Home Loan Pre Qualification Vs. Pre Approval

Submitted by: Dave Lewis

Once you ve decided to buy a property, the first step is not to go house hunting. Instead, you should find out what you can borrow. In doing so, it is important to understand the difference between loan qualification and approval.

Pre-Qualified

Getting pre-qualified for a home loan carries little if any weight when it comes to actually getting the loan issued. Let s take a look at why.

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Its time to buy your first home and you ve done the research. The first step is to find out how much you can borrow. Down to the bank you go for a sit down with a friendly home loan officer. This person asks you questions about finances, salaries, credit and so forth. You might even be asked to fill out a short questionnaire. After a surprisingly short time, the bank officer suggests a loan amount of around $300,000 is probable. Being really helpful, the bank officer even prints out a form letter with your name and the pre-qualification amount of $300,000. Wow, that was easy perhaps to easy?

The problem with pre-qualifications is they are based on best guesses. The bank officer looks at no hard facts. When it comes time to actually apply for the loan, you can be assured the lending institution isn t going to be willing to guess. In fact, you might be told you don t qualify for a $300,000 home loan when push comes to shove. You might only qualify for $250,000. In nightmare situations, you might not qualify at all because of credit problems. In short, home loan pre-qualification is a waste of time for the most part.

Pre-Approval

Getting pre-APPROVED for a home loan is definitely your best option. Getting pre-approved for a home loan is an excellent strategy because you actually go through the process. Issues such as income, credit scores, personal wealth and so on are resolved. At the end of the process, the bank agrees to issue a loan up to a certain amount contingent on an appraisal of the home you eventually decide to buy. The lender will produce a letter indicating as much, and it is a very valuable letter.

A pre-approval letter is instant gold in the real estate market. If you were selling a home, would you prefer a buyer with a pre-approval letter or one without? The answer is obvious and leads to another advantage. In the current market, it is likely you will be bidding against other parties for property. A seller is much more likely to select your bid because they know the loan process will go smoothly. This can make all the difference when it comes to closing a deal.

Determining how much money you can borrow is the first step in the purchase process. Just make sure you get a pre-approval letter, not pre-qualification guesses.

About the Author: Dan Lewis is with

gwhomeloans.com

– A San Diego mortgage company providing home equity loan, refinance and mortgages to San Diego home owners. Visit

gwhomeloans.com/services.html

to learn more about options for San Diego mortgages.

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80/20 Home Mortgage Loans Creative Financing For Your Mortgage Loan

By CL Haehl

An 80/20 mortgage loan is where, for a new home loan, there are two separate loans with two separate payments. There are also two separate interest rates and the loans are usually funded by separate companies. The two loans consist of 80% of the loan amount and 20% of the loan amount. An 80/20 mortgage loan is a great option for those individuals who do not have a sufficient down payment for buying their new home.

Some of the benefits to having an 80/20 mortgage loan are:

1. No PMI – Private mortgage insurance is a monthly payment that every borrower needs to pay when they purchase a home with less than 20% down. PMI is insurance for the lender to protect the lender against losses should the borrower default on their loan. PMI does not insure the borrower in any way. When you split your mortgage into two loans, one loan is for 80% of the loan amount and the other is for 20% of the loan amount. So, PMI is not necessary for the first mortgage.

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2. Qualify for 100% Financing on Your Mortgage – Many times a borrower might not be able to qualify for 100% financing on their mortgage loan unless they do the 80/20 setup with their loan.

3. Lower Interest Rate on 1st Mortgage – Let’s say you expect to be able to pay down a significant amount on your mortgage loan in the near future. It works in your best interest to get an 80/20 mortgage loan, because as you quickly pay off the second mortgage, your interest rate on your first mortgage will be much less than if you had financed all 100% of the loan through one company. Usually the interest rate on the second mortgage is much higher, but that is nullified if you pay the second mortgage off quickly.

There are many ways to use creative financing to finance a mortgage without any down payment. Try consulting with more than one broker to find out what all of your options are before you decide.

About the Author: Apply for a 100% Financed Mortgage Loan Today

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What To Do If You Receive An Irs Notice Of Levy

There are several scary missives people dread seeing when they open up their mailboxes. An overdue notice, a summons for jury duty, or a traffic ticket are all unpleasant discoveries. But none of them can compare with an IRS Notice of Levy.

An IRS Notice of Levy is the single most frightening letter the most frightening collection agency on earth sends out. If you receive one, it probably means the agency has lost patience with you. Perhaps you missed a payment of your payment plan for taxes or you have been ignoring their letters and/or calls. Whatever the reason, the IRS has determined that they need to take aggressive action in order to collect your tax debt. What does this mean?

A tax levy gives the IRS the legal right to seize your property to satisfy your debt. They can take your car, your boat, even your home. These items will then be sold at public auction. But that’s not all. The IRS can also seize your bank accounts and garnish your wages and social security benefits. They don’t play around. When the IRS determines that you will not pay, the gloves come off.

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What can you do?

According to the conditions set forth by the US Congress, the Internal Revenue Service cannot seize a taxpayer’s property until it has sent him a Notice and Demand for Payment. If this correspondence is ignored, the agency will deliver a Final Notice of Intent to Levy and Notice of Your Right to a Hearing. As we mentioned earlier, this is the most serious letter the IRS mails out. A taxpayer has just 30 days to answer this notice before the IRS gains the legal right to seize personal property and assets.

The best advice we can give you is to never let the tax levy process get started. Once it has begun, it can be difficult to reach a favorable agreement with the IRS. Like any other creditor, the agency is far less likely to negotiate with a debtor who has repeatedly ignored their requests for payment. The best thing you can do is to deal with the problem as soon as you receive the first letter, the Notice and Demand for Payment. The IRS is far more likely to listen if you take positive steps to settle your tax debt before the levy process begins.

It is important to contact an experienced tax advisor as soon as possible. These trained professionals will speak with the IRS on your behalf and will attempt to stop the tax levy process in its tracks. We won’t lie to you; it may be an uphill battle. But a talented tax advisor may be able to convince the IRS not to take your stuff. If he can convince them that you are serious about paying your back taxes, he may be able to negotiate a payment plan for taxes that includes manageable monthly payments.

Article Source: sooperarticles.com/finance-articles/what-do-if-you-receive-irs-notice-levy-548213.html

About Author:

For more information about IRS debt, IRS lien help, and IRS problems help please visit Txmstr.com.Author: Dori Faxton

What Are Supplemental Credit Cardholders?

By Joseph Kenny

Have you ever been faced with the worry that your son or daughter is off to college and you want to give them access to emergency cash without having to give them the actual cash which theyll likely spend beforehand but knowing by the time you wire the money to them the emergency may well be over? If so, you may well want to know what supplemental credit cardholders are!

In short, supplemental credit cardholders are persons who you authorize to use your credit card account. They are issued their own card, but the account is the same number as yours and any transactions they process on the card are charged to you. Collectively you all have the same credit card limit. As such, if your supplemental cardholder makes a purchase on the card, this reduces your access to that sum from your card limit until such time as you have made a payment.

As you can see then, supplemental credit card users are offered all of the privileges of being credit cardholders, but based on your financial status rather than theirs. They are, therefore, a good means of providing security to your spouse and children without the worry of their having to apply for a credit card in their own name which, in the case of your children, will almost certainly result in them having a lower spending limit anyhow.

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Although a very useful and beneficial tool, a couple of issues you need to watch out for if you agree to supplemental credit cardholders on your account:

* you are liable for their spending! If they overspend, so do you! Also, you should request that provide you with any transaction receipts so that you can track any potential fraudulent use of the card.

* you may find that you are charged a fee for the privilege of having supplemental cardholders.

Finally, keep in mind that the policy of having supplemental cardholders is not limited to supplemental credit cardholders and it is possible to have supplemental cardholders for most major charge cards and store cards.

About the Author: Joe Kenny writes for CardGuide.co.uk, offering the latest offers on

credit cards

in the UK, visit them today for some great

credit card applications

. Visit today:

cardguide.co.uk

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Antigua Real Estate

By Seth Willis Jr.

Located in the Eastern Caribbean, about 1,200 miles southeast of Miami lies the island of Antigua. This small, 108 square mile island with a population of approximately 78,000, is quickly becoming an investor’s paradise. Antigua real estate is a hot property with a variety of market offerings.

Its mild, tropical climate ranges from 76F (24C) to 86F (30C). January and February offer the coolest temps of the year while August and September, the warmer. With the average annual rainfall at about 42 inches, the heaviest being during the summer months, the pleasant climate is regulated by cool breezes and a surprisingly low humidity level. Antigua real estate is attractive to those wishing to locate to the area, those seeking vacation properties and those who wish to cash in on the tourism traffic.

Of the 78,000 people who make up Antigua’s population, the majority are of African descent. However, a great many residents do hail from Britain, the United States, Portugal, and other origins. Additionally, quite a few Europeans and North Americans have retired permanently to Antigua. This makes Antigua real estate a very attractive investment for those who want to cash in on the island’s 1.3 percent annual population growth.

Know the ropes for Antigua real estate

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There are a few things that are different when making a purchase of Antigua real estate than when purchasing property from other areas.

When there is a purchase of property in Antigua, the buyer must usually pay 2 percent of the agreed sale price of the property. This is for stamp duty and is to be paid to the Commissioner of Inland Revenue.

Non residents of Antigua must purchase a “Non-Citizen Land Holding License” in order to be able to purchase property in Antigua. The approval time to receive permission to purchase this Non-Citizen Land Holding License is usually anywhere from three months to six months.

All legal fees, preparation fees and execution fees of the “Instrument of Transfer” are the sole responsibility of the buyer. This stipulation shows good faith of the buyer in adhering to and following all required obligations and allows him or her to have the property legally vested in their name.

Property purchase requirement

In order to purchase Antigua real estate property, the non-national buyer must obtain permission from the Cabinet. All taxes pertaining to the purchase of the property must be paid. For instance, real, freehold property buyers much pay a 2 percent government purchaser’s tax.

Approximately 2 percent of this is for legal fees while the remaining .5 percent, if applicable, is for a non-citizen’s landholder’s license fee. An additional tax in the amount of 7 percent must be paid it the property is resold at a later date. In general, it takes approximately four months to even six months to obtain a property in Antigua.

If you are a non-national and are seeking to purchase a property in Antigua, you should be prepared to provide your own capital. Local bank loans are quite difficult to obtain. Also, a cash purchase of your property can be more attractive because mortgage balances are taxed a 3 percent five year recurring advanced tax for buyers who are non-residents. In short, though, purchasing a home, rental or investment property in Antigua can be quite advantageous – once you know the ropes.

About the Author: Seth Willis Jr. is the webmaster for

planetpads.com

and a savvy real estate investor. His focus for Planet Pads is to allow users to showcase their real estate from all over the world .Users can browse properties , rentals , vacation homes and commercial properties from every corner of the globe.

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