Obtaining a mortgage for 100% of the purchase price of a home is much more common today than a few years ago since most people don’t have a bunch of money to put down. Also, in many cases the buyer will finance in the closing costs. And while every lender has somewhat different credit requirements, following are the basic requirements.

• A middle credit score (of the 3 bureaus) of 600. Most lenders recently bumped up the score requirement from 580 to 600. There are however, still a few lenders that will do 100% for a mid score of 580. Also, in most cases you must have at least 2 credit scores. If you only have 2, use the lower of the 2.
• No late rent payments for the last 12 months. The definition of late is 30 days late. As to proof of this, most lenders fall into 1 of 3 categories. 1) Copies of canceled checks, 2) A letter from a landlord and 3) A few don’t even check.
• Time since a Bankruptcy varies all over the board. Some will do 100% if you are only 1 day out. Some want at least 2 years.
• Time since a foreclosure of 3 years. This is true with nearly everyone. One more note on foreclosures. Many lenders call a mortgage with a 120-day late a foreclosure even if it wasn’t actually foreclosed on. Sorry, don’t shoot the messenger.
• A maximum debt to income (or DTI) ratio of 50% and for some lenders 55%. A DTI is calculated by dividing all monthly debt payments including the proposed mortgage with taxes and insurance by your monthly gross income. With many lenders, if you have a mid score of 640, you can “state” (don’t have to prove, within reason) your income. The rate is higher but it can get you over a DTI problem.
• Other – For people with No credit scores and scores below 580, there is still hope. Actually this could turn out to be the best deal ever if you qualify. This involves mostly government (FHA, VA, etc.) loans although there are a couple of non-government programs that do 100% with no scores. While there is a good bit more work needed by you and your broker, these programs can be wonderful. For example, I have helped many people obtain 100% financing with these programs with 30 year fixed rates of 6.75 to 7% and a little mortgage insurance, versus 9%+ on other 100% loans. The key is to have 4 trade lines, which usually don’t show on your credit (rent, utilities, insurance, cell phone, etc.) that have been on time (again, not 30 days late) the last 1 year. You also can’t have any collections, (Some programs will make an exception for medical.) judgments or bankruptcies in the last 2 years.

Well, there you have it. One last note, if your score is below 580 and you don’t qualify for the government programs I covered above, find a broker or credit reporting service that will analyze your credit to see what you can do to quickly raise your credit score. Beware of all the quick fix credit repair services out there. Improving your credit score can sometimes be tricky but doable. For example, paying off an old collection can actually bring your score DOWN! I know this is hard to believe, but I have seen it.

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Ron Stone is a Mortgage Loan Originator specializing in helping people with less than perfect credit to obtain a mortgage. He works in the states of Alabama and Florida. To learn more about the great Alabama Mortgage programs (he has similar programs for Florida), visit him at http://www.alabama-mortgage-specialists.com

Lower home insurance rates aren’t as difficult to find as they were in the past. The reason is several companies have come up with different types of policies that suit the needs of potential customers. free house insurance quotes Before applying for home policies, a purchaser needs to research the various home insurance policies and benefits.

The insurance for the home comes in two parts. Homes may not be covered against all disasters or accidents by all plans. Alternate plans may cover possessions within the house and damages to them. There are policies for homeowners and for renters. As a result, people should select and review which plan they believe will be most beneficial to them.

Apart from this, there are certain factors that determine the premium rate and coverage amount of every home policy. If individuals study these factors and implement them, they can get their policy at a reduced cost from any insurer. those factor are discussed below home insurance quotes cheap.

Insurance companies can offer affordable home insurance premium plans in regions having low crime rate, accessible transportation and close to amenities like hospitals, schools and shopping centers.

Next, while searching for bargains, individuals should check after security features on the home. For security, you need to have at least two bolts, so you should use a five-lever lock for all outer doors and windows. Installing reputable security systems can help to keep your rates low. The reason is, these types of homes are less likely to be robbed, decreasing insurer’s concerns regarding claims.

Companies also look for fire alarms when considering the house of a potential buyer. If people have installed fire alarms in their houses, it averts damage to home and prevents casualty.

The other most important factor that firms see is, whether the house is new or old. If people want to insure their newly bought homes, they may get the best home coverage deals. Insuring your older home may require renovations to get a better rate. The only reason why it is essential to repair ones home is because otherwise it is likely to collapse or have a short circuit. (older type of cables), etc.

Yet another variable that affects insurance premiums is self-chosen excess. Companies offer affordable insurance deals, if people are willing to pay half of the claim in case of certain damages that occur to houses. For example, if the the damage adds up to $100, then the person will be responsible for half, which is $50. The insurer will be paying the other $50.

Locating a good insurance deal for home insurance is a balancing act between need and price. What it means is it may not render any or enough benefits.  Just because it is a lower premium policy it may not be any good to you in the end.

So, when enrolling in a homeowners insurance plan, customers should be sure the policies they select are reasonably priced as well as offering good benefits. The simplest way to accomplish this is to compare the quotes from several companies. The useful resources that are found below will help you to begin immediately. Help on the cheapest home insurance quote.

Many home buyers and real estate investors have been prompted by steadily increasing interest rates to be more aggressive in their hunt for bargain homes. Competition for the best-priced and most attractive homes has only increased in most real estate markets and because of that intensity, foreclosures are drawing more and more interest from prospective home buyers and investors.

While foreclosures certainly offer some financial benefits, there are also risks involved, as you might expect. Not every foreclosure is the same and while the interest in them is growing, you need to be aware of what to look for when evaluating whether or not a foreclosure opportunist is right for you. Here are some things to look for.

Pre-Foreclosures

Pre-foreclosure properties can offer an attractive investment or home purchase opportunity to those willing to work for it. There exists a period of time in between when a home owner is notified that their loan is in default and when the bank actually seizes the home to put it on the market to recoup expenses. During that period of time, it is possible to purchase the home and satisfy financing requirements on it.

There are two negatives at play when going the pre-foreclosure rate and both discourage a majority of the potential investors that contemplate the pre-foreclosure route. One is the extremely brief period of time available to complete a deal. The period of time is regulated by individual states and usually consists of a couple months.

The other discouraging aspect is the necessity to deal with a home owner that is probably embarrassed by the foreclosure and may not even be aware that such information is made public. Knocking on a door or picking up a phone to contact someone that may not even be aware of pre-foreclosure purchases can be a difficult thing to do.

The Risky World Of Auctions

The best advice for those pondering auctions as a way to get in on foreclosed property is to simple not get involved at all. The risks are immense when dealing with a bank-run auction as you will most likely not have seen the house, have no way to protect yourself against title problems should they exist and must pay in cash.

That collection of traits discourages most investors and rightfully so. There is simply too much uncertainty when dealing with auctions to know for sure that the low sticker price is necessarily worth the hassle of going through title clean up issues and scraping together the cash for a purchase.

Foreclosed Homes

As the final step on a bank’s path of foreclosure, the home is put up for sale on the real estate market, though often for at least close to its market value. Because a home has traveled through a variety of steps and banks are in no hurry to lose money on any loan, savings are often slim on foreclosed properties that make it to this step.

However, there are certainly positives. Most likely there will be at least some kind of discount off of the market price of a property, albeit slim and deals are much easier to put together. Real estate transactions more closely follow the format of common real estate transactions and offer similar protections.

So, as you go through the process of deciding to get involved with foreclosed property, make an effort to decide which step of the process you want to target. There are opportunities all along the path of foreclosed properties, but each step has its own pros and cons that must be weighed against potential benefits. Having a clear plan will save you headaches later as you complete the purchase.

Published by Joe and Colleen Lane, Realtors®. The Lane Real Estate Team services Tri City Wa Real Estate, Kennewick Wa Real Estate, Pasco Wa Real Estate, Richland Wa Real Estate, and surrounding Southeastern Washington Communities. Here is more information : www.joelane.com/

There are few more emotive issues than the estimated value of your own property.

Anyone who has been or is intending to remortgage in the foreseeable future will be aware that an independent valuation will need to be completed in most cases. In the current property market, this can be a harrowing and eye opening experience. It has become increasingly evident that property valuers have been taking a very lean view of the UK property market and this has significant implications for seller, purchasers, remortgagers and, most importantly, mortgage brokers and IFAs.

According to London-based data services company Hometrack, which delivers a good indication of a property’s value, house prices fell for 18 consecutive months up to December last year, when the average house price in the UK climbed just 0.1 per cent.

For most areas, last year provided the poorest house price growth – if any – in more than a decade. There is no doubt that 18 months of average values falling, or at the very least the speed of growth falling dramatically, have diminished homeowner equity levels and dented consumer confidence. Hometrack’s national average house price in December was measured at £160,900, down 1.6 per cent from £163,474 in December 2004.

Glut

From a seller’s perspective, the messages are simple: supply outweighs demand and it is a buyer’s market. In the first quarter of last year, the number of properties available soared by more than 30 per cent.

During last year, the length of time it took to sell a house grew by more than 20 per cent to eight weeks. In 2004, it took and average of 6.5 weeks from listing to confirmed sale. Importantly, the sale price as a percentage of asking price was down to 93.5 per cent last year, endorsing the point that buyers exercised significant bargaining leverage over sellers and negotiated large discounts.

In real terms, a seller who lists his property for sale at last year’s national average of £160,900 will, on average, achieve an agreed sale price or £150,441 and have to wait on an agonising two months to seal the deal.

Even at this price it is a bridge too far for most first-time buyers looking to get their toe in the property market. But there is some light at the end of the tunnel. First time buyers accounted for 11 per cent of total buyers in the third quarter of last year, according to the National Association of Estate Agents. This was up from 7.7 per cent in August. Brokers should be mindful of the important market sector in their marketing plans, and a further interest rate cut in the first quarter of 2006 could really kick start the property market.

Remortgage

From a remortgage perspective, the implications are significant and a conservative valuation can conspire to make the professional mortgage broker or IFA look a bit silly.

Brokers and lenders witnessed and unprecedented level of down valuations last year – where the property valuation is significantly less than the customer’s initial estimate. Most lenders require a valuation to be completed on remortgage applications, particularly where the loan-to-value ration is more than 70 per cent. The major issue facing mortgage brokers is taking a customer’s estimate of their perceived property value on face value, as invariably it will be on the high side. This is where the fun begins.

Let us visit the sale process of a typical mortgage broker. You spend a good few hours completing a fact find, issuing an independent disclosure document and building the confidence of your client in your ability as a professionally-qualified, Certificate in Mortgage Advice and Practice-endorsed, FSA-registered adviser.

You tell your client that you have more than 4000 mortgage products to choose from and you will find him one that fits his need exactly. A key cornerstone of the selection is the LTV ratio and this is based on the customer’s estimate of his property’s value.

This estimate will be based on a few things: knowledge of other properties that have sold recently in his street or neighbourhood, the press and a large dose of gut feel.

Clearly many clients will have an over-inflated view of what their property is truly worth; it is an emotive issue and one that can really bite the adviser. Imagine then you have taken all the details required on the fact find, you have sourced a deal, it is tight on equity – but based on what you know and have been told, the deal fits.

The valuation rains on your parade as it comes in much lower than expected – lower than the customer’s rose-tinted estimate, lower than the flowery estimate given by the local real estate agent.

Now meet the independent valuer. Independent valuers are a cautious lot, and the subject of much cursing and blaspheming.

From a mortgage broker perspective, however, remember one thing. As far as a customer is concerned, you sent that valuer to value their property, you are the focal point of their mortgage transaction – indeed you are the expert. So when the valuation comes back well below expectations it is you, the broker, that will be left to deal with the problem.

This can create several problems. First, the deal that you diligently sourced from your 4000 choices may no longer fit the lender profile. Second, you need to explain to the client that his net asset position is not as good as he had thought. Third, you will be left to resurrect a new deal without much credibility left.

Some may think it is possible to get a valuer to change his mind. This happens about as often as the moon is blue. In fact, it happens about as often as often as a valuer gives a higher valuation than a customer’s estimate.

Remember a valuer will need to substantiate his figure with comparable – and recent – local sales, which is usually tough to argue with.

Even arranging finance for a new build can be fraught with danger. One such case recently saw a mortgage arranged for a new build. The customer had negotiated a discount from the builder’s original asking price and, by definition, set a market price for the new property.

Imagine explaining to the customer that the deal he had got on his property was not as good as he thought because a licensed valuation down graded the new purchase by £15,000. This resulted in the deal not fitting the lender criteria and a distressed customer at loggerheads with the builder. The builder was happy to back out of the deal and sell the property to another customer, happy in the knowledge that the chances of the same valuer turning up were remote. The consequence was a very unhappy customer and a very traumatic process for all involved, including the mortgage broker.

So what do we do in these downward trend times? Hometrack estimates that property prices this year will rise just 1 per cent, citing affordability as the major barrier to entry for buyers. Halifax is a little more optimistic, predicting a 3 per cent rise. Either way, the head days of double digit growth of past years are gone. It really is a challenge as a professional mortgage broker to tread the tightrope between realistic property valuations and a disappointment.

POSITIVE

There are, however, positive signs on the horizon for the property market. First-time buyer activity has increased, usually a precursor for renewed vigour in the property market.

Estate agents have reported their first drops in available housing stock for nearly six months, another sign that activity is starting to move the right way.

Interest rates are stable, and the much vaunted interest rate cut to stimulate a slowing economy has not happened – yet. Inflation and unemployment levels will need to be kept in check to facilitate a cut in rates. All of these things may happen or continue to happen; they may not.

In the interim, mortgage brokers need to deal with the reality of a bear property market. At point of sale, be armed with the facts and be ready to re-adjust your customer’s estimate of his property value. Check property websites before your sales call and get a feel for local area conditions and trends.

Not only will you be armed with the facts, you may just save yourself and your customer a lot of heartache. Additionally, it is not a bad idea to get to know your local valuers; you will find the same names keep coming up.

When push comes to shove and you need to explain the salient points of a valuation, or worse still a down valuation to a client, you had better know what you are talking about. Saving the deal could rest on it.

Finally, at point of sale, cover yourself. Explain to the client that you are basing your product recommendation on his estimate of property value and that it is subject to qualification from a licensed valuer.

Remember property values are an emotive topic – so know your area, do your homework and you will reap that rewards with much less hassle.

John Smith writes useful, informative articles on the mortgage, loan and propety markets

Is your house currently on the market? If your answer is yes, you may want to know how to make it worth more for selling purposes. An ideal means of raising its price is to do some sort of home renovation. People shopping for houses just adore finding brand new, remodeled areas in any home they are walking through.

Remodeling is common all over the country. Sometimes people might be changing a part of their home so that it meets their specific needs. Other times people may be changing older parts of the home so that they can resell the home for more than they purchased it for. Either way, a kitchen remodel is one of the most common forms of renovation. This is due to the fact that a kitchen is a commonly used place in any home. Making your kitchen beautiful with a kitchen remodel is sure to catch the eye of any buyer.

Since this is a very used part of any home, surfaces and appliances can incur more wear and tear than other areas of the home. Making this place new again will create value that you can add to the price of your home. If you wish to achieve a kitchen remodel, you must determine whether you will be implementing it alone or employing someone to do it. Lots of firms will be only too pleased to do the job on your behalf, and it’s crucial to locate a remodeling and design professional with lots of experience and excellent references.

Of course, if you’re planning on a DIY remodel, many home improvement stores carry both literature and hardware that can make your job easy. You can do these things on your own if you read up about the projects that you want to accomplish. Because a kitchen remodel is so popular, you will have no problems finding the things you need to make your kitchen so much nicer. There are plenty of different choices that you have when you are doing this project yourself. It doesn’t matter what your reasons were for doing a kitchen remodel, just the fact that you did it will increase your home value substantially. This means extra profit, especially for those who are working just to flip the house which is a popular method that people use these days to earn extra money. No matter what the status of the housing market, if you’re selling a house you need to do everything you can to enhance its value.