Do Mortgage Principle Reductions Really Occur? Part Two

There are 5 things to consider when purchasing a property as a first time home buyer. Before picking out your dream home, you need to know a bit about the mortgage process. The difference between qualifying for your first time home buyers loan, and not meeting just one of the qualifications, could leave you disappointed. However, there are different programs available to help you with your first home purchase.

If you have personal financial guru, you may want to ask his recommendation as well. Realtors and people in the property industry are familiar with one another and these people can give you information as to who is the best. They know each other by their reputation and will give you recommendations from which you can choose from. If possible give these people an idea of the kind of Ravenwood London you are looking for and look for a recommendation from them.

Many buyers will rush to the bank once they have bought the house. They will do this to ensure that they can qualify for a mortgage, thus allowing them to buy the house. If they cannot qualify, the deal is off and the seller will need to find a new buyer. Having the buyer assume the seller’s Mortgage broker can solve this problem.

If they are listed on the State’s Web site, it may also list how long the broker has been licensed (you should do business with them only if they have been in business for a minimum of two years), how many loans they have closed in the previous year, how many employees they have, and if they have had any consumer complaints made against them, administrative fines levied or regulatory orders (such as “cease and desist” orders) placed on them, any of their employees or broker. Be sure to search under the individual broker or loan officer’s name, keeping in mind that some states do not license loan officers so that person may not be listed. Checking with the Better Business Bureau may give you some additional information but in my experience most mortgage brokers and lenders are not members of the BBB.

But he/ she helps you in negotiating with the lender about the loan in an efficient way. He is an expert at negotiations. He knows what the best deals are for your current credit rating. If you are a first time mortgage buyer and do not know the basics of mortgage, it is wise to get a broker to help you out. He makes sure you get the deal that is beneficial for you.

Mortgage brokers work on the basis of commission. They don’t charge anything from the borrowers or their clients. Yet, they are paid by the lenders or banks. As being professionals in the market, the broker works like an agent for the lender. They are hired by lenders to sell their mortgage products to the borrowers. That is why they are not paid by the borrowers; instead they receive money from the lenders. Brokers decide themselves for the charges they are going to earn from the lender. They basically earn from loan origination fee, processing fee or yield spread premium. In some cases, they might charge from the borrowers.

Start A Business – Starting a business and taking the cash flow from that business will help you pay off your mortgage faster that any other method. The average home based business made around $62,000.00 per year according to the Small Business Association. Lets just say you only bring in $30,000 part-time. If you just add $1000.00 extra per month to your mortgage from your business… you will pay off your mortgage in 13 years (based on a $300,000 loan amount and 7.5% interest rate). Plus with the home based business you will have expenses to write off and you may your tax advantages will increase greatly. Consult your tax advisor how well you will benefit.


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