Saturday, February 6th, 2010 at
12:06 am
Getting a mortgage with bad credit is possible but you need to be extra careful in choosing a lender. You need to be prepared to pay higher fees than your good credit counterparts. You also need to do a lot more due diligence before you sign on the bottom line. Just because you need a bad credit loan doesn’t mean you have to settle with extremely high interest mortgage loans. Here are practical tips on how to choose a bad credit mortgage:
* Assess your financial situation carefully. Before considering applying for a bad credit mortgage, think about how a new loan can affect your financial situation. Have you made plans on how you’ll be able to keep up with your mortgage payments? Are you sure that you are prepared to take on a new responsibility?
* Compare rates. It’s important to choose from several lending companies before choosing a particular lender. Don’t just compare interest rates but compare all costs involved in your loan. Although it is expected that bad credit mortgage loans do come with higher interest compared to standard mortgage, you can still find a company that offers reasonable rates. Use the internet to shop around for possible lending companies more conveniently.
* When shopping for your home loan, talk to your potential lender before giving them your social security number. Pull your credit yourself and fax it to these lenders and ask them based on what you have sent them what the rate, term and fees will be. Let them know that you understand they will have to pull your credit later if you decide on accepting their loan. Try to limit the number of pulls to your credit as much as possible.
* Watch out for predatory mortgage lenders. Many of the people facing the loss of their home are victims of predatory lenders. These lenders are on the look out for people with bad credit and will take advantage of you if you let them. Don’t let mortgage predators take advantage of you. Read the fine print on any loan documents you receive. The purchase of a home is a HUGE step. If you have questions, ask, if you don’t feel right about the lender, get up and leave.
* Be careful with adjustable rate mortgages. Keep in mind that adjustable mortgage loans may unexpectedly rise in the middle of your payment term. See to it that you are aware of the loan’s life cap and that it is clearly included in your contract.
* Ask for a copy of Good Faith Estimate. The good faith estimate should be handed to you days before the actual closing takes place. The good faith estimate includes the fees involved in your loan that you will be paying your lender.
* Inquire how much is your down payment. Bad credit mortgage loans require a down payment. Make sure that you are aware of how much down payment is exactly needed before accepting the loan. Watch out for last minute changes. Its not unheard of that at the signing table these predatory lenders may say, wow you didn’t quite qualify for this loan amount but to help you out, since we are here at the closing table, we have approved you for a second mortgage. This tactic works for the lenders because you are so excited about getting into your new home that you say ok, I can afford the additional payment. Unfortunately you didn’t look closely at the rate and term on this second. I’ve seen some second mortgages that adjust monthly.
* Negotiate with your lender. Even though you may have bad credit, don’t be afraid to negotiate with your prospective lender. Lending companies also face tough competition in the market and although some lenders may refuse to negotiate, there is no harm in trying.
Remember that a mortgage loan involves what will become your family home. By failing to pay, not only will you ruin your credit but put your family into a severe strain, and possibly make them homeless. Therefore, if you think are not financially ready, then it’s better to wait until you gain more control with your finances. In the meantime, you can work on improving your credit. Pay your debts and be timely in your payments. Avoid incurring new debt and limit the use of your credit cards. Set aside some savings for your mortgage loan down payment. This will help you be more prepared when you finally apply for your mortgage.
By: Liz Roberts
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Wednesday, November 25th, 2009 at
3:01 pm
Even homeowners with bad credit can get mortgage refinancing. Although many people talk about lending restrictions, and how hard getting help is these days, the reality of the situation is the opposite. Mortgage lenders and banks are eager to help homeowners avoid foreclosure or defaulting on their home loan, and are offering homeowners new bad credit refinancing or modification options.
Nearly 15% of all current homeowners are facing foreclosure. This does not even account for the massive amount of foreclosures which have already taken place. In order to stop this, mortgage lenders and banks have been quietly easing refinancing and home loan restrictions. Changes are being made because many homeowners are:
- Facing financial problems which are out of their control.
- Paying a lot for a home which has dropped in value.
- Stuck in an ARM loan which is costing them more every month.
- Paying a higher interest rate than their budgets can handle.
To assist homeowners in these common situations, many helpful changes have been made in the mortgage refinancing approval process. Homeowners can get approved with little or no equity, bad credit, a bad mortgage loan, and a whole list of other circumstances which they would have been denied for in the past.
The bottom line is that with mortgage rates so low, and refinancing easier to get than ever before, millions of homeowners can benefit. Do a good check of your mortgage, financial situation, and options for refinancing and see if you could be saving money too. Odds are, with the market the way it is now, you can save hundreds of dollars per month on your mortgage.
By: Michael Petrone
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Sunday, November 1st, 2009 at
4:06 am
Using direct mail to reach prospects and customers is one of the tried and true methods to generate leads and sales for small businesses. New technologies available today can increase the impact that direct mail can have on the bottom line. Here are three simple ideas to consider adding to your direct mail project.
Segment your list. Okay, this is not a new concept but there are new resources available that make it easier. Develop a profile of the most likely candidates for your offer. What criteria did you use? If they include things like geography, profession, family size, age, income, gender, or mortgage interest rate, a list vendor may be able to help. In fact, vendors dedicated to a certain industry can provide even more options. Lists companies have grown more specialized in recent years and have made their services available online. I have used InfoUSA to get segmented consumer list with success. They allow you to build and purchase custom lists online, without even speaking to a sales representative and segmenting tools are included in their price.
Now that you’ve built a great list it’s time to tailor your message to their particular wants and needs. Again, this has always been a good idea for direct mail users, but technology now allows you to go further. Today’s print vendors use digital presses that allow use of variable data, without compromising print quality. (i.e. “hello bob, try acme lawn service and have the best lawn in golden ponds” Variably printed direct mail, or one to one marketing, can boost response rates and conversations and hardly costs any more money than traditional methods. (In fact, it doesn’t cost the printers any more at all in terms of printing costs.) Modern Postcard offers variable printing on postcards as do many other vendors. Type ‘variable postcards’ into Google and see what you find.
To maximize your variably printed mail, try to tap into your target list’s unique interests. In addition to using their name on your project, why not add information on their favorite team (based on their location) or make different offers to different parts of your list, based on age or gender? As a cross selling tool, variable printing works great – simply determine which products would complement what your customers have purchased already and send them a post card.
The third way to improve your direct mail results is personalized URLs or PURLs. Companies like Cierant and BlueTreeDirect will help you set up a mini site to complement your direct mail campaign including a URL containing your recipient’s name. For example, if you mail to a prospect named Jane Smith, her PURL could be located at janesmith.acmelawncareoffers.com. Once she arrives, the message will again be personalized for her (Hi Jane, Welcome to Acme!)
In addition to being attention grabbing, personalized URLs add the ability to track direct mail projects more closely. By being able to view each individual’s response to your project, you can tweak and test your offers until you find the one that gets the best response. PURLs usually cost a few cents a piece plus a one time set up fee.
If you are a small business owner, direct mail continues to be a great option for generating leads for your sales funnel. Try adding these emerging technologies as a catalyst to supercharge the process and enjoy the results that you get.
By: Matt Hamilton
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