Mortgage it all-stars: Here’s a look at some top technologists who have made a difference in the mortgage business. : An article from: Mortgage Banking

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This digital document is an article from Mortgage Banking, published by Mortgage Bankers Association of America on March 1, 2002. The length of the article is 4519 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available in your Amazon.com Digital Locker immediately after purchase. You can view it with any web browser.

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Title: Mortgage … More >>

Mortgage it all-stars: Here’s a look at some top technologists who have made a difference in the mortgage business. : An article from: Mortgage Banking

Mortgage it all-stars: Here’s a look at some top technologists who have made a difference in the mortgage business. : An article from: Mortgage Banking

Product Description
This digital document is an article from Mortgage Banking, published by Mortgage Bankers Association of America on March 1, 2002. The length of the article is 4519 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available in your Amazon.com Digital Locker immediately after purchase. You can view it with any web browser.

Citation Details
Title: Mortgage … More >>

Mortgage it all-stars: Here’s a look at some top technologists who have made a difference in the mortgage business. : An article from: Mortgage Banking

What to Look for when Choosing a Mortgage Lender

There are many things that you are going to have to look for when you are choosing a mortgage lender. It is going to be very important for you to find the right lender, because the right lender will translate into the right loan for you. For many people it is going to be important for you to make sure that you have the right loan, because it is vital that the loan is going to be something you can count on for the rest of your life. Therefore, you need to be sure to have the right loan, and, along with that, the right lender.

There are also several things that you are going to want to look for in a lender, so be sure that you are focusing on the most important aspects of the lending process. Finding a good lender is never something that you should rush, so you want to be sure that you can do all that you can to take your time. If you are trying to find a lender in a hurry, chances are always good that you might end up messing up and picking the wrong type of lender. This will lead to you having problems with the loan that you end up getting, so take your time, no matter what!

Good History and Reputation

The first thing that you want to look for in a lender is history. It is going to be important for you to choose a lender that has been around a long time, especially with tricky market conditions today. A newer lender might not be able to provide you with what you need, and they might not have the experience that it takes to be sure you get the best loan for you. Therefore, you might be stuck with a bad lender if you choose someone who has been around for only a few years. Try to choose a lender that has a long history, because they’ll be better able to get you what you want when it comes to loans.

However, there is something that is equally important as history, and this is important today with all of the crises that affect lenders. Just as important as history is a good reputation. You need to make sure that your lender has a great reputation, meaning that they are good at what they do and they have been good at it for some time. Stay away from lenders who have made poor financial decision in the past, or lenders who look like they might be in a bank situation that is not going to last very long, even if those lenders have been around a long time. Do some checking into the stability of the lender and make sure that you are choosing those that are very stable and that will be there for the long haul.

People Say Good Things

Next, you are going to want to be sure that you are picking a lender about which people are saying good things. Do some listening to your friends and family members who have gone with a certain lender and make sure that you are hearing good things before you go with that particular lender. Stay away from any lender that you hear bad things about, unless you know that the things you are hearing are faulty. It is a trick time to borrow money today, so you want to be sure that your loan is not made any worse by lenders that might have problems.

Friendly and Accommodating

You also want to be sure that the lender you choose is friendly and accommodating to you. This is very important because you might have various situations that you need a lender to focus on, and they should be willing to work with you. Be sure that they are friendly and that they make you feel good when you meet with them. Also, be sure that they are willing to work with you and with any problems that you might have.

Have Lots to Offer

Lastly, find a lender that has lots to offer to you. Focus on the different types of loans that they have available, and on what you might consider getting from that lender. Because you never know how your credit will work out, you want to go with a lender who looks like they will have lots of options, especially for you if you aren’t going to be the typical borrower.

Sandy Darson is a freelance writer who writes about topics and financial products pertaining to the mortgage industry such a fixed mortgage available from a mortgage lender.

What Do Mortgage Lenders Look at When Assessing an Application?

Applying for a mortgage can often seem to be a complicated process, and in many cases, the mortgage lenders themselves do nothing to dispel the mystique. The folklore and legend which has built up over the years is quite astounding, ranging from rumours that having a home telephone number scores more points than a clean payment history, to those who maintain that you can tell whether the loan will be granted or not by the colour of the application form used. Whilst there might have been an element of truth in some of these legends years ago, they have very little to do with the decision making process today. Nowadays, when you apply for a mortgage, the lender will assess three distinct aspects as follows:

Security

Quite simply, the security is the value of the property less the amount of the mortgage required. This is also referred to as the equity in the property, and the greater this amount is, the more likely it is that the lender will be willing to grant the loan. A large amount of equity could also result in a lower rate of interest being payable.

Mortgage lenders will place a different emphasis on the amount of the equity in a property, depending on whether prices are rising or falling. In a rising market, the value of the equity is increasing, and therefore a lender can accept applications where the amount of the mortgage is the same or only slightly less than the value of property. When house prices are falling, lenders will insist on their being a much bigger difference between the value of the house and the amount they will lend, resulting in a large deposit being required. Currently, there are one or two lenders who will lend up to 90% of the value of a property, but only the best applicants are accepted, and the interest rates are very expensive indeed. A 15% deposit will be required to benefit from any real choice, with a 25% deposit being required to qualify for the best rates available.

Ability to pay

Assessing an applicant’s ability to pay is no more complicated than subtracting what they spend from what they earn. The difficulty lenders face is in being able to do this accurately. Establishing what an applicant earns is reasonably straightforward, and many lenders will rely on copies of pay slips etc, accompanied sometimes by a telephone call or letter to the applicant’s employer. In the not too distant past there were schemes referred to as self cert or self certification, whereby an applicant with enough equity or a large deposit could simply state what they earned, and be excused the trouble of having to provide proof. Unfortunately, there have been too many instances where applicants inflated their earnings, and such schemes are now few and far between, and only available to those who have a genuine reason for not being able to formally prove what they earn, such as some self employed people.

Proving spending can be trickier, and this is where a good mortgage broker can be invaluable. All lenders will deduct the annual cost of servicing other debt such as loans and credit cards from income before they assess affordability, but they don’t all deduct the same amount. Whilst most lenders will deduct 3% per month for credit card balances, there are still some lenders who deduct 5%. For someone with a credit card balance of £10,000, this could result in a difference of up to £12,000 in the maximum loan available. A good mortgage broker will also know which lenders can take alternative sources of income, and this can make a significant difference to the maximum loan available. For instance, whilst most lenders only consider earned income for mortgage applications, there is one very large lender who will allow both Working Tax Credit and Child Tax Credit to be counted, and will even gross these amounts up, pretending that tax had been deducted before receipt.

Establishing a true figure for an applicants living expenses can prove difficult however, and most lenders now accept that outgoings are generally underestimated by the applicant. This has led all lenders to adopt a set of expenditure figures derived from their own surveys, so that they can have confidence in the figures being used to quantify the applicant’s affordability. Assessing applications in this way ensures as far as possible that the lenders do not grant loans to those who cannot afford them. Whilst a loan may be affordable and can be demonstrated as such, using expenditure obtained from census in this way can often means that application are declined.

In assessing ability to pay, lenders will also look at not only the level of income, but the likelihood that it will continue into the future. Therefore, an applicant who has had a stable employment history will be more attractive than one who has switched jobs frequently, or has recently taken up their position. The frequency with which an applicant has changed address in the past will also be taken into account.

Willingness to pay

Lenders are keen to ensure that they only grant mortgages to those who will be committed to keeping up with their repayments. To assess this, they will look at current and past credit commitments, and whether payments were made in full and on time. In times gone by a good number of lenders would ignore the odd credit hiccup, such as a missed payment for a mobile phone or catalogue, but now lenders are less likely to accept any form of past problem, and it is only those with a good credit profile that will be accepted where the lenders only have limited funds to lend.

In years gone by, an applicant who scored high in two of the three areas of assessment would have been an acceptable risk, but this has now changed with lenders requiring a suitably high credit score in all three areas before accepting an application for a mortgage. The few schemes which still exist for those who have a chequered credit history or complicated income are very specialised, and most are only available via suitably authorised brokers. For those who do not have equity in there property or a deposit, there are currently no mortgage schemes currently available, specialised or otherwise.

Co-founded in 1999 by Jerry Figueroa-Lee and now one of the UK’s leading on-line Mortgage Advisory Services, The Mortgage Warehouse specializes in providing independent, impartial advice on Equity Release Mortgages and Mortgage Rates from the whole UK mortgage market.

How To Make Yourself Look An Attractive Prospect To Mortgage Lenders

You may have heard about the massive rise in interest from potential first time buyers and homeowners looking to move home. With house prices falling and interest rates at historic lows the two combined has resulted in a huge rise in enquiries to estate agents.

The latest mortgage information in the news is despite increased demand in the mortgage market unfortunately supply still isn’t there. Mortgage lending in 2008 was at its lowest level since the 1970’s despite the pressure from the government to increase lending.

What can I do to get a mortgage?

As lenders are reluctant to lend the best course of action is to make yourself look like an attractive prospect. Understandably lenders don’t want to offer mortgages they deem unable to afford repayments.

The first thing you should do is run a credit check; there are three credit scoring companies in the UK used by the mortgage lenders. You can ask them for a copy of your credit file. Ensure there is nothing on your credit file that shouldn’t be there. If there is get in touch with the company concerned and ask them to remove it, they are obliged to.

Once your credit file is free from defaults and in good shape you’re ready to start your property search. You can first of all find a property you want to but or get an estimate for the price of the type of property you wish to buy to allow you to find out the mortgages and rates available to you.

Once you get to this stage whether you actively want to buy a home now or just see what is available to you, using a mortgage broker is hugely beneficial.

They can provide expert mortgage information on the market and what is likely to suit your circumstances. Many offer their services for free so there is no obligation to make an appointment.

The issue that is hardest for borrowers to overcome is the size of the deposit needed. Eighteen months ago you could get a mortgage with no deposit, now you need at least 10% and more realistically 25% is the normal.

Chris Borthwick writes articles covering a broad range of subjects. His main area of expertise is mortgage advice and writes many articles on mortgages for finance industry, mortgage brokers and for the general public.

A Look at Mortgage Refinancing

Mortgage loan refinancing is simply obtaining a new mortgage loan to pay off your old mortgage and get new rates. There are a number of reasons why people choose mortgage refinancing. One is to get lower rates, to build home equity faster, or to change their type of loan.


Changing Loan Types

For instance, for those who are enjoying a profitable source of income, they might be able to afford higher rates with shorter payment terms. These people opt for mortgage refinancing to get a new loan with shorter terms of payment. This way, they can pay off their mortgage loan sooner.


On the other hand, those who have existing mortgage loans with adjustable rates may find that they are actually paying for higher rates because of the current trend in the market. They may feel that adjustable mortgage rates are too unpredictable as the rates increase higher with each passing year. Thus, they might seek mortgage refinancing in order to change their type of loan to a fixed rate type of mortgage. Since the interest of fixed rate mortgage loans are not affected with the trend in the market, they might prefer this type of loan over adjustable rate loans which they initially thought were great.


A New and Improved Credit

People who have increased their credit rating will also more likely apply for mortgage refinancing in order to get better rates. These people may have not been able to obtain lower rates before because of their bad credit history. However, as time passes, they have been able to increase their credit rating and now they can be qualified for loans with lower rates.


Are You Going to Refinance Your Loan?

Whatever your reason may be for mortgage refinancing, it is wise to weigh your options carefully before applying for mortgage refinancing. For example, are you going to stay in that house or do your have plans to sell it? How many years do you have left before your present mortgage loan ends? If you only have a few years left before your existing mortgage loan ends, then starting on another loan will not be a practical move.


Remember, when you apply for mortgage loan refinancing, you will be going through the same processes you went through when your first applied for a mortgage loan. Thus, before you decide on mortgage refinancing, think about all the details involved very carefully.


Refinancing Your Home

If you’ve already decided on mortgage refinancing, it is recommended to inquire with your present lender regarding the possible rates that they offer you. The lending company of your existing mortgage loan will likely give you better rates especially if you have been a good payer with the loan you previously obtained. They wouldn’t want to lose a great client like you.


However, it is also a good idea to inquire from other lending companies when it comes to rates and charges. You might be already familiar with the rates and terms of mortgage loans. Just remember to compare not just the rate of interest but all the other fees involved as well. Lastly, make sure that you understand the new terms on your new mortgage loan before signing up the contract.

Liz Roberts is a freelance writer and loan consultant. The website http://www.badcreditresources.com offers resources that specialize in providing bad credit payday loans and bad credit cards to people with bad credit score.

Reverse Mortgages – What to Look for in a Reverse Mortgage Lender

If you have decided to get a reverse mortgage on your home the next big decision you will have to make is how to choose the right reverse mortgage lender. There are many out there to choose from, but how do you know which ones are the best. Keep reading this article to uncover some great tips on how to choose the right reverse mortgage lender that will meet your needs.

The most common type of reverse mortgage is the HECM which stands for the Home Equity Conversion Mortgage. This is the only reverse mortgage that is insured by the federal government. They are insured by the FHA which tells the HECM reverse mortgage lenders how much they can lend you. This decision is based on your age and your home value.

Another type of reverse mortgage lender can be a state funded lender. The cash received from these reverse mortgage lenders will usually have stipulations on how you can spend the money. The money will be given to you in one lump sum but it must be spent for home improvement, to pay taxes or some other pre-approved expense.

Proprietary reverse mortgages are offered by banks or lending institutions. The money received from these types of lenders is able to be used in any way that you want. But proprietary reverse mortgages are usually the most expensive. If you live in a higher value home, you may be able to get more money from a proprietary lender. However, it’s important that you always compare the advantages of a proprietary reverse mortgage and a more traditional of a HECM.

When you begin your search for a reverse mortgage lender, do so with caution. There are many good mortgage lenders out there but there are some dishonest ones also. Always check out a reverse mortgage lender thoroughly before you agree to anything.

Another option would be to enlist the aid of a reverse mortgage lender association. Do a search on the Internet and you can find a few associations that will aid you in finding a reputable reverse mortgage lender in your area of the country.

Read through the AARP website for a lot of great advice on reverse mortgages. AARP has several pages devoted to reverse mortgages. This site also has a free downloadable eBook that explains the whole reverse mortgage process in easy to understand language.

If you are worried about how you are going to be able to stay in your home, consider getting a reverse mortgage. You will make no payments on the mortgage during your lifetime or while you still live in your home. You will be able to get the cash to create a cushion to fall back on in case of medical bills or home repairs. Do some research and find a great reverse mortgage lender today.

By the way, you can find out more Reverse Mortgage Lender as well as much more information on everything to do with reverse mortgages at http://www.ReverseMortgagesA-Z.com