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Monthly Archives: December 2008
Five Tips for First Time Southern California Real Estate Buyers
Author : Jerry Glynn
Finding Southern California real estate isn’t difficult, but knowing what to next requires a little research and effort First time Southern California real estate buyers sometimes have the most trouble purchasing a home because of their inexperience Here are some tips to help first time Southern California real estate seekers purchase their first home successfully
Make Sure That Your Finances Are In Order: As a first time home buyer should spend at least the six months prior to purchasing a home getting your financial situation in order This means checking your credit report to make sure that there are no blemishes Paying off collections and other debts to improve your chance at obtaining and affording a mortgage is also an important step to take as a first time home buyer It is important that you take a good look at your budget to determine how much you can comfortably afford to spend on a mortgage It is not a good idea to stretch your money too far
Get pre-approved for a mortgage Once you have done the work to clean up your credit report and pay off your minor debts, as a first time Southern California real estate buyer, you should get pre-approved for a mortgage through a lender When a lender pre-approves you for a mortgage, you are given an estimate of the amount of mortgage you will be approved for based on your credit history, debt, and income With this pre-approval amount, you have a price range that you can use to shop for a home
Choose your agent carefully The real estate agent you choose will play a major role in the home shopping process Not only should you choose an agent that is reputable and experienced in the Southern California real estate market, you should also make sure that you feel comfortable communicating with the agent It is helpful to work with an agent that has experience working with first time home buyers You don’t have to be best friends with your real estate agent but you do need to get along with this person After all, you will be working together for the next three to six months
Narrow down your selection as you go Many first time home buyers have difficulty making a decision about a home to purchase After several days of home searching you may find yourself with several houses to choose from This can make it difficult since you’ve probably forgotten many of the houses since visiting them You should narrow down your selection of houses as you go As a matter of fact, it is a good idea to only have three houses in mind at any given time Weeding out the houses will make the final decision much easier
If you must settle when it comes to Southern California real estate, do so within reason Finding your dream house as a first time home buyer might be somewhat of a stretch, especially if you are limited by financial reasons You might have to lower your expectations slightly to purchase a home That doesn’t mean that you have to choose a house that you hate Instead, make a decision to sacrifice some of the things you desire in a home that can be added later
Being a first time home buyer can be a rewarding process, especially if you have the knowledge you need to make an informed Southern California real estate decision
If you are looking for Southern California Real Estate, the author recommends http://www.firstteam.com Continue reading
The 2008 World Financial Crisis
Author : Robert Kokoska
Its currently a time of great depression Warning bells are ringing worldwide! Recessions have happened even earlier In the past fifty years we have seen recessions of all hues But this time it is going to stay much longer It is going to etch its mark even in third world countries In the capitalist business cycle, recessions are but common place To some extent, recessions are good in the sense that they help wash out excesses in the system by clearing away inefficient companies in the fray It paves way for new competitors who present competition to keep the demand and supply in perfect sync on a long term basis
The fear was that the whole market would freeze up with the companies winding the day sans basic operations The situation forecasted is grim with little hope In the domestic front, the US, along with Japan and Europe are certain to fall into recession by the end of 2008 Jobs are being lost, companies face the threat of total lockout, many are fired, no further recruitments and those with education and skills are lurching in the dark
There have been an estimated 159,000 jobs lost between September and October and reports of a 0 3 percent drop in U S gross domestic product in the third quarter surely is a condition to create panic The numbers predict bad news, they harbor great economic depression It will be all the more difficult if the economy is floated with cheap capital
How did it all happen? Is it the poor governance and mismanagement that popped the bubble? It is said that the real cause that let loose this crisis was the inflated housing prices The high prices forced people to go after mortgages from banks that they were sure they wouldn’t be able to repay Both home buyers and loan lenders were eager to make cheap money It is the aftermath of the global three-ring circus of leverage
Hedge funds, investors and banks borrowed to buy more debt, stocks and commodities than they would have bought with their hard earned earnings Pension funds, insurance companies, chief financial officers and money market funds based their capital in the borrowed money This along with the unpredictability of anything purchased with borrowed money sent panic reactions all over the world driving even the big guns like Bear Stearns, Lehman Bros and Washington Mutual hesitant to invest This resulted in the credit crunch of this dimension when even money lenders deciding to sit on cash rather than to spend on to reap a good harvest
The Bush administration is trying all methods to tide over the crisis including a radical bailout plan with a jaw-dropping price tag A takeover of worthless mortgages and other bad debt holding institutions, which they believe can bring in a half trillion dollars Because of the federal action taken, the dow jones industrials average rose 368 points after surging 410 points the day before The president has informed that the government has to intervene to rescue the trailing institutes He also warns that if he remains idle, the catastrophe will be a thousand times worse than this Congress is determined to take over damaged mortgages from banks and other companies
Want more finance articles? Visit the Blogola Article Directory: Finance Articles Continue reading
What Are Basic Variable Rate Home Loans And Standard Variable Rate Home Loans
Author : Ranju Kumar
Basic variable rate home loans : A basic variable rate home loan is a “no frills” loan with very basic features It gives you a low interest rate because it has fewer features
Having a home loan with a low interest rate means: you can purchase your first home sooner, as you will be required to pay less interest and fewer fees In fact, basic home loans typically offer interest rates of half to one per cent below the standard variable rate A low mortgage rate can shave years off your home loan repayment, or make your monthly repayment schedule easier to manage
We want you to be confident with your home loan decision, so when we meet to discuss your needs, we break down the different home loan products into easy-to-understand components and language so you can compare your options with confidence
Consider the following pros and cons before you decide on a basic home loan:
Pros of a basic variable rate home loan -
1 Choice of repayments Can be monthly, fortnightly or weekly
2 Low interest rate – The interest rate is always lower than the standard variable rate loans
3 Extra repayments – Most lenders allow extra repayments without incurring a penalty
Cons of a basic variable rate home loan
1 High break cost – Some lenders charge a high break cost if you leave them during a period of time usually within the first 4 years of you taking out a mortgage
2 Variable rate – The interest rate is variable and fluctuates with market conditions
3 Limited facility – Other facilities such as loan redraw may not be available
Standard variable rate home loans: A standard variable home loan is the most common mortgage For borrowers, this type of home loan offers the right mix of various features like split loans, internet and phone banking, redraw facility, etc
A standard variable rate home loan is suitable for those who want to make extra repayments without penalty, draw out surplus funds or access a line of credit For the benefits of having these features, a standard variable rate mortgage will have a higher interest rate than a basic home loan
Consider the following pros and cons before you decide on a standard variable rate home loan:
Pros of a standard variable rate home loan
1 Choice of Repayments – Can be monthly, fortnightly or weekly
2 Redraw Facility – Most institutions (subject to terms and conditions) will allow you to withdraw any surplus funds you have above the minimum repayment
3 Offset accounts A high interest account to offset credit balances held with the same institution against the principal and interest repayment of the loan
4 Extra repayments You can make lump sum repayment or above the minimum repayment
Cons of a standard variable rate home loan
1 Higher interest rate then your normal basic home loan
2 Rates fluctuate according to market conditions and lenders can increase/decrease the interest rate at their discretion
Are you Looking to consolidate your debt? Just log on to the website Australia Loan to get access to leading lenders and grab this golden opportunity to obtain best Australia home loans by saving time, effort and money. Continue reading
Access More Money With A Home Equity Loan And Know About A Low Doc Home Loan
Author : Ranju Kumar
Home Equity Loan : Known by a number of names, a Revolving Line of Credit, a Line of Credit Home Loan, and a Home Equity Loan, this type of loan has become popular due to its flexibility and features
It’s a similar concept to having a credit card but much larger in credit limit A Home Equity Loan is a credit facility secured with a first mortgage on a residential property It allows you to withdraw funds up to a set limit (the equity you have in your home) at any time
A Home Equity Loan allows you maximum flexibility with your finances
You can use the line of credit to carry out renovations, invest in shares, purchase another investment property or pay the bills
Consider the following pros and cons before you decide on a Home Equity Loan:
Pros of a Home Equity Loan
* A home equity line of credit offers a much lower rate of interest than credit cards
* Interest paid on your home equity line of credit is tax deductible, a benefit not available with credit cards
* Flexible payment options – Some lenders offer interest only equity lines of credit which gives you the option to pay only the interest for a pre-determined amount of time or pay interest plus as much or as little principal as you want
* Accessibility – Money is easily accessed by cheque or ATM card linked to this loan
* Repayments can be made in full or on a monthly basis
* Extra repayments are allowed at any time
* Cheque book facilities are available if needed
Cons of a Home Equity Loan
* The interest rate of a home equity line of credit changes with the prime rate There is also a margin that is added to the interest rate, which is fixed and is determined at the time of application
* Typically attracts higher interest rates than your standard variable rate loans
Low Doc Home Loan: If you are self employed and don’t have your financials in order, don’t scratch your head wondering if you can obtain finance or not
One option most lenders offer is a simple and quick loan called a Low Doc Home Loan Low Doc Home Loans cater mainly for self-employed borrowers who are unable to provide full financial statements and other evidence of their income
More and more lenders are adopting the growing trend of low doc home loan products on the market with many lenders offering standard and premium ‘low-doc loans’, with the choice of fixed or variable interest rates
With access to hundreds of lenders and the leading home loans on the market, you can be sure with DirectMoney HomeLoans, we will find the best rate and featured home loan for you
Depending on the lender, some require you to pay for Lender Mortgage Insurance (LMI) if your loan reaches 80% loan to value ratio (LVR) Due to the risk associated with self employed customers some lenders also charge a higher interest rate for these products After a period of time, or when customers are able to show their tax assessments, then the lender may reduce the interest rate for you
Consider the following pros and cons before you decide on a low doc home loan:
Pros of Low Doc Home Loans
* Proof of financials is not needed
* Simple statement of financials required instead of a tax return
* Non-traditional and irregular income sources are considered
Cons of Low Doc Home Loans
* You pay higher interest rates and fees
* Your cash flows might suffer due to higher repayments
Are you a First Home Loan Buyer or Refinancing for your next home loan or Looking to consolidate your debt? Just log on to the website Australia Loan to get access to leading lenders and grab this golden opportunity to obtain best Australia home loans by saving time, effort and money. Continue reading