Real Estate Networks

REVERSE MORTGAGES

Banks and housing finance companies are reading themselves to bring out their reverse mortgage products. We all know that reverse mortgage will enable senior citizens to mortgage their property with a bank / finance company and receive monthly payments. At the end of the term or the death of the person opting for the reverse mortgage the
bank / finance company is free to sell the property to realise the amount due to them. B ut since the concept is new to India, a number of issues will need to be clarified so that senior citizens are able to take a call. We explain how to scheme will work and the grey areas-perticularly taxation that will need to be sorted out.

FIRST THINGS FIRST

The first step, quite obviously is to knock on the doors of a bank or housing finance company and express willings to pledge one’s home for the reverse mortgage scheme. The HFC will access the value of the house by independent valuation. Then the HFC will arive at the loan amount depending upon the age of the person opting for the reverse mortgage and prevailing intrest rate. However the loan amount will be on the basis of current value of the property and not an possible future appreciation. Currently, as per industry estimates the loan-to-value ratio is fixed at 45-60% of the value of the property based on the age.

KNOW YOUR TENURE

Age is the most influential factor in deciding the monthly payments than the borrower will receive monthly payment will be higher for older persons because the loan amount will be compressed into a fewer number of years. For example, if you are 75 years old the HFC may not lend for 15 years but only for 10 years.

THE IDEAL CANDIDATE

As per the scheme conceptionalised by the national Housing bank a senior citizen of 62 years or more who owns a house is a ideal candidate.

The bank / HFC will extend a loan upto a fixed amount worked out on the percentage basis of the market value of the house owned. As a borrower you can opt for monthly EMI or periodic payments or line of credit. In case of EMI the lent amount will be spread over 15 years

You can also opt for lump- sum amount (with a reduced number of installments) to meet contingencies. Such as medical treatments and so on. The spouse will be a co-borrower of the loan. This will give him/ her the right to live in the house after the death of the borrower and get monthly payment till he / she continues to live.

THE LONG LIFE CONUNDRUM

Its quite possible that the borrower may outlive the maximum tenure for which the loan is extended. In such a case the payments made to the borrower will stop after 15 years’ the intrest will keep accumulating till settled by the HFC only after the last owner’s death. The industry is also considering an insurance mechanism to deal with the cost arising out of such an eventuality.

The settlement of the outstanding loan amount along with accumulated intrest will be met from the sales proceeds.

SOME TAX HAZE

Globally, reverse mortgages is treated as tax free equity. In India clarityis required especially regarding tax-treatment, accounting legal and regulatory aspects say industry experts. If a borrower opts for monthly installment the amount received would be receipt of loan amount in installments. From income tax point of view, the installments could be treated as loan advance and not income. So it cannot be taxed. “ said senior banker not willing to be quoted.

Tax experts also say that the house is just “ mortgages” and not “ sold” Hence the loan installments cannot be subject to capital gains tax either. This questions would arise when the house is finally sold. At the time the amount of capital gain or loss will be compated as provide in section. As of the income tax act in the hands of the borrower or his heirs, depending upon the situation.

WHAT COST FOR A FRESH COAT ?

The bankers say that the borrower will have to meet the renovation costs from the loan amount given under the scheme. Industry servces say the reverse mo0rtgage scheme is still at a conceptual stage and only one provide player is offering it. So there are many gray areas which need to be addressed. However it is unlikely that a senior citizen can get a home improvement extension loan.

mortgages-world.net mortgages-world.net

Over the last two weeks, events have unfolded that have reminded me of an important truism in real estate investing.

“Always have a back-up!”

This was played out in dramatic form with a deal I’m closing tomorrow. A wholesaler friend of mine brought me this great little three bedroom one bath home tucked away on a dead end street where pride in ownership is alive and well. The electric and plumbing is already upgraded and this rehab is cosmetic with the exception of adding a bath.

I’m buying it for $52,500 and the as-repaired appraisal came in at $86,000. Not a bad spread. This is the kind of deal I like!

When I called my hard money broker, she was delighted and we moved quickly toward closing. I was only waiting on the closing time…

That’s when the wheels fell off.

It seems my broker’s money source decided he was only going to invest in property valued at $250,000 or more. Yikes!

So, I went to back-up hard money broker number 1.

The broker took his time…about 5 days…to finally tell me that he only wanted to loan about 60% of the as-repair value. No way. Not when I can do better (70%) with back-up hard money broker number 2.

Back-up broker number 2 is probably who I should have went with in the first place. I’ve borrowed from this source before. It took one phone call, and the money is there and I close in a couple of days. Wham-bam, the deal is arranged.

It looks like it’s time to shift around the players in my core team a bit. Back-up number 2 is now my starter. Back-up number 1 (foot-dragger, doesn’t-loan-the-70%-he-said-he-would) is benched.

I tell this story to illustrate that it’s absolutely CENTRAL to your business to have back-up plans in all aspects of the business.

I strongly recommend having two or three:

- Hard money brokers

- Appraisers for quick value assessments

- Rehab crew leaders

- Plumbers

- Electricians

- Roofers

- HVAC techs

- Realtors

In fact, have two or three of any trade or profession lined up, ready to spring into action as a moment’s notice. Sure, I have my favorites in each of these areas, but I am striving to have 3-deep hot back-ups in each. Thing happen. Life happens! Be prepared for it.

Don’t stop there. Have back-ups when you rent or sell a property. A property isn’t rented until the rent and deposit (or lease/option fee) is paid and the keys are in the hands of the new tenant. So, encourage back-ups until the money is in your hands (in cash).

I’ve had appointments set up to sign leases, and the potential tenants never show up, no call, and they quit answering their phone. This is despite being hot for the house an hour earlier! If you are in this business long, you will learn that people will disappoint you and they will fool you. So, establish policies and make one of them “it ain’t rented until it’s paid for!”

Encourage back-up offers to purchase. Deals fall through all the time! Take as many back-up offers as you can.

Having back-ups is a mental frame of mind that fits within being a big-picture thinker portion of the Mind of the Real Estate Investor. In addition, rearranging your core team is thinking big and long term. It’s a constant process of improvement and adjustment. This approach is crucial to your business! Apply this principle and profit!

———-
Bruce W. Ford publishes the real-estate-rehab.com “Nothing Held Back” newsletter, a free service of rehab-real-estate.com Rehab Real Estate Central. Get a free copy of his mini-course entitled “The Mind of the Real Estate Investor by real-estate-rehab.com clicking here!.”

Real estate is a sector that can turn needy into distributors and sometimes the vice versa. The amount of growth in this sector is enormous and hence it is one of the most sought after sector in the industry. Talking about the united states real estate market let us put some light on the trends the Tucson real estate market has been showing lately and let us also emphasize on the plus and the minus points on the Tucson real estate market.

In the year 2005 USA witnessed one of the biggest booms in the real estate sector and the experts then estimated that the country would suffer from housing crash in the near future. To the surprise of the experts this prediction didn’t came true and for the benefit of the market the predicted housing crash didn’t occurred.

But Tucson has seen a change as far as growth is considered. In the first quarter of this current year 2007, the property rise was estimated around 0.1%. This was the estimate provided by the office of federal housing enterprise. But recently we got an article from cnn.com that claimed that the prices in the Tucson area have fallen down by 2.5% since 2005.

Well, this thing is not so shocking as we can see that there is a growth in active listing since the year 2005, almost double the amount of active listings are being done right now in the current year. Earlier there used to be 37 days on market for a home but now the number has increased to 67 days on market, this is why we are witnessing a decline in the home prices in the Tucson area.

To an extent the customers need to understand the reasonability of this market even if the prices have fallen down the market has become much more predictable that what tit was few years back. Thus the customers must now understand that they will hardly get the prize for there homes now which they were being offered few years back.

In terms of economics, we all know that if the supply increases the prizes will fall down to make the whole lot salable, this is what we are witnessing now says with so many houses on offer. Few years back the number of houses for sale were very few and hence the rates which the owners were getting were really touching the sky, but the situation have changed and this is what we must understand.

People are doing high active listing, some just do it to get a rate for their home and then they do not sell the home, still it counts in the supply because the property dealer will estimate the cost only if the user describes his or her home as a salable property.

Born in the UK, Anne was always the head of her class. She now excels in developing lasting relationships with her clients in the real estate business. She has become one of the top agents in Tucson, in just two years. Anne truly strives to give her clients the kind of respect they deserve and nothing makes her more happy than finding them the perfect home of their dreams. For more information visit:: thetucsonexperts.com thetucsonexperts.com

So you’re thinking about refinancing? Why not? Refinancing is the process of
paying off your current mortgage and taking out a new one. Many borrowers use a
refinance to shorten the term of the mortgage. Others may refinance to get their
hands on some cash by tapping into their home equity. Whatever your reason may
be for refinancing, here are some things to keep in mind:

First, even a small rate cut can pay off quickly. With the mortgage industry
being so competitive, it is relatively easy to find mortgage companies who are
willing to waive routine refinancing charges such as application, appraisal and
legal fees. Some lenders offer “no-cost” refinancing, in which you do not have
to pay most of the required upfront processing costs and closing fees. These
costs may be added to the amount you are borrowing.

Second, if you are going to live in your home for at least three to five years,
it may make sense to pay “points” to “buy down” the rate to get the lowest
available rate. A Point equals 1% of the loan amount. For example, if you have a
$250,000 loan, one point equals $2,500. As a general rule, each point that you
pay will reduce the interest rate offered by the lender by about one-eighth of
one percent, or 0.125%. In some instances, a lender may finance the points so
you will not have to pay them up front.

And third, you may want to refinance in order to build equity more quickly than
you can with your current mortgage. This may be desirable, for example, if you
are nearing or planning your retirement and you want to pay off your loan more
quickly. By refinancing from a 30-year mortgage to one with a shorter term (10,
15, or 20 year mortgage) you increase the amount of your monthly payment that
goes toward the principal balance of your loan. Refinancing to a shorter term
will save you a significant amount in interest costs not only each month, but
also over the life of the loan.

Visit Refinance Smarts to view our refinancesmarts.com Recommended Refinance Lenders online.
Also, visit Refinance Smarts for more information on refinancesmarts.com/mortgage_refinance-3_reasons_to_refinance.shtml
Refinancing Your Home Loan.

If you are interested in buying a new home, you will likely have to obtain a mortgage. If you are like many other individuals, you are unable to buy a home without one. If you are a first time homeowner, you may not know exactly where you should go to get a mortgage. The good news is that you have a number of lending options.

The first place that you are likely to approach, when looking for a mortgage, is an individual or company that specializes in offering mortgages. These individuals or companies are often referred to as mortgage lenders. Mortgage lenders focus solely on home loans. As with all other financial lenders, you can find mortgage lenders all around the world. Since there are a large number of mortgage lenders, you may find it difficult to choose a lender to work with.

If you are interested in working with a mortgage lender, it is advised that you schedule a consultation appointment or at least speak over the phone. If you make the decision to work with an individual or company that is known as an online mortgage lender, you are still advised to make direct contact. This contact should be done over the phone, but email contact may be sufficient enough for you.

When speaking to or meeting with a mortgage lender, you will need to discuss a number of important things. If you are only looking for information, you will want to discuss your past credit and your current financial situation. This will give a mortgage lender the ability to give you an estimate as to how much money you may be approved for. If you are looking for a low-cost mortgage, you will also want to familiarize yourself with the financial lender’s policy on down payments and interest rates.

Mortgage lenders are popular, but they are not the only way that you can obtain financing for a new home. A traditional financial institution, otherwise known as a bank, can also offer you financing. Many individuals prefer to work with their local bank. This is because trust has often already been established. When seeking a loan from your local bank, you will want to ask about the above mentioned information. As with a mortgage lender, you should try and determine what your interest rate will be, the amount of money you can borrow, and if a down payment is required.

Even if you are interested in obtaining a mortgage from your local bank, it is still advised that you examine your lending options. You should compare the interest rates, loan amount, and down-payments of multiple banks and financial lenders. The goal of most potential homeowners is to own a home, but save money at the same time. To save money, you will need to find a low-cost mortgage. This can easily be done by comparing offers.

Once you have closely examined all of your lending options, you can make a decision. After that decision has been made, you will want to fill out a loan application. Once that application is submitted, you may receive a response in as little as one week.

Joseph Kenny writes for the Personal Loans Store, where you can ukpersonalloanstore.co.uk/ compare loans and read the article on ukpersonalloanstore.co.uk/financial/choose_right_mortgage.html Choosing The Right Mortgage.

Visit today: ukpersonalloanstore.co.uk/ ukpersonalloanstore.co.uk/

1. Read all the small print. For example make sure you can leave the mortgage deal without incurring any excess penalties.

2. Choose the right mortgage for your circumstance. For example if you have a large current account surplus you should seek to make use of this positive balance and get a current account mortgage. This is a kind of mortgage where if you have savings in your current account they are automatically used to reduce your mortgage debt. This saves mortgage interest payments and also saves paying tax on your savings; – a double benefit. This is sometimes known as an offset mortgage.

3. Which is more important money now or money in future? There is often no “right” mortgage, it may depend upon your preferences. For example if you were to take out a 50 year mortgage the standard industry response would be to discourage you; on the basis you will end up paying more interest over the long term. However if it means you can get on the property ladder it is probably a better financial decision than renting. However if you have a low pension you will want to get a short mortgage term to enable you to pay off your mortgage early. Then in your retirement you will have low living costs.

4. Look for best Remortgage Quote. Most mortgage lenders make their highest profit margins on their existing customers. This is because existing customers stay on the Standard variable rate. However if you seek to remortgage they will probably offer you a much better deal.

5. Be careful of enticing offers. In an increasingly competitive market many mortgage dealers offer a special discount for the first 6-24 months. These interest rates can be as low as 3%. However if you look closely after the allotted time period ends the mortgage will suddenly jump up to say 7%. Also these mortgage deals often have high penalties for early leaving. When getting mortgage quotes make sure you look closely at all the detail. Make use of impartial advice of a mortgage adviser.

6. Protect your credit rating. Work hard to avoid missing any credit card payments or mortgage payments. Set up direct debits. If you do miss a payment try to explain to the bank it was a mistake, get lost in the post. Customers with bad credit can get a mortgage but they will end up paying a mortgage premium.

7. Claim exit fee refund in UK. In the UK if you have remortgaged in the past 2 years you are probably entitled to a refund. The FSA decided the mortgage lenders had increased their exit costs without sufficient justification. If you write to the bank you will probably get a refund of upto £200.

R.Pettinger manages a site about Mortgages in the UK. This site includes a guide to getting best mortgageguideuk.co.uk/remortgage/index.html Remortgage Quotes in UK

He also updates a blog about the latest news in the UK and US mortgage industry. mortgageguideuk.co.uk/blog.html mortgageguideuk.co.uk/blog.html

This article gives you a foundational understanding of residential real estate investing analysis, and a formula for determining how much to offer when purchasing property for rehab and wholesale purposes.

Anyone can learn the simple skill of real estate investing analysis. The important point to understand is that the analysis will vary, depending on the type of real estate being discussed. This article focuses exclusively on residential single family and duplex properties purchased for rehab and wholesale purposes.

The first step in your real estate investing analysis is to determine the fair market value of the property after all repairs have been completed. This is done most accurately by having a Realtor run a comparable sales comparison report. Make sure the properties your Realtor chooses are truly comparable, not simply the same bedroom count, but also the same type of construction, in the same neighborhood, roughly the same age, etc..

The next step in performing your real estate investing analysis is to determine the cost of all needed repairs to bring the property into what I call “retail condition”. In other words, how much will all the repairs cost to complete, including materials, labor, and holding costs?

Once you have determined these two values- After Repair Market Value and Repair Costs- the next step in the real estate investing analysis process is some simple subtraction. Subtract the Repair Costs from the After Repair Market Value to arrive at the property’s Current Market Value.

Once you are armed with the Current Market Value of a property, it’s a simple matter to complete the real estate investing analysis and arrive at your offer price. Your offer price will be the Current Market Value minus either $20,000 or 30%, whichever is lower.

To make this real estate investing analysis process all very clear, here’s an example: Suppose you are looking at a single family home in a mid-priced neighborhood. The Realtor pulls Comparables and you determine that the After Repair Value of the property is $150,000. You further estimate that the repairs needed will cost $30,000 to complete, including materials, labor, and holding costs.

Next, as part of your real estate investing analysis, you subtract the $30,000 Repair Costs from the $150,000 After Repair Value, and arrive at a Current Market Value of $120,000. You subtract $20,000 from $120,000 and get $100,000. You also subtract 30% from $120,000 and get $84,000. The lesser of $100,000 or $84,000 is $84,000, so that is your offer price- $84,000.

Using this formula for dealfiles.com/” target=”_blank real estate investing analysis you may miss out on a few properties you could have bought otherwise, but you will never overpay for a property, and you will always make money.

Now, go make more offers!

Crush The Biggest Obstacle to Your Success in Real Estate… or Anything Else! Download my FREE report dealfiles.com HERE!

Tom Dunn is a successful real estate investor and author of the popular DealFiles Real Estate Investor Stories free newsletter. You are welcome to share this report, unedited and in it’s entirety, with anyone you like. You may not remove this text. © 2007 by Tom Dunn. Website: dealfiles.com dealfiles.com e-mail: mailto:tom@dealfiles.com tom@dealfiles.com

The first step anyone contemplating buying their first home or condo should take is to go to the bank and discuss mortgage options. You really need to get an understanding of just how much you can afford before you start looking for that perfect place. Getting a mortgage pre-approval will give you that price range and get you started on your first home search.

Having a pre-approved mortgage will give you the confidence of knowing exactly what you can spend on a home before you start looking. You will also be protected against interest rate increases while you look for your new home.

Your mortgage specialist will answer your questions and help you determine what financing terms and options are right for you. Your mortgage specialist and realtor work as a team to help you find the right home and select the best financing.

There are a number of steps to obtaining mortgage financing. A particularly important step and one many people don’t give much thought to - is the credit check. As a routine part of the application process the lender will order a copy of your credit history.

Your personal credit history is compiled by credit bureaus which collect information from various sources including banks, retailers and other public records, creating a credit report. Information such as: what credit and debit cards you have, the types of accounts you have at various financial institutions, information about personal loans, mortgages, student loans, etc., is all part of the report.

The report shows the creditors’ names, account numbers, the date accounts were started, the current balance as well as a detailed payment history (for example: how many times you were over 30, 60, or 90 days late in paying bills). Generally, credit reports show information going back six to seven years. The report will also show public information, for example, marriages, divorces, liens, judgments that have been entered against you, bankruptcies, etc.

The credit bureau does not rate you - it merely provides information on your credit history. The lender will examine the credit report to aid in determining whether to lend you money. If the lender has any concerns about something on the report the lender may ask you for an explanation.

Though lenders usually work as quickly as possible in processing mortgage applications - the process can be slowed down if the lender needs to go back to the applicant for an explanation concerning items on a credit history. So, don’t worry, but be prepared to answer questions the lender may have - often a simple explanation will do.

The lender will also use the report to verify other information on your mortgage application, for example: information about your employment status, your address (including the name of your landlord and perhaps rental payment history), etc.

The credit report will also indicate inquiries made by other creditors over the period of the report. This information might be useful to a lender to show what other avenues of financing you might have tried and it may raise questions about why another lender declined you.

Honesty is the best policy - and that certainly holds true when applying for a mortgage. If you think there might be any credit problems - tell the lender up front and ask about the lender’s policy prior to applying for the mortgage. There is no point in trying to hide something that will show up in your credit history. Of course, even if you think your credit record is fine, there may be some items on the report about which the lender may ask you.

By obtaining a copy of your credit report before you apply for a mortgage you may be able to avoid surprises and possible delays that may occur in having to answer questions about your credit history. Because the report contains information about you, you have a legal right to inspect a copy of it. Equifax and TransUnion, two of Canada’s largest credit bureaus, will mail consumers a free copy of their personal credit file – upon request – which takes about three weeks to arrive in your hands.

The request can be by mail for free, or, you can order your credit report online for a fee of about $15-25 each. The online version is helpful because you can then print off a copy immediately. For more information go to the website for Equifax: www.equifax.ca, for TransUnion Credit go to www.transunion.ca – they both have what is called “secure sites” so that when your information is on screen it is safe and cannot be stolen or “hacked” by outside sources.

Once you and your lender have determined how much you can afford you need to think about the next step – where you’d like to live. Questions to ask yourself are: What kind of lifestyle do you have? What neighbourhoods do you prefer? How much space do you really need? There are many options on the market, but before you start searching for the home of your dreams, you should know your needs.

It’s not a bad idea to make a “must have” list and start doing casual research. Talk to friends and family, drive through neighbourhoods, and look in the “Homes” section of the newspaper to get an idea of your likes and dislikes. Your home should fit the way you live and suit your lifestyle. Make a list of priorities, like size and location. Determine what are your minimum requirements in a home? What must the house or condo have for you to consider it? And a “wish list”, things that aren’t essential, but would be nice to have.

The size of the downpayment you can afford will largely determine the type of neighbourhood and home or condo you choose. It’s important to be realistic when you’re thinking about a downpayment and setting a price range. You don’t want to be weighed down with something you can’t afford. At this stage, it’s a good idea to talk things over with your realtor so you know what type of home is available in your price range.

Once you’ve set a realistic price range, you’ll want to think about lifestyle. Do you prefer a more central community with amenities within walking distance? Or would a newer, suburban neighbourhood suit your tastes better? What are your living space requirements? Do you run a business from your home, and need an extra bedroom for an office? Do you have children, or are planning on starting a family? Realistically – the farther out of the downtown core you go the more affordable the options are – but do you mind commuting? These are all questions you will have to consider before you start shopping for a home.

Determining what your needs are for each living space and having a clear picture of what you are looking for will save you and your realtor time.

Transportation is a big factor in determining what kind of lifestyle you are looking for. Do you walk, drive or take the bus to work? Do you prefer to be close to the city’s main public transportation routes, or can you be comfortable with a potentially longer commute?

If you have children, you will want to consider what schools are in the area. Visit the schools in the neighbourhoods that interest you or contact the school board for more information. Look for parks, playgrounds and community centres. Are there other families with children nearby?

Once you have narrowed down your needs and wants and an idea of the location that would suit your budget and lifestyle, we would be happy to help you search for the perfect home. We will use various tools to try and find properties that meet your specifications. One of the important search tools will be the local MLS® system. By sitting down at a computer we can input in your needs, choice of neighbourhoods and price range and immediately come up with a list of suitable properties.

Moving into a new home or condo is a wonderful experience, just make sure you are ready for the new area and change of amenities. It takes some getting used to when you move from the city to the country and vice-versa. Your basic conveniences can change dramatically. Be prepared to accept changes or conversely, find a place that has the conveniences you are accustomed to.

Homebuyers often make life-altering decisions with less than 20 minutes of dedicated viewing and investigation. This is how it works. Unfortunately, any errors that occur as a result of a lack of planning can seriously hamper your financial standing and even affect the long-term happiness of your family.

Laurin & Natalie Jeffrey || Sales Representatives
Right At Home Realty Inc., Brokerage
mailto:info@jeffreyteam.com info@jeffreyteam.com || jeffreyteam.com www.jeffreyteam.com
416-388-1960 || 416-318-7917

Determining whether or not you are good candidate for a new home mortgage may be difficult if you are in the average zone regarding credit history, income and assets. But don’t worry! Let’s look at what makes a good candidate for a mortgage applicant.

Purchasing a home is one of the most important financial decisions you will ever make. It is a decision that you shouldn’t take lightly. Research, investigation and shopping different mortgage rates and lenders should be number one on your list before you make any final decisions regarding your mortgage.

In order to get a good mortgage rate, terms, and a deal that fits your financial situation, you must have a decent financial environment. Your financial environment is a sum of all your financial dealings, such as income, expenses, both long term and short term debt, credit history, credit score, and of course assets. Together, all these things will affect the type of mortgage you will be able to qualify for.

The first thing you want to ask yourself when assessing yourself as a mortgage candidate, is do you have any repossessions, bankruptcies or foreclosures on your record? All these things are unfavorable to have in your financial environment and automatically make you a high risk applicant.

However, if these occurrences happened over seven years ago, and you have gone to great lengths to correct the situation, then perhaps you are in a more favorable position. It often takes about seven years or a little more for negative items to be wiped from your credit report.

If you have no bankruptcies, foreclosures or repossessions, then you are on your way to being a good mortgage candidate. If your credit score is above 600, then you are definitely a good mortgage candidate!

How is your income? Is it steady or does it fluctuate do to the type of work you are in, or are you constantly changing jobs? Good mortgage candidates have steady employment and income. The income amount does not need to be exceptionally high to be considered a good mortgage candidate. As long as it is steady, you are a good mortgage candidate.

How are your expenses? Are you constantly spending more than you make? Or do you put some money away every month? A good mortgage candidate has extra income every month and does not overspend. This leads into the next item, debt.

Are you up to your ears in debt? Do you have late payments and can barely pay the minimum amount every month? If you don’t, then that is great! You should be up on your debt, paying it back on time every month, and not be so committed to creditors that all your money is going to a credit card or automobile payment every month.

Do you have a few assets such as investments in the stock market or business? Assets strengthen your case for a mortgage, as it shows a mortgage lender that you will be able to pay the monthly payment even when your cash may get low. If you do not have any investments, it’s ok. It will not break your case for a mortgage. This house may be your first investment and that is definitely ok, everyone must start somewhere.

After asking yourself some of these questions, you should have a better idea as to how your financial environment looks. Your income does not have to be spectacular, just steady. You can have debt, as long as you can show you are paying it back regularly and on time. This is a positive aspect that a mortgage lender would look at when considering you for a loan.

If your expenses are a little on the high side, see what you can do to decrease your expenses every month. You can use that extra money to save for a down payment, and even get a better deal on your mortgage!

Interested in creating some assets for your self? Then consult a financial advisor who could point you in the right direction in taking some extra money and investing it in real estate or the stock market. This is a good thing regardless if you are buying a house or not.

If your financial environment is not looking so great based on this criteria, then take some steps to correct it. A little planning and self discipline can go a long way with your finances. If you are serious about purchasing a home, then consider fixing your personal finances before you shop for a mortgage. You will end up saving thousands of dollars in interest!

John R Blakefield is a mortgage and real estate specialist. For more information, articles, news, tools and valuable resources on home mortgages or investment loans, refinancing, debt solutions, visit this site: scourtheweb.com/mortgage/” target=”_blank scourtheweb.com/mortgage/.

For the real estate investor this has a different meaning than for the musician. John Lennon would be shouting also about this concept. What I am talking about in regard to real estate is the twist. It is a way of seeing something in a property that no one else has seen. Let me explain.

I frequently come across properties, and in fact I look for properties that have been on the market for a long time and have a big stack of realtor cards on the kitchen counter. What I do is put on a different set of glasses than all the previous visitors.

Previous visitors have included mostly people who want to occupy the house. They are looking for a home and they don’t see one. A few people are looking for something they can apply their specialty to – a painter looking for a house that just needs paint; a carpenter looking for a house that needs cabinets; you get the idea.

I’m by no means all seeing, but I am looking for anything that could make the house into a home. I try and see either what people were expecting when they first drove up, or what people would like to see when they drive up to the house I am now marketing.

For example, I had one house that had a sunken in sitting room with a curved drop-off going from the kitchen/dining area to it. I asked another realtor and several contractors what to do with it, and I got answers about how to round off, or make the transition smaller, or more decorative. Then it just popped into my head – raise the sunk in part and make one big room out of it!

That house suddenly had a large tiled dining area. It transformed from a barely adequate main floor with a room that was semi-useless, to a large dining area to entertain and impress. I saw what no one else had seen.

Another obvious twist for the real estate investor is to see a small house as a large house with a now-finished basement. If you have a good source of contracting services and can finish a basement for a reasonable cost, you enter a totally different market of buyers. Instead of potential home buyers looking for something under $200k, you now tap into people in the $250k range – a completely different set of buyers.

The real estate investor has to have several sets of glasses: the first has to be the set that the final buyer has. The majority of buyers want to drop their bags and plop down on the couch. They don’t want to do much work on a place – this is your target market and highest return. The second set of glasses is the contractor set. A successful investor has to know approximately how much it will cost to rehab a house. Bring a contractor with you ideally to get the best estimates.

The third set of glasses for the real estate investor is the buyer set. You will be most successful if you can see the profit in that older beat-up house as it is transformed into a home. The bottom line is we buy houses and sell homes. If you keep this in mind you will be a successful real estate investor. Don’t ever limit yourself in what you visualize when you look at a property. You may come up with that one twist that makes it a completely different property – then you can shout with joy at the profit.

Twist and shout!

Copyright 2006 Ron LeBlanc

Ron LeBlanc is a real estate investor who is a licensed realtor in Colorado. He gets a huge charge out of helping people through the fear and hurdles of attaining financial independence. He lives with his wife and 2 boys in Boulder, Colorado - the best place on Earth to live. Visit him at boulder-realestate-investors.com boulder-realestate-investors.com