If you are a first-time or new investor, you might be intimidated when gurus, teachers, and other Investors start throwing around the phrase “your team.” I know I was. They are referring to the team of servicers who are going to be your right hand men when you orchestrate a real estate transaction. They are your real estate attorney, contractor, title and/or closing agent, mortgage broker, accountant, insurance agent, and your herd of real estate agents. For someone who has never bought and sold an investment property, trying to assemble the right team members is a daunting task.
Getting pre-qualified can be completed through an online or an over the phone transaction. Presenting your financial records is not mandatory. You will only be requested to give basic financial information such as your current income and debt load. The lender will then use this data to come up with a ballpark figure of the highest amount of loan that can be given to you.
Credit scores are simply an algorithm applied to your credit reports. The big three credit reporting agencies are Equifax, Experian and TransUnion. As strange as it sounds, the reports each of them maintain for you will be different. This is because creditors often only report to one or two of the agencies. Strange, but true!
The first thing is, do your homework. Interest rates change constantly. The going rate this morning may change by this afternoon! Unless you know what it is, you don’t know if you’re getting the best deal or not. And it makes a big difference! Small adjustments in interest rates can mean tens of thousands of dollars difference in total payments over the life of the loan. Read the financial news. Track mortgage interest rate trends, especially in your country or local area. An educated consumer is a wise consumer. This applies to loans as well as any other purchased item.
There are various things to consider and many products to choose from on the mortgage market. A good Best Mortgage Broker Brisbane or lender can advise you but ultimately the decision is up to you as to what mortgage solution best fits your individual circumstances and future plans.
While there are many businesses that have gone paperless, there are many more that have chosen to stick to their supposedly sinful tree killing paper document ways. That doesn’t mean that you need to have a fax machine stacked full of reams of non-recycled paper in order to communicate with these companies.
APR, or Annual Percentage Rate, was originally designed to help borrowers compare mortgages. I won’t go into the mathematics involved, but in principle APR was a good idea. In practice it has turned out to be useless. Lenders do not all use the same inclusion methods in calculating APR. To add to the confusion, adjustable rate mortgage calculations are notoriously misleading. But that’s okay! APR involves two variables, note rate, and closing costs, and all you need to see is on the Good Faith Estimate.
Doing a manufactured home equity loan refinance can be a good financial tool to tap into your homes equity for a variety of reasons. But remember that it is your home and your most valuable asset so proceed carefully and thoroughly research all your choices.