Monthly Archives: June 2014

Commercial Hard Money Loans Not Widely Understood

Commercial hard money is not well understood by the commercial real estate investors who have always financed their properties at the bank. The needs and pricing of commercial hard money loans is not very similar to bank loans. This is the most important reason why many of the commercial real estate investors do not understand how commercial hard money loans work.

How is the commercial hard money loans different form conventional financing? Requirement is the basic difference between commercial hard money loans and conventional financing. In case of commercial hard money, the information on the property itself plays an important role. Borrower’s credit and the income is the single biggest requirement for a bank but in most of the cases, commercial hard money lenders at the borrower’s credit and income as secondary to the property.

Another thing that creates the difference between commercial hard money loans and conventional financing is in the cost. A commercial hard money loans that is also known as bridge loan, is more expensive than a bank loan. Interest rates and loans fees are slightly higher. But for someone who is not eligible for financing will find it better to pay higher costs then not to get financing at all.

9 Golden Rules of Mortgage Shopping

With the interest rates still being low, many people have started window shopping the real estate listings and thinking, “Is this the right time to finally buy a home”

Below is the list of 9 golden rules to be kept in mind while looking for a Home Mortgage:

1. Credit Check – Checking your credit is going to be your first move – Before you start shopping for your home, you have to be very clear about where you stand with the mortgage lenders and how you can improve your credit position. The higher is your credit score the better will be your chance to save throughout the life of your loan, hence it is important for you to be in a good position before you decide to own a house.
2. Fix a meeting with your loan broker – Now it’s your turn to meet with your loan broker, and discuss about the initial steps to your loan process. Remember that your Broker mortgage lender will be your go to source throughout the entire process.
3. Pull out your credit score – There is a lot of difference between your FICO score and your credit report. You’ll be required to know your score in order to make improvements, and track the level of your growth. There are endless ways to view and track your credit score process
4. Make you score strong – There are many options for you that can help you to quickly rise up your low credit score. Making an effort to your score matters a lot, especially if your scores is need the top or bottom of a credit score range.
5. First mortgage, then the house – Before looking for the house, it is important for you to shop for mortgage first. This can help you in not only finding the home of your dreams but also the way to find out how you can afford it
6. Get Pre-Qualified – Do not forget to get pre-qualified by your loan officer for the confirmation of a smooth transition when it’s your turn to find a home.
7. Here is your turn to shop for your home – Now you can start your search for the home of your dreams.
8. Do not leave any chance of failure while applying for credit – Requesting new credit before your home loan procedure is finished can result in a little dunk in your credit score short term, which could bring about an expanded credit rating. Hold up until you’re done to get that new car and you will save money
9. Be wise and wait to make big purchases – Do not rush to make any big purchase while you looking forward for a mortgage loan and hence buying furniture, appliances, a car or any large purchase outside your regular monthly expenses could badly affect it.