Mortgage Marketing: Giving Your Materials Life

Even after a great meeting with a Realtor, chances are they aren’t ready to do business with you yet. So how do you keep their interest? How do you keep yourself positioned at the top of their mind? If you keep sending them the same mortgage marketing brochures they’ll get bored. So what should you do?

Think about your favorite TV show. What keeps you excited about the show and tuning in each week? It’s usually because the show features a compelling story line, one that you see in small sections (episodes).

When you develop your mortgage marketing materials to reflect this same kind of story telling tactics, you capture the attention of the audience and keep them tuned in for the next episode.

Maybe you are having a hard time picturing how you will drip out information in a storyline format. Most people deliver all their information in one fell swoop. But their audience can only digest small amounts of information at a sitting, and that’s how you need to structure your marketing approach.

Your first step might be sitting down with your prospect and finding out some information so you can tailor your approach to them. What are their goals, obstacles, and challenges for the year? How do they plan to overcome these obstacles? Do they need help? What can you do to help?

Once you identify their problems, you can develop your materials to your audience. When you show how you solve the problems they are experiencing, your materials become magnetic to them, and they can’t wait to hear more.

How do you start? After your meeting or phone call (it could just be a quick survey with no pressure), sit down and immediately write a personalized, handwritten thank you note. Thank them for taking the time to speak with you and learn about their problems. As you close your note, state that they can expect to hear from you with materials to help solve their problems.

Next, follow up with a brochure. Many loan officers would give the agent a brochure at the meeting. Instead, you are going to make sure that your brochure addresses their problem, something you couldn’t have known in advance.

A perfectly designed brochure is one of the cornerstones of your marketing materials. It reinforces your position and gets them to think back to the first meeting or phone call. Now you’ve had three contacts with the agent (your meeting or call, the thank you note, and now the brochure).

In the next phase, continue sending out marketing materials. This time, send materials in a different format. People respond differently to a variety of packaging, some prefer reading while some prefer to hear a message. Send out a CD ROM with a flash presentation. Other items that capture their attention: case studies, special reports, testimonials, postcards, etc.

Another great source of information for prospects is press clippings. The press clipping continues your story in the prospects mind. Your clippings should answer questions about major problems, additional problems that occur when problems are ignored, and the consequences of those problems.

Agents are far more likely to give you an opportunity when your goal is to discuss their problems. They are inundated with other loan officers hoping to solve their problems. Your first step is to completely understand their issues.

Discussing agent’s problems gives you two opportunities: you develop a greater understanding of their challenges; you create opportunities for continuing conversations.

When you focus your mortgage marketing efforts on storytelling and problem solving, you gain the attention of the Realtors, resulting in a productive partnership.

Author: Jeffrey Nelson

Mortgage Marketing Tips

Mortgage brokers are also trying to survive the unfriendly conditions and even expand their businesses, promoting the products available in the marketplace.

Mortgage Broker Marketing Methods

The mortgage market has been turbulent, affecting both lenders and brokers. In this time of serious crisis, mortgage brokers may be tempted to cut back on their marketing or advertising budget.

Mortgage Marketing Techniques

In a recessionary market when potential borrowers may be more timid about buying a home and when it is more difficult than ever to qualify for a loan, it is important to take effective steps to attract business.

Technorati Tags: Mortgage Marketing, mortgage marketing brochures, mortgage marketing materials

Mortgage lenders frequently use teaser rates on Adjustable Rate Mortgages to get their phones ringing. The problem with these loans is that many homeowners think the teaser rate is their contract mortgage rate and don’t understand that the teaser is only valid for a short period of time. At the end of the introductory period, often only six months, the lender adjusts your mortgage to the contract rate and the payments go up. For homeowners who have budgets stretched to the limit before the adjustment, this results in payment shock.

Teaser rates are a largely responsible for the soaring number of foreclosures in the United States. Homeowners who do not fully understand their interest only or option Adjustable Rate Mortgages overextend themselves and cannot afford the payments when the lender resets their payments. When used for the short term Adjustable Rate Mortgages have very little risk and offer low payments; however, if you have little tolerance for financial risk you should avoid using Adjustable Rate Mortgages for the long run.

You can learn more about your mortgage refinancing options, including costly mistakes to avoid with a free mortgage tutorial.

Author: Louie Latour

Mortgage Refinancing: When Not To Take It

Whenever the rates are low, homeowners often ask this question: Should I refinance? While low rates are often tempting and may be a good indication that mortgage refinancing is a good idea, that doesn’t mean it can apply to all.

Mortgage Refinancing Mistakes to Avoid

Mortgage refinancing has several great benefits if used properly. But if you made just a lapse of judgement, you might be in for a costly mistake and may place your entire house at risk.

Why Work With Mortgage Refinance Specialist?

Understanding that low rate is the best time to refinance your mortgage is pretty straightforward. On reality, however, the process of getting a new loan and how you could possibly get savings through refinancing under low rates.

Technorati Tags: mortgage loan refinancing, mortgage refinancing, mortgage refinancing rate, refinancing my mortgage

A conventional loan from a bank or other institutional lender will take 90 days or more to underwrite and close. Sellers of commercial real estate like apartment buildings, offices and retail outlets know this and they don’t’ like it. Once they decide to sell, and accept an offer they resent every mortgage, utility and maintenance payment they have to make and they constantly worry that something will go wrong and derail the deal. Sellers want to close quickly. Anything you can do to speed up the process will strengthen your position at the negotiations table.

Private Lenders can Close Fast – This Gives Borrowers Leverage

One strategy that savvy real estate investors use when bargaining with sellers over price and terms is offering a 3 week close in exchange for some concessions. Sophisticated real estate pros know that the competition is probably offering a 45 day due diligence period plus 60 days to find a loan and close the deal. That’s more than 3 months, and the seller has no real assurance the sale will actually close. If you have a good relationship with a private commercial mortgage lender (or have a good mortgage broker with such a relationship) and you know the kind of deal they can close on in an instant, you have a significant advantage.

You Might get a Lower Price

Most private lenders will only lend up to 65% of the purchase. If you present a scenario where a lower purchase would allow you to make a larger (percentage wise) down-payment, qualifying the deal for a private (sometimes called “hard money”) loan that can close in weeks instead of months, the seller might just be interested. Especially if the seller needs the cash in-order-to get involved in a new project or building.

You Might get Better Terms

Sellers willing to carry back a 2nd mortgage on a substantial portion of the price could add real equity to a deal and guarantee interest from hard money commercial specialists. If they were confident that the 2nd was only temporary but they could get the deal done quickly, it is very possible they’d be interested.

Don’t try This at Home

Sophisticated real estate strategies are for sophisticated real estate investors only. Don’t go making promises to anxious sellers unless you know the property, the market and your lender extremely well. Misjudge a deal or your lenders ability and desire to close it and you will lose your earnest money and your credibility. Know what you are looking at and know what a lender will lend and give yourself an out in the purchase and sales contract.

Here’s What Private Lenders Need to Close a Deal in 21 Days

Equity. In order to facilitate a expedited close a hard money lender will demand at least 50% pro
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tective equity in a land deal (50% LTV), 40% (60% LTV) in a vacant building and 35% (65% LTV) in a building that has cash flow sufficient to cover it’s own mortgage payment. Don’t ask them to be flexible with these standards and expect them to move at light speed also, it won’t happen.

Cash. Private lenders won’t deal with any borrower that can’t or won’t bring at least 10% hard cash to a deal. If you want to get them interested in closing in 2 or 3 weeks, I’d recommend bringing more than that. Even if the seller is willing to carry back a massive 2nd the lender will be cold to the deal unless the borrower has real skin-in-the-game.

Documentation. Be sure the seller can, and will, provide all the necessary documentation on the building. To achieve a fast close you will need to work with property owners who have kept meticulous records and can produce them, in digital format, instantly. Hours matter when trying to pull off a quick close; you will not have time to allow the seller to gather or create the paperwork. You will need the seller to provide digital photos of the property, inside and out, profit / loss statements going back 2-3 years, a certified rent roll with copies of rental agreements or leases attached maintenance records and copies of relevant bank statements. You will need to have, on hand, a resume that includes a summary of completed deals, a personal financial statement with the documentation to back it up, and a detailed “source and use of funds” statement that proves you have the down-payment readily available and details what you intend to use the loan proceeds for.

Clear title. There is no time to be clearing up title disputes. If a title search reveals problems the close will be delayed.

Environmentally friendly. Environmental liability is unlimited; lenders can not take chances and cut corners on potentially contaminated sites. Don’t try to push through a quickie loan on a gas station, dry cleaner, chemical plant, brown field or a nuclear waste dump. There is too much at stake for a hard money lender, if there is a hint of environmental problems they will require full due-diligence.

Access. If a deal is-to-be closed in just a few days there may not be time for a certified appraisal. The lender will want to thoroughly inspect the site more than once. Make sure they have access to the building when they need it. They may need to bring engineers, brokers or other commercial real estate professionals, scheduling these inspections is usually a one-shot deal. Facilitate the lender on their time table, or the deal could be blown.

Income. Nothing helps a deal fly through like income. It is exceedingly difficult to close any commercial loan in less than 3 weeks if the collateral property does not “cash flow”. Ideally, a private lender would like to see positive cash flow 1.2 (or more) what the mortgage payment will be. This cash flow should be backed up by fairly long term, documentable leases.

Super-Fast Closes are the Exception

Many privately funded commercial mortgage loans can and do close at light speed, and, any hard money loan is fast compared to conventional financing. But, from the lenders perspective, short-fuse deals are risky. If you’re going to use the promise of a 21 day close as a bargaining chip, know your lender and choose your deal wisely. Look for cooperative, well organized sellers offering income producing buildings at exceptional prices. Bring plenty of cash to the table and make yourself and the building available on a moments notice.

MasterPlan Capital, a dynamic, privately held commercial real estate investment banking firm, offers a wide variety of private and institutional commercial mortgage lending platforms. Borrowers can apply on line at: http://www.masterplancapital.com/ and receive an answer the very next business day.

Glenn Fydenkevez is President of MasterPlan Capital LLC. After a 20 year career on Wall Street, including more than 14 years at one of the world’s leading investment banks, he founded MasterPlan to more efficiently serve commercial real estate property owners, investors and developers.

Article Source: http://EzineArticles.com/?expert=Glenn_Fydenkevez

Author: Glenn Fydenkevez

Borrowers are emotional, erratic, demanding, panicky, unsure, deliriously happy or sad and a whole host of many other emotions. In their minds, they’ve picked out the carpeting and wallpaper and have mentally already moved in! Geesh! Try dealing with a person who thinks they’re the landlord and they don’t even have the keys yet!!!

Keeping this in mind, here are some tips when dealing with purchase loans. These come from my years of experience and many number of loans (I’ve lost count.)…

1. Don’t show your hand too early (meaning the interest rate you can offer). Explain to the borrower that it is up to them when they decide to actually “lock-in” the interest rate. If they press you for an actual rate, tell them what today’s rate is you can offer, and that you will watch the interest rates for them. If they drop, you will call them at the first moment. What you really want to do here is knock the borrower off their “rate” short-sightedness. Say something like, “Well, as you know, the interest rates change every day. With purchase loans, time is critical. What we can do is get the process started, so that you don’t lose the house, and when the interest rates get to a point you feel comfortable with, we can lock it in for you. We will be working hand-in-hand through the entire process. Now, how do you spell your last name?”.

2. Explain the difference between a pre-qualification and a commitment letter. Borrowers think just because they have been pre-qualified somewhere, that it guarantees them the loan. This isn’t the case. As you know, the underwriter has the final say. If the property does not appraise for the correct value, the borrowers’ situation changes, or the seller pulls out, the deal is dead. These are things entirely out of your control. What I tell borrowers, is that we are going to go one step further than a simple pre-qual letter. We want to give them an advantage with their loan, and get them a full commitment letter from a lender as soon as possible. This lessons the chance of them getting their expectations set too high and not getting the loan in the end.

3. Phone the real estate agents early on and explain you are in control of the process. Call them BEFORE they call you. You want to show that YOU are in control-NOT them. Doing this, puts you at a higher level and they will respect you for it. Believe me.

4. Set expectations with the borrower upfront. Explain the entire loan process from start to end. First-time homebuyers just simply don’t know. Emphasize to them, if they have any questions, to call you first-NOT the realtor.

5. Make it known that you are the
1ff8
point of contact for all parties involved in the transaction. This includes the seller and buyer agent, appraiser, lawyer, title companies, etc. Usually, the realtor thinks they are in control for the whole process, but remember the sale is mostly out of their hands after the purchase and sales contract is signed. Then it is entirely up to you-the loan officer-to succeed! By being the “driver” in the process, you can minimize any confusion or crossed signals that may arise.

6. If you get a sales call from a borrower looking to purchase a home, ask if they have already been pre-qualified elsewhere. Most of the time they have been and are simply shopping around for the lowest rate. (In other words, go back to rule number one above… don’t show your hand too early). If the borrower shops behind the other loan officer, they will certainly do it to you too.

7. Explain to the borrower whether you are acting as a direct lender or broker. Each has pluses and minuses. Explain what you are and the role you play. Sell yourself. For example, you can say “As a lender, we have direct control of the process, we make the final decision and can tell you upfront whether you qualify.” or “As a broker, if you get denied by a lender, we can easily shop you to another lender, saving you time and effort. This will help you ensure you get the house you want and not jeopardize the process”. Sell your advantages…don’t mention your weaknesses.

8. Factor in all payments for the borrower, including the full principal, interest, taxes and insurance and be certain that the borrower is well aware of these entire costs upfront. If they can’t afford the house, you want to know as soon as possible. Or you’ll be left with nothing!!! I always say, it’s best early on to kill ‘em or keep ‘em. Don’t let timewasters run away with your income.

9. Watch critical dates, especially rate lock expirations and underwriting turn-times. Be well aware of the “commitment letter” date as stated in the purchase and sales contract on the property. Oftentimes, borrowers wait until far too late in the process before deciding to move ahead and these contract deadlines can be impossible to meet. Get an extension on this ASAP with the seller’s agent on the property.

10. Finesse your way through the process. Don’t lie. Only tell each individual party involved in the process what they need to know. Don’t share too much information…it creates confusion. And don’t tell someone something unless you are absolutely certain. It always comes back to bite you in the rear!

11. Stop the shopping. Make the borrower understand that once they decide to move ahead with the process, they risk losing the home, if they decide to leave you. Another broker/lender will be unable to meet the tight deadlines in the contract. They have to make a decision and stick to it.

12. Stop the shopping-part two. If the borrower is qualifying for a home based on a special program that your company is offering, tell them the criteria upfront. Not every loan officer has what you can offer. In other words, you have a specialized program and are making an “exception” just for them. Not all rates are created equal. The other “competitors” for the loan may not have all the correct information upfront, to be able to properly quote them an accurate interest rate. Let me emphasize that again-an ACCURATE INTEREST RATE. Educate the borrower on this, show them you’ve done your homework, and are quoting accurately. Ask qualifying questions that others don’t.

By keeping these tips in mind, it should make your next purchase loan go a lot smoother.

If you are looking for a firm step-by-step process to help you get your purchase loans to the table faster, please…please…please…take a minute to read about my Sink or Swim Loan Closing System at http://www.loanclosingsystem.com

And, as always, best of luck in your business. This is STILL a wonderful industry to be in! Stop being discouraged and go get ‘em!!! I know it’s tougher out there, but you can do it!

Rob Lawrence is ranked one of top national trainers in the mortgage industry. He is the currently the CEO of Battlecall.com, coaching, tools and resources to turn mortgage professionals into mortgage warriors. Visit http://www.battlecall.com for his free “Sink Or Swim” weekly newsletter, mortgage training, marketing advice and more! Jumpstart your career in the mortgage business, starting today.

Article Source: http://EzineArticles.com/?expert=Robert_V_Lawrence

Author: Robert V Lawrence

Borrowers are emotional, erratic, demanding, panicky, unsure, deliriously happy or sad and a whole host of many other emotions. In their minds, they’ve picked out the carpeting and wallpaper and have mentally already moved in! Geesh! Try dealing with a person who thinks they’re the landlord and they don’t even have the keys yet!!!

Keeping this in mind, here are some tips when dealing with purchase loans. These come from my years of experience and many number of loans (I’ve lost count.)…

1. Don’t show your hand too early (meaning the interest rate you can offer). Explain to the borrower that it is up to them when they decide to actually “lock-in” the interest rate. If they press you for an actual rate, tell them what today’s rate is you can offer, and that you will watch the interest rates for them. If they drop, you will call them at the first moment. What you really want to do here is knock the borrower off their “rate” short-sightedness. Say something like, “Well, as you know, the interest rates change every day. With purchase loans, time is critical. What we can do is get the process started, so that you don’t lose the house, and when the interest rates get to a point you feel comfortable with, we can lock it in for you. We will be working hand-in-hand through the entire process. Now, how do you spell your last name?”.

2. Explain the difference between a pre-qualification and a commitment letter. Borrowers think just because they have been pre-qualified somewhere, that it guarantees them the loan. This isn’t the case. As you know, the underwriter has the final say. If the property does not appraise for the correct value, the borrowers’ situation changes, or the seller pulls out, the deal is dead. These are things entirely out of your control. What I tell borrowers, is that we are going to go one step further than a simple pre-qual letter. We want to give them an advantage with their loan, and get them a full commitment letter from a lender as soon as possible. This lessons the chance of them getting their expectations set too high and not getting the loan in the end.

3. Phone the real estate agents early on and explain you are in control of the process. Call them BEFORE they call you. You want to show that YOU are in control-NOT them. Doing this, puts you at a higher level and they will respect you for it. Believe me.

4. Set expectations with the borrower upfront. Explain the entire loan process from start to end. First-time homebuyers just simply don’t know. Emphasize to them, if they have any questions, to call you
1ff8
first-NOT the realtor.

5. Make it known that you are the point of contact for all parties involved in the transaction. This includes the seller and buyer agent, appraiser, lawyer, title companies, etc. Usually, the realtor thinks they are in control for the whole process, but remember the sale is mostly out of their hands after the purchase and sales contract is signed. Then it is entirely up to you-the loan officer-to succeed! By being the “driver” in the process, you can minimize any confusion or crossed signals that may arise.

6. If you get a sales call from a borrower looking to purchase a home, ask if they have already been pre-qualified elsewhere. Most of the time they have been and are simply shopping around for the lowest rate. (In other words, go back to rule number one above… don’t show your hand too early). If the borrower shops behind the other loan officer, they will certainly do it to you too.

7. Explain to the borrower whether you are acting as a direct lender or broker. Each has pluses and minuses. Explain what you are and the role you play. Sell yourself. For example, you can say “As a lender, we have direct control of the process, we make the final decision and can tell you upfront whether you qualify.” or “As a broker, if you get denied by a lender, we can easily shop you to another lender, saving you time and effort. This will help you ensure you get the house you want and not jeopardize the process”. Sell your advantages…don’t mention your weaknesses.

8. Factor in all payments for the borrower, including the full principal, interest, taxes and insurance and be certain that the borrower is well aware of these entire costs upfront. If they can’t afford the house, you want to know as soon as possible. Or you’ll be left with nothing!!! I always say, it’s best early on to kill ‘em or keep ‘em. Don’t let timewasters run away with your income.

9. Watch critical dates, especially rate lock expirations and underwriting turn-times. Be well aware of the “commitment letter” date as stated in the purchase and sales contract on the property. Oftentimes, borrowers wait until far too late in the process before deciding to move ahead and these contract deadlines can be impossible to meet. Get an extension on this ASAP with the seller’s agent on the property.

10. Finesse your way through the process. Don’t lie. Only tell each individual party involved in the process what they need to know. Don’t share too much information…it creates confusion. And don’t tell someone something unless you are absolutely certain. It always comes back to bite you in the rear!

11. Stop the shopping. Make the borrower understand that once they decide to move ahead with the process, they risk losing the home, if they decide to leave you. Another broker/lender will be unable to meet the tight deadlines in the contract. They have to make a decision and stick to it.

12. Stop the shopping-part two. If the borrower is qualifying for a home based on a special program that your company is offering, tell them the criteria upfront. Not every loan officer has what you can offer. In other words, you have a specialized program and are making an “exception” just for them. Not all rates are created equal. The other “competitors” for the loan may not have all the correct information upfront, to be able to properly quote them an accurate interest rate. Let me emphasize that again-an ACCURATE INTEREST RATE. Educate the borrower on this, show them you’ve done your homework, and are quoting accurately. Ask qualifying questions that others don’t.

By keeping these tips in mind, it should make your next purchase loan go a lot smoother.

If you are looking for a firm step-by-step process to help you get your purchase loans to the table faster, please…please…please…take a minute to read about my Sink or Swim Loan Closing System at http://www.loanclosingsystem.com

And, as always, best of luck in your business. This is STILL a wonderful industry to be in! Stop being discouraged and go get ‘em!!! I know it’s tougher out there, but you can do it!

Rob Lawrence is ranked one of top national trainers in the mortgage industry. He is the currently the CEO of Battlecall.com, coaching, tools and resources to turn mortgage professionals into mortgage warriors. Visit http://www.battlecall.com for his free “Sink Or Swim” weekly newsletter, mortgage training, marketing advice and more! Jumpstart your career in the mortgage business, starting today.

Article Source: http://EzineArticles.com/?expert=Robert_V_Lawrence

Author: Robert V Lawrence

2. Calculate twenty percent to determine if you have enough cash. If you put twenty percent down chances are you will get a better interest rate. If twenty percent is not possible I would advise lowering your purchase amount until you do have enough to put twenty percent down, rather than a larger mortgage which is a liability and could blow your household budget right out of the water.

3. Decide if you will be in the home long enough to warrant a fixed rate mortgage. If you believe that you will only be there three to five years you might consider an adjustable rate mortgage simply because you will pay less interest but if you think you will be there longer than that, a fixed rate mortgage may be the safest way to go.

4. Check on the cost of homeowners Insurance to be sure it is affordable in the location you are looking to buy. Divide the annual figure by twelve for a monthly amount.

5. Have your Realtor estimate your property taxes for you. Divide this figure by twelve for a monthly cost in taxes.

6. Check your credit report. You really need to have a score in the 700’s for your credit to be considered excellent. If it is not see seven below.

7. Correct any issues. If you have incorrect information on your report you need to correct it. Also if your score is not high enough check to see if you can tell what is bringing it down. If there is an explanation, put it in writing and ask the credit bureau to include it in your report.

8. Get a pre approval letter to make sure that you are in the right ballpark. Receiving an approval or pre approval letter from your lender will give you the confidence to go out and select a home. If your lender will not issue one then they may give you an explanation of the issues, which you can possibly correct.

9. Have your Realtor calculate the standard purchasers closing cost for the area of the country that you live in. These costs do vary depending on where you live. If you do not have these additional funds you could possibly have the seller pay a portion of them, by reflecting it in the sales contract that way.

10. Have your Realtor calculate what your mortgage payment will be based on the current interest rate and the amount of the mortgage as well as the number of years you want it amortized. This monthly amount is referred to as your PI payment.

11. Add the amount figured in ten above to your taxes and Insurance which are listed in four and five above. This figure will represent your total monthly payment also referred to as PITI.

12. Calculate what percentage your payment is of your total monthly income. This is referred to as your debt to income ratio.

13. Add up the cost of down payment and closing cost, One year of homeowners Insurance, three months of property taxes plus two months of your PITI payment to determine if you will be able to show enough funds in the bank to close on this transaction.

Getting a mortgage today in the current economic conditions may not be an easy task if you do not have the twenty percent down payment and squeaky clean credit. The banks and mortgage companies are very gun shy due to the amount of foreclosures sitting on the market as of right now. Most of these foreclosures are caused by people not putting enough money down, interest rate increases and people treating their home equity line like an ATM. The secret to success in acquiring a mortgage is not having too many liabilities and having some cash assets available to you.

If you are interested in increasing your assets and income by starting an online business please visit my website. This is a practical application that will place the odds in your favor to accomplish your goals. This opportunity includes a proven, powerful, professional turn key marketing system. It is not about cold calling, lead chasing or inventory stocking. It does not involve any lotions or potions or the newest fad diet. Our business involves debt reduction and wealth building. Our clients experience a life changing process that can empower them to have financial security and to help others to achieve the same. Please visit Jay and I on my website, http://winatbiz.com to learn more.

Article Source: http://EzineArticles.com/?expert=Suzanne_Manziek

Author: Suzanne Manziek

Prepare to Close

Preparation is the key to closing easily and quickly on a commercial property loan. Preparing for your loan can make the difference between a loan that goes smoothly versus one that goes on and on, with the commercial mortgage lender repeatedly asking for more documents and information.

Do all you can to prepare before you apply. If there are lose ends to tie in your financial situation such as hindrances on your credit report, unpaid bills, etc., take care of these before you turn in a loan application. These can not only prolong your loan process, but may hinder you from getting the loan altogether. You can obtain a copy of your credit report through the three main credit bureaus – Equifax, TransUnion and Experian. View your credit report to see if there are unpaid items, judgments, etc. that are affecting your credit score. If there are items you cannot clear from your credit report in a timely manner, then write a letter of explanation to your lender about these items and include the letter with your loan application.

Be sure the most recent two years of tax returns are complete for both business and personal taxes. If there’s an extension on your taxes for whatever reason, have a copy of your extension readily available along with copies of your financial statements. Tax return documents should be the originals with your signature – not copies. Prepare your year-to-date financial statements for both personal and business, and obtain your three most recent bank statements from all banks you use – personal and business accounts – with your commercial mortgage loan application.

Other Considerations for Closing Your Loan

The real estate sales contract for acquiring commercial real estate must be valid at the time of your applying for a loan. An extension will be needed up front if your contract will expire before the closing of your loan. If you need a commercial mortgage loan for an investment property, all tenant leases should be valid, with lease terms matching the rent roll. If your business is a corporation, make sure it is in the status of “active” before applying for a commercial mortgage loan. You should have an active occupational license, active business license, etc.

Be completely honest about your loan needs, credit history and financial information. Also, be realistic about the value of the property. You don’t want to underestimate its value, but you also don’t want to overestimate. An appraisal that falls short of what you expected could result in a lot of disappointment, and wasted time and energy.

A great way to “get it all together” when applying for a commercial mortgage loan is to speak with your accountant. Your accountant can help you obtain all the financial documentation needed to present with your loan application. You’d be surprised how easy it is to obtain clear, accurate documents from your accountant, without having to scramble at the last minute for paperwork at your home or office.

Using an online commercial mortgage broker can be advantageous because you can apply online and use fax and e-mail to exchange information. This works great if you’re on a tight schedule and are unable to run back and forth to a physical location. Commercial mortgage lenders and brokers can help you apply and close the loan easily through step-by-step guidance.

Many online mortgage lenders offer a variety of services to fit your business needs, such as conventional commercial mortgage loans, hard money commercial mortgages, equity financing and joint ventures, asset management, debt trading, and more. If you’re ready to get started with your commercial mortgage loan, find an online broker today to jump start your loan proceedings!

Chris Robertson is an author of Majon International, one of the worlds MOST popular internet marketing companies on the web. Learn more about Close a Commercial Mortgage Loan.

Article Source: http://EzineArticles.com/?expert=Chris_Robertson

Author: Chris Robertson

Prepare to Close

Preparation is the key to closing easily and quickly on a commercial property loan. Preparing for your loan can make the difference between a loan that goes smoothly versus one that goes on and on, with the commercial mortgage lender repeatedly asking for more documents and information.

Do all you can to prepare before you apply. If there are lose ends to tie in your financial situation such as hindrances on your credit report, unpaid bills, etc., take care of these before you turn in a loan application. These can not only prolong your loan process, but may hinder you from getting the loan altogether. You can obtain a copy of your credit report through the three main credit bureaus – Equifax, TransUnion and Experian. View your credit report to see if there are unpaid items, judgments, etc. that are affecting your credit score. If there are items you cannot clear from your credit report in a timely manner, then write a letter of explanation to your lender about these items and include the letter with your loan application.

Be sure the most recent two years of tax returns are complete for both business and personal taxes. If there’s an extension on your taxes for whatever reason, have a copy of your extension readily available along with copies of your financial statements. Tax return documents should be the originals with your signature – not copies. Prepare your year-to-date financial statements for both personal and business, and obtain your three most recent bank statements from all banks you use – personal and business accounts – with your commercial mortgage loan application.

Other Considerations for Closing Your Loan

The real estate sales contract for acquiring commercial real estate must be valid at the time of your applying for a loan. An extension will be needed up front if your contract will expire before the closing of your loan. If you need a commercial mortgage loan for an investment property, all tenant leases should be valid, with lease terms matching the rent roll. If your business is a corporation, make sure it is in the status of “active” before applying for a commercial mortgage loan. You should have an active occupational license, active business license, etc.

Be completely honest about your loan needs, credit history and financial information. Also, be realistic about the value of the property. You don’t want to underestimate its value, but you also don’t want to overestimate. An appraisal that falls short of what you expected could result in a lot of disappointment, and wasted time and energy.

A great way to “get it all together” when applying for a commercial mortgage loan is to speak with your accountant. Your accountant can help you obtain all the financial documentation needed to present with your loan application. You’d be surprised how easy it is to obtain clear, accurate documents from your accountant, without having to scramble at the last minute for paperwork at your home or office.

Using an online commercial mortgage broker can be advantageous because you can apply online and use fax and e-mail to exchange information. This works great if you’re on a tight schedule and are unable to run back and forth to a physical location. Commercial mortgage lenders and brokers can help you apply and close the loan easily through step-by-step guidance.

Many online mortgage lenders offer a variety of services to fit your business needs, such as conventional commercial mortgage loans, hard money commercial mortgages, equity financing and joint ventures, asset management, debt trading, and more. If you’re ready to get started with your commercial mortgage loan, find an online broker today to jump start your loan proceedings!

Chris Robertson is an author of Majon International, one of the worlds MOST popular internet marketing companies on the web. Learn more about Close a Commercial Mortgage Loan.

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Author: Chris Robertson

Be careful when dealing with contingency clause. Any real estate officer or loan officer will tell you that there is no universal “standard” mortgage contingency clause. The seller would prefer that the sale close no matter how high the interest rate and how awful the terms the mortgage carries for the buyer. But the buyer wants to be sure that if he cannot get the mortgage he is counting on, such as one with 90% financing on a 30-year loan, the mortgage at no more than a specific rate, he can stop the transaction and recover the down payment. Both the buyer and the seller need to get some security about the deal to happen. The seller may be too concerned that the buyer is leaving the transaction too uncertain. Therefore these provisions are often negotiated.

General contingency clauses are very often to a contract. You can find appraisal clause stipulating that the sale is conditional to a certain amount of the value of the house. House inspection clause stating contingencies that deal with the presence of insect and other toxic substances or with the tests to verify that a septic system or well is functioning properly. You will find thousands of contingencies clause. Everything comes down to your ability to bargain and deal with the seller. But the hardest to bargain is the mortgage contingency clause on the ground that it affects directly your financial commitment.

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Here are some of the common sections of the typical sales contract:

LOAN CONTINGENCIES

A “contingency” is an item that the sale will depend upon to go forward or not go through at all. There are a number of contingency clauses that are standard or may be inserted into any real estate sales contract:

1. Financing – the period of time the seller is allowing you to find a loan for the purchase, usually 30 to 45 days. The earnest money deposit you gave at time of signing the sales contract will be forfeited if you do not close by a certain day. To prevent that, get pre-approved prior to beginning your house-hunt. You will then know you can get a loan for a certain amount. And to the seller you appear to be a serious buyer, not a “tire-kicker” and your negotiating position is strengthened considerably.
2. Loan contract period – This is the overall period of time in which all necessary “due diligence” activities must be done, such as having a home inspector and termite inspector examine the property, getting approved for the loan, having the property appraised, surveyed if necessary, flood certification issued, etc. Necessary tasks differ from one state to another. Your mortgage broker, lender or Realtor is knowledgeable about what will need to be done. Any problems with any aspect of these tasks can and often is written into the contract as an escape clause, for instance, if the home does not appraise for the estimated value, the sales contract does not have to be closed upon and the buyer can get their deposit returned.
3. As to a home inspection contingency, this is a must! There could be roof problems, foundation problems, electrical or plumbing code violations or needed repairs which could cost you thousands of dollars later. Find out about the problems now, and if they are serious, sit down with the seller and re-negotiate the sales price to take these problems into account. Ditto for termite inspection, if there is a termite problem, who will pay for the necessary extermination work? Has the infestation damaged the structure to point of needing to replace wood frames?
4. Seller move-out date: sometimes the contract will permit the seller to remain in the home and pay the new buyer rent for a few weeks, while they finalize their own new home purchase or other personal details of moving out. Such situations should be agreed to in writing and should not be permitted for longer than 30 days, or the lender may see this purchase as not an owner-occupied but non-owner-occupied (NOO) deal, and that kind of loan carries a higher interest rate.
5. Seller concessions – in today’s market, selling a home can be difficult, and many sellers now will agree to pay some or even all of the closing costs and/or points at closing (called “seller buy-down”) in order to get the deal done. There are lender limitation as to how much a seller can contribute toward the sale, typically no more than 6% of the sales price. Government loan programs such as VA and FHA have their own rules about this as well.

As always, consult with an experienced loan consultant when shopping for a home, and consider asking them to refer you to a good Realtor to act as your agent. They both can be an invaluable resource as you house hunt And go through the home buying process!

James Hussher is a Certified Mortgage Planner and licensed in all 50 states. Please visit James at http://ezmortgages123.com for all of your residential and commercial mortgage needs. Apply online, check current offered rates and loan programs and more! Many free articles and educational resources may be accessed at http://swifthussherrealestate.com which James also runs!

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Author: James Hussher