Monthly Archives: June 2009

Author : Chris Esposito

Getting a loan pre-approval from a lender is a quick, easy process Typically, you fill out a few pages about your financial situation, the bank runs the numbers through a computer approval system, and you’re pre-approved the next day

So, how do so many people mess it up so badly? Simply put, people lie (either to themselves or about themselves) when filling out a loan application

We’ll look at examples from customers who applied for owner builder construction loans, but the principles of filling out a home loan application will apply equally well to anyone who wants a loan to buy or refinance a home

Owner builder construction loans are for individuals who wish to build their own house without having to hire a general contractor Therefore, they manage the sub-contractors themselves and oversee the project

However, an owner builder loan application is no different from a standard purchase loan or refinance loan application Almost every bank across the country will use a form known as a Uniform Residential Loan Application, also known as a 1003

On this 4 or 5 page form, you simply fill in information about your financial situation On the first page, you’ll cover simple info about the property as well as information about your address, phone, social security number, etc

The second page will cover your work history and income The third page will cover your assets and your monthly debts All in all, the process is not difficult In fact, anyone, whether you are an owner builder or someone looking to refinance an existing home, can fill it out without too much difficulty

Therefore, the mistakes that are seen on owner builder loan applications be due to reasons other than misunderstandings Indeed, almost every mistake occurs when an owner builder decides to embellish his qualifications or thinks it’s unimportant to be as accurate as possible

You may be asking yourself why it’s such a big deal Why should you care if you round off your numbers on the application? After all, it’s just a pre-approval The bank will collect all of the real paperwork later on

Here’s an example from a recent owner builder loan A loan applicant decided the pre-approval was not worth his time to provide detailed information about his financial situation He rounded up his income and failed to mention the child support payments that he is obligated to make each month

In the case of this owner builder, the application was pre-approved quickly and easily Why wouldn’t it be? On paper, everything looked great But, when the bank started collecting the official income documentation and discovered the child support payments being deducted from the pay stubs, the borrower no longer qualified for the loan

Not a big deal, right? Wrong This owner builder had already put money down on a piece of land that he wanted to buy as well as purchased blueprints for his new home he wanted to build Imagine the frustration and anger he caused himself when he found he was no longer qualified for the loan and he lost the money he wasted on blueprints

Even though this is an example from owner builder construction, it still applies to anyone filling out a Uniform Residential Loan Application Imagine you are buying a home and make a large earnest money deposit on the house you want based on getting pre-approved from your bank Now imagine that your pre-approval is based on inaccurate information that you told the bank In fact, imagine that you also wasted money out of your pocket for the home inspection and the appraisal

So, what can you do? Whether you are looking for an owner builder construction loan or any other type of mortgage: tell the truth

Do not think that embellishing your financial picture will help It will only hurt you in the long run when the lender discovers the errors You are better off getting an accurate pre-approval based on accurate information

And, if you are unsure about your exact income numbers or your exact amount of assets, then estimate conservatively That way, if your income or assets turn out to be higher than you estimated, you will still be approved and qualified for the loan program you are counting on It works for owner builder construction loans It works for refinances It works for home purchases It works

In fact, one great piece of advice is to supply copies of your W2 forms, your pay stubs, and your asset statements when getting your pre-approval Many customers, not just owner builder customers, don’t want to take the time to do this, because it’s a hassle But, your loan officer can use these documents to ensure the pre-approval is based on accurate calculations Besides, you are going to have to submit these documents for underwriting anyway

For example, a recent owner builder borrower took the time to submit his pay stubs when he applied for his construction loan A big portion of his income came from bonus pay It turned out that he could only get credit for the average of his bonus pay over the last two years, in addition to his full base salary Therefore, his gross income was calculated slightly lower for the loan that he thought it would have been

In this case, the owner builder fortunately still qualified for the construction loan However, you can see how miscalculating income can lead your pre-approval to be inaccurate Therefore, don’t take any chances Submit your documentation paperwork when you fill out the application

So, if you are thinking of applying anytime soon for a mortgage for a home purchase or a simple refinance, then take a lesson from the world of owner builder construction loans Do not discount the importance of providing accurate information about your financial situation on the Uniform Residential Loan Application The pre-approval is a quick and easy process, but it’s also a very important one Owner builder construction loans are no different in this respect

Chris Esposito specializes in owner builder loans, helping people act as their own general contractor to build their homes. Visit Owner Builder 101 for more information about owner builder planning and financing. Go to www.OwnerBuilder101.com, or call (877) 876-3688.

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Author : Terence Young

Most all freelancers work from home as they typically have no need of office space But working from home requires a high degree of discipline You no longer have a boss looking over your shoulder and for some this is too much to handle and they take their freedom to the extreme If you fail to be disciplined, your home-based business will fail and you will have to do the dreadful task of finding a job with an employer again So, there are some do’s and don’ts you need to follow when running a home-based business Take the time to follow them and you will increase the chances of having a successful business

Probably the most important thing you need to remember when running a home-based business is that it is just that – a business You need to get up at a set time everyday and designate a time to work and how many hours you are going to work Home-based business owners are usually never paid by the hour but by the completed product or service So there are going to be those days when you have to work extra to meet a deadline or get a product delivered But you should have a somewhat normal schedule that also allows for some time off

As part of the healthy separation of work from home never under any circumstance give out your home telephone number as the business number Get yourself a separate phone line or cell phone to use as the business phone If you don’t do this you will be quickly haunted by the overbearing customer who thinks you never bathe, eat, or sleep This is especially the case if you provide services worldwide via the Internet There is nothing like getting a call in the middle of the night from someone on the other side of the world who wants a status on their project You have to separate work from personal life even though both take place in the same venue

Minimize the distractions when working from home You actually should have a separate room for an office with a door you can close This is important because it will minimize family dropping in for whatever non-emergency reason Also, you may have a problem at first with friends calling you up or dropping by all the time to ask you a favor because, well, you have the time because you work from home At least that is their perception – that you have time Make it clear to them that you are at work and you have to work Stand your ground or they will quickly waste your valuable time

And part of minimizing distractions is to avoid chasing rabbits What is meant by this is to avoid doing other things instead of sticking to the task at hand If you worked for a company, you wouldn’t be browsing the Internet for fun (or maybe you would but you can’t afford to now) You wouldn’t be taking one hour breaks every 15 minutes either This is where the high degree of discipline is really needed

So manage your time and resources properly and you will probably have a successful business Work hard and play hard That is one of the keys to a successful home-based business

For more information on work at home opportunities visit: http://www.greatestpaidsurveys.com/

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Author : Beth Guide

Retail shelving units can be grouped into two categories: double-sided retail displays, also known as aisle shelving, and single-sided retail displays, also known as wall shelving Both types of display feature a standard horizontal measurement of 48 inches across

There is a reason for this, too Many store owners have unused space that can be converted to merchandising space Having a small, compact unit for a retail display allows a stand along double sided rack to be placed near the front entrance, or for a single standalone to occupy a previously unused corner

At the same time, it is always necessary to combine retail display units into larger aisle and wall racks Units with a larger horizontal measurement are more difficult to maneuver and place together Most retail displays offer the convenience of a compact design that will allow racks to be custom built to the size of a showroom

This allows the retailer tremendous freedom in interior design, along with a full range of colors as well that will add decorative appeal to strategic layouts

What makes these retail shelving units even more valuable to the storeowner looking to maximize his or her return on investment is the adjustability of individual shelves themselves

This is important for two reasons One, light coming down from the ceiling is often blocked by shelves at the top Shadows obscure products and make it difficult for customers to read labels

How retail shelving units are different They allow the stocker to vary the depth of each individual shelf so that taller shelves do not extend as far out from the display as lower ones Light will then evenly disperse over the entirety of the display and bring out every detail necessary to motivate a buying decision

The strength of each individual retail shelf makes it adjustable in another respect Unlike many models that can only hold a small amount of weight, gondola retail units are sturdier and build to support up to 350 pounds each

Managers can move shelves up or down at will and stock larger, more expensive products closer to the top without fear of making the unit top heavy or buckling the shelf in the middle This creates more cubic volume within the display unit itself and makes it possible for the storeowner to get more room out of fewer physical display units

The attractiveness of these retail shelving units cannot be emphasized enough, either Painted in a wide variety of colors ranging from white and gray to beige and almond, they can compliment virtually any interior retail space

Heights for shelf displays range from 48 inches to 84 inches, with the most common type ordered being approximately 72 inches an ideal height for holding as many products as possible while still allowing room over the top of the display to facilitate remote camera viewing and merchandise loss prevention

Upgrading a stores retail display units may on the surface appear to be a rather minor priority, especially during hard economic times However, used models can make the initial price point affordable and give a merchant a strong competitive advantage over even the largest of competitors

SuperShelves.com offers Used Cantilever Racking, Used Pallet Racks, Stack Racks, Gondola Shelving and New Pallet Rack.

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Author : Catherine Harvey

With British people yearning for a second home, holiday home or oversees property investment, leaseback properties are becoming a favoured option A property purchased in France which can then be let for the use of students, the elderly or business people is a wise investment as once the mortgage is paid, you are then free to use the property as a holiday or retirement home, having reaped the rewards that accompany a leaseback property

Leaseback properties in France have many financial benefits Tax deductions are made, not only on that business but also on any on-going tax payments in the UK On top of that, they are easy to come by Due to a shortage of accommodation in France for these groups of people, the French government are very keen for foreign investors to contribute towards the countries businesses

Not only are there tax benefits to buying a leaseback property in France but you also have the added enjoyment of knowing that you can borrow mortgage funds from a French bank that have lower interest rates than a British financial institution But is it safe?

Buyers can be a little wary of foreign banks, simply because they don’t know much about them For the really nervous, one of the top British banks have now opened a branch in France and are offering an English speaking service to those looking to invest in French property They will run on the same financial scale as France and people may be a little more trusting of these

However, there is no more risk in taking the plunge with a French bank Their criteria for running their finances is pretty much the same as the British method Applying for a mortgage at a French bank requires the same proof of income, the same identification, the same business plans and the same sort of deposits as any British bank

The only difference will be that British banks decide their interest rates through the Bank of England whereas French interest rates are decided by Euribor and Eonia rates This is a good thing! The French interest rates are more often than not lower than the UK rates so your tax benefits on a leaseback property will be added to with lower interest rates on your home loan A win/win situation

So what is the Euribor and can it be trusted? Well, take a look at the facts When the Euro was introduced as the standard currency in all participating countries, and fifteen of them have opted in so far, a benchmark was needed to set rates for Europe’s new currency This was an entirely new currency and as such, required its own set of standards

Hence, the Euribor, or Euro Interbank Offered Rate This rate is based on the average interest rates at which a panel of 50 different European banks borrow from one another That’s 50 different financial institutions all coming together in one united interest rate agreement This is probably even more impressive than the British system and is the most important reference rate in the European financial market

The Euribor sets the vases for the interest rates for all financial products throughout France and the rest of the European countries that use the Euro as standard currency This includes mortgages, savings and interest rates The Eonia is the effective overnight reference rate for the euro and is based on the average of all overnight unsecured lending transactions This is a little less significant for property buyers as, with borrowing in most countries, your mortgage will be secured by your property

However, it pays to familiarise yourself with the Euribor and Eonia before embarking on foreign investments to give yourself peace of mind

Financial expert Catherine Harvey looks at the things you should know when looking to fund a leaseback property investment.

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