Mortgage brokers are utilized by the wholesale lenders as their loan officers. The broker gets a lower rate from the lender and then the broker will add onto that rate his fee. This usually adds up to close to what you would have received if you had gone directly to a mortgage banker unless the lender has added on a high compensation for himself. An advantage of using a mortgage broker is that some of the most highly qualified loan officers in the business work for mortgage brokers. But, this is not always the case because mortgages brokers also tend to hire new brokers who are getting their experience working for the mortgage broker company.

So, there is always a chance that you may get a new broker just entering the business. This could cause you some difficulty if there is something problematic about your property or your financial situation and the new guy hasn’t come across that situation before. Where an experienced mortgage broker probably would know exactly what to do in most situations, an inexperienced one may not. You must be very careful when choosing your broker and try to get an experienced one. Another thing to look out for is the greedy loan officer, and there are unscrupulous characters in the mortgage business just like anywhere else. They may try to put one over on you by charging you a much higher fee for their services than an honest loan officer would. It is very important for you to shop around and be sure to ask about fees and costs of services rendered to you.

Addison Holmes is really into everything about homes, mortgages, loans, and the statistics that come along with them. He wants to show and inform everyone of his wide array of information to help people get the best possible deals, rates, tips, and more. If you are looking for more info, visit bad credit remortgage or remortgage services to find everything else you need to know about these topics.

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Assess your needs

A mortgage broker takes the time to discuss your needs and circumstances with you. This gives the broker the opportunity to determine which type of home loan is most suitable depending on your current needs and financial circumstances.

As part of the process, you will need to provide documents to support your identity and financial situation. This includes a 100 point check list for identification, personal bank statements to demonstrate savings (if applicable), tax returns, pay-slips, any outstanding loans, statements, etc. Your mortgage broker will advise you of the relevant documents that you will need to bring with you to your meeting to facilitate this process.

Once your mortgage broker has a clear understanding of your financial situation and goals, they will discuss the various home loan products available. They will provide you with home loan comparisons and inform you of proposed mortgage repayments and any upfront and ongoing fees.

Find a suitable home loan for your situation

Your mortgage broker will search their database containing hundreds of home loan products from their panel of approved lenders. This will include major banks, smaller banks and other lenders. This database is constantly updated and has details of the latest deals. Sometimes, they can have access to some exclusive mortgage loan products which are not available elsewhere. The mortgage broker will then recommend a product or products, which suit your needs. You should also be provided with a copy of the mortgage lenders comparison rate schedule. Comparison rates include both the interest rate and fees and charges relating to a loan and are a tool to help you identify the true cost of a loan.

Manage the process

If you wish to proceed, the mortgage broker will help you to complete the necessary paperwork and liaise with the lender on your behalf. This will include the completion and submission of your mortgage loan application and the on-going communication between all parties until your home loan is approved and settled. Your Australian mortgage broker is also required to inform you of their complaints process. This is called an Internal Dispute Resolution procedure and all members of the MFAA (Mortgage & Finance Association of Australia), COSL (Credit Ombudsman Service Limited) and BFSO (Banking and Financial Services Ombudsman) have requirements in this regard.

Provide advice at every step

There are many steps in the mortgage loan process and your mortgage consultant will help you from your initial steps, such as getting pre-approval (where your loan is “approved” based on certain conditions such as loan value) right through to possible refinancing at a later stage.

Speak to an experienced mortgage broker in Australia today to find out how they can help you with your home loan. With access to over 800 home loans and mortgage loan products, a mortgage broker will do all the research and recommend a mortgage loan to suit your needs. Visit http://www.intellichoice.com.au for more details.

Article Source: http://EzineArticles.com/?expert=Joo_Dean

Bank Vs Broker

Mortgage Broker Pros:

- Signed up with several banks and most times can offer a better rate than the average bank since they can lock rates with whatever bank is buying the market that particular day.
- Have to disclose all fees to borrowers (including what the bank is paying them on whatever rate they have sold borrower on).
- Now, in most states, brokers have to be licensed to solicit borrowers and to be able to have the title of mortgage broker.

Bank Pros:

- Rates set, no “selling” on their end. Rate is what it is.
- Dealing with one institution instead of having to deal with a go between.
- Process is much more streamlined. Additional fees brokers charge not involved.

Now, my cons list is somewhat based on personal views as well as fact. Take that for what it is worth and know that going in.

Cons:

Mortgage Brokers

- Typically commissioned employees whose income depends on a sale. Thus higher rates might typically be sold.
- Usually given a minimum fees requirement by management where they are unable to downsell rate as much as they should be able to.
- Process not as streamlined, no control over banks turn times, etc
- Do not have final say when it comes to ultimately deciding on a loan (appeal process is not easy)

Banks

- Do not have to disclose all fees
- If working for a federally licensed bank, employees do not have to be licensed to sell mortgages (lack of knowledge, expertise in industry could be questioned).

As you can see, in keeping this brief, there are advantages and disadvantages to both. The end result is ultimately up to you, the consumer, on what you are most comfortable with. Now, with anything, I would recommend doing your own research before jumping into a relationship with any one bank or any one broker. Everyone has a person they can probably recommend. “Use my guy, he’s the best!” While that might be the case, and that might give someone a leg up…still always do your research. Your home is your biggest possession and that should not be taken lightly. You are entrusting your biggest asset to potentially a stranger.

If you would like to find out more information, or get in depth information,

Tim Wheeler has a background in wholesale lending as well as mortgage banking and mortgage brokering. He has been successfully involved with several multi-level marketing (MLM’s) companies and has done reviews on several MLM’s that are out there now. His goals now involve helping people make informed decisions and showing them the right way to make financial decisions. To learn more about what Tim does, please visit: http://backtobusinessbasics.com

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The process of purchasing a home is an exciting experience and can be one of the most important decisions that you will make in your life time. However, it can also be very stressful.

With a little knowledge, finding a new home will be a pleasant experience and you can potentially save a lot of money.

There are certain nuances to home buying which you will not be told by any realtor or seller.  

1. Buy a home for your present needs… not for requirements you may have or think you need 20 years from now… 90% of homeowners move  within 7 years. Shop with your eyes wide open, use your best judgment, and not your emotions. 

2. If the prospective home has a poor look about it (peeling paint etc), a lousy looking front yard, or back yard you can almost bet there has been very little pride in ownership. Therefore, the house is most likely ill-maintained in general. If so, this will be costly in the future. If it does not feel right to you … don’t do it. 

3. If ‘ B ‘ applies … it had better be priced at way less than assessed value … so you can afford to throw 1000’s of dollars at it. 

4. Conversely, if the house and property show a little pride in ownership – e.g. : attractive facade, well looked after exterior, neat yard / landscaping, in general,  the odds are it is a safe bet. Also you will avoid costly discoveries in the future. You can spend your time and money on cosmetics, gardening, etc. and enjoy it on your weekends off rather than fix and repair daily.  

5. Ask or inquire: how old is the house, roof, furnace, appliances etc, are the windows double pane? (if not run away) 

6. Interior:  is it well cared for and clean? What condition are the walls, ceiling, floor coverings, basement walls, bathroom fixtures, etc.  If not to your satisfaction, consider the added cost of repairs.

7. Location, Location, Location. Is the home appealing related to the neighborhood? Is the neighborhood appealing related to that particular home?  Public transportation – shopping – services… do they meet your requirements now and later. Keep in mind ranchers are generally more livable, saleable, and maintainable than two storey homes. Also, their lot sizes are usually larger. Keep an open mind in any case… 

8. Look at a mininum of 10 properties both inside and out. Are your requirements met?  BR’ s,  Baths, Garage, carport, plumbing,  heating, appliances?  

9. Do not max out your borrowing power … you will find the necessity to add 33% to your P.I. monthly for: heat / light / phone / cable / taxes / internet / not counting house and grounds maintenance. Maybe add car payments to the mix also… how about $5,500. for that new roof or furnace?

Take every comment made by your realtor/seller with a grain of salt . He/she is not your personal friend nor mentor, but a salesperson at heart. Conversely , keep your thoughts/comments/opinions among yourselves. It is not a good idea to show your enthusiasm in the presence of agent or seller. You may benefit financially by keeping your cards close to the vest. Do your homework in private and be sure you are both in total agreement before making an offer to purchase.

 Article by Cliff Petrishin

The markets are down and it is the perfect time to buy a house but are you ready to buy a house? There are a lot of factors you need to consider before you take this crucial decision.

 A serious decision

A house is a long term asset and it is a serious decision you have to take as till you get over your long term commitment (i.e. home loan), you cannot sell the house or move out.

Selling costs

Selling a house may seem simpler than buying one but I have heard sellers state that they find it even more troublesome and expensive as there are lots of things like agent fees, transfer fees (The transfer fees to be paid to the Building association is borne 50-50 by the buyer and seller in Mumbai city), packing and moving expenses, etc.

 Consider these points and then decide whether you should really buy the house:

i) Would you be living in the new house for a minimum 3year period?

ii) Do you have a steady employment and a good credit score required for the down payment?

iii) Do you have the down payment, around 10-20% of your house value?

iv) Is this the right time to buy your house? You have to decide this by seeing the prices at the chosen area.

v) Would the house and location be suitable even if you get married, have children, etc.?

 Once you have seriously considered these points, you can come to a conclusion as to whether you should really buy a house.

When you want to buy a house there are certain things you should look for to make sure that you get a good resell value on your investment. We are going to look at the some of the most important things to look for when you decide to buy a house.

Try to buy a house in a good area with a under-landscaped area. You will pay much less for this and you could always improve your landscape over time, fixing the grass and adding a few bushes and trees.

You will also have to determine the size of the house you buy. When you buy a house and deciding on the size, try to look at the other houses in the same neighborhood. Buying a big house in a neighborhood might not be such a good idea as when the time comes to sell, the price could be dragged down by the prices of the other smaller houses in the same neighborhood.

If you decide to buy a house with a good view, try to pay as little extra as possible. Most people usually spend a tremendous amount of money on a home with a view. Though you spend a lot of money on your view, you have to think if future buyers would do the same. By the time you want to resell your house you will maybe looking wait a long time for a buyer to come along. This could also cause you to drop your price a lot just to keep in match with the other houses in the neighborhood.

Also try to buy a house with a rectangular yard. Get a house with a decent front and back yard no- odd shape shaped yards or oddly situated yards.

Try to buy a house with at least three or four bedrooms, as this is the majority of home buyers’ needs. Try to also make sure that you buy a home with two bathrooms or two and a half bathrooms.

Garages also adds a lot to the resell value of your home, so try to at least get a double garage the next time you are looking at a house.

Make sure that there are enough closets in the house and that there are enough closets for linings to.

The kitchen is the most important aspect of the house as the centers around the kitchen. Try to get a big kitchen with a lot of space and modern appliances. Your dinning room should also be near your kitchen. Make sure that there is easy access from your kitchen to your backyard as you occasionally might have a barbecue from time to time and that you can easily get to the kitchen when you want to.

The above factors should guide you in the right way the next time you decide to buy a house to make sure that you get a good resell value.

Buying real estate is not an easy task if you have never done it before. For this reason, many people choose to use realty to guide them in the right direction. However, getting an idea of some unique tips to help you close a deal on a great property can help no matter what your circumstances are.

Whether you plan to live in the house or sell it quickly, you should take the neighborhood into consideration. Driving around the property before you commit to the sale is wise, as you can tell a lot about the other homeowners and renters in the area by how the exterior of homes look. Unkempt yards, older cars parked along the street, and trash spilling onto the street can all be signs that the property is not in the best neighborhood. No one wants to live in an area that does not look nice, which means that you might not be happy there as a homeowner, and any renters you get might feel the same way. Additionally, if you plan to sell it eventually, you might have trouble finding someone to buy it if the area is not very appealing.

For this reason, if all you can afford is an older house that needs some fixing up, try to buy in the nicest neighborhood possible. It does not have to be gated or filled with mansions, but a family-friendly area is often rife with attractive landscaping, green grass, parks, and few overflowing trash cans and parked cars on the street. A house can often be fixed up faster than an entire neighborhood, so you have more control over improving the property than where it sits.

Any real estate transaction should also include a professional inspection of the home. You might be quite observant, but you may not realize that some of the home’s walls are out of plumb, nor might you notice little insulation within the structure. Paying upfront for an inspection can save you from making costly repairs down the road, and it could reduce the sales price for you, as well.

If you want to purchase real estate soon, you likely already realize the big commitment it can be. Like any other large responsibility, you should put plenty of research into the procedure before going through with it. If you have any questions during the process, directing them toward your real estate agent is often a good idea since they are there to help.

As with any new home purchase, the first task is to define what you can afford. This saves a great deal of inconvenience later if you realize what is within your budget. In order to figure this out, meet with a mortgage broker or lender. This defines the pre-approval process. If you are serving as your own general contractor, be sure that the lender also offers “sweat equity” loans so that you can get the best deal. After evaluating your income, your credit, and your debt to income ratio, your lender will be able to give you an answer. Usually within 24 to 48 hours, you will know what your finances allow in terms of affordability. Additional information such as required escrow funds and down payment at closing is also provided most of the time.

Once you have been pre-approved, you will then figure out the exact costs of the project. For most people, it is recommended that they take their pre-approval figure and reduce it by 15 percent. This allows some built-in room for extra expenses along the way. Once you have selected your modular home style, design, and amenities, manufacturing costs will be secure. It will be your task with your builder to specify all the other costs that will be needed to finalize your closing costs form with your lender. These expenses will include excavation and landscaping costs, finishing work after the set, land lot costs, permitting expenses and several others. These are important to know at the beginning so you can hold your builder accountable.

When ready for closing document preparation, your lender will need engineered drawing plans for your modular home, the home’s order sheet with specifications, a complete list of costs from your builder, a legal description of your lot, two years of employment history, and two months of recent bank statements. In addition, the lender will order an appraisal and title search for the property to make sure the appraisal covers the financing and that no liens are attached to the property. These are all standard steps of the financing process.

Depending on your situation, you likely will have a construction loan during the construction period before the actual mortgage loan is closed at completion. A construction loan basically allows you to pay your builder, your subcontractors, the manufacturer, etc. along the way before the final home closing is performed. Did you know the driver upon delivery of your modular home expects payment for the delivered modules? It would be an issue if there were no means to pay him. As work is completed, each vendor will expect payment, and a construction loan makes this easy while the building process proceeds.

Overall, because costs are more secure with modular homes, there are usually less surprises at closing that might otherwise occur with site-built home construction. Likewise, since modular homes are a better investment overall, the chance an appraisal will come in less than the amount financed is also uncommon. Modular homes actually give you the best ability to stay within your budget.

Modular buildings are sectional prefabricated buildings consisting of multiple sections or modules which are factory built. They are manufactured in a factory, which is at a remote place and later shipped to the intended building site. These modules are assembled into a single building with the help of a crane or a truck. The basic material used in constructing single units is steel; however, the buildings are also made up of concrete, bricks and mortar. Modular building is the new trend building used in building construction.

The construction of modular buildings is simpler than the construction of other conventional buildings as no foundation is required. In the construction of modular buildings, the builder first visits the site and supervises the plot where the building has to be erected. Then, with the help of expert architects, floor plans are drawn. The builder then fragments the plan into separate components and each component is constructed individually in the factory.

The modular components are constructed in a large indoor facility on assembly lines. These facilities use assembly line track in order to move the modules from one workstation to other. Independent building inspectors are present on site to supervise the construction and ensure that the building rules are adhered to throughout the assembling of all the modules. Once all the modules are assembled, they are indistinguishable from typical built homes.

Modular buildings are broadly classified into two types, which are again subdivided into number of categories. They are:

1. Residential Buildings: These are buildings used for residential purposes. They were first developed as low cost and speedy accommodation for military personnel during Second World War. Till today, the modular buildings manufactured are majority for housing purpose.

2. Commercial Buildings: These are used for commercial purposes like shops, offices, businesses, etc. This use of modular buildings is growing rapidly.

The buildings have a wide range of uses like camps, schools, classrooms, civil and military housing requirements, churches, health care facilities, supermarkets, sales and retail offices, fast food restaurants, ship construction, offices, etc. They can be used for either temporary or permanent facilities, and also they are the perfect solution in remote and rural areas where conventional construction is not possible.

The modular technology was primarily invented for single room buildings like telephone booths, ticket counters, security outposts, check posts, etc. After the success of these single room buildings, this technology got extended to larger buildings. There are many advantages of opting for modular buildings which are as follows:

It is very cost effective and affordable in comparison to other constructions. When these buildings are done well, the efficiency of the manufacturer is converted into a better product at a very low cost.

They are a great amalgamation of factory-production techniques, engineering know-how and design.

These buildings are built efficiently and with a greater quality control.

From the year 2000, the demand for modular buildings has increased by 35%. According to a recent study carried on by National Association of Home Builders whose members are primarily stick builders, many Americans today are considering taking advantage of the modular buildings because of its lower cost and higher quality.

I bought 5 wooded and hilly acres of land three years ago with the intention of having a house built on it. I was clearing the trees by hand for the driveway, building site and septic system drain field. This gave me a year to investigate the costs, types of construction, contractors and other things that I would need before getting to the construction stage of the project. This article is a summary of the things I learned during that year that led me to the decision to build a modular home.

I was unsure whether I was going to have a house built on site or have a modular home set in pieces on the foundation.

The first two obstacles to a modular home were: modular homes may not be allowed in my city and was it possible to get a modular home to this building site. If not, the decision was made for me. After checking with the local building inspectors, I found out that modular homes are allowed in this area. Next I contacted three different modular home builders in my area and had them visit my building site to find out if a modular home could be delivered to this site and if so, what was the largest size that could be delivered. From them, I learned that it was possible to deliver a home to this site and the maximum size that could be delivered.

Now I had to decide the method of construction. Initially, I had concerns about modular homes when it came to financing, quality and looks. First I checked with lenders in my area and found that I would be able to finance a modular home in the same fashion as a site built home. Next I needed to learn more about the quality and look of modular homes. I guess I had heard all the stories about them being glorified trailers. After looking at homes built by about 10 different modular home builders, I found that my concerns were warranted with a couple of builders, but not most.

In the end, I chose to go with a modular home. Here are the reasons why:

1. Quality and cost – most modular home builders offer a quality home with built in efficiencies. The home meets local building codes; has 2″ x 6″ exterior walls; uses sheets of flooring material larger than is possible on a site built home (meaning fewer seams); has numerous quality checks throughout the building process; walls are glued, screwed and strapped; interior walls are made with 5/8″ sheetrock; a variety of options for the exterior of the home; and the home is very well insulated. After two years in the home, my utility bills are about the same as my condo which was 30% smaller and surrounded by other units on two sides.

2. Customization – I learned that you can customize your modular home just as with a site built home. You can either choose an available floor plan or customize them for the cost of the engineering fees. I went with the mirror image of an available floor plan.

3. Fewer contractors to manage. Since I was acting as the general contractor, I was concerned with the time to get bids, check out the work of contractors as well as schedule all the necessary work. By choosing to build a modular home, I would only need an excavation company to build our driveway and dig the hole for our basement, a surveyor to layout the site for the foundation, someone to pour the foundation and do the flatwork, a plumber and an electrician.

4. Speed of construction. My modular home was going to be built so fast (2 weeks) that I had to have all of my contractors chosen and scheduled when I placed the order for the home.

5. Cost – Due to the efficiencies of building modular homes there is a cost savings involved. It is hard to give a percentage savings. This would vary depending on the costs which are the same no matter how the house is built. There are many costs that are the same with either a modular or site built home – land, foundation, utilities to home, driveway, sewage hookup or septic system. With this said, there was definitely a cost savings for me to go with a modular home. I needed this savings, because my building site required extensive excavation costs to cross two creeks and modify the grade of a hill with 75 dump truck loads of rock.

After living in the home for two years, I feel I made the right decision. My wife and I are enjoying our house tucked back in the woods and have had only one issue with the home. Shortly after moving into the home there was a plumbing leak. We had a local plumber fix the problem and our builder quickly reimbursed us for the repair.