What is a construction perm loan and what are the pros and cons       As an alternative, there is what is known as a 'one-time-close' construction loan. This type of loan finances the construction period and has a loan program (30 year fixed, 3/1 ARM, etc...) already in place for when the loan 'converts'. The 'pro' is that you only have to pay closing costs once. The 'con' for these types is that you must lock in the final rate prior to closing. Many lenders offer a 'floatdown' (when rates drop durring the construction period, they will reduce your rate), but that often has a fee associated with it.

What is an 80/20 zero down mortgage? Why should I use it?       I know you are probably asking yourself if you don't put money down you will not see a rate of return on your investment. There is no rate of return on equity. Besides, if you put those monies down, they may be difficult to get back if an emergency requires the money. You can also potentially lose the money if economic conditions affect house values.

How quickly can I expect a decision on my Preferred Placement form       How quickly can I expect a decision on my Preferred Placement form?

Bank Loans       Bank Loans

If a house if selling for $450,000 do I request a loan for the entire amount of $450,000?       While theoretically you may rationalize the higher the loan amount the higher your monthly payment will be, there are mitigating circumstances to consider such as what type of return I would receive on my investment and how will various loan products impact my goals and objectives. It is highly advisable that you consult with a professional that will objectively provide you an opportunity to look at all sides of the picture prior to making a decision.

Is a Down Payment or Trade-In required       Is a Down Payment or Trade-In required?

What will a lender look at when I apply for a mortgage       This lessens the risk of default. Second, if you have significant assets and they are fairly liquid, such as a stock portfolio, a lender may make you a loan even though your debt ratio is high because you have the ability to come up with payments outside of your wages or the ability to purchase the property in full if you have to. If the lender makes this type of loan - a so-called asset based loan - it will probably take a security interest in the assets instead of, or in addition to, your house. The typical bank will not make an asset based loan for the purchase of residential property, and you'll probably have to seek out a lender who specializes in this.

Business Loans       Business Loans

Can I change my information BEFORE I've submitted my application       Can I change my information BEFORE I've submitted my application?

What are debt ratios       The debt ratio is one of the most important factors used by mortgage lenders to determine whether to make a loan at all and the size of the loan. Ideally, the ratio will be greater than one. If it is greater than one, it means that borrower has enough income to pay all her debts and make other routine payments such as those necessary for utilities, food, and entertainment. If the buyer has a ratio of less than one, he does not have enough income to make his debt payments, let alone those other expenses. Not surprisingly, a lender does not want to lend to someone who does not have enough income to pay off all his debt. Instead, a lender prefers to see a ratio of about 1.3, which means that the borrower has about 30% more money than she needs to pay her debt - in other words, she has money to pay her debts and live on, too. Or, sometimes, the lender will make a loan to a person with a low debt ratio if the person has substantial assets or other income. For instance, a person with a low income, but significant stock portfolio may get a loan anyhow.

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