Florida Real Estate Blog

I have a web page that explains the mortgage loan process and I thought it was comprehensive but I get at least one question a day about the loan process. Perhaps it is unclear because many things actually happen in parallel.

First of course, you should shop interest rates and find a local mortgage broker that you feel comfortable with, is experienced and reputable.

First Step, Application:

You should actually go into the brokers/bankers office to fill out a 1003 (loan application). You will also have to bring your bank statements, retirement accounts, 401ks, W2s and tax returns and what ever else the Loan Officer requested. The Loan Officer will make copies of your documents and he will give you back your originals.

An application can be filled out on line but I don’t recommend you do that. Filling out an “on line” application is ok if you know whom you are dealing with and they are local. This can save you a trip to the office. But you should never just fill out an application on line if you don’t know who they are or if they are not local (even if they are a major branded company). Do not complete any request that suggest multiple offers as these companies sell your information over and over.

During the time you sit with the loan officer he will review your documentation and with most companies he will pull your credit report while you are with him.

The LO will tell you “based on the information he has” that you qualify for “this type” of loan. He should also at this time tell you about all loan types you qualify for. He will also discuss interest rates and terms. He will have you sign several disclosures.

After the complete discussion of your options you guys should decide on your course of action. He should at this time give you a GOOD FAITH ESTIMATE. The law says he has three days to do this but now is the best time. He should go over every item to make sure you understand the document. In fact, if he doesn’t, I would seriously ask him why not. When this is done he puts all your official paper work in the file and turns it over to the processor.

Processing:

The processor makes sure all your required documents are in the file, puts the paperwork in order, enters it into DU or LP (automated systems) and then receives an automated approval or turn down. This is always “subject to” supporting documentation including appraisal, inspections, and title work.

The processor then verifies employment and residence, orders an appraisal, and orders the title work. I won’t go into the documentation requirements here but this is when things start to happen in parallel. The appraiser does his research and schedules an appointment with you. The title company begins the search and every thing else starts to happen too.

When the processor has received all these verifications, the appraisal, and basic title work, they will review the file again and if it still qualifies they will forward the file to the lender’s underwriter.

At this point she does not have a title policy or guarantee, but the title company has reported that there are no clouds on the title. Shame on the processor if she forgot to order this because it can delay your loan later. The actual title policy is not issued until later when the underwriter gives a “clear to close”.

Underwriting:

The lender’s underwriter reviews what is in the file, runs the numbers, and verifies that all of the documentation is present and that it supports the DU or LP approval.

The underwriter also reviews the appraisal and the title at this time. This is part of the underwriting process. If there are problems with the appraisal review or title work they will address them to the processor. The underwriter may also choose to do some reverification of employment and bank statements. They will always pull your credit again just before closing.

The processor will communicate with the LO and appraiser and/or title company to resolve the issues. This is part of the underwriting process. The processor collects the requested “stuff” and then forwards all information to the underwriter.

The underwriter is then happy and gives an “ok to close”. This ok is usually subject to receiving the title insurance policy from the title company. The title company faxes or transmits electronically the info to the lender. Then the Lender sends the closing documents to the closing company. This can sometimes take two to three days.

You have an appointment to close. You sign the documents and it’s like magic, your loan is closed and you get the keys.

Processing should only take a week after you have provided all the documentation requested. The underwriting normally takes about 14 to 28 days. This time includes communicating with the processor if there are any deficiencies.

Every loan file is different; each Lender has different requirements and markets vary, so it is impossible to give an exact duration for each step.

Understand the sequence and insist your loan officer gives you full details about what is going on. If you don’t understand don’t say so. This is YOUR mortgage. Demand the facts. Loan officers sometimes use industry terminology, ask what they mean if you don’t understand!

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Shopping for a new home is an emotional experience. It’s also time consuming and comes with a myriad of details. Some buyers, however, caught up in the excitement of buying a new home tend to overlook some items. Their home purchase turns into an expensive process. These errors generally fall into three areas:

a.) Paying way above actual cost b.) Losing out to another competitive buyer c.) Purchasing the wrong house

When you have a systematic plan before you shop, you’ll be sure to avoid these costly errors. Here are some tips on making the most of your home purchase:

One of the first thing you need to do before purchasing a property is to do your property market research. Doing proper property market research enables you to know if the price of the home is a good deal or a bad one. You can hire a professional realtor to provide you with factual information of the real value of the house, based on market sentiments, the condition of the home and nearby neighborhood.

Buying a mis-matched home What do you need and want in a home? Sounds simple. Yet, clearly identifying your needs and bringing an objective view to home shopping, leaves you in a better position. Sometimes, home buyers buy a home that is too large or too small. Perhaps they didn’t consider the drive to work, the distance to school, or the many repair jobs waiting for completion. Plan ahead. Use your needs list as a guideline for every home you view.

Some home sellers still had bad debts to clear, incomplete leases or hidden owners that will could cause you problems. Therefore, get your real estate agent to supply you a copy of the title deed first.

Inaccurate Survey Just before you exercise the purchase, get yourself an updated survey of the area. It will show you the boundaries and any structural changes such as neighbor’s fence or wall extending to your area.

In order to make your contract subject in your favour, hire a professional home inspector to inspect the home for sale. It can be done for less than about $500 and you’ll know how much future repairs could cost you.

Shopping without pre-approval It only takes a few days to get financing pre-approval. When you are shopping for a home, this gives you more power. A seller is more likely to consider an offer from a serious buyer.

Remember additional cost Besides the funds for the purchase of a home, you’ll need funds for items such as loan fees, insurance, legal fees, surveys, inspections, etc.

All documentation should list out the understanding and condition of the transaction to ensure you have not forgotten or left anything out. This prevents you from losing the sale, financing or money.

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With the economy in its current state and foreclosures at an alarmingly high rate, there has never been a better time to consider a refinance on your home mortgage loan. Thanks to the internet it has never been easier or more convenient to compare multiple refinancing companies and to find the agency that’s right for your situation. As always, doing your research is imperative to make sure you are getting what you need and only what you need.

Researching mortgage refinancing in the past required you to do the legwork yourself. This required making endless phone calls and setting up meetings with various refinancing experts for a one-on-one consultation. The Internet has made this process easier. Researching refinance companies for the best rates is as close as a click of the mouse. Many websites also offer to do the comparison-shopping for you.

LendingTree.com is one such company. The website uses the information entered on the site to make a comparison of a maximum of four potential refinancing agencies. The entire process is now convenient and less time consuming. The ability to have several options in front of you makes comparison-shopping a breeze.

By using a free online mortgage calculator you can not only find out how much you are currently paying in taxes and interest but also easily compare various refinance options to find out how much you will save should you choose one option over another.

The standard refinance company will run a credit check to enable them to assess your financial situation and credit worthiness. You are entitled to one free copy of your credit report annually. Use this benefit to be aware of potential negative reports that the underwriters at the refinance company will see and question, before they see it. Just because you are considering online mortgage refinancing does not change the rules. Your credit report always plays an integral part in any refinancing endeavor.

Before choosing a mortgage refinance company, discuss the situation with friends and family who have already been through a home refinancing process. Their experiences may provide valuable insight into the company best suited to you. Many companies are competing for your business. Some are bound to be non-reputable agencies. Let common sense prevail. Well-established companies have a proven track record and are the best choice based on their stability. Smaller lenders should not be overlooked because they may be able to offer more personalized services than larger agencies.

Searching for online mortgage refinancing can be as easy or difficult as you make it, but by using the tools that are available, the process can be simplified tremendously. Don’t take anything for granted. Read everything no matter how detailed it might be and if you do not understand something, be sure to ask for clarification before signing on the dotted line.

Remember: Asking for help doesn’t make you stupid, getting yourself stuck with a bad mortgage refinance loan does!

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A checkbook IRA allows you to have checkbook control of your IRA retirement account.

If have been an investor in real estate for any amount of time, then you know first hand how quickly unintended expenses can eat up your potential profits. A few trips to the local hardware store, a few simple mistakes by an inexperienced contractor can affect your potential return on investment.

Now think about it for a moment, if you were required to get custodial approval every time you needed to cover an expense related to your investment. It can be time-consuming, expensive and downright irritating. This is no way to supervise what is perhaps the most important asset you have - your IRA account. After all, sometimes the best deals are found “on the spot.”

Checkbook control means practically being able to buy what you need when you need it and not when you can chase down your custodian for a signature. As you probably already know, sometimes the best investments are made before others learn about them. Without checkbook writing privileges, great investment opportunities could be missed.

What Does Checkbook Control Of Your IRA Mean?

Having checkbook control means you have the opportunity to self manage your IRA account to maximize your retirement investment without excess custodial intervention. You can invest in practically any way you want. The following is an abridged list of some of the items you can invest in with checkbook IRA: high yielding real estate notes, rental property, trust deeds, probate property, commercial real estate, foreign real estate, REO property, storage facilities, tax lien property.

Checkbook control gives you the ultimate control over your retirement funds. Call Truly Self Directed IRA (TSD-IRA) to learn more at 877-339-4559.

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Wondering what a moving pod is and what’s the main advantage of this type of moving over traditional door to door movers and packers? PODS are basically large cubical that you keep and lock yourself. A company picks up the unit, moves it to where you are going to and when your done the company comes and gets it.

This is the perfect solution for people who really are not in that big of a hurry to move. These kinds of people are probably in the best situation to be in because of that. You don’t have yourselves at the mercy of movers and their schedules of moving.

The greatest advantage to the portable on demand storage system is that you have up to a month to pack your pods and not a day. There is no driving involved on your part. There is a patented lifting system which prevent shifting of items once have been loaded into the container.

Get the accurate size POD container correct for your requirements. If you end up requiring additional space it will cost you a lot more in the long run and you can kiss goodbye to the idea of a cheap moving POD. Rates will fluctuate with the seasons.

If you’re still not sure which way to go either with Pods, Door to Door movers, or mover and packer companies, you should give certified moving companies in the area you are going to be moving to a call and let them compete for your business.

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Hard Money can be a quick way to fund everything from residential property, to industrial facilities to new home building. I will not get into every aspect of hard money but I will give you a general frame work that your brain can understand.

First of all most hard money lenders will allow you to finance up to 65% of the value of the home. If the loan is for rehab purposes, they’ll use the “after-repaired value” of the house as the basis point. I have seen occasions that went as high as 75% but 65% is the norm.

These loans are per case basis and very flexible so there is a lot of space if the deal works. It can be a strike against you if you are fresh to investing but luckily that can usually be offset with sufficient reserves and a good plan of action.

Let’s look at an investor rehab loan to visualize how the numbers work.

Let’s say you came across a out dated and run down old house in a good neighborhood where homes sell for $100,000. The seller takes you through the home and you determine that it needs around $12,000 in work. You have gotten pre-qualified for a rehab loan and know you are wondering what is the maximum you should pay for the property.

Lets keep it simple for starters, you will want to take $100k x 65% - loan costs - repair costs/holding costs = Purchase price. Loan costs, for hard money loans, run from 8-13% of the total loan amount. They are not inexpensive but it’s less money than you’ll disburse to a partner! For now we will assume costs of 10% and holding costs of $2,000. Given those numbers, you probably shouldn’t invest more than $45,000 for the property. If you pay more, that will equate to more money out of your pocket to complete the project.

Here are a few quick tips you can utilize to maximize the likelihood of getting approved for hard money loans, in general:

1. The more equity in the property after the loan, the better, 2. The higher your credit score, the better 3. The more credit history you have, the better! 4. The more liquid assets you can prove that you have personally or have guaranteed access to (lines of credit, partners, rich uncles. . .) the better 5. The more populated the area, the better 6. The faster the properties in the area sell, the better 7. The more solid the appraisal value, the better! Most hard money lenders like to use fire sale values as the basis point of the loan so don’t be surprised. This is definitely not the time to use stretched values.

All in all, this is a numbers game. Don’t get attached to a property if the numbers don’t make you money. Hard money lenders can be flexible but bring them a deal where the numbers don’t add up and it could cost you a crucial relationship for future investments. Credit doesn’t always matter but it does help, tremendously, if you can show good credit history.

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A vessel sink is a sink that rests on a vanity countertop or on top of a piece of furniture. This article is not just going to tell you about all of the different kinds of vessel sink vanities but it will tell you how to install vessel sinks as well!

Two major styles that vessel sinks are available in are the vessel sink vanities and the bathroom vessel sinks. Another popular name is bathroom vanity cabinet sinks. The common characteristic of any type of vessel sink vanity is that it sits on top of a surface. For example, a vessel sink can sit on top of your bathroom counter or it can be a stand alone sink. You may see a sink that sits inside of a bathroom countertop that is called a vessel sink by the manufacturer, in most cases this will not be what you are interested in.

You will be able to display your own distinct style and personality with the vessel sink you choose compared to having a traditional basin that just sits inside the counter in your bathroom. This is probably why you are looking at vessel sink vanities, bathroom vessels or bathroom cabinet sinks, to be different.

You will find many vessel sink vanities to choose from. The fact is, there are as many vessel sinks to choose from as there are people’s personalities. Your choices are numerous, vessel sink vanity colors, designs and materials cover almost any designing idea you could conceive. The vessel sinks for the bathroom are sometimes just a basin that is made to sit on top of your existing countertop (which will have to be remodeled when you take out the old sink) and sometimes they are a freestanding bathroom cabinet sink.

Don’t over look proper installation. It is a sink by any name and like installing all sinks you want to do it properly. This is not always easy. If you plan to install a vessel sink yourself there are a few websites that are dedicated to this task, that have step-by-step instructions. However, it is advised that the instructions from the manufacturer be used for the installation of your vessel sink. There is more than just getting cabinets or a counter top then putting the sink on top. You also have pipes and plumbing that must be considered in making sure that your vessel sink is functional and not just pretty.

They have far more personality than the sinks that come already installed (in the event that you did not build your house yourself). Remember that if you plan to install vessel sinks yourself it is a good idea to learn some basic construction and plumbing skills first because installing vessel sinks is kind of a complicated process. Vessel sink vanities are a great personal touch to add to any home.

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In past years, an IRA was considered to be a hedge against uncertainty and it was expected only to grow through the incremental accumulation of modest returns. An IRA was a nest egg that was to be protected from all risk. Some of this still applies. You do not want to treat your IRA’s tax-advantaged assets like venture capital and throw them into high-risk investments hoping for incredible returns.

The attitudes concerning IRA investments have shifted over the past several years, however, as investors have started looking for ways to build real wealth within their IRAs. It is still a good idea to keep your IRA’s tax-advantaged assets from high-risk ventures, but restricting your IRA’s investment activities to mutual funds is no longer considered to be the best strategy. Avoiding all risk leads to minimal returns.

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We know that Movers & Full Service Storage offer relocating and storage facilities for individuals and commercial businesses, they move house and office furniture, household and appliances. Often the cost of packing and moving these items is greater than their value. Always get yourself several quotes then compare services.

Once you have thought about it, you are then ready to go ahead and start searching, remember to put your local area in the search box so it can look for local movers with in your surrounding areas or consider the differences to moving pods!

Look at how long the movers have been in business, are they licensed? Bonded and insured? Are they a nationwide company or are they independent? See whether they offer business and commercial services, etc. This will help identify the most suitable service for you.

If available, used moving boxes are often the most economical option for packing supplies. Often neighbors of friends will have these. You should verify that these boxes are in good condition and not weakened by previous use. If you decide to use moving Pods then you can arrange boxes carefully yourself.

If you can only find random boxes of different sizes, it is recommended that you purchase moving boxes instead. While you may save money on the purchase of moving supplies by using these random size boxes, you will increase the cost of your move, as it is more time consuming to move and pack boxes of random size.

This is especially a concern for longer distance moves where items tend to rub against each other for longer periods of time. t is recommended that you purchase packing paper for your move. It is usually the most cost effective padding material to use inside of your boxes. Bubble wrap or packing peanuts should be used on extremely fragile items, but in general, is more costly than packing paper.

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An apartment lease is a legally binding contract between the tenant and the owner. So, breaking a lease is like breaking any contract and sometimes there are certain penalties. Our life is so dynamic that moving from place to place is not such a big deal. Sometimes you get a better job that is out of town; you can no longer afford the rent, etc. You face the dilemma whether to stay in the apartment or break the lease. Before making the decision, you’ll need to know about possible penalties.

Typical Penalties Often leases specify the penalties for breaking the lease. These penalties are to deter tenants from breaking the lease and to compensate the owner should a tenant decide to go ahead and do it. There are some areas where laws govern how the breaking of the lease plays out. Common penalties include paying rent until the landlord finds a replacement or loss of security deposit or both.

Breaking the Lease If you decide to break the lease, talk to your landlord and be polite. If the situation is such that your landlord is justified in penalizing you for breaking the lease, it is up to him or her whether they actually want to enforce the penalties. Being polite and explaining the reasons why you are leaving may save you certain penalties. Do not forget to remind them that you are a good tenant; also you can offer to find a replacement yourself. If they like you as a tenant, they may be happy to receive a recommendation from you for a replacement tenant.

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If you have been contemplating buying a home, but you have experienced credit problems, recent changes in the guidelines for FHA loans may provide the answer to your problems. FHA is not actually a new program, but the guidelines have been revised so much in the last couple of years that the real estate agent or seller you are trying to work with will probably not recognize the program anymore.

The initials ”FHA” stand for Federal Housing Administration. The FHA is a part of the Department of Housing and Urban Development (HUD). When you see HUD homes for sale, they are foreclosed homes that were financed with mortgages guaranteed by FHA.

The program was established in 1934 as part of the National Housing Act with the mission to expand credit and home ownership opportunities for borrowers who may have had credit problems, have a limited credit history, or whose bills take up a higher percentage of their total income than typically allowed on conventional loans.

FHA achieves this goal by issuing an insurance policy that guarantees payoff of the loan if the borrower defaults. This guarantee allows the lender to assume more risk and therefore approve loans for borrowers who would not be approved under conventional mortgage programs.

The FHA mortgage insurance guidelines were set up around the requirements of the first time home buyer, however the program is available to any borrower with no other outstanding FHA loan guarantee. FHA is not available on non-owner occupied investment properties.

Many experienced real estate brokers and home sellers have heard horror stories about FHA’s excessive red tape and are therefore reluctant to recommend that buyers use an FHA loan. At one time, FHA regulations were much restrictive and resulted in higher fees for home sellers. Processing times on FHA loans often delayed the sale of the property while fighting with underwriters over silly bureaucratic issues. However, today these issues are almost completely resolved.

If you have an agent or seller who is reluctant to accept an offer involving FHA financing, here are some of the benefits you can give them:

1. Easy down payment requirements. Typically 3% or less of the property sales price and this can be entirely comprised of gift funds from a family member or an approved not-profit foundation.

2. Seller-paid contributions for closing costs and prepaid expenses are allowed up to 6% of the purchase price. This means that a buyer can negotiate terms which will result in having to bring absolutely no money to the closing!

3. FHA requires no financial reserves at the time of loan approval. A borrower with no savings, and no money in checking will still meet the requirements.

4. FHA has reformed the appraisal guidelines to get rid of the need for minor repairs that must be completed prior to closing. HUD now allows as-is appraisals. Expensive termite, well and septic inspections are no longer automatically required before closing. Such requirements were the type problems that often delayed closings and angered home sellers in the past.

5. There is no official minimum credit score. HUD provides an automated underwriting system named FHA Total Scorecard. Borrowers approved by this system are not required to write credit explanations, pay off old collections, or remain below an arbitrary debt to income ratio.

6. If HUD’s FHA Total Scorecard automated underwriting system will not approve a loan, the loan may be manually underwritten. The underwriter is given wide discretion to apply common sense in their decision to approve the loan. On conventional loan programs, underwriters often do not have this discretion and are never allowed to override the automated decision.

8. Never any prepayment penalties. Many loans borrowers with credit problems have been getting including significant penalties if the loan is paid off within the first 3-5 years. Such prepayment penalties inhibit refinancing for a lower rate or to lower debt payments. FHA loans have no such prepayment penalties. FHA loans even allow for “streamlined refinancing” As long as a borrower has made mortgage payments on time, there is no requirement to produce all of the qualifying documentation again in order to refinance.

FHA insured mortgages greatly benefit both buyers and home sellers. There would be many fewer potential buyers for the seller’s home without FHA. This program allows borrowers with past credit difficulties and no cash out of pockett to be given the same low fixed mortgage rates as the best perfect credit borrowers.

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Buying a first home is often an overwhelming endeavor. Consumers get the feeling that their financial situation is rapidly getting out of control. Buying real estate is something most people have very little experience with or knowledge about. However, buying a home can be a simple and orderly process when you break it down to the basics. The following steps can help.

1. You’ll want to get preapproved for a mortgage as early in the process as possible. This gives you more time to understand your mortgage and all the complicated paperwork involved. This also lets the seller know that you are serious about buying, and will normally work in your favor to give you a negotiating edge - which is especially handy if there are several others interested in purchasing the home. Getting preapproved will also save you a lot of time as well. If you can’t get approved for a loan, you shouldn’t waste your time going through the process until you have your mortgage problems solved.

2. On the mortgage front, the next thing you should watch out for is to avoid prepayment penalties at all costs. A prepayment penalty means that if you buy the home then later want or need to sell it or refinance it before the prepayment penalty expires, you’ll have to thousands extra. You can find a variety of great loans that don’t include these types of penalties. If your loan officer proposes a loan that does include prepayment penalties, you should usually turn it down and look for another loan. There is one caveat to this rule. If you know beyond any doubt that you will not qualify for a better loan prior to the expiration of the prepayment penalty and thus won’t be able to refinance, it is reasonable to accept what is known as a “soft” prepayment penalty in exchange for a lower interest rate. This means that you would have no penalty if you needed to sell the property

3. Mortgage rates will probably fluctuate substantially over the next years. It would be wise to stay aware of good adjustable rate mortgages. I know that you have been told many horror stories about ARMs causing many people to lose their homes, but this is vastly overblown. Most foreclosures are occurring before borrowers’ rates adjust. If you obtain a good quality adjustable rate mortgage, you could save many thousands over just a couple of years. FHA adjustable rate mortgages are a perfect example of this. They have strict borrower friendly adjustment limits, are completely free of any possible negative amortization (your loan balance will never go up, only down as you make payments), and a simple streamlined refinance process requiring no requalification as long as your payments have been on time.

4. Before purchasing a home, decide how much you can afford. Review your family budget and determine how much you are realistically comfortable paying on a mortgage. If you already manage your finances well, this should be a fast process. It may take a little longer if your finances are not organized, but it will be a highly productive effort. You should have your finances in order before buying a home anyway. In any case, DO NOT rely on your loan officer and real estate broker to tell you how much you should pay. They can very easily get you qualified for a home you cannot comfortably afford and each gets more profit when you buy a higher priced home. However, neither of them will be around to help make the payments later.

5. Once you have your financial house in order, take the time to become familiar with home prices in the area. Become an expert. Do research online to find out what sellers are asking and getting. Be sure to check for foreclosure homes. We are experiencing a very distinct buyer’s market in real estate now. You should choose your first home more for its investment value than its dream home qualities. Do not ever pay list price. Expect to pay a minimum of 10% through 30% or more less than similar homes in the area have sold for. The greater the discount the better. This creates the greatest possible potential of avoiding the risks of buying in a down market, and the greatest odds of profiting when it is time to move up to a larger home. Never, ever, pay the full appraised value for a home and wait for inflation to build your equity. This was a losing strategy even during the housing boom. Inflation raises the value of all property. The home you hope to move up to will be getting more expensive due to inflation as well. Make your profit when you buy the home by getting a good deal right out of the gate.

The tips listed above are just few of many basic strategies to help buy your first home. Educate yourself before entering the market. Most first time home buyers begin from a position of weakness by not getting a home buying education before looking at homes. Many of those buyers are now paying the price for that failure as today’s mortgage crisis works itself out. Don’t let the mistakes of others scare you away from buying a home. Learn the basics and you can still control your destiny.

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I know about all the bad hype from the media about the mortgage market. And, of course I have heard each of our presidential candidates run down the economy over and over again. This happens every election year.

Unfortunately people with busy lives hear and read all of these exagerations and begin to think it is true. “If you tell a lie often enough people will believe it is true”. There you have it in a nut shell!

Is our economy running a little slow right now? Do Da! … Sure, but it is not trashed. In fact, the mortage rates are at an all time low!

Independent mortgage brokers and independant appraisers are not the cause of the mortgage scandals. In fact, it is their integrity and concern for their client’s well being that helped to fulfill the American Dream.

The real scoundrels are the large corporations, and giant lenders. Don’t let me forget to mention the politicians like the New York Attorney General, Andrew Cuomo, who is using the situation to his benefit by “saving the consumer” with new laws that will only hurt the consumer by putting the independent appraiser and broker out of business. But of course he is making a name for himself. What does he care. Guess who wants to run for president in 2012?

Sorry, let’s get back to the facts. I received a very simple question yesterday and I am writing about it here for a few reasons I think you will understand afterwards.

The question was: “What is CLTV and LP?”

The answer is CLTV stands for Combined Loan To Value. This is used when there is more than one loan on a property. As an example, if the first mortgage is 80% of the appraised value and there is a 2nd loan of 15% of the value, the CLTV is 95%. In the industry we call these Combination Loans.

LP is a term for Loan Prospector. Loan Prospector is a computerised program that reviews and approves or disapproves an FHA, VA, or Freddie Mac loan. DU, DeskTop Underwriting, is a similar program used for Fannie Mae, FHA, or VA loans. When an application is put through these programs, basically, … sort of, the live underwriter then only has to verify the documentation because the computer has given an approval. If a loan isn’t approved because of an unusual circumstance, a lender can chose to do a manual underwriting in which case the loan may still be approved.

My first point for posting this is to let you know that Lenders ARE lending money. The mortgage industry is alive and well in spite of the media and presidential candidates.

As a consumer you should take full advantage of these unbelievable low interest rates. Refinancing to lower your interest rate will save you a ton of money.

In the case above, combining a 1st and 2nd mortgage is a very smart financial move and will also lower her payments.In the

If you are thinking about buying a home there is no better time than now. I really mean like, … NOW. As soon as a new president is elected, and it doesn’t matter which one, the rates will go back up. I promise you this will happen. It happens EVERY election year

Just make sure you go to a reputable broker and don’t buy more house than you can afford.

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Moving properly means carefully evaluating several potential moving companies before making a decision. It means consulting DOT numbers, individual references, and other sources of information that can verify that you have chosen a reputable moving company.

If you are moving a home, these likely include items of sentimental value as well as furniture and appliance pieces of great monetary value. It is not just your home. It is your life you are moving. With this in mind, it may be good to think twice about cheap moving services.

It is not impossible to get quality moving services at a reasonable price, but you should be skeptical if you receive quotes that are markedly below those of the other companies you consider. Low-ball estimates from cheap moving companies can be from Boston, Atlanta or Dallas, and are a sure fire indication of fraud or compromised service.

The costs of the average move can be so outrageous that many a home-owner has been tempted to sell everything and start from scratch. Simply put, help is needed and that help comes in the form of a moving company.

It may be worthwhile to pay a bit more, knowing that you have bought yourself peace of mind. Sometimes, choosing cheap moving services means paying a tiny bit more upfront so that you don’t pay through the nose down the line.

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Affiliate marketing has many descriptions, yet all have the same meaning. Affiliate marketing is a huge business piece on the Internet. It is a cooperative effort between merchants and an affiliate’s website. For many years now, affiliate marketing has proved to be a cost-efficient, measurable method of delivering long-tern results. It has become famous for Internet sites who are trying to make some extra or additional income for their site. Every day, people get interested to affiliate marketing and want to make money out of it. But in many cases, these new affiliates do not fully understand the affiliate world and make costly mistakes. In other words, affiliate marketing has often been misunderstood. One of the common misconceptions that are being associated about affiliate marketing is “selling”, though selling is an important activity of affiliate marketing and the central function of a business operation. Another is that affiliate marketing is commonly linked with “advertising”. While the importance of advertising in marketing a certain product is not to be underestimated, the fact of the matter is, advertising like selling, is merely a part of the many functions of marketing.

In affiliate marketing, an affiliate is compensated for every visitor, subscriber and/or customer provided through his efforts. The said compensation may be made based on a certain value for each visit. The most attractive aspect of affiliate marketing from the merchant’s viewpoint is that no payment is due to an affiliate until results are appreciated.

Affiliate marketing is typically being run by affiliate networks and this affiliate networks are composed of two functional bodies, the group affiliates and the group merchants. Each has their special function and role when it comes to affiliate marketing. The affiliate network acts as a third party between the merchant and the associated affiliates. The network provides the technology to deliver the merchant’s campaigns and offers. The affiliate network also collects commission fees from the merchant and then pays the affiliates which are part of the program.

The merchant is any web site owner that wants or desires to take advantage of performance based marketing. The benefits to the merchant are many. First, the merchant maintains and operates the affiliate program. If it would be extracted, the merchant needs to do their part by researching interested affiliate websites to ensure that they are a good fit for that particular website. Finding a fit for their merchandise would be the key to more generated income. The merchant has access to markets and customers without him spending valuable time searching out. Banner ads on affiliate sites are not distracting to the site user. It might produce interest for that product and drive the consumer to the merchants’ website. It is also the merchant who decides how much he is willing to pay for each sale that results from a visitor sent from an affiliate.

The affiliate or the affiliate marketer also sees a lot of benefits. The affiliate is a web site owner that promotes one or more merchants and their affiliate programs. Affiliate marketing can generate a full-time income for the affiliate. But this is not an easy task to accomplish. The affiliate needs to have a better understanding with the merchant what the commission will be, expected payment method and time involved in the contract. The affiliate has also the responsibility to stand for the merchandise their user based would be most interested in. For example, if the site has a user base of mainly stay-at-home mothers, then on-line job openings such as surveys would be a good match for them. This group would also appreciate direct links to children’s products and informational sites. Merchandisers often provide targeted, best-seller items and personal support to their affiliate. They often offer sales promotions that will benefit the merchandiser as well as the affiliate.

Affiliate marketing is a great situation for both the marketer and the affiliate. If they would work together, they can be an advantage to both. Plus the fact that it seems to make sense, it is easy and inexpensive way to start, and you can be up and running within a few days. But there is one thing to consider, it is how to get traffic and make your offer different than all others.

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