce or remove lender's mortgage insurance. So, that's how you canavoid it. Save more, buy a cheaper property so you're deposit's worth more as a percentageof your property or get a family to guarantor your loan. The last question and thing that I want tocover is: Is it actually better to pay lender's mortgage insurance or is it better to waituntil you have a large deposit? I've seen people talk on both sides of the scale andto say you should absolutely never pay lender's mortgage insurance. You should always savea 20% deposit when you invest. Lender's mortgage insurance, absolutely wasted money becauseit's a fee that goes to the bank and you've got nothing to show for it. And then, theother side of the pendulum are people saying that you should always pay lender's mortgageinsurance and always invest with the smallest deposit possible so you've got the least cashin the deal so that you can take the cash you do have and invest in more propertiesand grow your portfolio faster. So, some people say never pay it, always save at least 20%. Some people say always pay it, put as little cash into each deal as possible, which meansyou're going to pay basically the maximum lender's mortgage insurance for your situation. So there's people on both sides of the table. I think a better approach to it is to actuallylook at your own situation and assess whether it's worth it for you. Lender's mortgage insurancecost thousands of dollars. So you need to weigh up: is it worth investing in this propertynow with the smaller deposit and paying thousands of dollars versus actually saving more toget a deposit? Someone who only has a 5% deposit, they have a lot of trouble saving, but theycould get into the market now. Maybe they're great at renovation so they can build equityand value in their property, it might be worth investing for them and paying the lender'smortgage insurance because they can into the market faster, they can build equity and they'regoing to make more than the lender's mortgage insurance cost them. Or they might be someonewho's more risk-adverse. They want a larger deposit or maybe they've got 15% and they'regreat saver so it's only going to be a couple of months until they're at 20%, well then,it might not be worth it for them to pay lender's mortgage insurance because they are more risk-adverseand they can save the money so they don't have to pay it anyway. I think the best approach is to look at itand say, what are the risk versus the reward? How much is the lender's mortgage insurancegoing to cost me? And am I going to make more money back than the lender's mortgage insuranceis going to cost me? So if I can invest one year earlier, but I have to pay lender's mortgageinsurance, can I make that money back in one year of capital growth? Or one year of theability to have access to that property and improve the property? Or one year of positivecash flow from a property? So how much is it going to cost me? And then, how much amI going to make out of that and can I make more than it's going to cost me? And that'skind of how I would assess it. For me personally, I would pay lender's mortgageinsurance to get into the market earlier because I'm not the best saver in the world. So ifI had enough deposit to go, but it means I got to pay lender's mortgage insurance, aslong as I've done my research, I'm confident in the area, I'm confident in the propertythat I've purchased and I've got a strategy to make money for that property, I'm happyto lock that property down. Pay some lender's mortgage insurance, but I get it and I'vethen got the opportunity to make money versus just saving and waiting and waiting and thenmaybe not investing in the future because we all know things happen that dwindle ourmoney supply. Emergencies come up or we decide to go on holidays or whatever it may be. SoI'm not the best saver so I like taking action, locking it in and moving ahead. Other peopleare different. So you really need to assess whether it's worth it for you. I hope that this has explained what exactlylender's mortgage insurance is and then you can assess for yourself whether or not youthink it's worth the cost that it's going to cost you or whether you'd be better offactually saving extra money so you don't have to pay lender's mortgage insurance. Just tocover it off again, in case you didn't completely get it at the start, lender's mortgage insuranceis a one-time fee that you pay on the creation of your loan and that fee goes towards de-riskingthe banks. It's lender's mortgage insurance, it's their insurance - the lender's insurance. It's going to protect the lender against the increased risk their taking on you becauseyou don't have what they consider a large enough deposit to be a low-risk loan thatthey're riding. So you pay a one-time free, it protects them. Apart from that, there'sno benefit to you. It means you can borrow money, but that money is protecting the lender. It's not going to protect you in any way. I hope we made clear what lender's mortgageinsurance is. So when you're talking to your mortgage broker or talking to your lenderand they mention it, you say, "Okay, yup, I understand. That's a fee I have to pay becauseI don't have a large enough deposit and it's helping you to be able to lend me this moneywithout charging me an exorbitant interest rate or without saying, 'No, sorry. We can'tgive you that loan. '" I'm a big fan of lender's mortgage insurancein the industry. It lets a lot of people get into the market earlier who want to. And so,I'm not against the fee. But, again, you need to assess it for your own situation. If you're interested in investing in positivecash flow property and you need help finding it, then go ahead and check out my membershipwhere I go out, I find a high rental yield property every single day and share it withthe community. So head over to onproperty. Com. Au/membership if that's something that you're interestedin. Otherwise, until next time, stay positive.

ALERT: Minimum FHA Credit Score Requirement Falls 60 Points

Mortgage Rates Canada

Walk into any high street bank or building society and mention that you’re looking for a mortgage, and you’re likely to be bombarded with leaflets, if not hurried into a private office to meet their mortgage advisor. Mortgages are big business – and every large financial institution will offer several types of loan for buying property. It’s a good idea to check out as many different lenders as possible before making a decision – experts repeat the phrase ‘shop around’ like a mantra these days and you could save yourself a lot of money by comparing what’s on offer. Your own bank may be a good place to start – if you’ve banked with them for a while and have a good financial record they may be more confident about loaning you a large amount of money such as a mortgage. However, with relatively low interest rates and a booming market, these days the competition among lenders is fierce and you may find a better deal elsewhere. Don’t feel that you have to use the same bank for your mortgage as for your personal account. There are a number of websites that produce tables of comparative mortgage offers – just type ‘mortgage’ into your search engine and see the amount of results you pull up. ‘Which’, the magazine of the Consumer’s Association, is a reliable source of information on the current market. Check their website for guides on ‘Which mortgage’ at www.which.co.uk The financial pages in newspapers carry adverts as well as news on the latest deals – beware though of being seduced by adverts promising low rates without giving all the details – there’s more to finding the right mortgage than just picking the best rate. The bank are likely to advertise their lowest rate, and you are likely to have to meet certain criteria before qualifying for that particular deal. Check for things like hidden clauses or Higher Lending Charges – these are one-off charges applied to some deals that are supposedly to cover insurance protection for the bank when they lend to you. They will not, however, provide the lender with any security! Ethical investment is also a consideration for some borrowers – Muslim banks, for example, are forbidden from charging or paying interest. You can find out more about ethical banking and investments at www.eiris.org The Islamic Bank of Britain complies with Sharia Law, contact them at www.islamic-bank.com

Jumbo Loan

USDA Loan in Pennsylvania (888) 464-8732

USDA Loan in Coatesville (888) 464-8732

What questions should I ask a mortgage lender in Coatesville ? If you’re dealing with a mortgage broker there’s some questions that you should ask both on your first meeting with the mortgage broker and throughout working with your mortgage broker to make sure that you’re getting the best service possible.

USDALoanInfoPA is going to go through 10 different questions that you can ask your mortgage lender in Coatesville. Be aware that your USDA Loan or Mortgage broker  will be getting the loan that you need and the service that you want.

The first question that I think everyone should ask a mortgage broker is a pretty straightforward one.

How Much Will a Mortgage Broker Cost?

Most mortgage lenders in Coatesville actually work for free.

So it doesn’t actually cost you anything in order to do it.

They get money because they are paid by the banks when you successfully get a loan.

So they get a small commission of the loan that you apply for and if you get it.

Choosing a Mortgage Lender That's Right for You

So most mortgage brokers in Coatesville will work for free and it won’t cost you anything.

However, there are some mortgage brokers out there who do require deposits or who do require you to pay.

So, it’s important to ask, “How much will this cost me?” when assessing which mortgage broker you want to go with.

How much do Mortgage Lenders earn in commission from me and from my loan?

This is less to understand exactly how much they make.

You can see what percentage of commissions they make and things like that by visiting USDALoanInfo.

But it’s more to understand whether or not they’ll be willing to give you this information.

A transparent mortgage broker is someone that’d be willing to give you this information and you know that they have your best interest at heart.

USDA Loans, Mortgages For Rural Farmers and Low Income Farming Households

If they skirt around this issue and they don’t tell you how much they earn.

Well then that would send out red flags for me because I can’t trust them to put my best interest at heart because there are some circumstances where one loan will earn them more money than a loan that could potentially be better for me but not as good for them.

Subprime Mortgage Lenders

So, I’m just trying to establish whether or not this mortgage broker in Coatesville is someone that I can trust.

And by asking them the big question, the money question,”How much will you earn from me?” That’s a great way to understand whether or not you can trust the mortgage lender.

So ask that question and see how they respond.

Do Mortgage Lenders Invest Themselves?

Now, I don’t think a mortgage broker has to be a property investor in order for them to be able to get you a good loan and for them to help you successfully invest in property.

However, if they are interested in property in Coatesville, if they do invest themselves, then that is going to go a long way to help you because they understand what it’s like to be in your shoes.

They understand what you’re trying to get out of this and they’ve done it themselves so they can help you miss some of the pitfalls and things like that.

If they don’t invest themselves, then I would want to ask them, “Have you worked with many people that invest in property?” Because as mortgage brokers, some of them just work with people who are buying their own home.

Top Ten List of Bad Mortgage Lenders

Some of the mortgage lender folk who work with people who are doing particular investment strategies.

So, some might work with people who invest in positive cash flow property or who invest in rural areas, who invest using developments.

THE U. S. DEPARTMENTOF AGRICULTURE HASANNOUNCED MANY FARMSERVICE AGENCYOFFICES WILLTEMPORARILY REOPEN FOR THREE DAYS TOPERFORM CERTAINLIMITED SERVICES FORFARMERS ANDRANCHERS DURING THEGOVERNMENT SHUTDOWN. BEGINNINGTOMORROW -JANUARY17TH, 2-THOUSAND 500F-S-A EMPLOYEES -ARETO REPORT TO THEIROFFICES. IN ADDITION. THE FSAOFFICES WILL BE OPENFRIDAY JANUARY 18 ANDTUESDAY JANUARY 22ND. DURING BUSINESSHOURS - STAFF WILL BEON HAND TO ASSISTAGRICULTURALPRODUCERS WITHEXISTING FARM LOANS. AND PROVIDE 10-99 TAXDOCUMENTS TOBORROWERS -BY THEINTERNAL REVENUESERVICE DEADLINE. STAFF WILL ALSO BEABLE TO HELP WITHSPECIFIC SERVICESSUCH AS PROCESSINGPAYMENTS, CONTINUINGEXPIRING FINANCING STATEMENTS ANDOPENING MAIL TOIDENTIFY PRIORITYITEMS. IN OUR REGION -SERVICE CENTERS WILLBE OPEN IN:EKALAKA, MILES CITY, GLENDIVE, LEWISTOWN,SIDNEY, GLASGOW ANDBILLINGS. YOU CAN VIEW A FULLLIST OF LOCATIONSACROSS MONTANA. ONOUR WEBS.

So I would want to find a mortgage broker who either had that experience themselves or who had clients that they had got similar deals for ’cause that way I know that they can negotiate on my behalf and they can get this deal across the line.

What details do Lenders need from me?

It’s one thing to call up a mortgage broker and just to get an estimate of your borrowing capacity but if you’re going through pre-approval and stuff like that, then you’re going to need to provide the mortgage broker with more in-depth details.

You might need pay slips; you might need proof of identity, all of that sort of stuff.

If you ask them up front, “What details do you need from me?” And when you go to your meeting with them you actually provide them with those details, well that just makes things so much easier.

2nd Mortgage Lenders

Remember, a mortgage lender is only paid once the deal goes through and once you actually get financing.

So the easier you make it for them, the more likely you are going to get better service.

What can I do as a client to make this go as smoothly as possible?

You have the goal of getting financed for your property, the mortgage lender has a goal of you getting financed for your property and no one wants it to be difficult.

And so, if you can ask the mortgage broker, “Look, how can I work with you? How can I make things easy for you?” They’re the experts; they know what they’re doing.

They can tell you exactly what they need and then you can work hard to provide that for them so that they can get everything across the line as quickly as possible.

Mortgage Companies Near Me

You know, I have customers,I deal with customers and even though I’m not a mortgage broker myself, I know that when there’s difficult customers that you don’t want to deal with, it just makes life so much harder and you don’t want to work hard for those people.

And when there’s customers who are really nice to you and who try really hard to help you provide them with the service you provide, you will bend over backwards to do anything you can for those customers to get them across the line, to help them as much as possible.

So, be one of those customers that the mortgage broker wants to bend over backwards to help you because you have their interest at heart as well.

You want to see them get paid.

You want to see them do an easy mortgage so they get paid easily.

And so you can develop a relationship into the future.

Which lenders can I borrow the most from?

Most people go into a mortgage broker looking for the cheapest interest rate possible.

What is the cheapest interest rate I can get? And the fact of the matter is a mortgage broker is likely to show you the banks that will lend you the amount of money you need and will also have the cheapest interest rate as well.

However, they might not showy ou banks that will lend you more money than you potentially need at the moment.

Now, it’s important to ask, “Which lenders can I borrow the most from?” because this will help you to project into the future.

Maybe you don’t need to know that for this loan right now but maybe, in the future, you might need to borrow money again and you know, or roughly my borrowing capacity is this.

Or if you find out which lenders you can borrow more from, and you find that you can actually borrow an extra $300,000, well you might split up your deposit and invest in two investment properties instead of just one.

And so asking them, “Which lenders can I borrow the most from?” is a great question to ask to really understand your position.

Because, yes, interest rate is important but how much you can borrow is also important as well.

Can I see a full list of my borrowing options?

Most mortgage brokers will provide you with, usually, like a top three or sometimes only a top one.

And I always like to think, “Can I see a full list of my borrowing options?”Again, this is less to say you want to go through all of this in minute detail and see.

You’re probably going to still choose from one of the top three ones.

But you just want to see that they’re giving you the full amount of information.

And most mortgage brokers are good people but there are some dodgy mortgage brokers out there who are just trying to get the deal that gives them the biggest commission.

15 Year Mortgage

And so by asking to see a full list of what your borrowing options, you can then look at that and you can then assess, “Okay, well which loan do I think is going to be best for me?” rather than just taking the recommendation of the mortgage broker who may or may not be thinking about themselves.

So, again, most mortgage brokers are great people out there to help you but it’s always a good idea to get a full list of your borrowing options that are available.

Will this put a mark against my credit file?

And so this is when you’re trying to work out how much you’re going to borrow and stuff like that.

When you go into a bank and you try and find out how much you can borrow, often, the bank will do a credit check and this puts a mark against your credit file.

And what happens is if you have a lot of these marks against your credit file, even though it’s nothing bad, this can actually stop you getting a loan.

Lowest Mortgage Rates

So, talk to your mortgage broker and when you’re looking at, “What can I borrow?”or your looking at getting pre-approval, just understand, “Will this put a mark against my credit file?” ‘Cause it’s not bad to have a couple or whatever.

But if you’re getting lots and lots of marks against your credit file, then that could be an issue.

So just make sure and you know when a mark’s being put against your credit file and when a mark isn’t being put against your credit file.

How soon can I revalue or borrow again?

So if you’re investing in a property to renovate it or to develop it or even if you’re investing in a property that’s potentially under market value, you want to know how quickly can you revalue that property so you can get equity and then hopefully draw equity out of the property to go ahead and invest again.

There are a lot of lenders out there who don’t allow you to revalue within a 12-month period.

So, speak to your mortgage broker about the lenders that will allow you to revalue faster.

And basically, this will give you an idea of how quickly you can revalue to consider going again.

Best Home Loan Rates

You’re also going to want to ask them, “After I invest in this property, how soon can I borrow again or what do I need to do to put myself in a position to be able to borrow again and to purchase the next property?” Because hopefully, your goal isn’t just to purchase one property but to grow your property portfolio and to achieve that financial freedom and that financial security that you’re striving for.

Will My Loans be ‘cross-collateralised’?

Now, I have heard a lot of stories about investors whose loans have been cross-collateralised and it’s cause major problems when they’ve gone and sold their property because the bank shave been able to take that money and pay off debt.

And basically, you want to avoid this at all costs from what I hear.

And so, it’s good to ask your mortgage broker, “Will my loans be cross-collateralised in any way?” Generally going with the same lender for two loans does it by default, even though it doesn’t say they’re cross-collateralised.

So, it’s just something that you want to look at the fine print, you want to understand, “Are these cross-collateralised?” And if they are, try and avoid it, try and get loans that aren’t going to be cross-collateralised.

Lendinghome

So there you have some questions to ask your mortgage broker next time you go and see a broker to find out how much you can borrow or get pre-approval or get financed for another property.

If you are in the market, looking at properties and you want to see some high rental yield properties, then I’ve got 10 property listings that I’ve gone out and found for you guys.

You can see what high rental yield properties look like that are likely to generate a positive cash flow.

Did You Know – You Can Get Pre-Approved for a USDA Loan in Coatesville?

No Closing Cost Mortgage

A second mortgage lender provides a secured loan on your property. This is a popular method of buying a house or commercial property without having to pay the full amount in cash in advance. Second mortgage is open to persons with bad credit history even. It offers you a chance to repair your bad credit too. Lots of financial companies provide second mortgage services.

The maximum amount available on a second mortgage is the full market value of the collateral security you provide. The second mortgage lender holds the legal title of your property. This legal title is known as equity of redemption. However, equity redemption holds good only as a security for the amount of loan. It does not carry any real ownership powers.

Many companies offer a fee for providing you a second mortgage loan. The fee is usually calculated to a certain percentage of the loan amount. If you opt for a fixed rate loan, the interest rate is fixed for the life of the loan. Many mortgage companies offer variable rate mortgages called adjustable rate mortgages (ARM's.)

Mortgage lenders are big companies often involved in a number of financial businesses. They often appoint brokers to attract customers. Brokers work as mediators between the borrower and lender. The main advantage of approaching a broker is his experience in dealing with mortgages. The long experience and professionalism of the broker allow the borrower to choose the right lender and overcome the blemishes of his bad credit.

Lenders do set some special conditions on second mortgages. Depending on the conditional clauses set by lenders, you can refinance a second mortgage or may have additional cash on the second mortgage. Since second mortgages are fixed rate mortgages, they are available for a period of up to 30 years.

How To Choose A Mortgage Lender When Buying a Home

Usda Direct Loan

Chastin J. MilesBlockedUnblockFollowFollowingDec 22, 2015Before you start searching for a home, the first questions you need to ask is “How Much Can I Afford?” Unless you plan on paying all cash for your home, this is not a question you can answer on your own. You will need the assistance of a mortgage loan officer. A mortgage loan officer will be the one to qualify you for a home loan or commonly referred to as a mortgage.There a different mortgage programs available but they do all have different qualification requirements and different terms. Your specific financial situation will determine the type of loan that would be best for you. One very common type of loan is a FHA loan. Recently, I interviewed one of my loan partners so that he could give us all a better understanding of the FHA loan. This is what he had to say:Chastin: What is an FHA loan?Daniel: An FHA loan is a federal housing administration loan. Essentially, the federal government insures loans for FHA-approved lenders in order to reduce their risk of loss if a borrower defaults on their mortgage payments. It is designed to be an affordable alternative to help more people live the American dream of home ownership. FHA loans are popular with mortgage borrowers because of lower down payment requirements and less stringent lending standards.Chastin: What are the qualifications for an FHA loan?Daniel: Someone like me, a DIRECT LENDER can go right to the government guidelines with no investor overlays, with that being said it is required per FHA guidelines to have a 580 credit score minimum with established credit history. The higher your score, the better interest rate one will be approved for. Your DTI ratios have to be below 43% for scores under 620, and 57% for scores over 620. And of course the 3.5% down payment, which can be gifted from friends family etc.Chastin: What is “DTI” for first time home buyers?Daniel: Ah yes, debt-to-income ratio. It is the mathematical equation of your monthly debt obligation associated with your CREDIT REPORT and other LIABILITIES (child support, alimony are good examples and it does not include utility bills or anything of that nature) divided by your monthly income. For example someone with a $300 car payment $50 in credit card minimum payments and $150 student loan payment, would have $500 in monthly obligations plus proposed housing payment divided by income for DTI ratio.Chastin: What is the minimum down payment required for FHA loan?Daniel: Minimum down payment is 3.5% of the borrowers own money or gift. It cannot come from seller concessions or selling party. All money needs to be sourced and verified. A good real estate agent like yourself can typically get closing costs covered by the listing party requiring the borrower to only come with the 3.5% to the tableChastin: What do you think personally of FHA loans?Daniel: My personal opinion- it is a great cheap alternative one can use to get into a new home. I think a lot of first time home buyers should utilize the 3.5% down payment keeping maximum liquidity in your financial situation, after all in DFW you break even on your investment into a home shortly after a year of ownership with the market appreciating so much. OR perhaps use FHA to build credit and equity into a home, as you better position yourself financially you can refinance into a conventional loan to drop the mortgage insurance required on FHA mortgages. It also is more lenient than pretty much every other mortgage product out there, which makes it easier to be approved for if you have financial struggles recently.There you have it, thats an FHA loan. I’m sure that didn’t answer all of your questions about it but it should have given you a pretty good basis. If you have other questions, stay tuned. We will be doing a video interview very shortly where we get into more detail about it.

Mortgage Solutions

USDA Loan in Pennsylvania (888) 464-8732

Mortgage Lender in Bradford (888) 464-8732

What questions should I ask a mortgage lender in Bradford ? If you’re dealing with a mortgage broker there’s some questions that you should ask both on your first meeting with the mortgage broker and throughout working with your mortgage broker to make sure that you’re getting the best service possible.

USDALoanInfoPA is going to go through 10 different questions that you can ask your mortgage lender in Bradford. Be aware that your USDA Loan or Mortgage broker  will be getting the loan that you need and the service that you want.

The first question that I think everyone should ask a mortgage broker is a pretty straightforward one.

How Much Will a Mortgage Broker Cost?

Most mortgage lenders in Bradford actually work for free.

So it doesn’t actually cost you anything in order to do it.

They get money because they are paid by the banks when you successfully get a loan.

So they get a small commission of the loan that you apply for and if you get it.

Mortgage Lenders – Making The Right Choice

So most mortgage brokers in Bradford will work for free and it won’t cost you anything.

However, there are some mortgage brokers out there who do require deposits or who do require you to pay.

So, it’s important to ask, “How much will this cost me?” when assessing which mortgage broker you want to go with.

How much do Mortgage Lenders earn in commission from me and from my loan?

This is less to understand exactly how much they make.

You can see what percentage of commissions they make and things like that by visiting USDALoanInfo.

But it’s more to understand whether or not they’ll be willing to give you this information.

A transparent mortgage broker is someone that’d be willing to give you this information and you know that they have your best interest at heart.

2nd Mortgage Lenders

If they skirt around this issue and they don’t tell you how much they earn.

Well then that would send out red flags for me because I can’t trust them to put my best interest at heart because there are some circumstances where one loan will earn them more money than a loan that could potentially be better for me but not as good for them.

Home Equity Loan Interest Rates

So, I’m just trying to establish whether or not this mortgage broker in Bradford is someone that I can trust.

And by asking them the big question, the money question,”How much will you earn from me?” That’s a great way to understand whether or not you can trust the mortgage lender.

So ask that question and see how they respond.

Do Mortgage Lenders Invest Themselves?

Now, I don’t think a mortgage broker has to be a property investor in order for them to be able to get you a good loan and for them to help you successfully invest in property.

However, if they are interested in property in Bradford, if they do invest themselves, then that is going to go a long way to help you because they understand what it’s like to be in your shoes.

They understand what you’re trying to get out of this and they’ve done it themselves so they can help you miss some of the pitfalls and things like that.

If they don’t invest themselves, then I would want to ask them, “Have you worked with many people that invest in property?” Because as mortgage brokers, some of them just work with people who are buying their own home.

USDA Mortgage Loans

Some of the mortgage lender folk who work with people who are doing particular investment strategies.

So, some might work with people who invest in positive cash flow property or who invest in rural areas, who invest using developments.

Hedge funds and private equity firms are investment companies set up by Wall Street investment banks and funded by wealthy individuals and cash rich corporate entities. Unlike standard, publicly traded mutual funds, hedge funds are largely unregulated and have much more leeway in their investment choices. Many of these funds have recognized the opportunity that's emerged in commercial real estate lending, and have stepped in to fill the funding gap. The money managers in charge of these massive pools of capital are savvy investing pros, they know a good deal when they see it and can be very nimble. Hedge funds and private equity funds are not afraid of risk; in fact they thrive on it. If they like a deal, they make decisions quickly and can close loan or equity financing in just days.

There are many private funds that specialize in commercial real estate investing or have a commercial mortgage lending division. They are cash rich and actively seeking quality deals to fund. They can be an excellent alternative to banks and other traditional lenders.
But, be aware, they are very professional and highly sophisticated. Do not approach hedge funds with shoddy or incomplete packages. They're pros and work exclusively with other pros.

Hedge fund and private equity people have a Wall Street mentality; they are traders art heart. When they look at a deal they want to be able to make decisions quickly.

When approaching a fund you'll want to have a complete, well documented package ready to show them at a moments notice, but don't give it to them all at once. Having worked for Wall Street firms for more than 20 years, I've determined that the best way to approach money mangers is with a concise, well written 1 page deal summary.

Sum-up the selling points of your deal on a single sheet of paper, stressing the profit potential, the investors level of experience, the strength of the location and some of the other strong points of the project. They'll appreciate the fact that you respected their time by being brief. If they like what they see they will ask for more. Give them precisely what they ask for; don't bog them down with documentation until they tell you they want to see it. Sell them the big story before you try to sell them the details.

If you want to secure funding from a big private equity shop or a hedge fund, I'd strongly suggest you utilize the services of a professional intermediary with Wall Street experience. They can speak the language of fund managers and know exactly what's important to highlight about a particular deal. These funds tend to operate like private clubs, it helps a-lot if you have an "in". If you are fortunate enough to develop a relationship with this unique type of lender, you will enjoy a seemingly endless source of capital.

So I would want to find a mortgage broker who either had that experience themselves or who had clients that they had got similar deals for ’cause that way I know that they can negotiate on my behalf and they can get this deal across the line.

What details do Lenders need from me?

It’s one thing to call up a mortgage broker and just to get an estimate of your borrowing capacity but if you’re going through pre-approval and stuff like that, then you’re going to need to provide the mortgage broker with more in-depth details.

You might need pay slips; you might need proof of identity, all of that sort of stuff.

If you ask them up front, “What details do you need from me?” And when you go to your meeting with them you actually provide them with those details, well that just makes things so much easier.

How To Pick A Mortgage Lender When Buying A House

Remember, a mortgage lender is only paid once the deal goes through and once you actually get financing.

So the easier you make it for them, the more likely you are going to get better service.

What can I do as a client to make this go as smoothly as possible?

You have the goal of getting financed for your property, the mortgage lender has a goal of you getting financed for your property and no one wants it to be difficult.

And so, if you can ask the mortgage broker, “Look, how can I work with you? How can I make things easy for you?” They’re the experts; they know what they’re doing.

They can tell you exactly what they need and then you can work hard to provide that for them so that they can get everything across the line as quickly as possible.

Usda Eligibility Map

You know, I have customers,I deal with customers and even though I’m not a mortgage broker myself, I know that when there’s difficult customers that you don’t want to deal with, it just makes life so much harder and you don’t want to work hard for those people.

And when there’s customers who are really nice to you and who try really hard to help you provide them with the service you provide, you will bend over backwards to do anything you can for those customers to get them across the line, to help them as much as possible.

So, be one of those customers that the mortgage broker wants to bend over backwards to help you because you have their interest at heart as well.

You want to see them get paid.

You want to see them do an easy mortgage so they get paid easily.

And so you can develop a relationship into the future.

Which lenders can I borrow the most from?

Most people go into a mortgage broker looking for the cheapest interest rate possible.

What is the cheapest interest rate I can get? And the fact of the matter is a mortgage broker is likely to show you the banks that will lend you the amount of money you need and will also have the cheapest interest rate as well.

However, they might not showy ou banks that will lend you more money than you potentially need at the moment.

Now, it’s important to ask, “Which lenders can I borrow the most from?” because this will help you to project into the future.

Maybe you don’t need to know that for this loan right now but maybe, in the future, you might need to borrow money again and you know, or roughly my borrowing capacity is this.

Or if you find out which lenders you can borrow more from, and you find that you can actually borrow an extra $300,000, well you might split up your deposit and invest in two investment properties instead of just one.

And so asking them, “Which lenders can I borrow the most from?” is a great question to ask to really understand your position.

Because, yes, interest rate is important but how much you can borrow is also important as well.

Can I see a full list of my borrowing options?

Most mortgage brokers will provide you with, usually, like a top three or sometimes only a top one.

And I always like to think, “Can I see a full list of my borrowing options?”Again, this is less to say you want to go through all of this in minute detail and see.

You’re probably going to still choose from one of the top three ones.

But you just want to see that they’re giving you the full amount of information.

And most mortgage brokers are good people but there are some dodgy mortgage brokers out there who are just trying to get the deal that gives them the biggest commission.

Mortgage Loan Rates

And so by asking to see a full list of what your borrowing options, you can then look at that and you can then assess, “Okay, well which loan do I think is going to be best for me?” rather than just taking the recommendation of the mortgage broker who may or may not be thinking about themselves.

So, again, most mortgage brokers are great people out there to help you but it’s always a good idea to get a full list of your borrowing options that are available.

Will this put a mark against my credit file?

And so this is when you’re trying to work out how much you’re going to borrow and stuff like that.

When you go into a bank and you try and find out how much you can borrow, often, the bank will do a credit check and this puts a mark against your credit file.

And what happens is if you have a lot of these marks against your credit file, even though it’s nothing bad, this can actually stop you getting a loan.

Subprime Mortgage Lenders

So, talk to your mortgage broker and when you’re looking at, “What can I borrow?”or your looking at getting pre-approval, just understand, “Will this put a mark against my credit file?” ‘Cause it’s not bad to have a couple or whatever.

But if you’re getting lots and lots of marks against your credit file, then that could be an issue.

So just make sure and you know when a mark’s being put against your credit file and when a mark isn’t being put against your credit file.

How soon can I revalue or borrow again?

So if you’re investing in a property to renovate it or to develop it or even if you’re investing in a property that’s potentially under market value, you want to know how quickly can you revalue that property so you can get equity and then hopefully draw equity out of the property to go ahead and invest again.

There are a lot of lenders out there who don’t allow you to revalue within a 12-month period.

So, speak to your mortgage broker about the lenders that will allow you to revalue faster.

And basically, this will give you an idea of how quickly you can revalue to consider going again.

Usda Rural Development Loan

You’re also going to want to ask them, “After I invest in this property, how soon can I borrow again or what do I need to do to put myself in a position to be able to borrow again and to purchase the next property?” Because hopefully, your goal isn’t just to purchase one property but to grow your property portfolio and to achieve that financial freedom and that financial security that you’re striving for.

Will My Loans be ‘cross-collateralised’?

Now, I have heard a lot of stories about investors whose loans have been cross-collateralised and it’s cause major problems when they’ve gone and sold their property because the bank shave been able to take that money and pay off debt.

And basically, you want to avoid this at all costs from what I hear.

And so, it’s good to ask your mortgage broker, “Will my loans be cross-collateralised in any way?” Generally going with the same lender for two loans does it by default, even though it doesn’t say they’re cross-collateralised.

So, it’s just something that you want to look at the fine print, you want to understand, “Are these cross-collateralised?” And if they are, try and avoid it, try and get loans that aren’t going to be cross-collateralised.

Usda Loan Requirements

So there you have some questions to ask your mortgage broker next time you go and see a broker to find out how much you can borrow or get pre-approval or get financed for another property.

If you are in the market, looking at properties and you want to see some high rental yield properties, then I’ve got 10 property listings that I’ve gone out and found for you guys.

You can see what high rental yield properties look like that are likely to generate a positive cash flow.

Did You Know – You Can Get Pre-Approved for a USDA Loan in Bradford?

Jumbo Loan

People are often overwhelmed by the many different types of loans available today. Are you contemplating buying a property? If you have an idea of what you are looking for and your desired price range, consider a USDA Loan.

USDA Loans are supported by the United States Department of Agriculture. In the past this type of loan was referred to as a "farmer's loan." However, contrary to what many people may think, this loan is not just for farmers. This Loan is only used for homes purchased in rural areas. Note that some homes are considered rural even when the population is 10,000 or less. In some cases home ins cities with a population of 10,000 to 25,000 are also eligible.

Benefits to USDA Loan applicants:
• No Down payment required
• 30-year Fixed Rate Mortgages (low rates)
• Loans may cover up to 100% of appraisal

Are you eligible for a USDA Loan?
• Must be U.S. citizen, or legally permitted resident
• Adjusted annual income less than limit established by United States Dept. of Agriculture
• Have average credit history (provides proof of repayments)

Why is a USDA Loan right for me?
• Provide an opportunity for individuals who do not have a high credit score, but show capability to make payments.
• No mortgage insurance payment each month
• No down payment which can save you money for home renovations and improvements.

Take advantage now of the benefits available for USDA Loans and finally settle into the dream home you have been looking for.

USDA Maps Changing on June 4th | Home Buyer Tips

Second Mortgage Rates

Buying a new home can be a significant financial commitment. New home-owners have to pay mortgage instalments for years after they purchase their house so they need to consider the instalment, rate of interest, and other factors carefully. Most clients have low instalments and low interest rates so they look for attractive loan offers that strike a happy medium between both. That’s why most potential home-owners are very attracted to FHA home loans.What are FHA Home Loans?Risk is a very important factor in deciding the mortgage and interest rates. Bankers and lending institutions will charge more interests and set higher instalment rates if they believe they take a greater risk by lending you the money. Most home loan rates are calculated based on market conditions, competition, and risk. If you can influence one factor, the rates can come down. That’s exactly what FHA or Federal Housing Administration does.This establishment allows you to insure your home loan, which minimizes the risk for the lender. If you default on the loan, the insurance will cover the amount and the lenders won’t lose any money on their investment. This assurance eases the mortgage application and approval by a considerable margin. You’re more likely to get the mortgage if you apply for FHA home loans.What are the Characteristics of FHA Home Loans?These loans are attractive because they offer a number of benefits to both the lenders and the borrowers. The insurance is provided by a government agency under U.S. Department of Housing and Urban Development so it’s trustworthy. Here are some of the distinct advantages these loans offer borrowers:You get the benefit of lower interest rates.The qualification requirements are much more flexible.You need to pay a monthly premium for your mortgage insurance. That can add to your monthly cost.You also minimize the risk of foreclosure if you can’t pay back the loan due to financial difficulties.What Do You Need to Know About FHA Home Loans?While FHA loans offer a great deal, it’s important to understand how they work and what they offer before you apply for them. Here’s what you need to know about these loans:The down payment amount is usually set at anywhere between 3.5% and 10% depending on the credit score.If the credit score is above 580, you might be asked to pay around 3.5%.Loans with lower down payment options are limited in availability.You need to get your loan from an FHA approved lender so you can’t just choose any bank or financial institution.For any more information about FHA Home Loans and assistance with applying for one, it’s important that you hire the services of an experienced and credible mortgage agent that will work with you and provide you all the information you need; this will help you make a more well-informed decision about this sizeable investment you are making.

Refinance Home Loan

USDA Loan in Pennsylvania (888) 464-8732

Mortgage Lender in Altoona (888) 464-8732

What questions should I ask a mortgage lender in Altoona ? If you’re dealing with a mortgage broker there’s some questions that you should ask both on your first meeting with the mortgage broker and throughout working with your mortgage broker to make sure that you’re getting the best service possible.

USDALoanInfoPA is going to go through 10 different questions that you can ask your mortgage lender in Altoona. Be aware that your USDA Loan or Mortgage broker  will be getting the loan that you need and the service that you want.

The first question that I think everyone should ask a mortgage broker is a pretty straightforward one.

How Much Will a Mortgage Broker Cost?

Most mortgage lenders in Altoona actually work for free.

So it doesn’t actually cost you anything in order to do it.

They get money because they are paid by the banks when you successfully get a loan.

So they get a small commission of the loan that you apply for and if you get it.

USDA Home Loan Program, USDA Loan Eligibility

So most mortgage brokers in Altoona will work for free and it won’t cost you anything.

However, there are some mortgage brokers out there who do require deposits or who do require you to pay.

So, it’s important to ask, “How much will this cost me?” when assessing which mortgage broker you want to go with.

How much do Mortgage Lenders earn in commission from me and from my loan?

This is less to understand exactly how much they make.

You can see what percentage of commissions they make and things like that by visiting USDALoanInfo.

But it’s more to understand whether or not they’ll be willing to give you this information.

A transparent mortgage broker is someone that’d be willing to give you this information and you know that they have your best interest at heart.

How To Choose A Mortgage Lender

If they skirt around this issue and they don’t tell you how much they earn.

Well then that would send out red flags for me because I can’t trust them to put my best interest at heart because there are some circumstances where one loan will earn them more money than a loan that could potentially be better for me but not as good for them.

Usda Mortgage Calculator

So, I’m just trying to establish whether or not this mortgage broker in Altoona is someone that I can trust.

And by asking them the big question, the money question,”How much will you earn from me?” That’s a great way to understand whether or not you can trust the mortgage lender.

So ask that question and see how they respond.

Do Mortgage Lenders Invest Themselves?

Now, I don’t think a mortgage broker has to be a property investor in order for them to be able to get you a good loan and for them to help you successfully invest in property.

However, if they are interested in property in Altoona, if they do invest themselves, then that is going to go a long way to help you because they understand what it’s like to be in your shoes.

They understand what you’re trying to get out of this and they’ve done it themselves so they can help you miss some of the pitfalls and things like that.

If they don’t invest themselves, then I would want to ask them, “Have you worked with many people that invest in property?” Because as mortgage brokers, some of them just work with people who are buying their own home.

Lender's Mortgage Insurance Explained

Some of the mortgage lender folk who work with people who are doing particular investment strategies.

So, some might work with people who invest in positive cash flow property or who invest in rural areas, who invest using developments.

What is a USDA Mortgage Loan?
The Rural Housing Service (RHS) of the United States Department of Agriculture (USDA) sponsors home loans referred to as Section 502 loans. Under Section 502, direct loans (i.e. from money appropriated by Congress) may be available to some low-income applicants. In addition, those with total household income less that 115% of the median household income in a qualified rural area may obtain government guaranteed mortgages from qualified lenders.

The purpose of the program is described by the RHS as Follows:
The Section 502 Guaranteed Rural Housing Loan Program is designed to serve rural residents who have a steady, low or modest income, and yet are unable to obtain adequate housing through conventional financing. These loans enable low and moderate-income rural residents to acquire modestly priced housing for their own use as a residence through the purchase of a new or existing dwelling or the purchase of a new manufactured home.

If you live in a rural area or in a less developed portion of a metropolitan county, and your household income does not exceed the limit assigned to your area, you may qualify for a USDA guaranteed mortgage.

Why should I consider a government guaranteed USDA Mortgage?

  1. USDA Mortgages may be issued with no down payment.
  2. Closing costs may be included in the loan amount, further decreasing up-front costs.
  3. Because of the government guarantee, interest rates are favorable and there is no mortgage insurance fee built into the monthly payment.
  4. USDA Mortgages are 30 year fixed-rate mortgages. Your interest rates will not increase during the life of the loan.
  5. Credit requirements are flexible. You must have a reasonable credit history and demonstrate that you are willing and able to make timely payments, but circumstances such as previous job loss or other extenuating circumstances may be considered in evaluating your credit history (or your lack of a credit history).

Do I qualify for a USDA Mortgage Loan?
The final word on eligibility is made by an officer in your local RHS office. This local officer has the discretion to evaluate your circumstances and credit history and take into account extenuating circumstances.

You can learn whether you meet the outside limits on household income by going to the USDA Income and Property Eligibility Site at http://www.usda.gov. The same calculator can help you determine whether the property you wish to buy is located in a qualified rural area.

In addition to having a satisfactory credit history, the ratio of your total monthly loan payment to monthly household income may not exceed 29 percent, and the ratio of monthly payments on all debt to household income must not exceed 41 percent.

How do I apply for a USDA Mortgage Loan?
Your local loan office or mortgage broker at First Option Mortgage and Lending can help you evaluate your eligibility, prepare a loan request and take full advantage of the options available to you through a government guaranteed USDA mortgage loan.

So I would want to find a mortgage broker who either had that experience themselves or who had clients that they had got similar deals for ’cause that way I know that they can negotiate on my behalf and they can get this deal across the line.

What details do Lenders need from me?

It’s one thing to call up a mortgage broker and just to get an estimate of your borrowing capacity but if you’re going through pre-approval and stuff like that, then you’re going to need to provide the mortgage broker with more in-depth details.

You might need pay slips; you might need proof of identity, all of that sort of stuff.

If you ask them up front, “What details do you need from me?” And when you go to your meeting with them you actually provide them with those details, well that just makes things so much easier.

Federal Mortgage And IRS Relief For Floridians Impacted By Hurricane Irma

Remember, a mortgage lender is only paid once the deal goes through and once you actually get financing.

So the easier you make it for them, the more likely you are going to get better service.

What can I do as a client to make this go as smoothly as possible?

You have the goal of getting financed for your property, the mortgage lender has a goal of you getting financed for your property and no one wants it to be difficult.

And so, if you can ask the mortgage broker, “Look, how can I work with you? How can I make things easy for you?” They’re the experts; they know what they’re doing.

They can tell you exactly what they need and then you can work hard to provide that for them so that they can get everything across the line as quickly as possible.

Types Of Mortgage Loans

You know, I have customers,I deal with customers and even though I’m not a mortgage broker myself, I know that when there’s difficult customers that you don’t want to deal with, it just makes life so much harder and you don’t want to work hard for those people.

And when there’s customers who are really nice to you and who try really hard to help you provide them with the service you provide, you will bend over backwards to do anything you can for those customers to get them across the line, to help them as much as possible.

So, be one of those customers that the mortgage broker wants to bend over backwards to help you because you have their interest at heart as well.

You want to see them get paid.

You want to see them do an easy mortgage so they get paid easily.

And so you can develop a relationship into the future.

Which lenders can I borrow the most from?

Most people go into a mortgage broker looking for the cheapest interest rate possible.

What is the cheapest interest rate I can get? And the fact of the matter is a mortgage broker is likely to show you the banks that will lend you the amount of money you need and will also have the cheapest interest rate as well.

However, they might not showy ou banks that will lend you more money than you potentially need at the moment.

Now, it’s important to ask, “Which lenders can I borrow the most from?” because this will help you to project into the future.

Maybe you don’t need to know that for this loan right now but maybe, in the future, you might need to borrow money again and you know, or roughly my borrowing capacity is this.

Or if you find out which lenders you can borrow more from, and you find that you can actually borrow an extra $300,000, well you might split up your deposit and invest in two investment properties instead of just one.

And so asking them, “Which lenders can I borrow the most from?” is a great question to ask to really understand your position.

Because, yes, interest rate is important but how much you can borrow is also important as well.

Can I see a full list of my borrowing options?

Most mortgage brokers will provide you with, usually, like a top three or sometimes only a top one.

And I always like to think, “Can I see a full list of my borrowing options?”Again, this is less to say you want to go through all of this in minute detail and see.

You’re probably going to still choose from one of the top three ones.

But you just want to see that they’re giving you the full amount of information.

And most mortgage brokers are good people but there are some dodgy mortgage brokers out there who are just trying to get the deal that gives them the biggest commission.

Mortgage Interest

And so by asking to see a full list of what your borrowing options, you can then look at that and you can then assess, “Okay, well which loan do I think is going to be best for me?” rather than just taking the recommendation of the mortgage broker who may or may not be thinking about themselves.

So, again, most mortgage brokers are great people out there to help you but it’s always a good idea to get a full list of your borrowing options that are available.

Will this put a mark against my credit file?

And so this is when you’re trying to work out how much you’re going to borrow and stuff like that.

When you go into a bank and you try and find out how much you can borrow, often, the bank will do a credit check and this puts a mark against your credit file.

And what happens is if you have a lot of these marks against your credit file, even though it’s nothing bad, this can actually stop you getting a loan.

Bad Credit Mortgage Loans

So, talk to your mortgage broker and when you’re looking at, “What can I borrow?”or your looking at getting pre-approval, just understand, “Will this put a mark against my credit file?” ‘Cause it’s not bad to have a couple or whatever.

But if you’re getting lots and lots of marks against your credit file, then that could be an issue.

So just make sure and you know when a mark’s being put against your credit file and when a mark isn’t being put against your credit file.

How soon can I revalue or borrow again?

So if you’re investing in a property to renovate it or to develop it or even if you’re investing in a property that’s potentially under market value, you want to know how quickly can you revalue that property so you can get equity and then hopefully draw equity out of the property to go ahead and invest again.

There are a lot of lenders out there who don’t allow you to revalue within a 12-month period.

So, speak to your mortgage broker about the lenders that will allow you to revalue faster.

And basically, this will give you an idea of how quickly you can revalue to consider going again.

Types Of Mortgage

You’re also going to want to ask them, “After I invest in this property, how soon can I borrow again or what do I need to do to put myself in a position to be able to borrow again and to purchase the next property?” Because hopefully, your goal isn’t just to purchase one property but to grow your property portfolio and to achieve that financial freedom and that financial security that you’re striving for.

Will My Loans be ‘cross-collateralised’?

Now, I have heard a lot of stories about investors whose loans have been cross-collateralised and it’s cause major problems when they’ve gone and sold their property because the bank shave been able to take that money and pay off debt.

And basically, you want to avoid this at all costs from what I hear.

And so, it’s good to ask your mortgage broker, “Will my loans be cross-collateralised in any way?” Generally going with the same lender for two loans does it by default, even though it doesn’t say they’re cross-collateralised.

So, it’s just something that you want to look at the fine print, you want to understand, “Are these cross-collateralised?” And if they are, try and avoid it, try and get loans that aren’t going to be cross-collateralised.

Usda Mortgage Calculator

So there you have some questions to ask your mortgage broker next time you go and see a broker to find out how much you can borrow or get pre-approval or get financed for another property.

If you are in the market, looking at properties and you want to see some high rental yield properties, then I’ve got 10 property listings that I’ve gone out and found for you guys.

You can see what high rental yield properties look like that are likely to generate a positive cash flow.

Did You Know – You Can Get Pre-Approved for a USDA Loan in Altoona?

Second Mortgage Rates

What is a USDA Mortgage Loan? The Rural Housing Service (RHS) of the United States Department of Agriculture (USDA) sponsors home loans referred to as Section 502 loans. Under Section 502, direct loans (i.e. from money appropriated by Congress) may be available to some low-income applicants. In addition, those with total household income less that 115% of the median household income in a qualified rural area may obtain government guaranteed mortgages from qualified lenders.The purpose of the program is described by the RHS as Follows: The Section 502 Guaranteed Rural Housing Loan Program is designed to serve rural residents who have a steady, low or modest income, and yet are unable to obtain adequate housing through conventional financing. These loans enable low and moderate-income rural residents to acquire modestly priced housing for their own use as a residence through the purchase of a new or existing dwelling or the purchase of a new manufactured home.If you live in a rural area or in a less developed portion of a metropolitan county, and your household income does not exceed the limit assigned to your area, you may qualify for a USDA guaranteed mortgage.Why should I consider a government guaranteed USDA Mortgage?USDA Mortgages may be issued with no down payment. Closing costs may be included in the loan amount, further decreasing up-front costs. Because of the government guarantee, interest rates are favorable and there is no mortgage insurance fee built into the monthly payment. USDA Mortgages are 30 year fixed-rate mortgages. Your interest rates will not increase during the life of the loan. Credit requirements are flexible. You must have a reasonable credit history and demonstrate that you are willing and able to make timely payments, but circumstances such as previous job loss or other extenuating circumstances may be considered in evaluating your credit history (or your lack of a credit history).Do I qualify for a USDA Mortgage Loan? The final word on eligibility is made by an officer in your local RHS office. This local officer has the discretion to evaluate your circumstances and credit history and take into account extenuating circumstances.You can learn whether you meet the outside limits on household income by going to the USDA Income and Property Eligibility Site at http://www.usda.gov. The same calculator can help you determine whether the property you wish to buy is located in a qualified rural area.In addition to having a satisfactory credit history, the ratio of your total monthly loan payment to monthly household income may not exceed 29 percent, and the ratio of monthly payments on all debt to household income must not exceed 41 percent.How do I apply for a USDA Mortgage Loan? Your local loan office or mortgage broker at First Option Mortgage and Lending can help you evaluate your eligibility, prepare a loan request and take full advantage of the options available to you through a government guaranteed USDA mortgage loan.

How to Find a Good Mortgage Broker or Lender

Loan Interest Rates

The USDA Home Loan Program is a government insured 100% program offered through the United States Department of Agriculture. This loan is available exclusively to USDA approved lenders. Most people living in rural areas qualify for USDA. Also, many people living in medium sized cities as well as those living on the outskirts of major metropolitan areas may also qualify. To find out if you qualify for a no down payment, or to learn more, use the contact form on the right side of the page.

USDA Home Loan Eligibility

The USDA program is the best option for those looking for a fixed rate, no money down mortgage with no mortgage insurance.

However, the USDA has restrictions on applicants' eligibility; most notably, income and location requirements. Use the resources below to see if you might qualified

To get answers for a specific question, or to begin the application process, use the contact form to the right.

Income Eligibility Calculator (new)
Income Requirement Details
Income Requirements by Location
General Eligibility Requirements
Credit Requirements
Guidelines Provided by the USDA

Top 6 Reasons you'll Love the USDA Home Loan
1. A True 100% No Money Down Loan
2. There are no Limits as to the Amount You Can Borrow
3. No Mortgage Insurance
4. No Credit Score Required
5. Seller Concessions Allowed
6. The Rural Areas Are Not Necessarily That Rural

If interest rates are low when you apply for your loan, the fixed rate variety will offer you the best value, and you can count on your loan payment staying the same year after year.

Home Loan Pre Approval

USDA Loan in Pennsylvania (888) 464-8732

Mortgage Lender in Butler (888) 464-8732

What questions should I ask a mortgage lender in Butler ? If you’re dealing with a mortgage broker there’s some questions that you should ask both on your first meeting with the mortgage broker and throughout working with your mortgage broker to make sure that you’re getting the best service possible.

USDALoanInfoPA is going to go through 10 different questions that you can ask your mortgage lender in Butler. Be aware that your USDA Loan or Mortgage broker  will be getting the loan that you need and the service that you want.

The first question that I think everyone should ask a mortgage broker is a pretty straightforward one.

How Much Will a Mortgage Broker Cost?

Most mortgage lenders in Butler actually work for free.

So it doesn’t actually cost you anything in order to do it.

They get money because they are paid by the banks when you successfully get a loan.

So they get a small commission of the loan that you apply for and if you get it.

USDA Mortgages Versus FHA: Which Is Better For First Time Home Buyers?

So most mortgage brokers in Butler will work for free and it won’t cost you anything.

However, there are some mortgage brokers out there who do require deposits or who do require you to pay.

So, it’s important to ask, “How much will this cost me?” when assessing which mortgage broker you want to go with.

How much do Mortgage Lenders earn in commission from me and from my loan?

This is less to understand exactly how much they make.

You can see what percentage of commissions they make and things like that by visiting USDALoanInfo.

But it’s more to understand whether or not they’ll be willing to give you this information.

A transparent mortgage broker is someone that’d be willing to give you this information and you know that they have your best interest at heart.

Importance of Hiring a Good Mortgage Lender - A TRUE Story

If they skirt around this issue and they don’t tell you how much they earn.

Well then that would send out red flags for me because I can’t trust them to put my best interest at heart because there are some circumstances where one loan will earn them more money than a loan that could potentially be better for me but not as good for them.

Home Loan Rates

So, I’m just trying to establish whether or not this mortgage broker in Butler is someone that I can trust.

And by asking them the big question, the money question,”How much will you earn from me?” That’s a great way to understand whether or not you can trust the mortgage lender.

So ask that question and see how they respond.

Do Mortgage Lenders Invest Themselves?

Now, I don’t think a mortgage broker has to be a property investor in order for them to be able to get you a good loan and for them to help you successfully invest in property.

However, if they are interested in property in Butler, if they do invest themselves, then that is going to go a long way to help you because they understand what it’s like to be in your shoes.

They understand what you’re trying to get out of this and they’ve done it themselves so they can help you miss some of the pitfalls and things like that.

If they don’t invest themselves, then I would want to ask them, “Have you worked with many people that invest in property?” Because as mortgage brokers, some of them just work with people who are buying their own home.

First Time Home Buyer BEST MORTGAGE DEALS When Buying a House | First Time Home Buyer Loan Programs

Some of the mortgage lender folk who work with people who are doing particular investment strategies.

So, some might work with people who invest in positive cash flow property or who invest in rural areas, who invest using developments.

Congratulations, on your decision to start the process of finding home lender. Now that you have made this life changing decision how do you differentiate between a good mortgage lender and a bad mortgage lender? To answer that question, first you will need to know what the qualities are in a good mortgage provider. Below is a list of things that you might find in a good accredited home lender:

a) They will provide information on the widest choice of options and terms available for your specific needs.

b) Your mortgage lender will serve as a personal guide in the mortgage marketplace.

c) They will counsel the homebuyer on the available financial alternatives.

d) A great lender will become creative to finding you solutions upon the unavailability of a traditional bank mortgage.

e) They will deal on your behalf with all other potential lenders.

f) A good home lender will then arrange for a mortgage loan that is best suited for your needs.

g) They will also arrange for the best rates for the home mortgage loan that you have chosen.

With that information, it is easier to search for a good sincere and honest mortgage lender. But, not stopping at that list of qualifications there're some extra things that will add to the list of benefits. Another advantage is that with certain types of loans a mortgage company may act as a mortgage lender, on others, it may simply play the role of a broker. A Mortgage lender may also operate from different locations, at certain times, they prove to be more beneficial than your local lender. Since the Internet has become everyone's favorite informational portal, lenders no longer operate within their own territories; instead, a nationwide service is what they look forward to. Providing future customers with more options, as that particular lender is well resourced.

Not stopping, there a good home lender does more than just going for the best loan rates available for their future homebuyer. For instance, if you were self-employed, you might not qualify for a traditional bank mortgage, for whatever the reason might be. Sometimes it might not be a fault of your own, but the financing bank is just unwilling to finance the home loan, because they think it will be a risk to their institution. This is where the home lender will step in, and act as liaison, or as a consultant if a cash-back, or a second mortgage is the requirement.

Here's a little bit of information on the different types of mortgage lenders, and providers:

I. Hard moneylender: They are known for short-term mortgages and in most cases offers worse rates than a traditional banking organization.

II. Traditional Mortgage Providers: Banking organizations and licensed mortgage dealers, operating both online and offline.

As stated earlier in the article a mortgage provider also works as a broker at times, it's important for the future homebuyer to know what will be covered within the brokerage service.

Apart from chalking effective marketing plans to attract future homebuyers, a mortgage provider also does the assessment of the borrowers circumstances including assessment of credit history, verifies affordability through documentation or alternative processes, and assesses the market to find a suitable mortgage loan fitting the future homebuyers requirements. Which will also help if the mortgage provider has to act as a liaison on your behalf.

Finally, an accredited home lender must take into consideration the affiliation from the top wholesale institutions, namely, Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage (Freddie Mac). Mortgage loans given out by an accredited home lender must comply with their jointly derived standard application form guidelines. This enables a home lender to become an eligible seller for the wholesale institutions and offer a larger scale of services to their future homebuyers, or investors. Packaging mortgage portfolios in the conformity that occurs with the secondary market does this. The agreement maintains the ability for the mortgage lender to sell mortgage loans for cash, so that if there's a drop in the interest rates and the portfolio features a higher average interest rate, it can be sold through a banker for a larger profit.

Now the next big question: When should you start looking for a mortgage lender?

To simply put it, when you feel that you're ready to take the steps to mortgage a property, and pursue ahead to get a mortgage loan that will make your life dreams a reality. To be honest no one can determine that for you, only you will know when you are financially, emotionally, mentally, and everything else that comes along with the "ally's" when you will be ready.

Good Luck on find the right accredited home lender. I hope that they will be able to assist you in purchasing the home of your dreams!

If you found this article beneficial to you, please share it at your favorite social bookmark site or email this article to a friend.

So I would want to find a mortgage broker who either had that experience themselves or who had clients that they had got similar deals for ’cause that way I know that they can negotiate on my behalf and they can get this deal across the line.

What details do Lenders need from me?

It’s one thing to call up a mortgage broker and just to get an estimate of your borrowing capacity but if you’re going through pre-approval and stuff like that, then you’re going to need to provide the mortgage broker with more in-depth details.

You might need pay slips; you might need proof of identity, all of that sort of stuff.

If you ask them up front, “What details do you need from me?” And when you go to your meeting with them you actually provide them with those details, well that just makes things so much easier.

Factory farms slip environmental review for USDA loans

Remember, a mortgage lender is only paid once the deal goes through and once you actually get financing.

So the easier you make it for them, the more likely you are going to get better service.

What can I do as a client to make this go as smoothly as possible?

You have the goal of getting financed for your property, the mortgage lender has a goal of you getting financed for your property and no one wants it to be difficult.

And so, if you can ask the mortgage broker, “Look, how can I work with you? How can I make things easy for you?” They’re the experts; they know what they’re doing.

They can tell you exactly what they need and then you can work hard to provide that for them so that they can get everything across the line as quickly as possible.

Manufactured Home Loans

You know, I have customers,I deal with customers and even though I’m not a mortgage broker myself, I know that when there’s difficult customers that you don’t want to deal with, it just makes life so much harder and you don’t want to work hard for those people.

And when there’s customers who are really nice to you and who try really hard to help you provide them with the service you provide, you will bend over backwards to do anything you can for those customers to get them across the line, to help them as much as possible.

So, be one of those customers that the mortgage broker wants to bend over backwards to help you because you have their interest at heart as well.

You want to see them get paid.

You want to see them do an easy mortgage so they get paid easily.

And so you can develop a relationship into the future.

Which lenders can I borrow the most from?

Most people go into a mortgage broker looking for the cheapest interest rate possible.

What is the cheapest interest rate I can get? And the fact of the matter is a mortgage broker is likely to show you the banks that will lend you the amount of money you need and will also have the cheapest interest rate as well.

However, they might not showy ou banks that will lend you more money than you potentially need at the moment.

Now, it’s important to ask, “Which lenders can I borrow the most from?” because this will help you to project into the future.

Maybe you don’t need to know that for this loan right now but maybe, in the future, you might need to borrow money again and you know, or roughly my borrowing capacity is this.

Or if you find out which lenders you can borrow more from, and you find that you can actually borrow an extra $300,000, well you might split up your deposit and invest in two investment properties instead of just one.

And so asking them, “Which lenders can I borrow the most from?” is a great question to ask to really understand your position.

Because, yes, interest rate is important but how much you can borrow is also important as well.

Can I see a full list of my borrowing options?

Most mortgage brokers will provide you with, usually, like a top three or sometimes only a top one.

And I always like to think, “Can I see a full list of my borrowing options?”Again, this is less to say you want to go through all of this in minute detail and see.

You’re probably going to still choose from one of the top three ones.

But you just want to see that they’re giving you the full amount of information.

And most mortgage brokers are good people but there are some dodgy mortgage brokers out there who are just trying to get the deal that gives them the biggest commission.

Best Home Loan Rates

And so by asking to see a full list of what your borrowing options, you can then look at that and you can then assess, “Okay, well which loan do I think is going to be best for me?” rather than just taking the recommendation of the mortgage broker who may or may not be thinking about themselves.

So, again, most mortgage brokers are great people out there to help you but it’s always a good idea to get a full list of your borrowing options that are available.

Will this put a mark against my credit file?

And so this is when you’re trying to work out how much you’re going to borrow and stuff like that.

When you go into a bank and you try and find out how much you can borrow, often, the bank will do a credit check and this puts a mark against your credit file.

And what happens is if you have a lot of these marks against your credit file, even though it’s nothing bad, this can actually stop you getting a loan.

Usda Mortgage Calculator

So, talk to your mortgage broker and when you’re looking at, “What can I borrow?”or your looking at getting pre-approval, just understand, “Will this put a mark against my credit file?” ‘Cause it’s not bad to have a couple or whatever.

But if you’re getting lots and lots of marks against your credit file, then that could be an issue.

So just make sure and you know when a mark’s being put against your credit file and when a mark isn’t being put against your credit file.

How soon can I revalue or borrow again?

So if you’re investing in a property to renovate it or to develop it or even if you’re investing in a property that’s potentially under market value, you want to know how quickly can you revalue that property so you can get equity and then hopefully draw equity out of the property to go ahead and invest again.

There are a lot of lenders out there who don’t allow you to revalue within a 12-month period.

So, speak to your mortgage broker about the lenders that will allow you to revalue faster.

And basically, this will give you an idea of how quickly you can revalue to consider going again.

Refi

You’re also going to want to ask them, “After I invest in this property, how soon can I borrow again or what do I need to do to put myself in a position to be able to borrow again and to purchase the next property?” Because hopefully, your goal isn’t just to purchase one property but to grow your property portfolio and to achieve that financial freedom and that financial security that you’re striving for.

Will My Loans be ‘cross-collateralised’?

Now, I have heard a lot of stories about investors whose loans have been cross-collateralised and it’s cause major problems when they’ve gone and sold their property because the bank shave been able to take that money and pay off debt.

And basically, you want to avoid this at all costs from what I hear.

And so, it’s good to ask your mortgage broker, “Will my loans be cross-collateralised in any way?” Generally going with the same lender for two loans does it by default, even though it doesn’t say they’re cross-collateralised.

So, it’s just something that you want to look at the fine print, you want to understand, “Are these cross-collateralised?” And if they are, try and avoid it, try and get loans that aren’t going to be cross-collateralised.

Usda Loan Calculator

So there you have some questions to ask your mortgage broker next time you go and see a broker to find out how much you can borrow or get pre-approval or get financed for another property.

If you are in the market, looking at properties and you want to see some high rental yield properties, then I’ve got 10 property listings that I’ve gone out and found for you guys.

You can see what high rental yield properties look like that are likely to generate a positive cash flow.

Did You Know – You Can Get Pre-Approved for a USDA Loan in Butler?

Usda Eligibility Map

In 2015 there are several types of different mortgage loans that are available. How do you wade through them to find out which one will be the best option for you? One way is to learn about the pros and cons for each type and then narrow the field from there. To that end, we will discuss a few of them and their pros and cons.

Fixed Mortgages vs. Adjustable Rate Mortgages

When you are looking at taking out a mortgage then you first need to decide whether you want one that has a fixed rate or one that has a rate that is adjustable. Every single type of mortgage will be either one or the other. Incidentally, you might also have a mortgage that combines the two. Here is a quick breakdown of the differences.

  • Fixed Rate loans will have an interest rate that will remain the same for the duration of the loan. Due to this, your monthly payment will remain the same until the loan is completely repaid.

  • Adjustable Rate loans have a rate of interest that can and will fluctuate. In many cases you will have a fixed rate of interest for the first year and then will change on a yearly basis. Loans that have this first 'fixed' period are the hybrid loans.

Loans of both types do have their pros and cons just as all things do. A pro for adjustable rate loans is that the interest rate that they begin with is often lower than that of a fixed rate loan. However, the interest rates in the future will vary and this can turn into a con quickly. The monthly payments on an adjustable rate mortgage can and often do rise exponentially the longer they are carried. Alternatively, a pro for the fixed rate loan is that your monthly payment amount will never change. However, due to that the rate of interest is generally higher.

Jumbo Loans or Conforming Loans

Aside from the basic types of loans there is another thing that must be considered. That is the actual size of the loan that you need. The amount of money that you are requesting will put your loan into one of two categories: jumbo loans or conforming loans. What is the difference?

  • Jumbo Loans will be for an amount of money that exceeds the limits for conforming loans that are set forth by the Freddie Mac and Fannie Mae organizations. The lender of these types of loans will have a higher amount of risk than that which is experienced with a conforming loan. However, borrowers for this type of loan must have a credit history that is impeccable and must also come up with a substantial down payment as compared to what is necessary for a conforming loan. Additionally, interest rates for jumbo loans are typically higher when compared to the rates associated with a conforming loan.

  • Conforming Loans are those that meet the parameters set forth by the Freddie Mac and Fannie Mae organizations. Typically these guidelines have to do with the size of the loan. Both Freddie Mac and Fannie Mae are entities that are controlled by the government. They both sell and purchase securities that are backed mortgages. In plain English, they buy the loans from various lenders where they are generated and then they sell those loans to various Wall Street investors. Conforming loans will be those that fall within their regulated size limits as well as those conforming to their other criteria.

Now that you have this information, making the decision as to which type you need should be a little easier.

How Mortgages Work in the Primary and Secondary Market

Mortgage Companies Near Me

What is the best loan program for a first-timehomebuyer? How's it going everyone, Matt Leighton welcomeback to another video. In this video we're going to go over the bestloan program for a first-time homebuyer. I'm here with Sean Glennon. Sean, take it away, what's the best programfor a first-time homebuyer? Well, beauty is in the eye of the beholder. So it depends. Now there's a lot of first-time homebuyerpopular loan programs and it really depends on what you're capabilities are in terms ofdownpayment, whether or not you have gift funds to use toward the downpayment or closingcosts, what your income limit is, that's a big one. How many people are going to be on the loan,because a lot of these first-time homebuyer loans, what the big difference is betweenthem and other typical loan products is that there are restrictions. They don't want to be given 100% financingproducts to people who aren't making a ton of money and things like that so income limits,sales price limits, credit score limits, all that is going to be apart of these programsbut we can dive into some of the more specific. Let me ask you this, if you are a Veteran,and also a first-time homebuyer, is it a no-brainer that the VA loan program is the best program? Yes. Absolutely. Alright so obviously if you're a Veteran,first of all THANK YOU, and then go with the VA loan program, there is no competition. So with that being said, let's just focuson conventional and FHA because with FHA 3. 5% down, compared to Conventional, you can goas low as 5%? Or can you go lower than that? There's actually a new loan program you cango lower. When we talk loan programs, the first thingyou're going to want to do is get pre-approved to determine what you're qualifications areand what doors are opening or closing to you depending on whether you fit the bill forcertain programs. 100% financing, VA, USDA, and USDA is a ruralhousing loan so if you're looking in and around cities, it really won't be applicable to you. And VA only if you're a Veteran; are goingto be your best 100% financing products. Now there are certain loan programs in eachstate that usually have first-time homebuyer 100% financing needs. In Virginia, VHDA is the one that comes tomind as the most popular. But most people are going to fall into theumbrella as FHA or conventional loans. FHA is going to be 3. 5% down and is very friendlyon underwriting guidelines. Conventional is a little bit more strict,but recently they actually came out with a program that is trying to compete with FHA. It's called Fannie Mae's Home Ready Programthat allows for a 3% downpayment instead of the typical 5% downpayment. Yeah a lot of times you're seeing people diveto what's the lowest downpayment I can have? That has to be the best loan, maybe that'sright, maybe not because with FHA you do have the monthly insurance on the loan there'sanother program with the conventional. And let me ask you this, are people re-financingout of these loans? For instance, I had a client a couple weeksago they went in with a VHDA loan which is Virginia-specific, so if you're not in Virginia,you may not be aware, but they went in with that and I don't know a week later or whateverthe minimum time is that you can re-finance, they said oh yeah, that's what we're goingto do. Are you seeing this? Or is this kind of a unique situation? No, I've seen a lot of it. What a typical game plan is for a lot of peopleis, a disclaimer that you can't always bank on re-financing because you never know whererates are headed. But as long as rates stay solid or at leastin the range that we've seen them right now, or around where you originally purchased yourhome, it's very common for people to bite the bullet and get the VHDA or FHA loan whichcarries with it a little more in fees and mortgag insurance and things like that. But it allows them to get in the propertywith very little out-of-pocket and then once they get a little equity in the property orsave up a little money, they try to re-finance into a conventional loan to eliminate someof that burden with the mortgage insurance and things like that. Get themselves a much more healthy and manageablemonthly payment. Yeah the VHDA loan program is becoming morepopular here in Virginia but sometimes with these loan programs it's really hard to getinto, you have to be making $82k - $85k, be born in a certain ZIP code, and be left handedand live on Main Street or something like that where it's like it shouldn't have tobe that hard. Quickly go over maybe a broad overview ofwhat it takes to be eligible for a certain grant program like the VHDA. Well some of these grant programs, most ofthem are all going to have income limits. So that's the big one. If you're making $250,000, there's a goodchance you're not going to qualify for the local first-time homebuyer and grant programs. Income limits, sales price limits, heightenedcredit score minimums. When they're giving out 100% financing, that'sa high-risk loan so they want to give it to borrowers that are well qualified. There are a lot of niche things that go alongwith it and the grant program. VHDA is a little more broad, but county and local grant programseven more, very niche, sometimes you're in a lottery with others. It's a nice thing to have in your back pocketbut nothing I would recommend anyone bank on. Good to know. So we're going to wrap this video up withone final question. But you know obviously this is more Virginia-centered,there's VHDA loan program, in your own state, there might be other grants available. So maybe FHA is right for you or maybe talkto your lender and find out the grants available. Sean my question is, if you were to imagineyour last 100 first-time homebuyers, out of those 100, what's the most popular loan programthat you're seeing for first-time homebuyers? I would say if you had asked me for any yearin the last 8 or 9 years I've been in the business, the answer would be FHA. I would say since Fannie Mae last year rolledout there Home Ready Program with 3% down, most homebuyers do qualify for it and fallwithin the income limit. The area median income limit, you can actuallylook it up on Fannie Mae's website. As long as you fall under that, you qualifyfor, it does give a little more beneficial terms on the mortgage insurance terms, it'sa half percent lower on downpayment, and there's a little more flexibility with some of thethings that you can do down the line with the loan like remove the mortgage insurance. I would say FHA, historically, Fannie MaeHome Ready Program recently. Things are changing. So FHA for the longest time was the best optionout there, it may still be the best option depending on your circumstance, but you mayknow the best option, but your lender will know the best option. Be sure you're talking with local lendersout there and know all your options because a lot of things are changing in terms of guidelines,what I'll do is link and list a video up here in the corner that talks about recent changesin the market place that may affect which loan program that you being available to getinto and get a loan. You got it out. T-t-t-t-today Junior. What movie is that from? Billy Madison. Well on that note Sean, why don't you tellthe people where they can connect with you. You can email me at sglennon@hstmortgage. Comor call the office. Myself or anyone else in The Glennon Groupwill be happy to answer your call and help you with any questions. 703-766-4630. And my man Matt will hook it up down loan. Thank you very much for watching. Until next time, create a productive day. Take care.

Usda Mortgage Rates

USDA Loan in Pennsylvania (888) 464-8732

Mortgage Lender in Du Bois (888) 464-8732

What questions should I ask a mortgage lender in Du Bois ? If you’re dealing with a mortgage broker there’s some questions that you should ask both on your first meeting with the mortgage broker and throughout working with your mortgage broker to make sure that you’re getting the best service possible.

USDALoanInfoPA is going to go through 10 different questions that you can ask your mortgage lender in Du Bois. Be aware that your USDA Loan or Mortgage broker  will be getting the loan that you need and the service that you want.

The first question that I think everyone should ask a mortgage broker is a pretty straightforward one.

How Much Will a Mortgage Broker Cost?

Most mortgage lenders in Du Bois actually work for free.

So it doesn’t actually cost you anything in order to do it.

They get money because they are paid by the banks when you successfully get a loan.

So they get a small commission of the loan that you apply for and if you get it.

USDA Mortgage Loans

So most mortgage brokers in Du Bois will work for free and it won’t cost you anything.

However, there are some mortgage brokers out there who do require deposits or who do require you to pay.

So, it’s important to ask, “How much will this cost me?” when assessing which mortgage broker you want to go with.

How much do Mortgage Lenders earn in commission from me and from my loan?

This is less to understand exactly how much they make.

You can see what percentage of commissions they make and things like that by visiting USDALoanInfo.

But it’s more to understand whether or not they’ll be willing to give you this information.

A transparent mortgage broker is someone that’d be willing to give you this information and you know that they have your best interest at heart.

First Time Home Buyer BEST MORTGAGE DEALS When Buying a House

If they skirt around this issue and they don’t tell you how much they earn.

Well then that would send out red flags for me because I can’t trust them to put my best interest at heart because there are some circumstances where one loan will earn them more money than a loan that could potentially be better for me but not as good for them.

Best Home Equity Loans

So, I’m just trying to establish whether or not this mortgage broker in Du Bois is someone that I can trust.

And by asking them the big question, the money question,”How much will you earn from me?” That’s a great way to understand whether or not you can trust the mortgage lender.

So ask that question and see how they respond.

Do Mortgage Lenders Invest Themselves?

Now, I don’t think a mortgage broker has to be a property investor in order for them to be able to get you a good loan and for them to help you successfully invest in property.

However, if they are interested in property in Du Bois, if they do invest themselves, then that is going to go a long way to help you because they understand what it’s like to be in your shoes.

They understand what you’re trying to get out of this and they’ve done it themselves so they can help you miss some of the pitfalls and things like that.

If they don’t invest themselves, then I would want to ask them, “Have you worked with many people that invest in property?” Because as mortgage brokers, some of them just work with people who are buying their own home.

Federal Mortgage And IRS Relief For Floridians Impacted By Hurricane Irma

Some of the mortgage lender folk who work with people who are doing particular investment strategies.

So, some might work with people who invest in positive cash flow property or who invest in rural areas, who invest using developments.

A question I hear quite a bit about the USDA Loan looks at collections. It's pretty common to hear "I have a few old collections, are they going to keep me from being able to get the Rural USDA Program."It's always a good idea to know what is on your credit report and so it could be a good idea to head on over to annual credit report dot com and pick up a free copy. Then you can be sure that all the info on it is correct, if it isn't you can dispute it immediately.Anytime you see a collection on your credit report you'll want to let your USDA Home Loan Representative know about them right away because certain types of collections can have a damaging impact on if your lending agency can get clear title. Which basically means that individual collection could end up as a lien on the property. Normally, simply paying off an old collection before you close will be okay. Just be sure to speak with your loan officer before paying off any old negative credit items, because it could work against you.And any lien on title is required to be paid off before the USDA Loan can fund.Now the Rural USDA Program relies on the lender to provide good quality loans and the USDA requirements say that the LENDER must make a decision if an open collection account would need to be paid at closing or before closing. In the current mortgage market, these rules will be different from lender to lender and will also change as time goes on as tougher regulations hold the specific loan agent responsible for their loan determinations.Any time there is a collection on the credit report, be sure to provide a written letter explaining the what caused the collection and that those problems have been eliminated.

So I would want to find a mortgage broker who either had that experience themselves or who had clients that they had got similar deals for ’cause that way I know that they can negotiate on my behalf and they can get this deal across the line.

What details do Lenders need from me?

It’s one thing to call up a mortgage broker and just to get an estimate of your borrowing capacity but if you’re going through pre-approval and stuff like that, then you’re going to need to provide the mortgage broker with more in-depth details.

You might need pay slips; you might need proof of identity, all of that sort of stuff.

If you ask them up front, “What details do you need from me?” And when you go to your meeting with them you actually provide them with those details, well that just makes things so much easier.

2nd Mortgage Lenders

Remember, a mortgage lender is only paid once the deal goes through and once you actually get financing.

So the easier you make it for them, the more likely you are going to get better service.

What can I do as a client to make this go as smoothly as possible?

You have the goal of getting financed for your property, the mortgage lender has a goal of you getting financed for your property and no one wants it to be difficult.

And so, if you can ask the mortgage broker, “Look, how can I work with you? How can I make things easy for you?” They’re the experts; they know what they’re doing.

They can tell you exactly what they need and then you can work hard to provide that for them so that they can get everything across the line as quickly as possible.

No Down Payment Mortgage

You know, I have customers,I deal with customers and even though I’m not a mortgage broker myself, I know that when there’s difficult customers that you don’t want to deal with, it just makes life so much harder and you don’t want to work hard for those people.

And when there’s customers who are really nice to you and who try really hard to help you provide them with the service you provide, you will bend over backwards to do anything you can for those customers to get them across the line, to help them as much as possible.

So, be one of those customers that the mortgage broker wants to bend over backwards to help you because you have their interest at heart as well.

You want to see them get paid.

You want to see them do an easy mortgage so they get paid easily.

And so you can develop a relationship into the future.

Which lenders can I borrow the most from?

Most people go into a mortgage broker looking for the cheapest interest rate possible.

What is the cheapest interest rate I can get? And the fact of the matter is a mortgage broker is likely to show you the banks that will lend you the amount of money you need and will also have the cheapest interest rate as well.

However, they might not showy ou banks that will lend you more money than you potentially need at the moment.

Now, it’s important to ask, “Which lenders can I borrow the most from?” because this will help you to project into the future.

Maybe you don’t need to know that for this loan right now but maybe, in the future, you might need to borrow money again and you know, or roughly my borrowing capacity is this.

Or if you find out which lenders you can borrow more from, and you find that you can actually borrow an extra $300,000, well you might split up your deposit and invest in two investment properties instead of just one.

And so asking them, “Which lenders can I borrow the most from?” is a great question to ask to really understand your position.

Because, yes, interest rate is important but how much you can borrow is also important as well.

Can I see a full list of my borrowing options?

Most mortgage brokers will provide you with, usually, like a top three or sometimes only a top one.

And I always like to think, “Can I see a full list of my borrowing options?”Again, this is less to say you want to go through all of this in minute detail and see.

You’re probably going to still choose from one of the top three ones.

But you just want to see that they’re giving you the full amount of information.

And most mortgage brokers are good people but there are some dodgy mortgage brokers out there who are just trying to get the deal that gives them the biggest commission.

Best Home Loans

And so by asking to see a full list of what your borrowing options, you can then look at that and you can then assess, “Okay, well which loan do I think is going to be best for me?” rather than just taking the recommendation of the mortgage broker who may or may not be thinking about themselves.

So, again, most mortgage brokers are great people out there to help you but it’s always a good idea to get a full list of your borrowing options that are available.

Will this put a mark against my credit file?

And so this is when you’re trying to work out how much you’re going to borrow and stuff like that.

When you go into a bank and you try and find out how much you can borrow, often, the bank will do a credit check and this puts a mark against your credit file.

And what happens is if you have a lot of these marks against your credit file, even though it’s nothing bad, this can actually stop you getting a loan.

Online Mortgage

So, talk to your mortgage broker and when you’re looking at, “What can I borrow?”or your looking at getting pre-approval, just understand, “Will this put a mark against my credit file?” ‘Cause it’s not bad to have a couple or whatever.

But if you’re getting lots and lots of marks against your credit file, then that could be an issue.

So just make sure and you know when a mark’s being put against your credit file and when a mark isn’t being put against your credit file.

How soon can I revalue or borrow again?

So if you’re investing in a property to renovate it or to develop it or even if you’re investing in a property that’s potentially under market value, you want to know how quickly can you revalue that property so you can get equity and then hopefully draw equity out of the property to go ahead and invest again.

There are a lot of lenders out there who don’t allow you to revalue within a 12-month period.

So, speak to your mortgage broker about the lenders that will allow you to revalue faster.

And basically, this will give you an idea of how quickly you can revalue to consider going again.

Equity Loan

You’re also going to want to ask them, “After I invest in this property, how soon can I borrow again or what do I need to do to put myself in a position to be able to borrow again and to purchase the next property?” Because hopefully, your goal isn’t just to purchase one property but to grow your property portfolio and to achieve that financial freedom and that financial security that you’re striving for.

Will My Loans be ‘cross-collateralised’?

Now, I have heard a lot of stories about investors whose loans have been cross-collateralised and it’s cause major problems when they’ve gone and sold their property because the bank shave been able to take that money and pay off debt.

And basically, you want to avoid this at all costs from what I hear.

And so, it’s good to ask your mortgage broker, “Will my loans be cross-collateralised in any way?” Generally going with the same lender for two loans does it by default, even though it doesn’t say they’re cross-collateralised.

So, it’s just something that you want to look at the fine print, you want to understand, “Are these cross-collateralised?” And if they are, try and avoid it, try and get loans that aren’t going to be cross-collateralised.

Home Equity Line

So there you have some questions to ask your mortgage broker next time you go and see a broker to find out how much you can borrow or get pre-approval or get financed for another property.

If you are in the market, looking at properties and you want to see some high rental yield properties, then I’ve got 10 property listings that I’ve gone out and found for you guys.

You can see what high rental yield properties look like that are likely to generate a positive cash flow.

Did You Know – You Can Get Pre-Approved for a USDA Loan in Du Bois?

No Down Payment Mortgage

What is a USDA Mortgage Loan? The Rural Housing Service (RHS) of the United States Department of Agriculture (USDA) sponsors home loans referred to as Section 502 loans. Under Section 502, direct loans (i.e. from money appropriated by Congress) may be available to some low-income applicants. In addition, those with total household income less that 115% of the median household income in a qualified rural area may obtain government guaranteed mortgages from qualified lenders.The purpose of the program is described by the RHS as Follows: The Section 502 Guaranteed Rural Housing Loan Program is designed to serve rural residents who have a steady, low or modest income, and yet are unable to obtain adequate housing through conventional financing. These loans enable low and moderate-income rural residents to acquire modestly priced housing for their own use as a residence through the purchase of a new or existing dwelling or the purchase of a new manufactured home.If you live in a rural area or in a less developed portion of a metropolitan county, and your household income does not exceed the limit assigned to your area, you may qualify for a USDA guaranteed mortgage.Why should I consider a government guaranteed USDA Mortgage?USDA Mortgages may be issued with no down payment. Closing costs may be included in the loan amount, further decreasing up-front costs. Because of the government guarantee, interest rates are favorable and there is no mortgage insurance fee built into the monthly payment. USDA Mortgages are 30 year fixed-rate mortgages. Your interest rates will not increase during the life of the loan. Credit requirements are flexible. You must have a reasonable credit history and demonstrate that you are willing and able to make timely payments, but circumstances such as previous job loss or other extenuating circumstances may be considered in evaluating your credit history (or your lack of a credit history).Do I qualify for a USDA Mortgage Loan? The final word on eligibility is made by an officer in your local RHS office. This local officer has the discretion to evaluate your circumstances and credit history and take into account extenuating circumstances.You can learn whether you meet the outside limits on household income by going to the USDA Income and Property Eligibility Site at http://www.usda.gov. The same calculator can help you determine whether the property you wish to buy is located in a qualified rural area.In addition to having a satisfactory credit history, the ratio of your total monthly loan payment to monthly household income may not exceed 29 percent, and the ratio of monthly payments on all debt to household income must not exceed 41 percent.How do I apply for a USDA Mortgage Loan? Your local loan office or mortgage broker at First Option Mortgage and Lending can help you evaluate your eligibility, prepare a loan request and take full advantage of the options available to you through a government guaranteed USDA mortgage loan.

5 Things to Look For in a Mortgage Quote

Countrywide Home Loans

NSH MortgageBlockedUnblockFollowFollowingSep 5, 2017Minimum FHA Credit Score For A Home LoanThe minimum FHA credit score for a home loan is 500, however, it is possible to get a mortgage loan with no credit score at all. FHA Credit Score Requirements Falls 60 Points. NSH Mortgage has the wisdom and tools to help you understand the new FHA credit score requirements.Lenders can check non-traditional credit sources and build a credit report if you do not have enough accounts to generate a score. VA home loans require no minimum credit score, FHA minimums range from 500 to 580, USDA loans have a FICO floor of 640, and conforming loans require a minimum credit score of 620. Exceptions can be made to minimum credit score policies for borrowers with reasonable cause.FHA Credit Score Requirement Drops 60 PointsIt is getting easier for borrowers to get a FHA backed home loan. Major lenders will now approve 96.5 percent FHA mortgage applications for borrowers with FICO scores of 580. It marks a 60 point improvement over a few years ago, when FHA lenders required 640 FICO scores or better to get approved.The news comes when FHA loans are in demand. The program’s 3.5% down payment minimum is among the most lenient for today’s home buyers; and underwriting requirements on a FHA loan are flexible and forgiving. FHA loans account for close to one-quarter of all loans closed today.Minimum Credit Score To Get A FHA LoanThere are two minimum score levels for FHA, depending on down payment level.580 with 3.5% down500 with 10% downSome potential buyers have credit issues from their past. With a clean recent history, though, these buyers might achieve mortgage approval despite low scores. This is especially true after extenuating circumstances.These are events outside the applicant’s control. Sometimes, a lender can look past a layoff, one time medical event, or another isolated financial shock that wrecked your credit. A low credit score is not always reflective of the applicant’s credit-worthiness. In these cases, lenders can push through an approval for someone with a low credit score.Keep in mind, though, that lenders may impose higher minimum scores than FHA itself, sometimes as high as 620 to 640.FHA Loans With No FHA Credit ScoreFHA loans are even available to those who have no traditional credit history, that is those who have paid cash for everything and have never opened a credit card, auto loan, or mortgage. According to FHA, lenders must not automatically deny applicants with no credit. Rather, it should gather history for credit like accounts: utilities, cell phone bills, insurance payments, and even childcare expenses.Lenders can approve a loan built on non-traditional credit. A mortgage can be the applicant’s first ever real credit account.Getting A FHA Mortgage After BankruptcyDifferent rules apply according to what type of bankruptcy you went through. Here is the standard waiting periods for Chapter Seven bankruptcies:FHA loans: Two YearsVA home loans: Two YearsConventional mortgages: Four YearsUSDA home loans: Three YearsFHA Loan After A ForeclosureA foreclosure can certainly drag down your credit score. Fortunately, agencies tell lenders it is okay to lend to an applicant after a foreclosure, provided enough time has passed.FHA loans: Three yearsVA home loans: Two yearsConventional mortgages: Seven yearsUSDA home loans: Three yearsWaiting periods are reduced if the event was caused by circumstances beyond the borrower’s control.Minimum Credit Score For A Mortgage: FHA, VA, Conventional, USDAFHA might not be your only choice if you have a lower credit score. It is often the best option, but not the only one, especially if you are buying in a non-urban area or have served in the military.FHA Home Loan: A minimum 580 score is required for FHA applicants with a 3.5% down payment. If you have 10% down, you can get approved with a score down to 500. Keep in mind that some lenders will impose higher minimums.VA Home Loans: Most lenders require a 620 score, although the VA itself does not publish a minimum score.Conventional loans: These are backed by Fannie Mae and Freddie Mac and offered by most lenders in the country. A 620 minimum score is required, with some lenders requiring as high as 620–640 for conventional financing. For those with a small down payment, FHA loan is usually more cost effective.USDA Loans: A 640 score is required for a streamlined approval on a USDA loan. Lenders may approve lower credit scores, but documentation requirements are heavier. The USDA mortgage is available in certain geographical areas around the U.S.Can I Buy A Home With Low Credit?Lenders often look at the complete story, not just the credit score. This can work for or against you. Here are two situations that might play out in real life.Scenario 1: An applicant had a bankruptcy 18 months ago. He has a 660 credit score, high enough for a FHA loan. But, his waiting period is not up. He will not be approved.Scenario 2: An applicant has a 580 credit score due to an one time medical emergency which resulted in unpaid bills and a job loss. She had perfect credit and steady employment before and after the event. She could be approved. The score is not reflective of her true credit-worthiness.These situations play out every day across the country. Just because you have a low score does not mean you cannot be approved for a FHA loan or any other mortgage type.FHA Loans Allow 3.5% Down PaymentFHA loans are an important component of the U.S. housing and mortgage market. They are insured by the Federal Housing Administration and made available to U.S. buyers and existing homeowners. The agency was formed in 1934 and it exists to provide affordable housing to Americans. Today, it is the largest insurer of mortgage loans worldwide.The Federal Housing Administration does not actually make loans. Rather, it insures loans made by the national banks are providing protection against defaults and loss. To gain the FHA’s protection, lenders must only make sure that the loan in question meets the lending standards as set forth by the FHA.The FHA’s rule book is known as the FHA guidelines and it describes all allowable loan traits, as well as the going terms of a Federal Housing Administration backed loan. For example, FHA guidelines states that home-buyers must make a minimum down payment of 3.5 percent against a home’s purchase price; and that buyers can be cleared to buy a home 12 months after a bankruptcy, short sale, or foreclosure.Guidelines also place limits on the size of a FHA backed loan, which varies by county. In addition, FHA loan limits range from $275,665 for a single family home to $1,223,475 for a four unit home.

Home Loan Interest Rates Today

USDA Loan in Pennsylvania (888) 464-8732