Things you need when applying for a Home Loan

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  • Tuesday, December 27, 2011
  • Things You Need When Applying For A Home Loan


    Congratulations! Now that you have found the perfect home, all that's left is getting the perfect mortgage. In order to do that, you will have to know what your lender needs from you in order to get your loan application approved.


    Property Description


    When applying for a home loan, you will need to provide the lender with detailed information regarding the property that you intend to purchase, including a physical address, what type of loan you are requesting and how you obtained the funds to be used as a down payment.


    Borrower & Co-Borrower Information


    All persons named on a home loan must be able to provide their name, date of birth, current address, former address (if within the last two years), marital status, current and former employment information, telephone number and social security number.


    Most lenders require tax returns for the two years preceding the loan application, along with current paystubs or, if self-employed, a year-to-date profit/loss statement.


    Current Mortgage Expenses


    An important part of every home loan is affordability, which is why your lender will need to know how much of your income is available to pay for a new home. If you have a current mortgage, be ready to provide a detailed list of expenses that you pay each month in relation to the property. This includes a mortgage payment, real estate taxes, mortgage insurance, homeowner's association dues, utilities, etc. If you plan to sell the home, let your lender know so that they will understand you are simply replacing one debt with another.

    Yes Or No


    Almost every loan application asks both the borrower and co-borrower (if applicable) to answer a few simple yes and no questions on the application. Questions pertaining to outstanding judgments, bankruptcy filings, foreclosures, lawsuits, alimony, child support and citizenship status are standard and should be expected when applying for a home loan.


    Statement Of Assets & Liabilities


    When applying for a home loan, both the borrower and co-borrower will be required to disclose all of their current assets and liabilities. An asset is property, either real or personal, that is owned and is of value. A liability, on the other hand, is a financial obligation for which one is liable.


    A loan application will request information relating to assets and their current market value, including automobiles, real estate, stocks, bonds, life insurance (cash value), business net worth, personal property, etc. If any amount of money is owed on these properties, the lender will request information relating to the unpaid balance in order to determine the actual equity that the borrower has in any given property.

    If you have any questions please fee free to contact me.


    Scott Riddle 239-289-1849


    http://www.naplesrealestateteam.com

    Decorating for Christmas the Green Living Way

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  • Wednesday, December 21, 2011
  • Decorating For Christmas The Green Living Way


    Christmas is probably one of the easiest times of the year to use environmentally friendly decorating ideas, and given the more traditional decorating trends for the season and the ever increasing need for all of us to contribute to making the planet a greener place, it's never been easier. Here a few great ways to decorate your home for the holidays and be greener at the same time!


    Green Tree Ideas


    Replace your old Christmas lights with new LED lights. They use less electricity and last longer than the older ones.


    If you put up a real tree for the holidays consider using a live tree that you can plant after the holidays, or be sure you recycle your tree after the season is over.


    Only purchase your real tree from a Christmas tree farm or retailer who purchases from farms. Never cut down a tree in a conservation area or in a public park.


    Consider using an artificial tree; be sure that it is recyclable and not made using any harmful materials or chemicals.


    Use natural products to decorate your tree. Berries, popcorn, and other food items that don't perish quickly are a great addition to any tree.


    Green Home Décor Ideas


    Use real garland and other decorations from nature. Most garden centers are great places to get environmentally friendly decorations for the Christmas season.

    Be sure that you purchase decorations and other holiday items that are durable and reusable year after year. If you want holiday tableware avoid the paper kind, and choose products that are made locally using environmentally friendly products.


    If you put lights on the exterior of your home you may want to reduce the number of hours you turn them on each day, and only have them on when someone is home.

    For wrapping and gift giving, use papers and materials that are reusable and recyclable.

    These are just a few ideas that you can use to make your Christmas more green while still keeping the holiday spirit alive! This is a great time of year to show our love for our planet and our fellow man, and keeping the holidays environmentally friendly is a great way to do that.

    If you have any questions please feel free to contact me.


    Scott Riddle 239-289-1849


    http://www.naplesrealestateteam.com


    Christmas Decorating Ideas

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  • Monday, December 19, 2011
  • Christmas Decorating Ideas


    Along with the Christmas festivities comes the desire to decorate your home with twinkling lights, wreaths, trees and even yard ornaments featuring the theme of the holidays. If you want to make your next Christmas decorating venture a real holiday treat, consider the following ideas:


    Homemade Wreath Decorations


    Create your own lighted wreath by taking a short strand of mini-lights and wrapping them around a plain wreath. You can use either multi-color or clear lights, and this approach can easily be used for both indoor wreaths and garland decorations.


    Creating A Modern Centerpiece With Classic Holiday Style


    Use a clear glass vase or bowl as a centerpiece and fill it with round glass ornaments. For Christmas, the combination of silver and gold or red and green will be ideal. When paired with the beauty of a simplistic glass holder, the ornaments will add a very modern twist to a very traditional color combination.


    Holiday Decorating Scents


    A nice bowl of fresh fruit, including oranges, tangerines and apples will give a nice welcoming holiday scent to your home. For many, the smell of fresh fruit is reminiscent of the December season as fruit baskets are common gifts that are exchanged during Christmas. You can place the bowl on your dining room table or in the family room, both of which will offer guests the ability to appreciate your style.


    Display Your Christmas Cards


    Take some felt or fabric and create a hanging decorative piece to show off all of the Christmas cards you receive. You can use a small safety pin to attach the cards to the fabric, so that the beauty of the front of the card is seen. This can be hung on a wall, or support post or beam or the railing leading up your stairs.


    Turn Out The Lights

    Turn out your normal overhead lighting each night, light up the tree and burn candles throughout the house for a peaceful and relaxing setting. Watch your favorite Christmas movie, sing carols and just share good times together.

    If you have any questions please feel free to contact me.

    Scott Riddle 239/289-1849

    http://www.naplesrealestateteam.com

    Step-By-Step Guide In Obtaining A Home Loan

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  • Friday, December 16, 2011
  • Step-By-Step Guide In Obtaining A Home Loan


    Now that you've decided to purchase a new home, it's important to know what to expect throughout the loan process. With the right knowledge, the road to home ownership is just ahead.


    Choose A Home


    Some lenders may offer a pre-approval, but others require that you have a specific home chosen before they will discuss loan options. Therefore, the first step to obtaining a home loan is to first select a home. Some sellers may require you to provide an earnest money deposit, which secures the home while you obtain financing and have the necessary inspections completed in order to finalize the purchase.


    Check Your Credit


    Before you even think about applying for a mortgage, it's important to know where you stand from the lender's point of view. Checking your credit report is a good idea for many reasons, but it's an essential step in your journey toward buying a home.


    Every 12 months, you can request a free copy of your credit file from each of the three major credit reporting agencies - Equifax, TransUnion and Experian. Look for inaccuracies, outdated information or anything that requires your attention. If you spot anything, file a dispute right away to get the information corrected. A free credit report does not include your FICO score, which is available from the credit bureaus for a small fee. Most lenders use this number in determining your interest rates and creditworthiness, so it may be a good idea to check it out for yourself first.


    Gather Your Documentation


    When you apply for a loan, you will be asked to provide certain documentation and/or information relating to your current financial status, employment, assets (including both real and personal property) and liabilities. Before meeting with your lender, make sure to have your current paystubs, bank statements, tax returns for the two years preceding your application and information relating to any debts that you currently owe. If you are self-employed, you will also be asked to provide a year-to-date profit/loss statement, which is also known as an income statement.


    Meet With Your Lender


    Now that you have your documentation together, it's time to meet with your lender. At this point, you will complete a mortgage application and submit it for approval. Depending on the lender, it may take anywhere from several hours to several days before learning whether or not you are approved. In most cases, however, a lender can provide you with an answer within 24 hours.


    Last Minute Details


    If your loan is approved, it's time to move forward to the next step in the mortgage process. Your lender will order an appraisal and inspection to be completed on the property. This is just as much for your own protection as it is for the lender because it may reveal hidden problems within the home. The inspection and appraisal can take up to 30 days, at which point the results will be forwarded to the lender. If all goes well, you will close on the loan and get ready to move into your new home.


    If you have any questions please feel free to contact me.


    Scott Riddle 239-289-1849

    Link

    http://www.naplesrealestateteam.com

    Shopping For the Best Home Loan

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  • Wednesday, December 14, 2011
  • Shopping For The Best Home Loan


    Finding the perfect home is a task, but shopping for the best home loan can be even more tedious. With so many lenders promising low rates, closing costs and little or no down payment requirements, it's often difficult to know which way to turn. Luckily, there are several steps that you can take to find the right lender for your individual needs.


    Assess Your Situation


    Do you know what your credit score is? If not, you should. Most lenders rely on this triple digit number to determine both your creditworthiness and interest rates. If you have excellent credit, you can probably work with almost any lender. If you have severe blemishes in your financial past, however, finding the right lender may require a little more footwork.


    How much money do you have for a down payment? If you are on a budget, you will need to choose a lender that can help to get you into a home with a minimal down payment. Knowing where you stand will give you a good idea as to which lender you need to work with.


    Compare Rates


    As is the case with anything in life, it pays to shop wisely. Because a home is the largest investment that most people will ever make, it stands to reason that comparison shopping is a must. As you speak with various lenders, ask about their rates, loan terms, qualification process and down payment requirements.


    Interest rates change often, which means locking in your rates when they are low can save you a bundle of money. Because there are so many lenders competing for your business, you will be greeted with plenty of appealing offers, including low rates, closing costs and down payment requirements.


    Demand The Best


    You are the one buying the home, so you should be the one to choose the length of your loan term. With the exception of a situation where payments are simply unaffordable, it's up to you to decide how long you want to pay for a house. Many homebuyers prefer a longer loan term to keep the payments low, while others want to get the home paid for as quickly as possible with a shorter term. It's important to keep in mind that the longer you pay for a home, the more money you will end up spending in interest.


    It's a good idea to talk to your lender about their willingness to accommodate your needs. If you're in doubt about which lender to choose or are new to the area and need a little guidance, ask your REALTOR® for a referral. He/she knows the business and will be more than happy to assist you in making your dream of home ownership become a reality.


    If you have any questions please feel free to contact me.


    Scott Riddle 239-289-1849

    http://www.naplesrealestateteam.com



    How To Buy A Home With A Low Down Payment

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  • Sunday, December 11, 2011
  • How To Buy A Home With A Low Down Payment


    Purchasing a home with a low down payment is important for a number of reasons, including the buyer's ability to have extra cash left over for closing costs, decorating expenses, upgrades and/or other essentials needed to turn their new house into a home. Thanks to the level of competition between mortgage lenders, it's now easier than ever to buy a home with a low down payment.


    First-Time Homebuyers


    There are a lot of perks to being a first-time homebuyer, including the ability to get in the door with a low down payment. Many lenders will ask for a down payment as low as five percent (three percent for FHA loans) to those looking to purchase their first home.


    A first-time homebuyer is someone who has rented their previous home(s) or has never purchased a house on a permanent foundation. Individuals who have owned manufactured homes may also be eligible for a first-time homebuyer loan, but the final decision is up to each individual lender.


    FHA Loan


    This type of loan is guaranteed by the Federal Housing Authority (FHA) and allows for a smaller down payment than many conventional loans. In addition to offering down payments as low as three percent of the total purchase price, FHA loans often carry lower interest rates and are easier to qualify for. This type of loan is ideal for first-time homebuyers, individuals with past credit problems or even those who wish to purchase a second home.


    Provide Your Land As Collateral


    If you own the land that you intend to build on, many lenders will use the land in place of a down payment. In other words, you build a house on the land that you already own, and the lender gets both if you default. This is why individuals who own land often choose to build, while using the lot in place of a big down payment. In addition, many lenders are more willing to approve a loan if the land is already owned by the buyer.


    Owner Financing


    When a seller lists their home, they have the option of considering owner financing. In this situation, a buyer provides a down payment to the seller and signs an agreement to pay for the home (plus interest) over a preset number of years. Owner financing typically requires a lower down payment, which can be any amount that the buyer and seller agree to. Because there is no bank qualifying and no credit check, a seller can extend the offer on any terms that they wish.


    If you have any questions please feel free to contact me.


    Scott Riddle 239/289-1849


    http://www.naplesrealestateteam.com

    How Much House You Can Afford

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  • Wednesday, December 7, 2011
  • How Much House You Can Afford


    There are a number of factors that can contribute to the affordability of a house and, as a potential homebuyer, it's important that you know what type of mortgage payments are within your budget.


    Debt-To-Income Ratio


    As a homebuyer, your first consideration will be the amount of your monthly mortgage payments. If you owe a lot of debt, lenders may consider you to be a high credit risk, which makes debt-to-income ratio a leading factor in determining how much of a house you can afford.


    Most lenders will discount any loans that you will have paid off within one year when determining how much of a home you can afford. As a general rule, your mortgage payment should not exceed 25-30 percent of your monthly take-home pay.


    Loan Term


    Although you will end up paying more interest in the long run, you will find that you can afford a more expensive house if you request a loan term of 25-30 years, compared to a shorter term of 15 years.


    Interest Rates


    When you look at an interest rate, all you see is a number. Hopefully, it's a single digit that's comparable with current market rates. Most homebuyers already know that their interest rate affects their monthly payment which, in turn, is determined by the borrower's income. Lower interest rates mean that you can afford a larger principal loan amount, which means a more expensive house.


    Credit History


    Because your past credit history will play a large role in determining your interest rates, it will also impact the affordability of a house. For instance, a buyer who pays six percent interest will save a considerable amount of money over a buyer who pays eight percent interest on their home loan. It may not seem like much now but, when averaged over time, the savings could be tremendous.


    Down Payment Amount


    Believe it or not, the amount of your down payment will not only show the lender how serious you are about buying a home, but it will also affect your ability to afford a particular house. For instance, if you were to qualify for a home loan of $200,000, but your dream home was currently listed for $250,000, a down payment in the amount of $50,000 would get you into the home.


    The above scenario is just an example, but it does show how a down payment can affect the price of the home that you are able to afford. Some lenders may only require a five percent down payment, but you are free to pay as much above that as you wish. A larger down payment can also reduce the principal loan amount, which thereby reduces the monthly mortgage payments.


    If you have any questions please fee free to contact me.


    Scott Riddle 239-289-1849

    http://www.naplesrealestateteam.com

    Calculating Your Monthly Mortgage Payments

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  • Monday, December 5, 2011
  • Calculating Your Monthly Mortgage Payments


    One of the most important factors to consider when buying a new home is affordability. As a general rule, mortgage payments should not exceed 25-30 percent of your monthly take-home pay. The best way to know what you can afford is to determine the possible payment range by comparing the price of the home with other essential ingredients.


    Figure Out How Much You Want To Borrow


    Your first step to calculating your monthly mortgage payment is knowing how much you want to borrow. This can be determined by subtracting your down payment amount from the purchase price of the home, which will give you the amount that you will need to request from a lender.


    Know Your Rates


    The next step is to determine the current interest rates for the purchase of a home. Rates vary and may change often, so check with your lender for current rates. It's worth noting that the interest rates you receive will, in part, be based on your credit history. This means that knowing your FICO score and credit rating will give you a good idea as to how your interest rates will be calculated.


    Choose Your Loan Term


    Your monthly mortgage payments will be determined by a number of factors, including the term of your loan. If you were to borrow $250,000, your monthly payments would be less with a 30-year mortgage than with a 15-year mortgage. The reason is because it would take larger monthly payments to get the loan paid off quicker, which is why you will need to select a loan term before calculating your payments.


    Additional Costs To Consider


    Your total mortgage payment will include taxes, homeowner's insurance and possibly even private mortgage insurance (PMI) if you provide less than 20 percent down and your loan requires it.


    Just The Facts & Figures


    Now that you know how much you need to borrow, have chosen your loan term and are familiar with the current interest rates, it's time to calculate your payment. Most lenders offer a mortgage calculator on their Web site or you can get an estimate by speaking with your lender.


    If you still need help in calculating your potential monthly mortgage payments, don't hesitate to ask your REALTOR®, mortgage broker or lender.


    If you have any questions please feel free to contact me.

    Scott Riddle 239-289-1849

    http://www.naplesrealestateteam.com




    Buying a home with past credit issues Financing Advise

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  • Thursday, December 1, 2011
  • The month we are going to be talking about finaincing and how to obtain the best options for your home purchase. With over 13+ years in the mortgage and real estate business I have seen it all. If you have any questions please feel free to contact me.







    Scott Riddle 239-289-1849 http://www.naplesrealestateteam.com







    Buying A Home With Past Credit Problems




    Buying a home can be both exciting and stressful but, for those with past credit problems, the process may also seem intimidating. The good news is that many lenders have adapted to the idea that many hopeful homeowners simply need a second chance, which means that past credit problems no longer have to define your future.




    Credit Blemishes





    When life unexpectedly takes a turn for the worst, it's not always possible to come out without a few bumps and bruises. Every day, people are faced with late or missed credit card payments, mortgage foreclosures, bankruptcy proceedings, auto repossessions and even civil judgments that will affect their credit reports for years to come. Whether it's from a job loss, injury or just a simple case of temporary hardship, credit blemishes are often a part of life. The good news is that they no longer have to prevent you from becoming a homeowner.




    Give Yourself A Little Credit




    After experiencing a credit problem, most lenders will want to see an attempt to rebuild your credit through a steady payment history with a new account. This can be accomplished by applying for a credit card and maintaining a responsible use of the account. If you aren't approved for an unsecured card, you can always apply for a secured credit card. Either will rebuild your credit over time and will help to show lenders that your past credit problems are just that - in the past.





    Clean Up Your Credit Report





    Before applying for a home loan, make sure that you check your credit report from each of the three major credit reporting agencies. Every 12 months, consumers can request a free copy of their credit report from Experian, Equifax and TransUnion. If anything is incorrect or found to be inaccurate, filing a dispute with the credit reporting agency can help to get the information corrected before speaking with a lender.
    When you apply for a home loan, the lender will access your credit report for the purpose of determining your creditworthiness. In an effort to ensure that you have the best possible chance at being approved for the loan at the best possible interest rates, making sure that your credit report is accurate is a must.
    Save Up For A Down Payment
    Some homebuyers often qualify for a mortgage with down payments as low as five percent (three percent for FHA loans), but those with past credit problems may be required to shell out up to 35 percent or more for a down payment on their new home. A buyer who pays a larger down payment obviously has more vested interest in the home and may, thereby, be less likely to default on a loan. If you have past credit problems, check with your lender about specific down payment requirements and start saving!




    Creative Financing Options




    If you've exhausted all of your conventional efforts and are still turning up empty, don't give up just yet. Alternative financing is an option that many homebuyers use to purchase a home. Your REALTOR® can provide you with details regarding any lease purchase and/or owner financing properties, which may require no credit check, no bank qualifying, a low down payment and competitive interest rate options.