Mortgage Diary - Morgages Tips on Home and Commercial Mortgage » Home Mortgage http://www.mortgagediary.com Everything you need to know about mortgages Sun, 14 Mar 2010 23:20:03 +0000 http://wordpress.org/?v=2.9.2 en hourly 1 Victim of identity theft: know how to resolve it http://www.mortgagediary.com/victim-of-identity-theft-know-how-to-resolve-it/ http://www.mortgagediary.com/victim-of-identity-theft-know-how-to-resolve-it/#comments Thu, 30 Apr 2009 15:34:02 +0000 Mortgage Diary http://www.mortgagediary.com/?p=72 Around the world, identity theft is the fastest growing crime, it was estimated that around 10 million people are victim of identity theft in America and around 40% of consumers report about identity theft. Unfortunately about half of victims do not know how they obtain their personal information and invariably takes its victims by surprise. Many people do not employee any protection plan against identity theft until it’s too late to implement it.
Despite of the number of identity theft cases reported every year; many people still do not consider it as a viable threat to themselves. One who falls prey to identity theft recognizes how painful and serious crime it is, with destructive consequences for them. Any one can fall prey to identity theft like an individual or business and at anytime and anywhere. One should be educated and aware of identity theft and its consequences to avoid it.
Here this article will out line how important it is for every individual to educate against identity theft for preventing and safeguarding ourselves from this type of threat.
Identity theft and its consequences are fast enough that by the time any one realizes that your identity had been stolen and try to recover it; damage had already been done to your finance. Establishing a secure protection plan against identity theft is an effective way to reduce the chances of you becoming a victim of it. In order to protect yourself from being victim of identity theft and save yourself you should follow the following tips.
Shred documents: always beware of thief searching you trash for the documents containing your personal information. For ex: driver’s license. A stolen driving license provides you information related to your name, driver’s identity number, address and date of birth. Robbers can use this information to take the financial advantage like credit cards, bank loans. It is one of the easiest ways that a skilled thief can take advantage from. Hence it is always advisable for you to shred all the documents containing information about you and then discard them.
Protect you social security number: one should never carry social security number with you or store it in your car glove. Protect it in a safest place as the social security number key to your finance or it is like passport to your finance. Financial institutions, tax department and employer are the only key professional who can ask for your social security number. Do not write you social security number on you job application because it is not required until you get hired and background check to be done. There is no other reason why other institutions ask for having social security number and one should never disclose it unless you trust the other party.
Do not disclose your personal information over phone or over internet through emails unless you are aware of about whom you are dealing with.
Take action if you suddenly stop receiving your regular credit card statements. Identity thieves can receive your credit card statements by simply applying for address change with company and use that information for robbery.
Using a best protection plan dealing with finance is one of the best methods to protect you against identity theft.

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]]> http://www.mortgagediary.com/victim-of-identity-theft-know-how-to-resolve-it/feed/ 2 Applying for a Mortgage: How Much Can You Afford? http://www.mortgagediary.com/applying-for-a-mortgage-how-much-can-you-afford/ http://www.mortgagediary.com/applying-for-a-mortgage-how-much-can-you-afford/#comments Fri, 06 Mar 2009 13:09:51 +0000 Mortgage Diary http://www.mortgagediary.com/?p=28 Applying for a mortgage can be nerve wracking – after all, it is one of the most important and expensive investments that one will make in their lifetime. When it comes to buying your first home, how do you determine how much you can afford for housing?

Contrary to popular belief, the affordability of the home is not only based on the monthly mortgage payment. Other aspects include:

  • Condo fees or homeowner associated fees that are associated with the property,
  • Taxes that are associated with the property,
  • Heating and Utility costs of the property,
  • Any costs that are associated with repairing or renovating the property.

So, when taking into account the income, the mortgage payment should be combined with these ongoing payments to determine how much you can truly afford for your first home. As a guideline, experts recommend spending a maximum of twenty five to thirty percent of the income on the costs which are associated with housing.

Lenders take these factors into account when determining how much the applicant will receive for the preapproval amounts. These numbers can be adjusted depending on the term of your loan. For example, a shorter loan term can mean monthly higher payments, whereas a longer home loan term creates lower monthly payments.

There are certain ways which you can increase the amount that you have been approved for. This includes using a cosigner such as a spouse, partner or family member whose income and employment and credit history will also be evaluated and can increase the amount of the approval by up to eighty percent. This is a great way to maximize the home buying potential.

Spending more than thirty percent of the income on housing payments can lead to stress being placed on other aspects of the finances. In order to avoid financial mistakes, spend within your means and realistically determine the amount that you can afford each month to spend on housing.

In the eyes of most buyers, purchasing a home is thought to be less expensive than renting a home each month. Although, the costs that are associated with home ownership can be quite a bit more expensive than the monthly payment to the landlord.

Remember that an emergency home fund should be started upon transferring of ownership of the home to the new buyers. This fund will cover any repairs or renovations that must be completed in the home. How much should you be saving? The homeowner should be saving at least five percent of the income to contribute to the fund. Three percent of the value of the home should be saved in this emergency fund – just in case repairs are required such as a new roof, water or electrical emergencies and even renovations required to maintain the value of the home.

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]]> http://www.mortgagediary.com/applying-for-a-mortgage-how-much-can-you-afford/feed/ 1 The Mortgage Approval Process http://www.mortgagediary.com/the-mortgage-approval-process/ http://www.mortgagediary.com/the-mortgage-approval-process/#comments Sun, 01 Mar 2009 12:07:02 +0000 Mortgage Diary http://www.mortgagediary.com/?p=20 The mortgage approval process is exciting, stressful and can even be overwhelming to those first time homeowners. Knowing how the process works can lead to a stress free experience in which the potential homeowner is aware of all the processes and knows what to expect throughout the entire application process to the point of which the home is purchased.

  1. Filling out the Mortgage Applications

    Filling out the applications is the first step of applying for a mortgage. The application will contain information such as; income and employment information, credit information as well as any deposit which is going to be provided as a down payment.

  2. The Credit Check

    After the initial application has been filled, the lender will than determine if the credit score and report of the applicant is sufficient for the lender to grant credit to the future homeowner. All of this information will be scrutinized to assess the risk of lending to a specific homeowner.

  3. How Much Debt do you have?

    If the consumer has high amounts of debt that need to be repaid every single month than this can affect the payments that the consumer is going to make towards the mortgage. Lenders will assess the amount of debt that the consumer has to determine if they are able to make a mortgage payment each month.

  4. The Pre-approval

    An amount will be determined that the applicant is pre-approved for. Once the potential homeowner learns this information they can begin the process of searching for a home. It can be a large help in the home buying process to learn how much the homeowner has been pre-approved for as it can define the budget. Searching for a home is difficult – especially when searching outside of your price range.

The mortgage approval process does not have to be stressful. There are many things that the applicant can do to ensure that the approval process for the mortgage is made as easily as possible. Use these tips to make the process as easy as possible:

  • Ensure that all information on the application is filled out correctly and effectively. Wrong information could cause a delay in the processing which could lead the mortgage being rejected. Be sure to double check the information that has been entered on the application to ensure that it has been accurately portrayed.
  • Use the internet to apply for various mortgages and determine and compare rates between lenders. Rates can be obtained from various lenders including; mortgage brokers, traditional banks and credit unions.

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]]> http://www.mortgagediary.com/the-mortgage-approval-process/feed/ 1 Should You Use a Reverse Mortgage? http://www.mortgagediary.com/should-you-use-a-reverse-mortgage/ http://www.mortgagediary.com/should-you-use-a-reverse-mortgage/#comments Mon, 23 Feb 2009 16:02:55 +0000 Mortgage Diary http://www.mortgagediary.com/?p=14 A reverse mortgage is something that not many homeowners are familiar with. The process is often thought to be confusing and should be researched before determining if a reverse mortgage is the best way to take advantage of the equity that has been developed in your home.

How does a reverse mortgage work?

Reverse mortgages are available to seniors that are over the age of sixty-two that are seeking to have a loan from the equity that has been developed in the home. This money can be received in one lump sum, or in payments received over the period in which the homeowner is residing in the home.

The flexible repayment terms of the reverse mortgage have caused the loan to rise in popularity. The balance of the reverse mortgage does not have to be paid until the homeowner has moved from the home. Alternatively, if the homeowner resides in the home until the end of their life, funds are taken from the estate sale of the home to repay the outstanding balance.

There are certain things that should be considered when taking out a reverse mortgage. Consider these aspects before applying for the reverse mortgage:

  • The longer the term of the loan, the more interest that is going to accumulate on the account. How long do you intend to use the term of the reverse mortgage? Will your heirs be subject to these high finance and interest charges?
  • What fees are associated with the reverse mortgage? Do these fees have to paid up front or are they available to be taken on top of the loan and can be repaid in the interest payments that will accumulate?
  • Is this your last resort to gain the income that you require? Many seniors live on a limited income, could selling the home be a viable alternative to obtaining a reverse mortgage on the home?

Although a reverse mortgage is available to seniors that are over the age of sixty-two, experts recommend waiting until later in life to take advantage of the reverse mortgage. If the loan is taken early in life, than chances are the equity within the home will expire. If this is the case, finances are often stretched even more when the payments are due on the home, which could lead to the senior lacking funding for living expenses and extended care. It is important that seniors be prudent when choosing to use a reverse mortgage to ensure that you are well protected throughout your life.

Reverse mortgages allow for expenses such as medical and living as well as extended care be taken care of without the burden to the family and therefore are a suitable option for those that have reached the senior status and wish to take advantage of the equity they have.

Again, reconsider the above issues in using this mortgage facility, otherwise you might ended up worsen your financial situation.

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