Free Glide

If you are holding off purchasing your home because you do not have a large enough down payment, a piggyback mortgage could help you qualify for financing. Piggyback mortgages are a way around the twenty percent down payment; here is what you need to know about securing a piggyback loan.

Piggyback loans are a way of helping you secure the necessary down payment to qualify for a mortgage; by securing this piggyback loan you may be able to avoid purchasing Private Mortgage Insurance (PMI). Piggyback mortgages vary from one mortgage lender to the next; some require that you have at least 10% of your down payment while others will loan the entire 20%.

A piggyback mortgage is essentially a second mortgage secured by your home. This loan differs from a home equity loans in that you must qualify for the piggyback loan in order to qualify for your primary mortgage loan. The good news for homeowners using these loans to qualify for financing is that the interest you pay on both loans is tax deductible. It is important to remember this piggyback loan is secured by your home just like the primary mortgage. If you fall behind on the payments for either mortgage the lender could foreclose and take your home.

To learn more about your options when applying for a mortgage loan and how to avoid common homeowner mistakes, register for a free mortgage guidebook using the links below.

Only a few years ago the estate agent was the one and only reliable method of selling your house, today you have many more options and, subsequently, the marketplace is a little bit more complicated.

In response to this change in market conditions many estate agents are using very underhanded tactics to trick you into using them. Tricks such as overvaluing your property to ensure you sign on with them. Remember, an overvalued property DOES NOT SELL for that amount. In all likelihood you will be stuck with the property for 6 months and when an offer does come in it will be dramatically lower than what you expect. By this time you will be desperate and the estate agent will suggest you go with the offer. The agent gets their commission based on the real value of the property whenever it sells; you will be the only person out of pocket.

What’s worse, by marketing a property at an overvalued amount, you can actually delay the sale further. Even when the price is finally reduced to a more realistic level, buyers can be put off by the length of time a property has been marketed for.

Further evidence of this can be seen by the campaign by the consumers champion Which, http://www.which.net/moveit/index.html, for estate agents to clean up their act.

An alternative option, which the agents will advise strongly against, is a private sale to a cash funded investor.

These sales can be completed in days and with flexible completion dates to suit requirements.

Let’s use an example to illustrate the advantages of NOT using an estate agent and selling direct to an investor.

£160,000 Market value as suggested by an Estate Agent

-£11,200 Typical offer through an estate agent is 7% less
-£3,760 Approximate fee for the agent (2.5% + tax)
-£1,000 Solicitors fees
-£9,700 Average house sale takes 6 months (assume 5% APR)
-£9,700 Average discount secured on next property by being a cash buyers

£126,640 Total real value of your home when you sell it.

As you can see there are a lot of hidden costs or lost opportunities (i.e. not being a cash buyer of your next property) in selling a property through the traditional methods of using an estate agent.

With investors they usually pay the solicitor’s fees and they have cash ready to buy your home so there are no delays and, as long as the offer is more than the figure above, you could actually be better off selling for less money!

In fact, by being a cash buyer of your next home you could save even more money.

So as, you could sell you’re home at £160,000 to a cash buyer for 126,640, and be no worse off financially than by selling through an agent.

What’s more you would have saved yourself 6 months of hassle, stress and worry. It is a well known adage that moving home is one of the most stressful things that someone can do, so by simplifying some of the money issues, can be a real emotional plus.

So, the next time you’re moving home, and an estate agent tells you a private sale is a bad idea, or you just need to sell your home quickly, think about the other options you have…that of the property investor.

Written for for MPG Investments – THE Home Buyers. MPG Offer home buying services to make sure that you can Sell Your House Fast.
Written by R. Heeley of Netcallidus Ltd – Seach Engine Optimisation services.

If you are planning to apply for a mortgage after bankruptcy, here are three steps you can take which could save you up to $1,000s in extra interest and other costs:

1) Increase your credit score

Before applying for a mortgage after bankruptcy, you will want to make sure to increase your credit score. Increasing your credit score can help you in two ways: First, it can increase your chances of qualifying for a mortgage after bankruptcy. Secondly, if you increase your credit score enough, you may be able to get a lower interest rate on the loan.

In After Bankruptcy Credit Solutions I go into detail on nine strategies you can use to increase your credit score. For example, one way to increase your credit score is to correct or remove any inaccurate or obsolete information from your credit reports. Another strategy is to establish some new accounts and pay them in a timely manner.

2) Come up with a budget

Before you even consider applying for a mortgage after bankruptcy, you will want to have clear picture of your current financial situation. For example, you will want to know how much you’re making and spending every month.

You will also want to know how much of a monthly payment you can afford if you have a mortgage after bankruptcy. For example, most lenders don’t like to see an individual spend more than 28% of their gross on the mortgage – but that’s a general rule, each lender will have specific criteria.

In addition to the payment on your mortgage after bankruptcy, you will also need to budget utilities, homeowners insurance, maintenance, property taxes, etc.

Another item you will need to budget for, if you plan to apply for a mortgage after bankruptcy, is the down payment and closing costs. In addition to the down payment, closing costs alone can run thousands of dollars.

Fortunately, there are ways to reduce, or even eliminate, the money you have to out of pocket for a down payment or closing costs – but that’s another article in itself.

3) Find an experienced mortgage broker

Once you’ve increased your credit score, and have a clear picture of your home buying budget, you will want to find an experienced mortgage broker. Why? If you plan on applying for a mortgage after bankruptcy, you will want an experienced professional on your side guiding you though the process.

How do you find an experienced mortgage broker? You can ask friends,
family, or any real estate agents you know. Once you have the names of some mortgage brokers, you will want to interview each one.

I list a number of important questions to ask them in After Bankruptcy Credit Solutions, but I will limit it two as I cannot cover them all here. Among other questions, you will want to know if they have successfully been able to get other individuals a mortgage after bankruptcy. You also want to make sure they are licensed.

Another important question you will want to ask is what type mortgage after bankruptcy (A, B, C, or D) the mortgage broker thinks you can qualify for. This is important. Why? The lower the grade the higher the interest rate you will pay.

In this article, we touched on three steps you can take before applying for a mortgage after bankruptcy – steps that could save you up to $1,000s in interest and other costs!

==================================================

Copyright © 2006 Innovative Solutions Publishing, Inc. All rights reserved.

DISCLAIMER:

This information is designed to provide only a general overview of the subject matter herein.

This information is provided with the understanding that neither the publisher nor author is engaged in rendering legal, accounting or other professional advice. If legal or other expert assistance is required, the services of a professional should be sought.

Neither the publisher nor author shall be liable for any loss or damages, including but not limited to special, consequential, incidental or other damages, caused by the information contained herein.

==================================================

About the Author: R. Lawrence Anderson is author of After Bankruptcy Credit Solutions, which shows individuals how to qualify for credit and loans after bankruptcy – including how to qualify for a mortgage after bankruptcy.