Check Your Credit Score Before You Apply For A Mortgage

Bad credit or good credit, the process of obtaining a mortgage has changed. Even if you are simply trying to refinance your existing mortgage, you may be surprised at how different things are. Of course your credit score always played a significant role in determining what kind of loan you can apply for, but nobody could have predicted what you need in order to get a mortgage today.

in the past, banks were eager to lend money to people who were interested in buying a new home. They would barely look at your income and sell you loans that were more than you could afford - virtually regardless of your credit history. A credit score of around 680 points would have been considered good credit and allowed you to get preferred rates and the best plans.

Today, just a few months later, things have changed dramatically and it is nearly impossible to get a mortgage without excellent credit. The good news is that along with those changes, it has become increasingly easy to increase your credit score.

Before you try to get a new home loan, the very first step is to access your personal credit information to find out where you stand on the credit score scale. You can then use this information to remove the errors that are common to credit reports, quickly increase your score, and then get approved for the loan you need.

You can also think about owner financing with a mortgage note. Click here to contact us for more information.

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More information on

More information on selling your property in a difficult market. Complete article at http://htxt.it/I70M

More Selling your Property in a Difficult Market

The Spring 2009 Real Estate Season is peculiar. It is a buyer's market but with only a few buyers around.  Those that are looking, and able to buy, are fearful of making a mistake. Lots of mistakes: buying too high, buying a house that doesn't comp out, buying too soon, missing the bottom.

It is impossible to time the market. Money managers can't do it and neither can we in the real estate business. This is because we only know where the bottom is when it has passed when you're no longer in it!

So with such overwhelming pressure on the price, what options does a seller have to keep the value of his property in tact?

Here, in NJ real estate, when there is a large supply and fewer buyers, it is unwise to keep dropping the price. That simply creates a price war that no-one can win. Instead, understand that buyers will be comparing all the options in their price point as analytically as they can find tools. The strategy to shore up value is to focus on the beauty contest and offer tools of comparison that enables your property to stand out. Clearly and cleanly.

The Beauty Contest

Your home must look its best. All the stuff we know - freshly painted, neat and tidy, clean and in perfect condition. PLUS,

• Open spaces in each room. Buyers need a place to stand to see each room and then see room for them to move into.
• How does it work? If they were to buy this house, where would they eat, play, work, sleep, rest and relax, etc.
• Depersonalized. More than personal photos, certificates and trophies, put away anything that is completely specific to you the homeowner, as opposed to a wide group of buyers.
• Photos. The last and most important part of the beauty contest is the pictures. You must have beautiful photos of the inside and outside of your home, taken from the right angle, with the right lighting so that the house looks great...online! 85% of all home searches start online, and the more photos you show, the better your home stands out against the competition.

 Tools of Comparison

Buyers, with lots of choices, will compare and contrast options by price point, as carefully and analytically as they can. Make sure you offer them information to make the best comparison possible. The more information you can provide here, the more in control you are of the story being told to the buyer. information to have available, on hand, with the realtor's brochure, floor plan and comps is:-

• Illustrations of the home being located in a "Great Neighborhood "
• The Cost to Run the home
• Square Footage, amenities including # of closets, level lot, basement & extra spaces (include everything that could possibly be seen as a positive; you just don't know what's going to trigger the "must have it" impulse!)
• Ratio of Asking Price: Assessed Value
• Recent Sales in the Neighborhood  and feel free to offer a paragraph to each listing illustrating how you stack against each sale.

Do not forget to think about taking back the financing with a seller financed mortgage note.  Click here to visit our web site for more information or email us at info@smilingdogenterprises.comTechnorati Tags: mortgage notes, trust deeds, refinancing, get cash now, divorce, financial planning

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Selling your Property in a Difficult Market

If you listen to the media hype, you're probably thinking that you need to hold onto your home until the economy bounces back; that you'll never offload your house in this market. While it's true that sellers in some regions are finding it tough to sell right now, there are still buyers out there looking for a home.

The first step you need to take to ensure a successful sale of your home is to hire a reputable listing agent. While many people try the For Sale by Owner route first, most discover that selling a home is time consuming, complicated, and requires more specialized knowledge than they have.

Many homeowners who try to sell their home on their own become overwhelmed with trying to market their property to buyers. After all, it takes more than a yard sign and a couple of balloons to attract large numbers of viable buyers.

A good real estate agent will organize and host open houses for you, taking care of the scheduling, showing buyers around, and answering their questions. For these events, they will likely create professional brochures or fliers that feature the listing details of your home, as well as highlight the property's best features. This gives buyers something to bring home with them, and will make a positive impression.

In addition to traditional marketing methods like open houses, today's agents will also develop a solid advertising campaign for the internet. With over 80% of buyers starting their home search on the web, listing your home on the Multiple Listing Service and on other reputable websites is an important step in getting your home noticed. Thousands of agents and potential buyers will be able to access details and photos of your home from the comfort of their living room.

Having a web savvy agent is absolutely vital in this market, but you also want an agent who has been in the industry for a few years-particularly one who has experienced the ups and downs of the housing market. He or she will be able to provide insight and practical advice about how best to go about getting your home sold in a difficult market.

With your listing price set and marketing campaigns in place, a realtor will also help you negotiate with buyers to get the best price possible. Agents are trained and skilled in the art of negotiation, and will make the entire transaction much smoother for everyone.

Successful sales are possible even in slow markets like this one, but it's important to have an ally with know-how to guide you along the way.

Do not forget about seller financing with a mortgage note. We can help you with selling a mortgage note or creating one to take back financing. 

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We just posted a new article on our blog regarding selling a home using FSBO http://htxt.it/RLfL

Things to consider when selling your home FSBO

If you're opting to sell your own home rather than using a realtor, it's important to take a systematic, proven approach to your sales campaign. The market is very different to what it once was, and you should focus on how to sell a house during recession. This article outlines 3 areas that are crucial to a quick house sale.

1) Your Pricing Strategy

It's not wise to aim for big profits in the current market. Unless you live in a particularly unaffected area, you're going to find that the only way to sell your own home is to ask at or just below market value. Don't be scared of this, as chances are buyers will run the price up. In fact, with a good marketing campaign your price can be risen quite high through buyers competing with each other.

2) Your Advertising Campaign

It's absolutely imperative that your advertising is targeted to wards the right market. Let me say now that the majority of serious buyers at the moment are property investors. Families are not exactly in a position to buy. Keeping this in mind, you need to write your sales copy and headlines to appeal to these investors. Write about how much profit they'll make in 5 years time when the market returns to normal.

3) Your Property Presentation

A very popular trend over the past few years has been "home staging". That is essentially where you move your old furniture out and hire some up-market household items to ive your place an expensive feel. Though this strategy can work well, I think many buyers are now weary of it. Instead, just de-clutter your home of excess "stuff", and go for an airy and open feel. Concentrate on your bathroom and kitchen especially.

You should also consider taking back the mortgage with a mortgage note!

Visit our site for more information or email mortgagenotes@smilingdogenterprises.com

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Understanding the logic of note discounting

Understanding the logic of note discounting

When the owners of real estate notes liquidate their investments the resulting sales will almost always require some kind of discount. Here’s an easy explanation of the Investment to Value (ITV) method that many Note Buyers use to determine their pricing.

Most experienced Note Buyers have predetermined guidelines in mind that serve to narrow their focus to the notes that are likely to fit their buying preferences. Still, many buyers will purchase almost any note if the price is right – in other words, if the financial rewards are in line with the associated risk. To compensate for added exposure buyers adjust their pricing guidelines downward, which results in a higher yield.

Many buyers gauge their risk in a deal by considering their Investment to Value (ITV) percentage. ITV measures the amount of protective equity the Note Buyer has by comparing her purchase price to the property value. The amount of protective equity in the property is calculated by subtracting the ITV from 100. The lower the number or percentage the safer it is for the Note Buyer.

When a Note Buyer thinks that acquiring a note may be risky one potential solution is to make a lower offer that decreases the ITV. A lowered ITV results in more protective equity for the Note Buyer.

An ITV-based buying example

Consider a house valued at $100,000 that secures a $95,000 note. If the Payor in this situation had poor credit or a history of missing payments this would be considered a risky situation. Since there is only $5,000 in equity any Note Buyer would want a mitigating factor to offset the risk involved in
this purchase.

A logical way to improve this deal from the buyer’s perspective is to make a discounted offer. If a buyer offers only $60,000, the ITV would be 60 percent, giving him 40 percent of protective equity. That $40,000 of protective equity could help her to make a profit, even in a foreclosure situation. If the buyer incurs extra costs when foreclosing and reselling the house, the $40,000 of protective equity should more than cover the
extra expenses.

Note Buyers always have to look after their own interests. Consequently, notes with little equity and a poor payment history are likely to see deeper discounts in order to create protective equity for the buyer. This protective equity will help ensure that Note Buyers can recoup their funds if Payor default leads to foreclosure.

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Four most important factors when evaluating a mortgage note value!

When liquidating a note, it’s important to get the biggest lump sum of cash possible. To do that you must understand the four most important factors in determining that value. The four criteria are equity, the Payor’s credit score, the number of payments made, and the note payment history.

Equity is created in three ways:

1. When a down payment is made
2. As monthly payments are made
3. As the property appreciates

Generally speaking, Note Buyers look for at least 20-percent equity in the property. This minimum level of equity serves to help protect their investment.

Many Note Buyers will consider the Payor’s credit score closely because it can help predict the note’s potential for foreclosure. Credit scores are indicative of performance with past and current debts, so it makes sense to assume that a Payor who has been responsible in consistently paying back other debts will be a good note Payor as well.

With seller-financed deals most Payors will not have stellar credit, but most buyers still prefer Payor credit scores above 575.

A note’s “seasoning” describes the number of payments that have been made overall. The more payments that have been made, the more money the Payor has invested in the property; therefore, default is less likely. Most Note Buyers look for 12 or more completed payments, but exceptions are made for notes with a large amount of equity or a Payor with a high credit score.

The note payment history takes any late payments into consideration. Understandably, most buyers prefer a consistent on-time payment history. Perfection isn’t required or expected – one isolated occurrence of a missed payment a few years ago won’t necessarily dissuade a potential Note Buyer. Sufficient equity also serves to counterbalance a history of occasional slow payment.
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