Archive for the ‘Mortgage’ Category

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Internet Mortgage Lead for Mortgage Brokers

Sunday, December 23rd, 2007

In this tough times, everyone wants to get a good deal out of their money and effort. When you are engage in a mortgage business and competitions among mortgage brokers is stiff, some mortgage brokers often fall victims of false mortgage leads that only waste their time, effort and money in trying to work it out. Some mortgage leads include inaccurate information, incomplete and false. Some leads could not also be new or fresh and could have been handed out already to other mortgage brokers.

So how do you figure out when an internet mortgage lead is real and fresh? Here are some guidelines to lessen your chances on not falling into any difficult or worthless mortgage lead:

  • Check if the mortgage lead is fresh. It means that the mortgage lead was given to you in real time, meaning instantly or within 48 hours from user request. Upon receiving it, is best to act upon it while the user is interested. When you don’t, clients become disinterested when the difference from the time they gave their interest and the time you respond increases.
  • Check if the mortgage lead is accurate. A mortgage lead should contain all of the information below:- the name of the applicant
    - the co-applicant’s name
    - street address
    - city
    - state
    - Zip code
    - E-mail address
    - Work phone
    - Home phone
    - Type of house
    - Current value
    - Purchase price
    - Year purchase
    - First mortgage balance
    - Interest rate
    - Type of Loan: Fixed or Adjustable
    - Second Mortgage Balance
    - Second Interest Rate
    - Type of Second Loan: Fixed or Adjustable
    - Monthly Payment on Second Mortgage
    - Behind on Payments
    - Number of Late Payments
    - Credit Rating
    - Employer
    - Years of Stay
    - Income
    - Monthly Debt
    - Loan Type
    - Loan n Amount/Cash out Desired
    - Call time
    - Comments and Questions

Users sometimes send in inaccurate information about themselves. However, there are software incorporated by mortgage lead generating companies to reduce errors in data such as those which check area codes of the telephone numbers supplied by clients against the state they are calling from or those that check their employment companies from the data they enter. These softwares may exist, but inaccuracy still arises as a common problem.

One solution to this is to check the mortgage lead generating companies and evaluate which company uses some guidelines in order to address inaccuracy. Check out different mortgage lead websites and the reviews made about them. MortgageLeadGuide.Com offers a comparison and review of these Internet mortgage lead generating companies. In their review, they’ve listed the various mortgage lead companies such as LeadBull.Com, Eleadz.Com, mLeads.Com, LeadStore.com and others. Next to each company names are their leading prices for exclusive leads, non exclusive leads and custom filters. The table also contains brief backgrounder about the companies and how they work. They also provide lead links to user reviews on the different mortgage lead generating companies.

Finally, check if the mortgage lead is real. The best way to avoid bogus or false mortgage leads is avoid those websites that offer incentives to clients. This incentives are in the form of points for discounts on purchases or in the form of money for clients who fill out forms for a mortgage. Remember, if a person wants a mortgage he would not simply negotiate thru the internet but rather look for the company who could do the real job for them.

If you follow these steps, you’re sure that you will not fall into following worthless leads. But, it doesn’t mean that mortgage leads from the internet are totally worthless. Some experienced brokers who have used internet mortgage lead generating companies recommend that expectations should not be high in closing a mortgage lead from the Internet. Their statistics for closing such deals is 8 to 14%. Moreover, expect accuracy of data to always fall to 80%. Fortunately though, if you are able to close 8% of these Internet mortgage leads, then you can consider yourself to be doing very well.

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Posted in Mortgage | 6 Comments »

Mortgage Basics

Saturday, December 8th, 2007

Not everyone has enough money in his bank account to buy a house. If you’re an average American, chances are you need a mortgage.Many types of mortgages are available and these can be classified into 2 categories, the conventional and the government loans. These two categories can be further classified as fixed-rate loans, adjustable rate loans and different hybrids or combinations of these mortgages.

The U.S. government provides mortgages which can be found from three government departments. These are the U.S. Department of Veterans Affairs (VA), U.S. Department of Housing and Urban Development (HUD) and the Rural Housing Service (ERS) U.S. Department of Agriculture. Low-cost mortgage moderate housing plans are also available in different cities, states and counties. Most of these provide loans to fixed rate mortgages and interest rates low.

The conventional mortgages are also classified into 2 kinds. They are conforming mortgages and non-conforming mortgages. Conforming mortgages follow the guidelines and conditions that were set up by 2 stock-holder of the Company: Fannie Mae and Freddie Mac. Both companies purchase mortgage lending institutions and packages in these securities that are then sold to investors.

The two organizations set guidelines on initial payments, the properties appropriate amounts of loan, the borrower credit and income in terms of mortgages. Every year, loan limits for those applying for their first mortgage are known. To view tables for loan limits, interest rates and other information, visit Fannie Mae (www.fanniemae.com) and Freddie Mac (www.freddiemac.com) websites.

There are also other mortgages available on the market. These non-conforming loans are Jumbo loans and B / C loans. Jumbo mortgages are those above the maximum loan established by Freddie Mac and Fannie Mae. It is a kind of mortgage that is higher than conforming loans because the loans are acquired and purchased less. B / C mortgages, on the other hand, refer to plans that are offered to people who borrowed mortgages, but earlier applied for bankruptcy and foreclosure. It is also for borrowers who had records of late payments.

As mentioned earlier, conventional and government mortgages can be classified into fixed-rate mortgage and adjustable mortgage. Fixed rate mortgages are those whose monthly payments remain fixed during the period of the loan. There are many forms of these ranging from 10 – 30 years, but the most popular mortgage terms are 15 and 30. It should be noted that short period of mortgage guarantees a smaller interest to pay.

If you want to benefit from mortgages where monthly payments can change periodically, you can choose a plan under mortgages to adjustable rates. The value of this type of mortgage changes depending on the type of index applied on the interest rate. Some of these indexes include Constant Maturity Treasury (CMT), the prime rate, certificate of deposit Index (CODI), 12 months Treasury Average (MTA), the cost of saving Index (COSI), certificates of deposit (CD ) Indices, treasury bills (T-bill), 11th District Cost of Funds Index (COFI), the London Inter-Bank Offer Rates (LIBOR) and Fannie Mae’s required net yield (rny).

Information on mortgages can be found on the Internet and many companies offer online resources and services for those who want to avail of these loans. But before choosing the right type of mortgage there are a few things to consider about what your mortgage work plans with your financial goals. They are:

-The amount you can pay per month for the mortgage
-How much can you pay the deposit
-How long you plan to stay home
-Consider whether you intend to make additional principal payments

More importantly, because most mortgages to take long periods to cover, we must consider the stability of your income.

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Will Lenders Approve Your Mortgage Loan?

Thursday, November 22nd, 2007

While it is true that a great factor in the approval of your mortgage loan depends on you, there are other factors commonly considered by the lenders before they give you a thumbs up for your mortgage application.

1. Credit Report
The three major credit bureaus that can provide your credit report are Equifax, Transunion and Experian. According to statistics, errors are present in 40 percent of credit reports, that is why it is very important to examine the credit report for these errors may be included in your mortgage and you may get high interest rates or you may not get the mortgage at all.

2. Credit Cards
The mortgagors become suspicious of new credit cards or close accounts when applying for a mortgage.

3. Outstanding Loans
Repay all loans before applying for a mortgage, for this may affect the approval of your mortgage.

4. Revenue
It is recommended that you should not change jobs or leave your job before applying for a mortgage. A steady income will give you more points to get the mortgege.

5. Availability of Funds
Apart from from a deposit, you must take into account other expenses such as closing costs and make sure you do not purchase anything that could consume your available funds.

6. Advance Payment
Bigger downpayment will enable you to get a lower interest rates on the mortgage.

7. Interest Rate
Always remember that interest rates are changing continously. It is preferable to cponsider the lock-in waranty costs that tou still have the advantage should there be an increase in interest rates. This will determine how much you will pay each month.

8. Price Range
A lender will not approve a mortgage whose price you can not afford. From the assessment of your current financial situation and by determining your debt to income ratio, the lender can determine the price of your property.

9. The Lender
According to financial experts, it is not a good sign if a lender denies twenty percent of those who applied for a mortgage. You should know your lender and ask about the statistics on mortgage applications which they turned down and approved, for your insurance.

10. Honesty
Always be honest in filling out all information that the lender requires. This may cause disapproval of you loan. Beware of providing incorrect information for the lender may not be willing to work for you.

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Posted in Mortgage | 7 Comments »

What's Your Financial Capacity to Get A Mortgage Loan

Wednesday, October 3rd, 2007

Getting a mortgage is a long commitment usually covering 15 to 30 years of your life. That is why, all financial factors about yourself must be considered before you get a mortgage.

Consider your financial situation at present and your housing needs if they may change in the future while you are still linked with your mortgage. You can ask these questions to help you:

(1) How long do you think you plan to stay in your home?
(2) Is there any expectation of your financial revenue to increase over time to enable you to afford paying more for your mortgage?
(3) What do you think are the major expenses you could do in the future that could affect your ability to pay your monthly interest? College tuition, investment in small businesses, insurances, etc. are examples of these.
Then assess the level of risk you’re willing to take or convenient to take. Be sure to decide on what mortgage rate you think you can constantly pay for seriously. Adjustable rate is risky because interest rates change more often. Fixed rate will always be more secure because it is stable.

The third step is to determine the length of time you need to pay for the loan. Most terms are 15, 20 and 30 years. Usually, a shorter term means higher monthly payments. This is good for people whose income are higher than average and are stable. But average income people prefer long term because the later periods of small monthly bills can suit their budgets.

The last step is to assess the costs of closing a mortgage and lower interest rates you can get.

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Posted in Mortgage | 16 Comments »

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