Category Archives: Finance

Mortgage Options for People with Bad or Low Credit

Getting a mortgage with a poor credit score

Getting a mortgage with a poor credit scoreMost aspiring homeowners with low or bad credit think that they won’t ever have the chance to own their dream home because no lender would work with them right? Not necessarily. Yes, mortgage lenders want borrowers with good credit because it’s one of the main indicators of a borrower’s ability to pay their monthly mortgage payments, and having a low credit score could work against you. But how low is low exactly?

What’s Your Credit Score?

Generally speaking, if you have a credit score of 760 or higher, lenders consider you a low-risk borrower, which means that you’re chances of getting the best interest rate and loan terms are practically guaranteed. A credit score between 759 and 700 is good, a score between 699 and 650 is fair, while a credit score below 650 is low or bad. But don’t let your low credit score squash your dreams of homeownership because you do have some options when it comes to home loans.

The FHA Choice Loan

FHA loans were specifically developed for borrowers with low to moderate income and those with low credit scores; even a 580 score would make you eligible for an FHA choice loan. FHA loans even allow borrowers to put down significantly low down payments. However, since the government insures FHA loans, you have to pay for PMI or private mortgage insurance upfront as a safety net for lenders should you default on your mortgage.

The VA (Veterans Affairs Loan)

If you are a retired or active military member, you might qualify for the Veterans Affairs’ VA loan. VA loans come with relatively fair interest rates, no PMI, and no to low down payment. You could even qualify even if your credit score is 620 or lower.

The 15-Year Fixed-Term Mortgage

According to Freddie Mac and Fannie Mae guidelines, a majority of conventional loans require borrowers to have a credit score of 620 or higher. But if your credit score is 620, which is the minimum requirement, you’d probably get a higher interest rate. However, if you take out a fixed-rate loan with a 15-year loan term, some lenders would disregard your credit, meaning that whether you have a credit score of 740 or 620, you would still be offered the same interest rate. This is of course provided that you satisfy all the other requirements such as the minimum down payment, stable income, low debt-to-income ratio, etc.

Regardless of your circumstances, there’s a suitable home loan option for you. Do your research to determine which option you could qualify for and then talk to different lenders to figure out your best option.

Common Misconceptions About Home Loans

Mortgage Myths

Mortgage MythsRules regarding home loans are continually changing, which leaves borrowers with questions and misconceptions about mortgage loans. Many borrowers in Salt Lake City, Utah are confused when it comes to mortgage loans are concerned. Take a look at these misconceptions and how they are unmasked.

It is best to borrow home loans from a reputable company

That is not always the case for borrowers looking for a mortgage loan in Salt Lake City. With the thousands of lenders in the lending market, it can be overwhelming to compare and settle for the best lender out there. Most borrowers view banks as the most reputable and the best option for home loans, but other lenders offer competitive deals too. You need to compare interest rates as well as their lending criteria.

The home loan with the lowest interest rate

Interest rates are an essential consideration when applying for home loans. However, you should also consider fees that are charged on credit but not included in the interest rates. They can be legal, monthly or annual services, redraw, or establishment fees.

When applying for home loans, you need to consider comparison rates, which are alongside interest rates and they account for these charges. Therefore, don’t be deceived by lower interest rates when applying for your home loans. Make sure that the terms and conditions are favorable.

The 20 Percent Deposit

People have a misconception that they require to deposit 20 percent of the purchase price for their mortgage loans to be approved. But that is not always the case. You can still have someone or property to act as a guarantor for your home loans.

With these misconceptions unmasked, you can now apply for mortgage loans with the right information. You can be the borrower who finds the right home loan deal.

VA Loans: Should You Pay a Down Payment?

computing loans and expensesThe main appeal of VA (Veterans Affairs) loans is that they have lenient requirements compared to conventional mortgages. If you meet the qualifications, you can finance a home purchase without making a down payment. On top of that, you won’t have to pay mortgage insurance, which is required in conventional loans if you pay less than 20% down payment. VA loan providers in Ogden note that if you do qualify for a VA loan, you can choose not to make an initial payment. However, you shouldn’t skip the idea of putting down 5% or 10%. Doing so will enable to enjoy a lower monthly payment and to pay less mortgage. Here are the other reasons to make a down payment on your VA loan.

Reduce Your Funding Fee

While VA loans don’t have mortgage insurance, you’ll have to pay funding fee, which covers the losses of the lenders in case your default on the loan. The amount of your funding fee is based on your services, down payment, and whether or not you’ve obtained a VA loan before. You can easily reduce this by making a 5% down payment or more.

Lower Your Monthly Payments

By putting a down payment, you can reduce the overall amount of mortgage you have to pay. As there’s less money owed, it can lower your monthly payments and help you save thousands of dollars in total interest charges. This can also cut your VA funding fee.

Gain a Competitive Edge

If you’re buying a house in a competitive market, you’re likely to face some challenges if you don’t put some money upfront. Putting some money down, however, can show sellers that you’re a serious buyer. A down payment, furthermore, will allow you to have immediate equity in your house. If you qualify for this type of loan, it’s still your call if you want to make some down payment. You can still get a loan if you choose not to, but don’t dismiss the benefits of putting some money upfront. Contact a VA loan provider and learn more about this mortgage.

Mistakes to Avoid When Applying For Business Loans

Businessman Pressing Business Loan Button

Businessman Pressing Business Loan ButtonYou may want to open up branch outlets, boost your current venture or start up a different type of business. For you to achieve all these, you require funds. But, unless you have other income generating ventures, you can never accomplish such projects. If you are in such a predicament, you could consider applying for a business loan. These loans come with many benefits, but you need to be careful and plan your business expansion thoroughly.

However, applying for a business loan can be a challenge, and a small mistake in your application can result in the denial of your application you the funds. Below are some of the common mistakes when applying for a business expansion loan.

Applying for the wrong type of loan

As a business owner, you must not only focus on capital that you need but also the loan type. When applying for a salon business loan, whether it is a business expansion loan, or start-up loan, it’s essential that you choose the one that suits your business needs. Loan types differ in terms of packages, repayment periods and interest rates. So, the best way to go is to match the loan application with your financial needs.

Late loan application

Don’t wait until you are desperate for a loan. Seek remedy while the situation is in its early phases. Start your application as soon as trouble strikes your business. A late application may land you into exploitative offers such as high-interest rates. Unfavorable terms may become part of a loan and can have a negative impact on your business.

Signing before reading the loan terms

Sometimes the nature of your financial crisis can compel you into making rushed decisions. Trouble may hit your business so suddenly and force you to run for a quick remedy. However, this may land you in deeper trouble. You ought to take time and read the conditions and terms. Ask for a detailed explanation and review the terms and conditions of the lender many times for a better understanding.

Lack of a business plan, not being apparent in the use of the funds and restructuring your business to suit a particular loan application are also big mistakes that you must know. Business loans can help any entrepreneur, and when handled with great care, they can help any business expand and increase their profits.

Financial Obligations that Cause Major Pains when Ignored

Person Holding MoneyStudent loans, while necessary for most of undergraduate and graduate students across the United States, is a big burden. And delaying payments will only make matters worse, as forbearance means your balance earns interest, which is added to the principal and balloons the longer you leave the amount unpaid.

This isn’t even the end of a regular person’s financial pain points. These kinds of unpaid debt can and will make things harder for you:

Utility Bills

There’s the risk of disconnection when your unpaid balance is neglected continuously. For energy bills you refuse to pay even with the help of cash loans from Provo lenders, you’re looking at discomfort, and additional expenses as everything in the fridge goes bad. While utility bills do not rack up interest as much as other kinds of debt, they affect your quality of life considerably and may even make it hard to function on a daily basis. They might even cause problems in your appliances, and the list of inconveniences go on and on.

Mortgage

Every homeowner is painfully aware of the consequence of not meeting monthly mortgage payments. Foreclosure is something you do not want to experience. Everything you’ve worked hard for will be for nothing if your house is foreclosed. Before you get a mortgage, make sure you can afford payments while living a comfortable life, and if you can’t, look for a better rate or term.

Credit Card

Credit card often becomes your best friend during tight situations. It’s easy to pay using plastic, and you don’t realize just how expensive your purchases are–until you have to start paying. Granted, there are installment options, but these usually come with added interest. You’ll also have to beware of the ballooning balance in case you miss a payment. Continued missed payments may get you in deeper trouble, especially if this happens for more than one card.

Spending money is always easier than saving it. But don’t let your spending habits make you forget about your obligations if you don’t want the problems that go with them.

Finance Your Dream Home With an FHA Loan

a miniature house model being passed downThere’s a great deal of pride in owning the roof over your family’s head. As such, many people count on the ability to secure a mortgage loan to realize this dream. Unfortunately, lenders became skittish after the 2008 financial meltdown and tightened the borrower requirements.

As a result, many people don’t quite make the cut when making an application. However, that shouldn’t serve to kill your dreams of owning one. You can join an FHA loan program offered by firms such as Primary Residential Mortgage, Inc. and be on your merry way to the homeowner club.

Buy more than one home

If your finances can allow and you make the cut, you can secure an FHA loan that enables you to buy a complex with up to four houses. However, one key aspect that underlies the success of such an application is that you need to reside on the property.

The value of the property should be with the median value of homes in the region. However, if it falls above the basal limit, you can have the restriction lifted after consideration.

The loan limit varies between states, with special exemptions applying in states such as Honolulu, Hawaii where the cost of a two-unit property exceeds the standard loan limit of four-unit property.

Can carry a higher debt ratio

With a conventional loan, you need to keep the debt utilization below 30 percent. With FHA loans, you can go as high as 40 percent in the back-end debt to income ratio, and 31 percent in the front end. The front-end DTI account is for your monthly housing expense, while the back-end is the monthly debt obligation.

These ratios set the limits on your loan application to minimize the likelihood of default. Carrying too much debt might make it difficult for you to service your other debts and keep up to date with our mortgage payment.

Failing to qualify for a mortgage does not spell doom for your dreams of owning a home. You can explore FHA loans as a more affordable alternative and still realize your dream.

A Guide to Important Information on VA Loans

Loan displayed on the monitorSince the year 1994, the VA loans program has seen over 22 million military servicemen and women become successful homeowners. But many military service members aren’t aware of the procedures, benefits, and operations that come with this program. As primary proponents of this financial program, they are missing out on a lot of critical information.

Demand has been on the rise for VA Loans, otherwise known as Veteran Affairs Mortgages. VA Loans in St. Louis do not require a down payment and are available to both active military members and military veterans. Besides the common knowledge on VA loans, there are more benefits and restrictions that come with VA loans.

They Are Reusable

A full VA loan entitlement is applicable repeatedly as long as you ensure that you pay your loan to completion every time. You may also get an additional VA loan even if you have an ongoing loan you are still paying for. In addition, if you suffered a foreclosure on a VA mortgage, you still have another chance to try again.

VA Loans Are for Primary Residences

Your VA loan benefit only applies to buying single or multiple primary residences. That means you cannot buy a vacation home on your favorite island or an investment property abroad. There are few exceptions to this rule, and your private lender can inform you of your limitations.

Restriction on Property Choices

A VA Home loan is only good for homes that are move-in ready to for single individuals or family people. That means, it includes homes such as condos, single family homes, multi-unit properties, modular housing and more. Therefore, if you are considering a fixer-upper, a downtown deli, or a working farm, then a VA loan may not be a viable option for you.

VA loans come with a lot more details attached to them compared to a normal loan. With the right lending agent, you can maneuver the stipulations and get the best and the most out of your VA benefit.

Avoid DIYs: The Reasons to Hire a Mortgage Broker

a Mortgage broker talking to a coupleThe past decade has witnessed swift modifications when it comes to purchasing a property. Gone are the days when building society managers or banks managed it because mortgage brokers have now taken over. A number of factors, including the decreasing number of building societies and banks, caused this shift. This is why several finance firms shifted their attention to home loans, particularly because of their connections in this competitive market.

By getting the services of a mortgage broker in Tempe, you will reap the benefits of their widespread network in the real estate loan market. Here are other ways you can take advantage of their expertise:

Avoid making expensive judgment calls

A homebuyer who blindly rushes into a mortgage agreement without completely comprehending its terms and conditions could be paying more than its actual cost. With the array of loan conditions, the only means to guarantee that you get the best deal is to appoint a broker who understands the industry.

Dodge hidden charges

Trying to understand your mortgage agreement’s terms and conditions can become frustrating, but you can avoid this hiring an intermediary. You can easily cut to the chase as soon as you notify the broker regarding your needs. They will be able to determine the current availability and assist you in choosing the best deal.

The mortgage market is constantly changing, which is precisely why you require the capabilities of a broker for they always keep themselves updated. With their straightforward advice, you will be able to dodge hidden charges.

Probably the main reason you would hire a broker is that you won’t really need to pay them. Their work is based on commission, which they get from the lender. Think about it; you will be getting the expertise of these brokers and get the best loan available without having to pay anything.

Can You Trust Your Mortgage Lender or Not?

A mortgage agreementAs you welcome the thought of buying a home of your own, what comes after is the means of financing it. Since the safest choice is to pay it through installment, people take this opportunity to apply for the best home loan program. When it happens, you’d also want nothing else but to work with the best mortgage company in Utah. But how do you do that? To help you with the search, here are a few things you must remember:

Ask for recommendations

Do you know some people who recently bought a house? If so, you may take this opportunity to interview them about their recent experience with the lender they’ve worked with. Ask them on the service and terms that are made available to them. You may also get some referrals or recommendations from your real estate agents.

Research, research, research

Do your own homework and research about the lenders around. Browse and search the net for online forums that could lead you to possible recommendations. Pretty sure, you’ll easily find results and reviews if you make a quick search on the most trustworthy and reliable lending companies. Based on what you read and feedbacks you’ve seen, you may immediately narrow down your list. Remember that it is imperative to do background check whatever transaction are you going for.

Mind the manners and behavior

As you negotiate the terms, you want to talk to someone who listens and could understand you. Find a lender who’s willing to explain everything and address all of your concerns instead of forcing their own suggestions. If you think the person you’re talking to is being rude and discourteous, then it’s your cue to walk out the door.

Know who to trust by keeping these simple and quick reminders in mind. Whenever you’re applying for a home loan, finding a lender you could fully trust could make a lot of difference throughout the whole process. Be careful and pay extra attention to avoid any troubles as you go on.

Utah could host another Olympics if it finds ways to reduce costs

Cost ReductionUtah’s successful bid for hosting the 2026 or 2030 Winter Games depends on the state’s cost-saving measures, including expenses for infrastructure upgrades.

Fraser Bullock, co-chair of a new exploratory committee, said that finding ways to save on costs will be important for the state’s bid. The panel aims reach to a decision by Feb. 1, 2018, on which year it seeks to serve as the venue for the two Winter Olympics, Bullock said.

Infrastructure Upgrades

The bid to host the next Winter Olympics in either 2026 or 2030 will require an estimated $39 million for infrastructure improvements in Salt Lake City, according to a state audit. One way for officials to save on expenses includes buying construction equipment online. Steel sales, for instance, are already available form some e-commerce firms like Wasatch Steel.

The city’s bid would also prioritize upgrades on certain venues that were used in 2002 Winter Games, when the state became the host, Bullock said. In addition, the plan would only require the construction of just one temporary venue, which would be used for three newly added skiing and snowboard categories.

Choosing a Year

It seems that planning a bid to host the 2030 Winter Olympics would be more ideal, since it provides the state with more time to prepare, according to Bullock. Still, the panel wants to be ready if decides to compete with other states to host the 2026 Games.

The International Olympic Committee will select the next site for the 2026 Games in 2019 and possibly for 2030 as well. The city of Innsbruck in Austria used to be the primary contender for the 2026 Games, yet voters rejected a proposal to host the event.

Conclusion

Officials in Utah should consider buying items from alternative yet reputable suppliers, as being cost-efficient would increase the odds of becoming the next Winter Olympics host.