Tag Archive: Mortgage Loan Modifiers

Importance of Mortgage Planning

mortgage planning

Mortgage planning is a fundamental step everyone should take prior to purchasing a property. Without good solid mortgage planning you could end up buying a home you can barely afford as time goes on and rates increase.

What are the first things you should do when Mortgage Planning?

Check your credit rating, this is probably the first, most important step you can take. If you don’t have a perfect credit score, then don’t fret – each lender has their own set of criteria. Mortgage brokers can help navigate you through this sometimes challenging stage. They have relationships with banks and lenders, especially if they are a well reputed company and have been around for a while. If they can vouch for your character with the bank and present a decent credit history – you may receive more favorable terms than you ever imagined.

If you are unsure as to whether your credit history will make the grade, let your mortgage broker take a look – certain banks have different lending criteria. Perhaps one lender insists you have never had any defaults in your lifetime, the lender next door says ok, you have had two defaults but you rectified this and settled them and you have been in secure employment for the past seven years, you will do for us. It’s as simple as that. Working with a mortgage broker who knows each banks limitations will ensure you have a fair chance at gaining a loan at a decent rate of interest.

The lender will also want to know if you have an existing mortgage. Are you selling that property to purchase another home? How much profit are you likely to make in that postcode area? Are you purchasing a new home at a fair price or below market value? How much have house prices in that area risen over the past 5 years? Banks and lenders all want to know they are going to get their money back one way or another. All these factors add up to a mortgage approval.Read this news now!

Where is your deposit coming from?

Lenders like savers, if you have saved for your down payment whether it be 5, 30 or 50% of the total purchase price, lenders love that you plan for all eventualities. We know in reality this isn’t always possible, perhaps the deposit was a gift from a family member, or it could be tied up in equity in your current home. Each set of circumstances can have a positive or negative effect on your purchasing a new property. Structure this information in a way that the lender will understand – a good mortgage broker speaks their language, sit with them and formulate a presentation which ensures you gain the mortgage you require.

Do you work? If so what do you do?

mortgage planningIf you are self-employed be prepared to show your tax returns and accounts for the past 2-3 years, mortgage lenders may also want to see your business plan and forecast for the years ahead to ensure you stay on the right track. Any company bank accounts should also be presented, plus all personal accounts and savings. Make sure you have all of these in place before you proceed. It’s harder to gain a mortgage if you are self-employed as income can be seen as sporadic by lenders. Convince them that you have steady work and your business is on the increase, give them everything they need and they won’t have an excuse to turn you down.

If you plan to change jobs in the next 12 months this can also go against you, or you desire to go traveling, or even retire. Lenders like stability in all areas of your life, bear this in mind before you approach them for a mortgage. If it takes a little longer to put everything in place, then so be it – it’s better to get it right the first time than to fail every time. Speaking with a qualified mortgage broker in each case will help you understand each lenders criteria and the importance of mortgage planning.

Be Wary of Mortgage Loan Modifiers Dressed in Sheep’s Clothing

Mortgage Loan

At some time in your life you have probably been approached via direct marketing or a telesales call by someone promising you they can reduce your mortgage payments each month. They promise you the earth – they will modify it, have it reduced, rectify any poor credit history so that you can apply for a mortgage again. But there is a catch – they want to be paid upfront for it. So ask yourself – if you didn’t approach them for the service in the first place they obviously want something from you, and it usually means financial benefits to them.

The mortgage loan modifiers operate in the guise of plausible, honest to goodness mortgage brokers who can save you lots of money so you can take your children on vacation. If you are approached by someone making these offers, the first thing to do is take all of their details – everything. Name, business address, ask them to show you any certificates of accreditation. If they call you ask them to email them to you, don’t use a usual email account – set up another purely for marketing, that way you won’t clog your inbox. If they are a genuine business you will find them online with a good reputation, reviews and testimonials, a legitimate business address and company registration number. You will be able to search the directors of the company, and feel free to give them a call back to double check they are who they say they are.

If someone asks you for money upfront to get your loan modified or reduced, tell them to contact your lender – they should know who your lender is already if they are contacting you. If they don’t know who your lender is, how are they so confident they can reduce your loan? You may have the lowest rate and best terms on the market! If the mortgage loan modifiers say they will contact your lender and negotiate new terms, ask for a written proposal and don’t agree to anything not even in principle until you have the paperwork and have treble checked everything. Oh, and still don’t hand any money over upfront.

Mortgage LoanIn addition to the mortgage loan modifiers you also have the “forensic loan auditor”. They want to charge you to look over your existing paperwork, just to check everything is in order. They are also trying to scam you, I’m afraid. If you are unsure contact your mortgage broker or your lender and ask them any questions about your loan terms and agreement.

There are always legitimate companies and mortgage brokers who can work with you to modify your loan if you seek to do so, regulated companies like www.mortgagebroker247.com.au are always on hand to help with any queries.

If someone contacts you out of the blue, remember they probably want something, usually money.

• Don’t pay any fees upfront to any company
• Always check the company and individual’s references
• Be very careful who you let access your personal data
• Contact your lender or mortgage broker
If you follow these simple steps you will avoid being out of pocket and could prevent other people from being scammed too.