Monday, February 8th, 2010 at
7:29 pm
How to Get a Bad Credit Mortgage
Many people who have bad credit feel as though trying to get a mortgage would be impossible. The idea follows the norm of society; people who have bad credit simply do not get new loans, like mortgages. What people do not realise, however, is that there are companies out there who specialise in offering bad credit mortgages to people who want to be able to own their own home, but don’t know what to do. People with bad credit come to these companies and manage to get mortgages; while the interest rate may be higher, people who can afford the payments can get a mortgage just as others do. Once you have a mortgage, refinancing is possible down the track that could provide improved interest rates. Many people feel that the process of obtaining a bad credit mortgage can be difficult and complicated, but If you follow simple steps, obtaining a mortgage can be easier than you realise.
Know What You Can Afford
Obtaining a bad credit mortgage is achievable, but you should check some details to ensure you end up with the right loan. One way that you can seriously help yourself obtain a bad credit mortgage is to know exactly what repayment you can afford, and what is realistic. Trying to get a huge mortgage may not be realistic for people who have bad credit. By knowing exactly what you can afford, you can make sure that you are not putting yourself from the frying pan into the fire.
Know Your Credit
One incredibly important step in trying to get a bad credit mortgage is understanding exactly where your credit stands. By knowing where your credit rating stands, you or your mortgage broker can source the appropriate lenders who provide bad credit mortgages for your circumstance. Some companies work with very bad credit, where others deal with minor credit issues. Understanding your level of credit impairment will lead you to the correct company and Mortgage.
Your House and Other Fees
Once you understand your situation and what you can afford you are in a position to start looking for a house. If you have found a specific house that you want a mortgage for, the purchase price will determine other Government fees and Stamp duty, as well as lenders costs you need to pay (use a mortgage calculator or ask a mortgage broker for a breakdown of fees). Each state has different Government fees when buying a house.
Find Companies that Offer Bad Credit Mortgages
After you have figured out your credit, how much you can afford, and how much money you need, there is still some job ahead of you. The final piece of the puzzle is to search the companies that offer bad credit mortgages. The best way to approach this is through a Mortgage Broker who specialises in Bad Credit Mortgages. You may research lenders and products yourself, but it will take more time and quite often when buying a house there is not a lot of time to do this. Since the impact of the Sub-Prime crisis it is even more important to find experts in Bad Credit who have an in depth knowledge of the available lenders.
It is important to search out the right companies that can help you in your search for a mortgage, because applying for multiple loans can hinder your chances of obtaining finance, as each enquiry gets listed on your credit file. A specialist mortgage broker will assist with obtaining a successful application ideally the first time.
Some people do not realise that even people with bad credit can own their own home. While getting a bad credit mortgage can be more difficult than a traditional mortgage, it is still possible.
By: Colin Kidd
Related Posts:
Sunday, February 7th, 2010 at
4:21 pm
Can you get bad credit mortgages? If you think that because you have bad credit you are out of luck when it comes to getting a mortgage, think again. There are plenty of bad credit mortgages that are available today at competitive rates.
Years ago, you had to have excellent credit and 50 percent down before you could hope to attain a mortgage. Today, however, you can get a bad credit mortgages with little or no money down if you know how to shop. And although you will most likely pay a higher interest rate than those who have excellent credit, you can still expect to find competitive rates when you shop for a mortgage.
Bad credit mortgages? Not an impossibility. What you do need to do is to go to a mortgage broker who will find you a good sub prime mortgage company that will underwrite your loan. Sub prime lenders only came into the picture over the past 20 years. Prior to that, you would have a difficult time getting a mortgage if you had either bad credit or no credit.
A sub prime mortgage will allow you to get a competitive mortgage rate at a sub prime mortgage underwriter. The fees associated with dealing with a sub prime mortgage company are a bit higher than those with a traditional bank, but the interest rates are not all that much higher. Also, you can negotiate the fees just as you can with any other lender. There are just as many sub prime lenders out there making mortgages as there are banks and other mortgage lenders. This means that you can take advantage of the competition and negotiate a good deal.
Just because you have bad credit is no reason to believe that you cannot afford to buy a home. You can get bad credit mortgages just about anywhere. The first thing you want to do is contact a mortgage broker and tell them about your bad credit. They will then know the vehicle that will work to get you in a loan. Even if you have a past bankruptcy, you can find a mortgage.
There has never been a better time than right now to buy a house. The housing prices are lower than ever and mortgage rates are very low, too. Even if you are looking for bad credit mortgages, you can get low and competitive mortgage rates. If you are putting 20 percent down on a house, you can go “no doc” which means that you do not have to provide employment verification or income tax information to get approved for the loan. You will only need to fill out an application and get an appraisal of the property.
If you have been longing to buy a home in the current buyer’s market, but have been held back because you feel that you will not be approved because of your bad credit, think again. Bad credit mortgages make it easy for anyone to be able to get a mortgage on a home, even those whose credit is very poor.
By: Remy
Related Posts:
Sunday, February 7th, 2010 at
3:34 am
So you have been writing mortgages like crazy now for the last few years. You have a pretty big database of customers and hopefully you have been getting and keeping full contact information for them. An organized database is the first key to customer retention.
The next step is to put together a direct mail campaign to keep these customers thinking about you when they think about mortgages. It is often years between times when each customer needs a mortgage professional, and it takes far less than that for them to forget your name. As well as fighting time, you are fighting indifference. Customers who get great service are often reluctant to pass that information along, while customers who feel they have gotten poor service will tell everyone. Most of the time good customers need to be reminded of their experience. By following up with each customer on a regular basis you will not only stay in the front of their mind but you will also start to build a reputation as a solid and responsible business.
So how do you get started? Below are a couple of the most frequently asked questions when starting a campaign to keep in touch with past clients.
What Type of Direct Mail Piece Works Best?
There is a great debate amongst Mortgage Professionals about what type of direct mail will work best for getting new business. Many swear by letters for their appearance of professionalism, while others like the low cost and high visibility of postcards. Overall, both seem to work adequately for bringing in new business. You just need to find which works best for you personally.
For keeping in contact with past customers, however, the way to go is postcards. This is due to the fact that if your customers are not currently looking for a mortgage for themselves, they are far less likely to take the time to open a letter. That causes most of your “keep in touch” promo that is in envelopes to get thrown out before it ever gets read.
Since the goal is recognition and not direct action you only need to get them to read the message. Postcards have the message visible when mailed, which means that while your customers are deciding what to read and what to throw out, they are already being exposed to your message.
How Often Should I Send Promo?
You will want to mail a piece to your database every 30-60 days. Any longer than that and they may have already forgotten you when their friends are looking for a mortgage. Since you will want to send promo out often, you will need to keep your costs down. With postcards there are no envelope costs, no assembly costs and the postage is 30% less than letters. When using a mail house to send your postcards you can often get postage rates as low as 18¢ per piece.
What Should Be On My Brand Recognition Pieces?
There are some basic rules for the design of a brand recognition direct mail piece.
Rule #1: Keep color consistent.
Many times people fall into the trap of changing the look of their promo for the seasons or for the holidays. The thought is that people are thinking about Christmas or St. Patrick’s Day so they will respond better to promo with those colors. The truth is exactly opposite. Their senses are so flooded by those images that they actually start to skip right over them. Pick a color for your company and stick with it. You will do much better in building recognition.
Rule #2: Make a logo and use it on every piece.
Having a clean, professional logo is best. It may be a little pricey to have designed but in the end it is well worth the money. Experienced designers can often charge up to $2000 for a corporate identity package including logo, letterhead and business cards. If you aren’t looking to make that type of investment simply pick a type style for your company name and use it every time. Consistency is key because your logo is your main identification point.
Rule #3: Make it Informative.
Every piece should have something useful for your customers. Whether it is new information about the mortgage industry or even possible investment properties in their area, it can even be completely unrelated to the mortgage industry. A calendar or list of emergency numbers, even the old recipe card trick still works pretty well. Anything that is likely to be kept around will help to build recognition in the minds of your past customers.
The mortgage industry has experienced a huge amount of growth over the past few years. Unfortunately this growth cannot last forever. At some point it is going slow down and the only way to keep your income in the range that you have become accustomed to is to ensure that you retain as many past customers as you possibly can.
A direct mail campaign is the best way to do this, but remember, this type of program is a long term process. Don’t get discouraged if you can’t directly calculate the amount of money that you bring in right off the bat. What you are doing is burning your name into the minds of your customers. Eventually it will work out to you seeing less attrition and far more referrals.
By: Joe Niewierski
Related Posts:
