Bad Credit Mortgage Refinance - Advice and Help

Most likely, your home will be the most expensive thing you ever own in your life. It is only normal that you would do anything in your power to keep it. However, home ownership can be a financial nightmare, but that can change with mortgage refinancing. Getting a more affordable monthly mortgage payment will help you keep your home, and strengthen your finances.

However, just because it is possible to get a bad credit mortgage does not mean it is easy. Here are some important questions you must ask yourself prior to applying for a bad credit mortgage refinance:

Do I really need to refinance my home loan?


You should always look into other possibilities of raising money, or something extra in addition to your normal income. Paying off bills with overtime hours, sales of a few possessions or good financial planning, can result in a refinance not even being needed. Also, never forget the associated costs and fees with refinancing a mortgage. Sometimes, these fees and costs make a bad credit mortgage refinance not worth it, and you would be better off in your current loan.

So is a Bad Credit Mortgage Refinance really my best option?

Doing some easy research and comparison shopping between different mortgage lenders will help a homeowner get the best deal.
Always take refinancing a mortgage seriously. If a mortgage refinance is done wrong, it could cost you thousands of dollars, or maybe even your home. Even homeowners with bad credit, especially in todays market, can get an approval. It has never been easier for homeowners with poor credit scores to get approved for a refinancing. Take action now.

By Michael Petrone

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Is a 100% Home Loan Impossible?

There are one or two banks or lenders that give prospective home buyers 100% home loans, but there are specific requirements.

This type of home loan is only available for a purchase price of up to R300 000 and a joint or single monthly income of R15,000.

So what about the rest of you that do not fall into that category?
Well, unfortunately the maximum you would get is between 85% - 95% of the purchase price and you would have to give the rest as a deposit, plus cover the legal fees.
This could end up being quite a large amount, therefore we have a suggestion.
If you are currently renting, work out or get a qualified mortgage originator to work out how much you qualify for and what the approximate monthly installment would be.

What you should do then is to take the difference in what you would be spending on a home loan and your current rent and save that on a monthly basis for about 6 months.
Well, if you do that you will see if you would be able to comfortably afford a home loan installment and not get a shock if you suddenly just buy and your installment is much larger.

After 6 months you could then use what you have saved up and put that towards your deposit. Depending on the amount you want to buy for, this may actually be enough to cover your deposit and some of your legal fees.

By Zulika Van Heerden

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Applying for Your First Home Mortgage? What You Need to Know

The following home mortgage tips will help you figure out how to best go about the home mortgage loan process for your situation.

Home Mortgage tip #1 Interest Rates

Before applying for your first home mortgage loan you will want to shop around and see what average home mortgage loan rates are. Shopping for home mortgage rates online is a timesaver and frequently have lower rates as well. Your home mortgage rate will affect how much money you have to pay back over the term of the loan, so the lower the better.

Home Mortgage Tip #2 Fixed or Variable Interest Rate

When it comes to your home mortgage loan there are more options than just a loan you pay back over a set amount of years. You can choose different home mortgage interest rates that work best for your current and future situations. So, before you apply for a home mortgage loan do some research on variable and fixed interest rates to find what will work best for you.

Home Mortgage Tip #3 Down Payment

When applying for a home mortgage loan for the first time you might not be aware of the general down payment you will be required to make. Many times a home mortgage loan requires between 10 and 20% of the price of the home, but if you have good credit sometimes you can make a lower down payment and still get a good deal on your home mortgage. This depends on the home mortgage lender, so shop around.

By Jay Moncliff

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Commercial Mortgages - Finding the Right Commercial Mortgage Lender

If you are considering the purchase or refinance of a commercial property, securing the best possible financing is an integral part of your long-term success. Getting your commercial mortgage isn't rocket science; it's a matter of strategy and execution.

However, before you can prepare your loan proposal for success, you must understand the commercial mortgage process and how to find a lender. This article will discuss a variety of strategies that can give you insight about the commercial mortgage market and help you land the best lender and loan for your unique situation.

Understanding the Commercial Mortgage Lending Climate

Many business owners and real estate investors have realized the extraordinary profit potential of owning commercial real estate. When I refer to commercial real estate, I'm talking about any property that is owned for investment purposes. These are properties that generate a cash flow for the owner. Or in the case of owner-occupied property, these are properties where the owner runs a business.

Many business owners prefer to build equity in an owner-occupied property rather than continuing to pay an ever-increasing monthly rent to their "smart" landlord. These savvy property owners enjoy the relative safety and predictability of owning commercial real estate; they like the positive cash flow, tax benefits and appreciation their investment delivers.

Keep in mind that financial institutions are in the business of turning companies and individuals into property owners. They're eager to lend money to responsible borrowers. And even today, while mortgage success is more challenging than it has been in decades, funding is still abundantly available for qualified investors and projects.

If your transaction makes sense, there are many lenders who will work creatively with you to get it funded. Never forget that lenders WANT to make loans. And as a qualified borrower with a sound loan requirement, you have more leverage than you might imagine.

Target Your Lender

There are literally hundreds of lenders active in the commercial real estate marketplace. Each of these lenders has different criteria for the transactions that will interest them. Matching your specific transaction to the most appropriate lender is an important first step to getting your transaction funded.

When choosing a lender, make sure you're working with an institution that is willing and able to make the loan you need. If you're working on your own, you might start out by phoning your local bank and asking to speak with a commercial mortgage officer. Explain to them the specifics of your loan transaction and ask if the transaction meets their lending profile.

Key questions you might ask include:

- Do you finance my type of property?
- Is my transaction and appropriate size for your institution?
- What types of loan programs are available?
- How quickly can you close a loan?
- How does your due diligence process work?

If you have specific loan requirements, make them known at the start. For instance, some borrowers are not able or willing to provide tax returns. These borrowers require what is known as a stated-income commercial loan--but not every lender offers this type of program. Other borrowers may have low credit scores, require cash out from a transaction, need very short-term financing, have properties with negative cash flow or have other requirements that place them outside a given lenders loan parameters.
Regardless of how strong you think your loan request is, never waste time trying to get a lender to fund a transaction that is outside of "their box." Regardless of what your loan officer tells you, these loans rarely get done.

Being referred to a lender from another industry professional is a big plus. The lender will know you're probably qualified and serious, and they will not want negative feedback making its way back to the referral source. You should always ask your realtor, accountant, attorney, banker, or others professionals for a solid referral to a potential lender.

If you learn that the institution you've contacted is not interested in working with you, don't sweat it. Simply have the lender suggest another commercial mortgage broker or lender that may be more appropriate for your situation.

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Know the Mortgage Loan Requirements Before Buying a Home

Generally, mortgage loan requirements are not very complicated, but getting a mortgage can be quite a bit of work. Accurate and organized financial records can greatly simplify this process. Make a usual habit of keeping all records of your financial history in one easily located place. A strongbox or file cabinet is perfect for this purpose.

For many reasons, you have probably already kept copies of your tax returns. These will be needed when applying for mortgage loan. This is the best record of your income history.

You will need copies of all bank statements for at least the previous two months, and sometimes more. This will include all checking, savings, retirement, and any other financial account that you hold.


You will be required to provide the name, address, telephone number, and any other pertinent information about your employer. If you are self-employed, you will need to provide all 1099 forms. This will show your overall profit for the year, before you have deducted your expenses.

If you are retired, and receive your income from Social Security, pension, or another source, you can not be denied a mortgage loan, as long as your debt to income ratio is appropriate. A bank will expect you to provide accurate documentation of the source of your income.

More often than not, you will be expected to have a certain amount of money dedicated as a down payment. A portion of this money may be held in escrow. This will ensure that all necessary taxes and insurance will be paid.

You may be asked for copies of both your Social Security card and your drivers license. These will be added to, and kept in your mortgage file.

As you can see, the requirements for a mortgage loan are not complicated, however accurate record keeping will certainly simplify this matter.

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