Ups and Downs of in Home Finance

download (10)Home finance is a type of financing provided by the company which either manufactures or sells the product or investment which is being purchased. A good example of this type of financing would be a car manufacturer offering the financing to a person who is buying a car. Financing any form of purchase in this method has some advantages and some disadvantages.

The most obvious advantage of in-home financing is how easily it can be done. Since the company which is offering the financing is also selling the product there is no issues in regards to proving the value of the purchase. While typically it is taken as fact that the loan request is equal to or less than the actual value of whatever is being purchased there are some exceptions.

Most mortgage lenders require a property appraisal to verify that a home which is being purchased is worth at least as much as the loan amount. With in home financing this is not required since the lender set the sale price on the home.


Article Resources

Ups and Downs of in Home Finance
advisa
viaconto
sms lån
cashbuddy
lån med betalningsanmärkning
låna pengar utan inkomst
hur mycket får jag låna
sms lån utan kreditprövning


Insights to Lending Requirements

images (12)Sometimes it can be daunting approaching the bank for a loan but did you know there are things you can do to better your chance of being approved? Here are suggestions for Business and Commercial property investors to help you prepare for a positive outcome.

Think about what you are offering as security. The Bank will need to obtain a valuation of the properties being taken as security and will rely on the valuers recommendation as to what the property is worth. We have no control over this. If you are purchasing a property it is a good idea to do your research on current market values. If the property is vacant and property is for investment only, be sure to check how long it has been since it held a tenant.

Be realistic about the value of your existing property. Over estimating the value won’t help as the valuer will override your estimate anyway and this may cost you unnecessary money in valuation fees.

Generally speaking Banks will offer better rates for residentially secured business loans, if buying a commercial property and you have a residential property or two, it is worth asking your Business Banker what rate would be offered if residential security is thrown into the mix. Banks can also split the loan so that the residentially secured portion is on the cheaper rate which can save you quite a bit in interest expense over the life of the loan.

Banks like a well thought out Business Plan that outlines the direction of your business and its prospects for future growth. Whilst this is not something we always ask for, it shows good management to have one and that your business direction is well defined. Know where you stand against your competitors and rate yourself accordingly. The Business Enterprise Centre has courses on preparing business plans and can help with them in general.

We also like to see a sound succession plan. If something happens to you, will the business still be sustainable and who will run it? Should you consider some Keyman insurance or something similar for yourself if you are instrumental in keeping your business operating. It gives Banks more confidence in lending to you if you have considered these implications and taken action to minimise the risk if it is applicable. It should also give you some comfort knowing that should something happen there is insurance in place to assist you and your family.


Article Resources

Insights to Lending Requirements
smslån
snabb lån
viaconto
sms lån direkt
lån utan uc
cash2you
sms lån utan kreditprövning
låna pengar utan uc


Lending In The House

images (11)The Mortgage Reform and Anti-Predatory Lending Act of 2007, also known as HB3915, was resoundingly passed recently in the House of Representatives.

The three main provisions of the Bill that offer consumer protection are:

A National Registry of All Mortgage Originators – This will give consumers the most protection because it means that all mortgage originators, including banks and lenders who break the law will not be able to move from state to state or mortgage company to mortgage company without detection.

Enhanced Professional Standards for all Mortgage Originators – This creates a system of criminal background checks, fingerprinting, education and pre-licensing for all mortgage originators no matter where they work. However, loan officers and federal depository institution employees need only register with the national registry system, but do not have to participate in the enhanced education and testing.

Preservation of Mortgage Originator Compensation and Consumer Financing of Points and Fees – The original bill called into question the legitimate payment of the Yield Spread Premium, as well as the consumer’s option to finance points and fees into the loan (or obtain a no-cost loan). Working with House Financial Services Committee Chairman Rep. Barney Frank (D-MA) and Representative Gary Miller (R-CA), NAMB was able to obtain clarifications that preserves the ability of consumers to finance origination fees, points and other closing costs into the loan rate or amount, and preserves the ability of originators to receive payment in such cases.

This is a strong victory for the NAMB and the consumers that are served by the Real Estate and Mortgage Professionals that work with them. Even with this victory, there are some drawbacks. Locate in Title III, there are some provisions that NAMB did not support. The feeling is that there will be a wide-range “negative impact on the availability and affordability of all credit.” Unfortunately, this will affect those with imperfect credit histories, including individuals looking to refinance.

The Senate is now considering FHA reform. Also, a bill on Mortgage Reform is being worked on. HUD’s new Good Faith Estimates and other reforms including new Federal Reserve Board regulations dealing with unfair and deceptive practices are forthcoming.

Overall, it is good news that Mortgage Lenders, consumers and others involved in the lending process will enjoy higher standards, which will lead to better performance and a more positive outlook and outcome for everyone.

 


Article Resources

Lending In The House
bank norwegian
låna 10000
blancolån
snabb lån
privatlån
smslån