Lending / Financial

Buying real estate is even more challenging for those of us whose eyes glaze over at the mere mention of decimals, percentages or anything else that even hints of mathematics.


The financial aspect of purchasing the largest investment of your lifetime, though, is the most important. Nobody wants to lose money. Nobody wants to leave money on the table.


If you're in the market for information on mortgages, credit scores and interest rates, you've come to the right place. The financial and mortgage pros here at ActiveRain even tell you how to shop for and compare lenders, how to raise your credit score, how to get a mortgage after a short sale or foreclosure and how to get pre-approved for a mortgage loan. Even Mom and Dad can't give the great advice you'll find here at ActiveRain.


Plan to spend some time here because ActiveRain's content library is massive. Lucky for you we've arranged it so that it's über user-friendly. You'll be amazed at how easy it is to put your finger on just the information you're looking for without having to surf a million other pages.

Trending blogs on Lending / Financial
By Lynn Pineda, Real Estate Promises delivered in SE Florida
(eXp Realty)
Want to know the facts about FHA Mortgages? Then you've stumbled upon the right post where Inlanta Madison Mortgage has written a comprehensive guide to FHA Mortgages.   A must read for any home Buyer or for that matter, anyone wishing to educate themselves on FHA Morgtages. Many potential home buyers have questions about the FHA loan and the process needed to secure a home mortgage. Some people are even confused about what is a myth and what is a fact about FHA loans. Listed below are the common FHA mortgage facts along with brief explanations. FHA Mortgage Facts: Basics About The FHA Organization Definition of FHA FHA is an acronym that stands for Federal Housing Administration. The administration was founded by the United States Federal government in 1934. The main purpose of FHA was...
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By John Krol, Naples,Luxury Homes,International Buyers / Sellers
(Top Producers Realty, Inc. Krol Group International)
Guide to understanding Covid-19 mortgage rates While much of the United States is still seeing the impacts of shelter in place orders, Florida does not have as many restrictions and that means if you want to buy a house now, you certainly can. You might have heard that mortgage rates are going through some interesting trends during Covid-19, and it can be confusing to understand what is actually happening, and decide if now is the best time to buy. Here is a quick guide to help you understand Covid-19 mortgage rates so you can have an informed conversation with your realtor about the best way to go.  Are the rates really that low?Realtors in Naples, FL and across the United States are also asking themselves this question, and the answer is, yes. Mortgage rates were already low before t...
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By Bob Elliot, 20+ Yrs Industry Experience
(eXp Realty)
Some Highlights Mortgage rates hit another all-time low, falling below 3% this week. If you’re ready to buy a home, now is a great time to truly get more for your money at this historic moment. Let’s connect today to determine your best next steps toward homeownership.
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If you are an investor rehabbing residences for profit, sooner or later you will hear about private money lending. Numerous individuals mistakenly assume that private loans accommodate risky borrowers: those with a marginal credit history or who cannot prove their earnings. In reality, they are confusing them with subprime lending. Private money lending is created for estate investors and cannot be applied to finance primary residences. It offers unprecedented financial leverage to help compete with all-cash buyers.Private loans are not for every person, and not every investor will qualify for them. However, without them, you might find yourself sitting on the sidelines, twiddling your thumbs, while better-capitalized competitors are expanding their wealth. So how a real estate investor...
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By Rich Jacobson, Your Kitsap County WA Real Estate Broker
(Fathom Realty West Sound)
(Updated 5-13/20: So we finally received a determination from the VA regarding our Reconsideration of Value (ROV). The appraisal stands AS-IS, with no change in value. So according to the VA, a brand new roof adds absolutely no value to a home. While the folks at NFCU made some perfunctory attempts at making amends, I doubt seriously if anything will change or improve in their processes. Unfortunately, more of our valued active-duty service members and veterans will continue to be subjected to their gross negligence)I should've known we were heading for trouble when the Buyer's loan officer began our conversation by telling me all the things her company couldn't or wouldn't do. "Our loans are taking a minimum of 60+ days to close!" she relayed from her script. "Thanks!" I replied. "I lo...
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By Dennis Dahlberg Broker/RI 623-582-4444
(Level 4 Funding )
 While each individual investor may have their own agenda when it comes to a particular exit strategy, the returns provided by an investment are of the utmost importance. For all intents and purposes, the ROI is the motivation behind any investor. After all, money means security. Who would not want to maximize their ROI? Having said that, private lending is perhaps one of the best ways to increase returns. Private mortgage lending has typically provided an annual return of 8-10%, based on the historical interest rates charged to borrowers. The Pros of Private LendingAssuming you have decided to pursue becoming a private money lender, it is important to familiarize yourself with the benefits it provides borrowers. However, it is equally important to know the drawbacks as well. As with an...
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By Eleanor Thorne, Equity Resources 919-649-5058
(Equity Resources)
If you want to find a Builder to build your home on a lot, how do you do that?  One way is to have the Builder take out a mortgage, and in that situation, you normally have to make a pretty sizable deposit with the builder, often times it’s at least 20%.  IF you own the lot, you might have to sign it over to the Builder.  After all they are taking a huge risk that they will build the house, tie up their materials, man hours and credit line, and you might not ever be able to close. With our new a construction loan, you can combine your lot and construction financing into a single loan.  We only require a 10% down payment, and when your home is complete, we’ll simply modify your construction loan to a permanent mortgage.How to Finance A New Home With A Construction LoanIf you are building...
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By David Jackson, MBA, Financial lending analyst
(Olympus Labs)
According to the Federal Reserve , consumer credit debt skyrocketed to $1.057 Trillion by March 2019. This number is both staggering and sad. Around the United States, American's take on debt to finish school and to help make ends meet. Sadly, most American's are not able to pay off the debt they accumulate, which in return, hurts their credit score and puts them at risk financially.Both lending and credit companies provide loans and lines of credit to consumers. But only if they have trust or confidence in your financial situation. What this means is that financial institutions rely on both your credit score and history to dictate whether you deserve ‘credit’ or not. Financial institutions want to make sure you can successfully pay back your debt.It is no news that the majority of Amer...
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By Dennis Dahlberg Broker/RI 623-582-4444
(Level 4 Funding )
The average real estate investor relies on a steady flow of private money to supplement their respective deals, often in the form of a private money loan. But where can one find this endless stream of money? Not only are institutional loans lengthy and cumbersome, but they can also impede the progress of a residential redeveloper.But the big question investors have is understanding how to find private money lenders? And what is the best way to convince private money to lend you the capital you need? And how does private lender financing work?Conversely, real estate investment capital can afford investors the ability to grow their business at a steady pace.The following illustrates the most important aspects of a private lender loan, which will not only have you prepared for the private ...
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By Dennis Dahlberg Broker/RI 623-582-4444
(Level 4 Funding )
Most of us are familiar with a mortgage. However, in many states, deeds of trust are used in place of mortgages and the role they play in the home buying process. But what is a deed of trust?A deed of trust secures real estate transactions and includes three necessary parties: lender, borrower, and a trustee. The borrower receives money from the lender in exchange for a promissory note, and the trustee holds the legal property title until the loan is paid in full.A deed of trust has many components that are similar to a mortgage and other components that work as a traditional property deed. Just like a traditional deed, a deed of trust has a detailed description of the property. This is called a property description. A property description describes what the trustor has rights to as lon...
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By Dennis Dahlberg Broker/RI 623-582-4444
(Level 4 Funding )
No matter what angle you put on it or how savvy you are, investments are always a gamble and can be tricky. So, is it a smart move to invest in trust deeds?First things first. What exactly is trust deed investing? Trust deed investing is when someone loans money to someone else; also known as the lender and the borrower. The borrower puts up property as collateral which is a trust deed investment. The property can virtually any property they own. Investing in a trust deed is literally granting a private mortgage.The ConsThe biggest con when considering trust deed investments will be a foreclosure. This can be a legally complicated and lengthy ordeal. Foreclosing on a property means there is a chance you will not get your entire investment returned. It is critical that anyone investing i...
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By Bob Rutledge, FHA 203k - USDA - FHA - Down Payment Assistance
(USA Mortgage)
Mortgage Approval    After Your Bankruptcy St. Louis, Kansas City Springfield, Columbia and Missouri     You Are Not Alone I recall the feelings that ran through me when I felt compelled to file for a Chapter 7 bankruptcy, I felt as though I was an outcast and ashamed that I could not handle my obligations. For a very long time I barely admitted it to myself much less my friends. Now I realize that I did not have a solid handle on my finances and it took a couple small set backs to put me into the position of bankruptcy. But, when I look back I see a life lesson that was provided to me and has been instilled well into the fabric of my personal life. I will not allow this to happen ever again. It is this exact lesson that Underwriters and Mortgage Lenders are looking for from borrowers w...
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By Dennis Dahlberg Broker/RI 623-582-4444
(Level 4 Funding )
Many real estate investors know that buying an investment property is different than purchasing a primary residence. Among the differences is that many homeowners will turn to a conventional mortgage, while real estate investors often look for alternative forms of financing. That is why as a real estate investor it is crucial to understand how to fund deals using resources like private money lenders.In the real estate industry, a private lender will be a much-valued asset to your investor toolbox. But what exactly can they do for you as an investor, and how exactly do they work? Further, how do you approach private lenders about a given deal? Read the following to learn how to work with and find private lenders, so you can help ensure you secure financing for your next deal with ease.Wh...
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By Bob Elliot, 20+ Yrs Industry Experience
(eXp Realty)
Last week’s scheduled economic news included readings on consumer credit, job openings, jobless claims, and mortgage rates. Consumer Borrowing Declined at Slower Pace in MayAccording to Federal Reserve data, consumer borrowing fell at a slower annual pace of -5.30 percent in May as compared to April’s reading of -20 percent. Non-revolving consumer credit, which includes vehicle and student loans, increased by 2.30 percent in May. The Federal Reserve does not report on real estate loans.Federal assistance programs including the first round of stimulus checks, additional unemployment payments and support for businesses contributed to better readings for the economy in May, but last week’s rising coronavirus cases may cause all or part of economic gains to be lost as local governments reve...
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By Karen Schimpf, When the Bank Says No, I CAN Get Your Deal CLOSED!
(Commercial Capital Ltd.)
What is a Commercial Mortgage Back Security Loan? cc: by: https://flic.kr/p/2itGaZo CMBS loan is different from a traditional commercial loan. With a traditional commercial loan, the lender gets paid back over time. It is different with a conduit loan because the loan will be sold and packaged along with other commercial mortgage loans into a trust called a Real Estate Mortgage Investment Conduit (REMIC), turned into bonds, and sold on the secondary mortgage market to bond investors. This process is known as securitization, and it’s where these loans get their name.Advantage of Commercial Mortgage Back Security LoanHow do the Rates Compare to Traditional Commercial Loan?The main advantage of choosing a conduit loan is that these loans frequently offer a better interest rate than a conve...
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 For as long as twenty years, it has turned into a far from being obviously true subject for students about which method of learning is better, on the web or offline (classroom). Keeping the present blast in innovation and advanced changes occurring over the world, I propose a wannabe must go for internet learning. When it comes to boon or bane, it is always debatable, but with the advancement of technology and internet becoming mightier, it can be easily said that online learning is overcoming the conventional way of learning.Just for instance, the NCERT books preferred by all the CBSE schools are said to be the backbone for exam preparation and also for competitive exam preparation in successive formative years. With emerging companies like Vedantu — one of the leading Ed-tech compani...
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By Arina Hanciulescu, RealtyPros
(RealtyPros)
  Las Vegas, as we know, was the foreclosure capital of America during the recession. Job losses soared as borrowers throughout the valley fell behind on their mortgage and lost their home to lenders. But in a break from recent history, Las Vegas is showing signs that its mortgage woes, at least in one way, are not as bad as they are nationally. Locally, 4.3 percent of borrowers were at least 30 days late on their payments in February, compared to 4.8 percent nationally. It was the seventh consecutive month that Las Vegas’ mortgage-delinquency rate was lower than the U.S. average, according to figures from housing tracker CoreLogic. Even if homeowners have financial problems, he added, the market is strong enough so they can sell their house, letting them avoid foreclosure. Still, Las V...
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By Dora Griffin, NMLS 6380
(D A Griffin Financial.LLC)
Why Borrowers Get Spam After Their Credit Is Pulled A borrower needs a mortgage to purchase a home. They contact the mortgage broker or bank they want to work with, apply for a mortgage loan, have their credit pulled, and boom! they start getting spam calls out of the blue asking if they are buying a home. Why? Why are they getting calls from people they have never heard of? How did these folks get their information? What I described above is a "trigger lead". When someone applies for a mortgage loan and their credit gets pulled their information is often sold to a competing lender who buys trigger leads. Some lenders pay the credit bureaus (Trans Union, Equifax, and Experian) to provide them with leads. They have sales people sitting there waiting to snag a lead and see if they can gra...
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By David Jackson, MBA, Financial lending analyst
(Olympus Labs)
There are specific perils that would cause extensive damage to your home and property within. Therefore, it is advisable to have a home insurance policy to cover for the repair or replacement costs. Home insurance is there to protect your home from unforeseen damages or injuries. The insurance policy will work to cover expenses should you damage another person’s property. The plan also protects you from liabilities if a visitor gets injured while at your home. Homeowner insurance policies also protect other structures within your home, such as garages, sheds, or kennels. The policy covers the contents in your home, including your furniture, electronics and other belongings. You would get reimbursed in case of any accidents or damages based on your insurance policy terms. Various element...
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It cannot be stressed enough:  If you wish to limit the potential financial/credit impact you face as a result of current COVID -19 challenges, take action proactively to do so.  That is how you may provide yourself the most relief and financial protection ... and the method through which your credit scores will be affected least.Communicate early.  Stay in touch with your lender and all service providers throughout the financial challenges you face.       Protect Your Financial Health & Credit During COVID-19 ... Take These Steps Now     Your physical health and mental well-being must always be an important focus.  The grave challenges posed by the current COVID-19 crisis, make that even more true ... But it's not only your physical and mental health that should remain of concern.  You...
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