Florida Mortgage Helpline Blog

For many people, carrying debt is just a way of life in contemporary society. Mortgages, lines of credit, major credit cards and department store cards are a few of the ways that people move to get the material things they want in life. And many credit options carry very attractive offers and payment plans so you don’t even have to worry about it for six months, or a year or even 18 months. Of course, more often than not, that time frame slides by and you’re no closer to paying it off than you were in the first place, and the payments and interest begin. After awhile of this, the debt can begin to pile up and you find yourself in quite a bit of difficulty. There are several different ways to deal with mounting debts that you aren’t able to keep under control, and one of those is known as debt consolidation.

Debt consolidation is a process where you pool all of your debts into one payment. It’s basically moving all of your debts to a central location to simplify the payment process, and hopefully lower the total amount you have to pay each month, as well as your interest rates. With debt consolidation, you can take your credit cards, lines of credit and high interest department store cards and take out another loan to pay them all off. Then, you would pay the loan amount each month. Generally, the interest you pay on the loan will be less than all of the separate interest amounts you were paying on the different credit debts.

If you are able to get a debt consolidation loan, you will have to close all of the cards and credit lines after they have been paid. If you own a home, you can often do a secured debt consolidation loan like a home equity loan. This type of debt consolidation puts up your own assets against the amount of the loan, which usually has a much lower interest rate than a standard loan. You do risk losing some of your assets if you don’t pay the loan, but if you have a reliable way to make a secured debt consolidation loan each month, this method will land you the best deal.

If you do qualify for a debt consolidation loan, be sure to ask a lot of questions and read all of the literature you’re given. Many companies charge hidden fees or jack the interest rate up to a ridiculous level at some point during the course of the loan. Many companies legitimately want to help and will do their best for your interests, but it pays to be diligent and find out before you sign on the line. If your debt consolidation quote seems like a dream because it’s so good, it just may include information you don’t want to hear. Don’t be afraid to get different quotes about debt consolidation, and don’t make it a habit to run up lots of debt and think you can just fix it all later with a debt consolidation option.

Who says social media is for connecting with friends and peers and communicating with loved ones only? They are wrong because with the hype of social media and Internet marketing, more and more companies and real estate marketing personnel use social media to market homes for sale, products and services. They use the medium because millions of computer users logged in and used the Internet to find the information they need most of the time.

Gone were the days that marketing professionals used the newspapers, magazines, radios, televisions and brochures in reaching their customer niche. With the advent of information technology and communication, marketing strategies evolved along with it and myriad companies and marketers opted to use the medium because it can reach to millions of customers in a span of seconds or minutes only compared to the traditional marketing mediums, which takes them days to penetrate their target niche. If you have problems or you are having trouble in disposing your homes for sale and other real properties you have, then try social media and witness the miracle yourself.

At present, myriad real estate companies and real estate agents used social media to distribute their messages through social networking sites such as Facebook, LindkeIn, Twitter and other social networks to boost their ranking in search engines like Bing and Google. Majority of brokers, realtors and agents find it effective in generating leads, brand awareness and sales. It was also found that about 90% of real estate investors and real estate buyers used social media and the Internet in searching for the properties they plan to buy.

The Internet is not only for playing games, but it is also a repository of vast amounts of data for everyone, including the real estate industry. By surfing online, we can find homes for sale listings, property quotations, mortgage interest rates, glossary of terms, videos and many more. These are the reasons why millions of individuals find the Internet an indispensable tool that we can use everyday.

For real estate agents and homeowners, it is a great place where they can showcase the properties they are selling. By having their own web page and web site, they can incorporate video tours, quotations and photographs of the real estate properties and homes for sale they are marketing. With these data at hand, prospective buyers do not need to visit several areas to search for the most feasible properties to invest into. All they have to do is to surf the Internet, type in the keywords and surf the respective websites of the numerous real estate companies selling real properties. By doing so, they will not only save time, but gasoline as well. They only need to visit the property once they decided and selected a particular property. They only have to visit the property once to assess its feasibility and to gauge whether they made the right decision.

If you have plenty of real estate properties and homes for sale in your hand, act now and use social media to do marketing wonders!

This difficult world economy is certainly affecting all of us. Our personal finances are challenging us everyday. Banks are raising their fees, utility bills are climbing higher and medications can cost more than a mortgage payment. What can you do when you seriously need cash in a hurry?

Applying for a short term payday loan from a payday cash advance lender is one answer when you’re short on cash. If the savings account has run dry ‘way before the next payday then getting a short term loan can supply the cash you need before payday. You just know that your electricity and water companies are not sympathetic about your situation because they just want their money now or they will want it with a late fee later. The truth is that it can actually cost less to obtain a short term loan from a payday lender to pay those bills and make it until your next payday.

All cash advance payday lenders make short term loans to customers experiencing financial trouble between paydays. That is their specialty. You can contact some lenders in your local area and of course you can also find them online. A short term loan can be so simple and easy by applying for it online. In fact, more than likely you will see the loan proceeds deposited in your bank account right after approval of your short term loan. And that’s one way to get the cash you need now, with your pledge to repay it out of your next pay check.

Short term loans are sometimes called cash advance payday loans, and whatever you call them they are a quick and easy solution to meet emergency cash needs. You simply have to agree to repay the loan at the time of your next paycheck when the whole short term loan amount including interest will be due. Although different lenders have different options, one example being repayment within 30 days, either with or without a renewal option, most payday loans are due on your next payday. Any renewals will require at least the payment of interest due on the original repayment date. Your own short term loan agreement will be provided by the particular lender you select online and they will give you all the information you need at the time you apply.

At that time you will discover that the annualized interest rate on short-term payday loans is very high compared to long term bank loan rates. But you have to remember that you’re paying for two things, really, and they are convenience for yourself and risk control for the lender. If you actually calculate the interest rate over the period of time you use the money it will appear to be lower. Legally, short term interest rates are required to be calculated in terms of an annualized percentage rate, even though you are not repaying the cash over the course of a year.

Disability car insurance is something that essentially protects someone in the event that they end up being impaired, and they are unable to work. A lot of people purely begin their day while not having thought to the truth they may turn extremely incapable, they wouldn’t be able to run their duties, or perhaps go to the office at all. Like, a person could be their way to the office and find themselves in a vehicular accident. If this occurs, then they will surely have to get better.

If a person ends up in an auto accident for example, the expectation would be that the damage would be minimal just enough so they wouldn’t need to miss out on much work. However, if an individual’s wounds are extremely severe and also life transforming, then they’re going to realize that they have to resign their work. Because of this, they will wind up a position of downright financial ruin. This is also true for those who live hand to mouth, check to check.

Because most working class individuals are honestly within this position, it’s so essential for them to find a method to support themselves if they cannot recover. From time to time anybody may get better, however injuries can need a long time to mend. These explanations and much more are generally exactly why it’s so necessary for one to buy disability insurance policy. They are simply of great help for a single individual, and they’re particularly needed for the individuals having family members.

Disability insurance gives the policy owner a portion of their prior pay. The percentage of earnings that ultimately can get awarded will be different individually for each person. However, there is still a loss of income felt, it won’t be as unbearable as if one does not possess disability insurance ever. It is cash that can be used for living expenses, and also for daily expenses.

It’s a product which is required to help keep matters on even keel until a person can resume their job. In addition to a basic insurance plan, there are many disability plans intended to present more insurance. There are social security policy riders, and there are alternative riders that can be explored. The insurance professional can help their customer to find out about all of their available options. Again, although the normal person won’t like to consider the worst, it’s vital to make sure that they are protected in this way, whenever tragedy hit.

There are many disability insurance products that you should looked into. One may be disability insurance that protects the loan. If someone becomes disabled, they can’t earn income, and their mortgage might go into foreclosure condition. Then again, whenever people buys a disability policy to protect their mortgage, the property note might as well be covered for some time.

There’s also credit card disability insurance. This covers the regular bills on credit cards, in case the card owner end up incapable. These two products don’t just compensate a cash award, yet , these help to give protection to the policy holder’s credit rating.

Most buyers, who opt for income insurance plans, worry mainly about the price of the policy. Although price is one of the main factors that should be considered by buyers, there are various factors that need to be calculated while purchasing an income protection insurance policy and some of these factors are listed below.

Price of the Policy – Buyers are given various options while purchasing income insurance plans and buyers can choose between policies that range from $6 – $20 a week. No frill insurance plans offer cheap policies for people who are on a budget and these plans offer the basic compensation benefit along with certain other additional perks. The better policies offer many additional benefits such as disability expenses and compensation for a caregiver such as a spouse who cannot go to work to take care of you if you are on bed rest. Buyers who are interested to get the best policy they can afford should consider comparing plans online by using tools such as insurance comparison services. Buyers should also consider using insurance calculator tools to understand how much they will have to pay for the benefits offered.

Insured Amount – The insured amount will determine how much compensation payment you receive when you are unable to work and the insured amount will also determine how much you pay for the selected policy. Before selecting the insured amount, remember to consider your personal requirements such as liabilities, bills and commitments.

Personal factors – Before deciding which income insurance plan is ideal for you and your family, you should calculate your monthly expenses such as bills, loans and mortgages. By doing so you will understand how much you need every month to pay for these commitments. If you have dependants such as children who go to school or elderly parents then you will also have to take these factors into consideration before purchasing a policy.

Waiting period and Benefit Period – Most of the people who plan to purchase an income protection insurance policy overlook the importance of selecting the right waiting period and benefit period. If you do not have money kept aside to fall back on or if you do not too many paid leaves then you should consider opting for a policy with a shorter waiting period. People with dependants and pre existing medical conditions should consider opting for a policy that offers an extended benefit period such as 5 years since this will ensure that the policy holder and his family are taken care of when the policy holder is unable to earn his regular income for an extended period of time.

Have you recently been approved for a buy to let mortgage in principal?

Are you now looking round for the best property you can get for your money?

If so then you’ll want to consider the following 4 options:

1. Probate Property

The term ‘probate property’ refers to any type of property, residential or commercial, that qualifies as an inheritable asset when the owner dies. Generally speaking most inheritors of probate property choose to sell the property so that they can release the money invested in it. Others decide to sell because the property is too far from where they live and is more of a burden than an asset.

Regardless of the reason for selling, probate property is often put on the market at a price that encourages a quick sale, or in other words at a greatly reduced price. It is sometimes possible to get probate flats and houses in decent areas for around 40% of their recommended selling price i.e. the price they would normally be put on the market for.

The only drawback to probate property is that they generally require modernisation and redecoration but the saving you make on the purchase price will mean you can take out a smaller buy to let mortgage and use the money you don’t use as a deposit to cover all additional costs.

2. Auction Property

Property auctions are a great way to really make the most of your buy to let mortgage allowance. Unfortunately some areas only have property auctions every now and again so it may be that you have to look further afield to find a property that interests you. Property auctions are also quite competitive and it’s easy to get carried away, so make sure you go with a maximum amount in mind and don’t go above this for anything.

Depending on the condition of the property for sale, the location, and the competition for it, you can sometimes buy for 60% of the normal market value. Again this translates to a smaller buy to let mortgage, but it may be that you have to spend a few thousand on decoration and modernisation. You should still come out on top though.

3. BMV Property

BMV property, or Below Market Value property, has become one of the top ways for landlords to acquire cheap buy to let properties over the last few years. In simple terms, a BMV property is a residential property that has to be sold quickly. This could be because the owners are facing repossession, because they need to relocate due to new employment or because they have other financial difficulties that require a large influx of cash. Either way, BMV properties can sometimes be bought for 70-80% of their true market value, providing you can arrange your buy to let mortgage quickly.

The best thing about BMV properties is that most are successfully rented back to the inhabitants and so there are no worries regarding advertising or finding suitable tenants. Most of the properties bought this way are also in very good condition because until they were sold they were family homes. This means you will rarely need to find additional money for renovations. Plus, buy to let mortgage lenders tend to look favourably at BMV property because of the fact they normally have sitting tenants; a fact that means you may qualify for a slightly better deal.

4. HMO Property

A HMO property, also known as a House of Multiple Occupancy, is the easiest way to guarantee a positive cash flow and a shorter term for your buy to let mortgage. By purchasing the largest property you can with the buy to let mortgage allowance you have (you can complete this step using one of the three methods above) you can make a few simple changes and rent the property as a
HMO.

For example, a 4-bedroom property rented to a single family might achieve a £300 per month positive cash flow, but the same house rented to 4 individuals could achieve close to £1000 per month positive cash flow. You still have the same mortgage payment whichever route you choose.

The main thing to remember about HMO property is that you do need a licence to rent them out. HMO property rented without the landlord licence could result in a £20,000 fine.

In Summary

Buy to let mortgage lenders are starting to relax the terms and conditions of their mortgage products, a fact that means more landlords now qualify for these sought after loans. The smaller buy to let mortgage you apply for the better chance you have of being approved, so use one of the house buying methods above and really make the most of the buy to let mortgage allowance you get approved for.

There’s no doubt the real estate market has seen better days. In most places of the country, housing prices are as low or lower than they were a decade ago. With the increasing difficulty of landing top dollar for your home, now more than ever people need to work with a top real estate agent to get the home sold at quickly and at a decent price.

While most people agree that finding a top tier real estate broker is critical, many are unsure how to go about looking for one. After all, real estate agents at their very core are salespeople, so every one of them will undoubtedly emphasize to you the advantages of working with them. However, there are some ways to tell if the real estate agent you are considering is truly a top tier realtor that is likely to get you the results you’re seeking:

1. What trade associations is he/she a member of?

This should be the first question asked of any prospective real estate agent, and it’s a great way to weed out the career agents from the part-timers who do this “real estate thing” on the weekends to earn extra money. A real estate broker who is truly committed to his/her career will at minimum be a member of the National Association of Realtors. If the agent you are considering is not a member of this organization, say to yourself “next” and move on.

2. How well do they know your neighborhood?

This is an often overlooked and quite costly mistake many home sellers make-not working with a real estate agent that is familiar with the local neighborhood. This happened to me back in 2006. When we went to list our home, we chose to use a real estate broker from the other side of town because she was recommended by a friend and had a good track record of sales. Problem was, she wasn’t familiar with our neighborhood and she over-priced our home by about 10%.

As a result, the house sat on the market for months while the overall housing market began to fall. As prices fell, we kept cutting our prices, but we were always behind the curve. 9 months later, the value of our home had dropped by around 20%. Long story short-to this day, we still own the home and rent it, because right now the market is just too far down to sell. Had we used a real estate broker from our own neighborhood back in 2006, we would have sold the house at a much better price than we could get today.

3. Who are their associates?

A good tell-tale sign of whether or not you are talking to a top real estate agent is who their associates are. A top realtor will surround themselves with a top-notch team of professionals from related industries like mortgage, title, home inspector, stager, etc. If the real estate broker you are talking to does not have a first class team they are working with, it’s a pretty good sign they are not as serious about selling homes as they should be.

4. What marketing methods do they use?

This is extremely important in today’s housing market. With so many homes and so few buyers, your real estate agent is going to need to use every possible marketing method at his/her disposal to bring qualified traffic through your home. Talk to them, make sure they use a good variety of standard online and offline methods at the very least. But the real tell-tale sign of a top realtor is one that is using not just conventional marketing methods, but a very ‘out of the box’ methods you’ve never heard of.

If you qualify for mortgage refinance loans this is something you will want to learn about. 

If you are considering a refinance there are some great ways that you can begin to get ready for this process. You will want to look for the items that can help to make this process faster. You might not have much time to spare and you want to make sure that you are fully ready to proceed.

You should also think of tax information. There might be some time that you need to prove income. There are other ways that you will also prove your income and this can include your paycheck stubs. You will need to present these as well and this is something that you should make sure that you have on hand.

There might be some issues with homeowners insurance that you need to deal with. You will need to make sure that you are working with your insurance company. You will need to speak with your insurance company to find out what you need.

Assets are something that you might need to list to be eligible for a refinance. You should begin looking at your assets and list them in case this information is requested. If you have a lot of assets, this is something that can take some time to complete. You want to make sure that you are thinking of all of the important documentation that you will need. If you have business assets you will need to talk to the lender and find out if this is information you will have to provide also.

You will need to prove you are divorced or separated. This is something that can change your final results and you will want to take all measures to ensure that you have some type of proof of this divorce or separation. You will need some time to figure this out.

Mortgage refinance loans can help you with your current mortgage. You will need to gather this information as this is your responsibility.

You have finally made it to the final stage of buying or trying to sell a house. When you arrive for your closing it may be somewhat overwhelming. I have sat with many homeowners who were either buying or refinancing their home. The one thing I noticed they all had in common was the initial shock in the amount of paper work. I will briefly go over the basics of a closing so you will know what to expect. Knowing what you’re walking into when you arrive will calm the nerves greatly. Your agent should also either be there or be a phone call away to answer any questions you may have.

To start what is a “closing”? In layman terms a closing is a set time you finalize all the paper work and contracts agreeing to buy or sell the property. Technically speaking the “closing” or settlement as it is referred in some places is defined as “the point in time at which the title to the property is transferred to the buyer and, generally, a mortgage (or deed of trust) is given by the buyer/borrower to the lender.”

The closing will either be held at a title company or an attorney’s office. In a nutshell, here is what happens is before you arrive to your appointment when attempting to sell a home. First the loan closer prepares and reviews all the legal documents involved in completing the mortgage lending transaction. Then you and most normally your agent will arrive at the office to meet with the loan closer. (Some agents do not attend but it is a good idea that you request their presence or at least for them to be available by the phone for questions) Next, the loan closer will bring out a stack of paperwork (a good half inch thick) that she will roughly go over and request signatures. This is why it is so important to have your agent there or a phone call away for any questions that may arise.

Speaking of documents.. even though the number maybe overwhelming it is important that you look closely at each one. As tempting as it may be to quickly sign each page and move on to the next. DO NOT do that!! You need to pay special attention to the details in the documents. Verify all the spelling, names, addresses, amounts etc are all correct or they may be recorded with the court incorrectly. If anything is incorrect be sure to advise the loan closer as soon as it’s noticed so they can correct it.

As a rental property investor good practice is to take the time to qualify or even pre qualify your potential renters. First Start out with a very thorough application. Rule of thumb is to go back 3-5 years on both employment and rental history. By going back 3-5 years, you are able to see stability in a persons income and job, or if they then to be “house hoppers” or “job jumpers”. Always take the time to call references. Too many landlords feel the rush to fill the vacancy rather than taking the time to make sure the prospective residents is the right choice for the property.

As a landlord myself, if the prospective resident is local, then I take the time to drive by their current living address several times to see the outer appearance of the property condition, again in doing so I can see how my property is going to be cared for. Will there be trash everywhere? Are there 3 junk cars in the driveway on blocks? Do their animals destruct my yard? Etc. I also take the time to do a “pop in, I was just in the area visit”. Though this can be uncomfortable for some, I have personally used that approach as a finalization of the application process and a way to deliver the news of yes; they are approved for my property. If the prospect qualifies financially, and to your terms, should you arrive at the “pop in inspection”, and see something you don’t approve of or that their housekeeping conditions aren’t the greatest, then you can just say you were in the area and thought you’d pop in to let them know personally that the application is still in the processing phases and they should know something within 24 hours.

You may set your rental guidelines to your specification as far as income. If a prospect receives Government or State rental assistance, you can not require their income to be as sufficient as a private pay. A good rent to income ration, and again another that I use personally is that a household’s combined income must be 3.5 – 4 times the monthly rental amount.

Every person over the age of 18 regardless of student, or employment status, must fill out an application for any of my properties, due to the fact that in signing the application, it allows me permission to do a back ground check. Certain criminal misdemeanors and most usually all violent type felonies are immediate grounds for denial. I look at it like this, I don’t want a person who is a drug dealer or engages in serious criminal activity living in my homes. The excessive traffic, and constant fighting, loud music etc, is not appealing to other neighbors in the home, and will most always bring down your properties “perceived” value.

Many consumers may be familiar with the credit report and credit score, but some may not completely understand the complete process behind the credit scoring system. In this article, let’s discuss basic information about credit reporting.

What is a credit score?

The credit score is numerical value used by credit reporting organizations to establish an individual’s credit value. Financial institutions, lending companies, and also creditors check credit report scores to find out whether or not an individual may end up be granted approval. Some loan providers might require a high credit score while others can be less exacting in terms of assessing credit scores.

There are 3 major credit reporting agencies in which keep track of account activities of consumers. These are Equifax, Experian and Trans Union. Every credit agency does its very own independent credit reporting and also uses its own credit scoring model.

Equifax utilizes the FICO scoring system, created by the Fair Isaac Corporation. The other two bureaus Experian as well as Trans Union developed their own model that is based on the FICO scoring system. The FICO score ranges from the low of 300 to a high score of 850.

Calculations are made based on five basic elements: payment history (35%), credit utilization (30%), length of credit history (15%), types of credit (10%), and credit inquiries (10%). Based on these kinds of criteria, it is easy to see why well-timed repayment of your bills may drastically impact your own personal credit rating. With 35%, even a few misses on your due dates can easily pull down your credit score.

Another significant factor is how you utilize your credit limit. Credit utilization makes up 30% of one’s total FICO score so if you have a great debt-to-credit ration, your own score can really drop. This is the reason why financial experts advise not using more than 40% of your credit card’s limit, even if a credit card provides zero annual percentage rates or perhaps a low interest rate. If you get into the habit of maxing out of your limit, your credit score can suffer.

The other three factors are just as important. Length of credit history makes up 15% which is why college students should make an application for their very own college student credit card as soon as they’re ready to manage debt as well as repayment.

Think about the actual types of credit you use? This accounts for 10% of the FICO score. For example, having numerous credit card accounts will not boost your score. You can show your capacity to handle debt and credit successfully through managing different types of debts such as a personal loans, mortgage, auto loans, aside from the credit card.

Lastly, credit inquiries or perhaps hard inquiries made by creditors in response to your credit application can affect your credit score. This is the reason why consumers are strongly advised not to submit multiple applications to various lenders simultaneously simply to see who will grant approval more quickly. Rather, you should take time evaluating your options and once you’ve identified the right creditor, after that this is the only time you can submit an application.