Getting a home loan does not have to be cumbersome and daunting. All you need is a trusted loan expert who can give you honest advice on the best financing for your needs.Here are the simple steps involved in the loan process:Get an Estimate of What You Can AffordFind out how much you can afford to pay for a new home, second home or investment property. Strengthen your bargaining position and make your offer stand out by getting prequalified.Request a PrequalificationGet advice on different home loans and ratesWork with a lender to discuss the best financing for your needs.Request a Free Consultation with a Mortgage expertGet Pre-ApprovedPreapproval makes you look like a serious buyer and is favored by home sellers when they are considering bids. Contact you Mortgage Professional to find out how you can get preapproved.Find a HomeFind a home in a specific location or price range. Search the MLS and get new properties emailed to you. Work with a real Estate Professional.Apply for a LoanOnce you have decided on the home that you want to buy, the most important step is the loan application. Prepare ahead of time for this and ask your mortgage professional to provide you a checklist that will help you with the loan application.Request a Loan ApplicationComplete the paperwork and DocumentationYou will need to provide a completed loan application and the requested documentation to your loan agent. The loan application form typically asks for information about the property, the terms of purchase, and the employment and financial history of all the loan applicants. After you apply the lender will start verifying all the information that you have provided.Complete the Appraisal, Title & UnderwritingTo calculate the mortgage payment, the lender will begin by asking how much you are looking to borrow. The property value and your personal finances will determine the maximum loan amount. To estimate the property value, the lender will ask a real estate appraiser to give an opinion about its value. The appraiser's opinion can be an important factor in determining whether you qualify for the amount of mortgage you want. The loan agent will be the intermediary between you, the borrower, and the underwriter.Get Approved & Lock Your RateOnce the loan is approved, the loan papers will be sent to the escrow/title company or your attorney. The escrow officer or attorney will include other documents to the file created from information received from the lender. Once these documents are prepared, the escrow officer or attorney will contact you to set up an appointment for you to come in and sign your papers.Close the DealYour loan advisor will get in touch with you to schedule a closing date. The date will be specified on the purchase agreement. Closing is the last step and involves different types of fees like Title Insurance, Appraisal, Origination Fees/Points, Homeowners insurance, credit report fee etc. At the closing you will sign all mortgage documents and take possession of your new home. If you are refinancing, you will get a lower interest rate, or cash ou
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Money worries have many different voices: “How am I going to pay my phone bill? My lights are almost two months behind. The rent is due. What are we going to do about the mortgage? We don’t have money for football uniforms. No field trip. That cost money. No, you can’t have that, it cost more than what we have in our budget. They’re coming to take the furniture back; our payment is overdue. The kid needs her braces removed but the dentist won’t do it unless we pay the rest of the money we owe. I’ve lost my job. I’m sorry, honey, they have downsized my position. If I want to keep my job I will have to take a cut in pay. How can I afford these child support payments? I can’t take this any more. What are we going to do?”A mind that is cluttered with money worries may be flooded with one or two or all of these thoughts at one time or another. Maybe you were there once in your life, maybe not. Most people with financial troubles are anxious, confused, angry, harbor feelings of hopelessness, insecurity, and uncertainty about future financial outcomes. Consequently, this state of mind affects everything, including work performance.It’s time for a financial assessment. Is your trouble because you have maxed out your credit cards? Maybe you have more month than money. Do you have medical expenses? Are you sick and can’t work? Have you lost your job, or been downsized? Where did the shortage originate?Once you have assessed where the problem lie, then you can look at remedies. Money troubles in plain simple English are not enough money to cover your present lifestyle. The causes may or may not be within your control.When the funds are low, the logical answer would be to make more but what most people do is fret about it. Some spend more time worrying about what they don’t have while others add on a second job.Money troubles are not going to go away without something changing. Worry will not make up the deficit but initiating a plan of action will.Step IMake a list of all of your monthly household livingexpenses: mortgage, rent, utility bills, etc.Step IIList Your Debts (creditors you owe)Step IIIList your entertainmentStep IVList miscellaneous (lunch, coffee, snacks, etc.)Step VWrite in how much you pay on each. Total thatamount.Step VIList your sources of income (job, spouse, etc.). Takethe total from this and subtract it from what you spend onhousehold, debts and entertainment. If that figure showsyou are not covering your expenses, look back at yourexpenses; see what you can eliminate from entertainment.Make a list of other areas you are expending money,such as lunch, dry cleaning, hair cuts, etc.Try taking your lunch from home rather than buying lunch. The average lunch cost about $7.00. That $7.00 for five days comes to $35.00 a week, totaling $140.00 a month. Imagine if you, your wife and children spent the same amount weekly,that would amount to a partial mortgage or rental payment.Take a look at your Debt. Began to work from the smallest to the largest. Take the money you saved from not buying, let’s say lunch, and redirect the total amount towards paying off the smallest debt first.As you pay off each debt, take that money and add it to the next smallest debt, working your way to the largest, until you have eliminated your debt completely. While you are doing this, examine your household budget.Look at how to eliminate some of your other expenditures; for example, if you have a high cell phone bill, you might want to exchange that cell phone for one with a more fixed rate. Maybe instead of hiring a lawn service, you could cut the grass yourself. Perhaps you might visit Barber or cosmetology trade schools to obtain these services at a reduced rate.Look at what you are already doing first to find the extra money. If you still need more to make up the deficit, then you might look at your skills and talents: start a home-based business. It’s something you could do as a family.Money troubles can be conquered, if you are willing to take a few extra steps. Don’t look at the impossible debt mountain, began the climb one step at a time. And, yes, it is okay to reward yourself along the way but keep in mind where you are headed. Don’t overdo it. Once your debt is eliminated, don’t spend the excess money; instead, add it to your future savings options.Understand that paying your debts down will not take place overnight but if you are consistent it will happen.Blondie L. Clayton is a Realization Strategist™, Publishing Coach, Author of several books, Freelance Writer, hosts of several radio talk shows online. Download your free debt free starter kit at debtfree.print2publish.com
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