Help for today's consumer

I've been getting feedback that there are those of you who want to be able to have someone review the settlement statement before they close to make sure everything looks okay. You're nervous and you want no fishy business coming to the closing table.....but who can you ask and who do you trust. I may start a website exclusively for that purpose, but in the meantime, feel free to send your questions to me at this blog and I will answer. At any point in your refinance, if you have a question that you want someone other than your loan advisor to answer, feel free to pose the question to me. I've seen it all and I'm happy to help.

How are the refinances in today's market

In today's market, to get any kind of loan is tedious. Let's focus on refinaces now....or as we say refi's. Once the customer gets over the hurdle of picking the lender with the best rate and best closing costs.......which can be quite a feat.......then it's onto beginning the process. The customer is asked to pay approx $400 for an appraisal of their home so the lender will know what the value is. However, in today's market, it's hard to be able to foresee what the appraiser is going to come up with. Is he going to compare the home to a foreclosed home, is he going to compare it to a home that was sold as a short sale? This affects the value. Now let's assume the home comes back with a value high enough to make the deal work.......and this is where the fun begins......the amount of the appraisal determines the loan to value (LTV) and also can steer the customer towards the loan that is most attractive for that LTV. Then we have to get past or shall I say through underwriting at lightning speed before the rate lock expires. If the underwriter asks for a lot of information, the process can seem endless and daunting. It sometimes seems like they are trying to find reasons why they should turn it down. However, if you can make it to the closing table, it's a good thing for everyone.

How to get a mortgage with bad credit

The first thing to remember is that no matter what your situation is, there is a solution. Some solutions come quicker than others, but be patient.

Do you have poor credit and want a mortgage?

Remember that creativity is the key to finding a solution. Although your bad credit rating may have been caused by things out of your control -- job loss, income reduction, divorce, health issues -- you still have options. Can you still go to a lender and try to get a loan - yes. However, their fees and terms will be harsh (to say the least). It's like adding insult to injury. If you enter into one of these loans in an already compromised financial status, your chances of recovery are slim to none. There is another option today for those looking for a less painful way to home ownership -- seller financing. You virtually eliminate the bank and go to the heart of the deal. No one is reviewing your credit and giving disapproving advice or rejection. No lenders will be taking all of your information, just to not receive a phone call because they don't want to spend the time explaining to you why you have been denied. No need to feel even worse about the situation you find yourself in - not being able to go to the lender or bank you felt you could always go to. No, not today, it's time to make your own path. There are many sellers in today's market that are willing to hold the note (be the lender). Why would they want to do that, you ask.......they will earn interest on the money they lend you (instead of the bank receiving the interest). They won't have to pay fees to realtors or mortgage brokers. They will be able to reposess the home if you default on payment. Having said that, the reason you, the buyer, want to look at this option is......you do not have to pay all the excessive lenders fees (and they are excessive especially if you have sub-prime credit), you don't have to worry about explaining all the dings on your credit, you may be able to get into the home with little or no down payment and you can negotiate the terms of your loan (all of which should be put in writing at closing.....don't rely on strictly verbal agreements).Seller financing can be a win-win situation for both parties!

Welcome to Free Financial Advice

Welcome to the creation of Free Financial Advice. This blog has been created to share the information I have learned over the years (and yes they are many). With age comes wisdom and hopefully some of the information I have picked up can be of assistance to you as we go through these trying economic times.