Mortgage Lenders

Organizations, companies, or financial institutions that lend money to people for the purchase or investment in a real estate property are referred to as mortgage lenders. Mortgage lenders play a crucial role in the development of the real estate industry as every home buyer cannot pay the entire property value on their own.
Types of Mortgage Lenders
Some of the common organizations that are in the mortgage lending business are banks, trust companies, life insurance companies, credit unions, and other private institutions that lend money to purchase a house, land, or other form of real estate properties. Some mortgage lenders operate within a specific geographic area while others operate across the state or the entire nation depending on its funding capabilities and the network facilities.
Federal Mortgage Agencies
Some of the mortgage lenders get affiliation from the federal or state agencies that guarantee or fund the loans. HUD, Fannie Mae, and Freddie Mac are some of the well known of the lot. These agencies are government sponsored enterprises (GSE) that help home buyers to avail loans from mortgage lenders at a favorable rate of interest. Such GSEs purchase mortgages in the secondary market, pool, and sell them in the open market as a mortgage backed security. This way, they increase the fund availability to the affiliated mortgage lenders. Due to their business operations, housing market has stability, liquidity, and affordability.
Mortgage lenders work in coordination with federal agencies, mortgage brokers, and the home buyers to help the buyers become owners.
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Mortgage Underwriting Process

The mortgage underwriting process involves evaluating the loan application and its scope for mortgage approval. In other words, it helps the lender determine the risk involved in approving a loan.
Process of Underwriting
The loan officer gathers all the required documents like personal and credit information of the applicant and puts them in the underwriting system. These documents are then submitted to an underwriter who checks them for their consistencies during the process.
The Mortgage underwriting process is carried out by a mortgage loan underwriter. An underwriter will analyze the credit history of the loan applicant and determine whether the applicant can fulfill the terms and conditions of a mortgage loan. The credit history of the applicant is reviewed in order to determine the ability of the applicant in repaying the loan.
If the underwriter is not satisfied with the credit history of the applicant, the loan can be denied. However, the underwriter generally suggests other available options to the applicant. The mortgage underwriting process also involves valuing a property which has been suggested for a mortgage.
Deciding Loan Factors
Based on the credit history of the applicant, the mortgage underwriting processing underwriter will determine the term and mortgage rate of the loan to be approved. The income-debt ratio of the applicant also plays a vital role in the approval of a loan.
Technology in Underwriting
The latest available software can complete the mortgage underwriting process in the shortest amount of time and with accuracy. It is referred to as automated mortgage underwriting process. Such software programs save the time spent in verifying the documents during the process. However, the final decision is always made by the underwriter.
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Always get a Home Inspection

Are you looking for a home and becoming tired of house-hunting? If so, you may be tempted to buy a bargain-priced home “as is” and forego the home inspection. But without the inspection report, do you know what the “as is” refers to? Wouldn’t it be better to know what condition the home is in before you buy it?

The inspection contingency allows the buyer to enlist the services of a licensed home inspector within three to seven days after the purchase agreement is signed. The inspector will go over the property from top to bottom, evaluating the condition of all the basic systems and structures of the home in order to identify conditions that may be considered material defects and thus may affect the market value or the safety of the home.

The inspector’s report is the only documented proof of the actual condition of the property that is being sold. It is a valuable tool that helps you negotiate the sales contract and gives you information about future maintenance projects. The cost of an inspection is well worth the peace of mind it provides.

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“Get to know the Real Estate Lingo”

Real estate ads are sprinkled with terminology that often puzzles consumers who don’t have applied knowledge of housing industry lingo. Internet homebuyers find that information about properties is often presented in abbreviated form or unfamiliar language. Shedding a little light on some basic real estate terms may help you locate a home that is available at a very affordable price.

‘MLS’ refers to the Multiple Listing Service, which is the national database of listed homes for sale. Some real estate web sites allow homebuyers to preview local listings that appear on the MLS. If you see a real estate ad for a “FSBO“, it means that the property is for sale by the owner, who is declining the services of a Realtor. A home listed “As-is” is being sold in its existing condition. A “bargain sale” home is priced at less than its market value, and a “fixer-upper” is priced low because it needs refurbishing. For more great home values tips, tools and advice and to “get prequalified” go to http://www.ratesarehot.com

Tips on how to find a good deal on a great home!

Most sellers know that buyers are attracted to homes that are spotlessly clean, well-maintained and tastefully decorated. Sometimes the seller can’t make the extra effort to prepare the home for showing. Some real estate listings are being sold to settle estates or by someone who has been transferred unexpectedly and didn’t have time to complete the necessary cosmetic repairs. Homes that need work are often exceptional values.

When a real estate agent shows you a house that needs help, try to imagine how it would look with new carpet, a fresh coat of paint and your furniture settled inside. Because the condition and overall appeal of a house have such an impact on the selling price, “fixer-uppers” are often priced lower than comparable homes. If the home is structurally sound and has updated systems, a small investment of “elbow grease” and paint could make it look fabulous.

Tips for First Time Investors

When starting out as a real estate investor, you can choose either the conservative approach of holding a property until it increases in value or the riskier approach of “flipping” – reselling very soon after making some improvements that add value. If you plan on taking the safer approach, keep the following factors in mind when searching for the right investment property.

Look for a house or apartment unit that is close to where you live, so inspecting the property and overseeing maintenance will be easier. Choose an area where there is clear potential for future development, and you will benefit from the inevitable increase in property values. If you have the choice of either buying a newly built or recently remodeled home or a less expensive house in the same neighborhood that needs a cosmetic makeover, buy the bargain property and upgrade it for a better long-term return on your investment.

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Top 6 things to do before you hire a contractor….

1. Get multiple estimates – Always shop for the best

2. Read Consumer Reviews – Always search on company names AND past complaints from customers.

3. Call Licensing Boards – be sure to call the licensing boards and the insurers to confirm that contractors liability coverage is adequate and current.

4. Get several references – ask for and find past clients of the contractor and call them and ask questions. Find out if the work was performed in an adequate amount of time and fairly priced. Make sure you only call clients that had comparable work done to what you need.

5. Negotiate a maximum hourly rate; If the job goes quickly, you won’t need to pay a higher overall estimate.

6. Always demand a lien release so that no contractor can put a lien on your property in a dispute.

When buying a home look for the diamond in the rough!

There are a lot of “diamonds in the rough” for sale. A property with incredible potential may be in a great location, have large sunny rooms and a big yard, but it may also have dated wall paper, worn carpeting, and uninspired bathrooms. If you can look beyond the surface, you may see a house that could be transformed by a little “elbow grease”, paint, and new carpets.

A house that is structurally sound with all the systems in good condition may be only a few cosmetic repairs away from being fantastic! A home that does not show well is usually priced accordingly. If the price doesn’t reflect the condition of the house, the seller may be more willing to negotiate than a seller who has made a considerable investment in preparing a home for the market.

Bring your imagination with you on your next house hunting trip! You may be pleasantly surprised to find a diamond in the rough.

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Bargain Homes

Most buyers want a home that is in tip-top condition and ready for them to occupy, but many homes sell for bargain prices because they need work. Buyers love “fixer-uppers” for the obvious reasons: the affordable price and the satisfaction of remodeling the house to accommodate your tastes and needs.

Whether you are buying the property for yourself or as an investment, choose a house that is in a good location and structurally sound. It should be priced enough below market value (usually 25%) to allow plenty of room for a profitable re-sale after the work is completed.

It is important to educate yourself before taking on a fixer-upper project. Inexpensive cosmetic improvements often give the greatest return on your investment– paint will increase the value three times for every dollar invested. Landscaping, carpeting, and light fixtures are also relatively inexpensive improvements. Try to avoid purchasing a house that needs expensive structural improvements such as a new roof, plumbing, wiring, or foundation repairs.

Remodeling a kitchen will rarely add more than the cost of the upgrade, but new appliances usually give a fine return. An extra bathroom is the best renovation from an investment point of view, often giving twice its cost in added value.

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Buying a home with a history

A colorful history can add significantly to the value of a home. Researching the provenance of a property you are interested in buying can be both interesting and ultimately profitable. The market value of a home will be greater if it was designed by a notable architect, built by a company with a reputation for the finest construction, or lived in by a celebrity who hosted famous guests.

Ask your real estate agent if there is any historical data of significance associated with the home, or if previous owners were VIPs. Note the names associated with the deed and title to the home, and look them up with the help of the local historical society. Consult the microfiche in newspaper archives for references to colorful details of the home’s past. The county assessor’s office may have records of the date the home was built, and building permits may reveal the name of the architect. When inspecting the home, search closets and attics carefully for hidden historical “treasures”.

Buying an older home at a bargain price, then re-selling when it is renovated and restored can be an enjoyable and lucrative adventure.

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