Getting Started with your Mortgage, Co-op Bank, getting a mortgage.#Getting #a #mortgage


Mortgages

Your mortgage

See our mortgages and find out how much you could borrow.

What you could borrow

Use our quick calculator to find out what we may be able to lend you.

What it’ll cost each month

Find out what you could be paying each month with one of our mortgages.

  • New Co-operative Bank mortgage customers

First time buyers

Find out how much you may be able to borrow and use our guides to help you take your first step on the property ladder.

Moving home

Finding a mortgage should be simple – even if finding the right property might not be.

Remortgaging

If your mortgage is with another lender and you’re considering a better deal, take a look at our range of mortgages to see if we could save you money.

Moving home

Buying a new home? See what rates we could offer you.

Getting a better deal

See your options for getting a better rate, and saving money.

Borrow more

Do you need to borrow extra money? Here’s what you’ll need to do.

Get a mortgage that makes a difference

For every new customer mortgage completed, we give ВЈ25 to Centrepoint – a youth homelessness charity, and our charity partner. Learn more about the work we do with Centrepoint.

Read more about the terms of the donation

New mortgage customer applications received during the 12 month period commencing 2nd May 2017 will be eligible for the donation, on completion of the mortgage. New mortgages taken out by existing mortgage customers or transactions relating to their existing mortgage (e.g. a product switch, further advance, porting of an existing mortgage or change of borrower) are not eligible for the Centrepoint charity donation at this time. The ВЈ25 will be paid following completion of the mortgage and the Bank will make a payment to Centrepoint quarterly, for eligible completions during the previous quarter.

The £25 donation will be made for each new-to-Bank mortgage sold through direct and intermediary channels i.e. it applies to the Bank’s Britannia and Platform branded mortgages. Britannia and Platform are trading names of The Co-operative Bank p.l.c. The Bank reserves the right to change or withdraw the donation arrangement at any time.

Centrepoint is a registered charity in England and Wales, No. 292411

Getting a mortgage

Questions about your mortgage?

Get advice from our friendly mortgage advisers.

Getting a mortgage

New and existing mortgage customers

Your home may be repossessed if you do not keep up with repayments on your mortgage

Appointment and application help

Manage your appointment with a mortgage adviser and check the progress of your application.

To book, change or cancel an appointment with a mortgage adviser

To discuss your existing mortgage

To check the progress of your mortgage application

Information or documents you’ll need to apply

When you apply for a mortgage, we’ll need some things from you, such as:

  • Details of your names and addresses for the last 3 years
  • Details of your current income
  • Details about the property

Learn more about what you need to apply

Our range of mortgages

  • Unfortunately we’re unable to offer the following types of mortgages:
    • Buy to Let
    • Help to Buy
    • Mortgages for debt consolidation
    • Interest only mortgages

Important information if your current mortgage is on interest only

Repaying your mortgage at the end of your term

Is all or part of your Co-operative Bank or Britannia mortgage on an interest only basis? If so, this means your monthly payment pays only the interest on your loan. It is important that you plan how you will repay the outstanding balance on your mortgage at the end of the mortgage term.

You should check regularly that your repayment plan remains on track. If your plan does not provide sufficient funds to repay your mortgage at the end of the term, you should make alternative arrangements now and it may be necessary to sell your property.

Worried about repaying your final balance?

Don’t delay – the sooner you take action the better. There are a number of ways to close the gap between your outstanding mortgage balance and the value of your current repayment plan e.g. an investment or savings scheme (such as ISA, endowment policy or pension lump sum) which is used to repay an interest only mortgage at the end of the term. In addition, the following options are available.

Switch

You could convert some or all of the outstanding balance of your loan to a capital interest repayment mortgage over a term suitable and affordable to you. We will not charge you for switching from an interest only mortgage to a capital interest repayment mortgage. This option will ensure that your mortgage will be repaid at the end of the term. If you wish to discuss this matter further please contact us on 08000 288 288.

Overpay

Overpayments are when you pay an extra amount into your mortgage, with the aim of reducing your interest in the long run or reducing your term time.

If you have a fixed rate mortgage, you can overpay by up to 10% of your outstanding mortgage balance each year. If you overpay more than 10% each year during your fixed term, however, you will incur an early repayment charge. Once your fixed term ends, you won’t need to pay an early repayment charge.

Customers who have a tracker mortgage can make unlimited overpayments without incurring an early repayment charge.

Full details of early repayment charges are provided with product information available on our rates pages.

Lifetime mortgage

One option could be to consider taking out a lifetime mortgage to pay off your outstanding mortgage balance with us. A lifetime mortgage is a form of equity release secured against your home which is repaid on death or on moving into long term care. The Co-operative Bank doesn’t offer this type of mortgage, but we have partnered with Legal General to offer their Lifetime Mortgage product to our customers. A lifetime mortgage is not suitable for everyone and acceptance is subject to eligibility criteria.

More information on Legal General Lifetime Mortgages can be found here, or please contact us for more information.

Independent Financial Advice

If you have concerns regarding your existing payment loan and require on suitable plans we strongly recommend that you seek advice from an Independent Financial Adviser.

  • Please remember it is your responsibility to ensure that you have enough funds to repay your mortgage at the end of the term.

Getting Rid of PMI (Private Mortgage Insurance), getting a mortgage.#Getting #a #mortgage


Getting Rid of PMI (Private Mortgage Insurance)

Private mortgage insurance (PMI) protects the lender in the event that you default on your mortgage payments and your house isn’t worth enough to entirely repay the lender through a foreclosure sale. Unfortunately, you foot the bill for the premiums, and lenders almost always require PMI for loans where the down payment is less than 20%. They add the cost to your mortgage payment each month, in an amount based on how much you’ve borrowed. The good news is that PMI can usually be canceled after your home’s value has risen enough to give you 20% to 25% equity in your house.

Some baseline rules about cancellation were established by the federal Homeowners’ Protection Act, which applies to people who bought their homes after July 29, 1999. The Act says that you can ask that your PMI be canceled when you’ve paid down your mortgage to 80% of the loan, if you have a good record of payment and compliance with the terms of your mortgage, you make a written request, and you show that the value of the property hasn’t gone down, nor have you encumbered it with liens (such as a second mortgage). If you meet all these conditions, the lender must grant your request to cancel the PMI.

What’s more, when you’ve paid down your mortgage to 78% of the original loan, the law says that the lender must automatically cancel your PMI. But don’t count on the lender to notice — keep track of the date yourself. Unfortunately, it may take years to get to this point. Thanks to the wonders of amortization, your schedule of payments is front-loaded so that you’re mostly paying off the interest at first.

When You Can Get Your PMI Canceled

Even if you haven’t paid down your mortgage to one of these legal limits, you can start trying to get your PMI canceled as soon as you suspect that your equity in your home or your home’s value has gone up significantly, perhaps because your home’s value has risen along with other local homes or because you’ve remodeled. Such value-based rises in equity are harder to prove to your lender, and some lenders require you to wait a minimum time (around two years) before they will approve cancellation of PMI on this basis.

How to Get Your PMI Canceled

The exact procedures for getting your lender to cancel your PMI are largely in the hands of your lender — or, to be more accurate, in the hands of the company from whom your lender buys the insurance (though you’ll never deal with that company directly). You’ll most likely need to:

  • Contact your lender to find out the appropriate PMI cancellation procedures. It’s best to write a letter to your mortgage lender, formally requesting guidelines.
  • Get your home appraised by a professional to find out its current market value. Your lender may require an appraisal even if you’re asking for a cancellation based on your many payments, since the lender needs reassurance that the home hasn’t declined in value. Although you’ll normally pay the appraiser’s bill, it’s best to use an appraiser whom your lender recommends and whose findings the lender will therefore respect. (Note: Your tax assessment may show an entirely different value from the appraiser’s — don’t be concerned, tax assessments often lag behind, and the tax assessor won’t see the appraiser’s report, thank goodness.)
  • Calculate your “loan to value” (LTV) ratio using the results of the appraisal. This is a simple calculation — just divide your loan amount by your home’s value, to get a figure that should be in decimal points. If, for example, your loan is $200,000 and your home is appraised at $250,000, your LTV ratio is 0.8, or 80%.
  • Compare your“loan to value” (LTV) ratio to that required by the lender. Most lenders require that your LTV ratio be 80% or lower before they will cancel your PMI. Note: Some lenders express the percentage in reverse, requiring at least 20% equity in the property, for example. When your LTV ratio reaches 78% based on the original value of your home, remember that the Homeowners’ Protection Act may require your lender to cancel your PMI without your asking. If the loan to value ratio is at the percentage required by your lender, follow the lender’s stated procedures for requesting a PMI cancellation. Expect to have to write another letter with your request, stating your home’s current value and your remaining debt amount, and including a copy of the appraisal report.

If Your Lender Refuses to Cancel the PMI

Most lenders recognize that there’s little point in requiring PMI after it’s clear that you’re making your mortgage payments on time and that you have enough equity in your property to cover the loan if the lender has to foreclose. Nevertheless, many home buyers find their lenders to be frustratingly slow to wake up and cancel the coverage. The fact that they’ll have to spend time reviewing your file for no immediate gain and that the insurance company may also drag its feet are probably contributing factors.

If your lender refuses, or is slow to act on your PMI cancellation request, write polite but firm letters requesting action. Such letters are important not only to prod the lender into motion, but to serve as evidence if you’re later forced to take the lender to court.

You can also submit a complaint online to the Consumer Finance Protection Bureau (CFPB). This U.S. government agency, established by the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (Dodd-Frank Act), promises to forward your complaint to the company and work to get a response.

If nothing else works, and court action becomes your best option, small claims court can be a good avenue, and you won’t need a lawyer to accompany you. For more information, including how to write polite but forceful demand letters, see Everybody’s Guide to Small Claims Court, by Ralph Warner (Nolo). (Or, for online information on going to small claims court, also see Nolo’s Small Claims Court FAQ.)

To learn more about PMI and other aspects of buying a home, see Nolo’s Essential Guide to Buying Your First Home, by Ilona Bray, Alayna Schroeder, and Marcia Stewart (Nolo).


Fannie Mae HomePath Mortgage: Getting Approved Mortgage Rates #mortgage #rates #comparison


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Fannie Mae HomePath Mortgage: Low Downpayment, No Appraisal Needed, And No PMI

Fannie Mae Homepath

The Fannie Mae Homepath loan is a defunct mortgage program which reduced the cost of purchasing a foreclosed property for either personal use, or to “flip” for profit. Homepath loans required no private mortgage insurance (PMI). Today, Fannie Mae still operates a Homepath website, on which it lists foreclosed properties for sale.

Editor’s Note: The HomePath program was discontinued in October 2014. This post will not be deleted for archival purposes. For other low-downpayment mortgage programs, click http://themortgagereports.com/11306/buy-a-home-with-a-low-downpayment-or-no-downpayment-at-all .

Buying A Home Using HomePath

Since 2006, home buyers have flocked to foreclosed homes as an inexpensive way to purchase property.

Even today, foreclosures remain popular among all buyer types including first-time home buyers, move-up buyers, and real estate investors, as well.

To help match foreclosed homes with buyers who want them, then, Fannie Mae offers a special program called HomePath. HomePath is a brand name and refers to foreclosed homes sold by Fannie Mae directly.

Fannie Mae HomePath is available in all 50 states.

What Is The Fannie Mae HomePath Mortgage?

The Fannie Mae HomePath program first launched in early-2009 as a way to help Fannie Mae sell homes it had reclaimed via foreclosure.

The agency is not designed to “manage properties” so the HomePath program was created to unload the thousands of homes which Fannie Mae had repossessed.

The HomePath program lets buyers buy Fannie Mae-owned homes with simpler mortgage requirements than with a traditional loan, at current mortgage rates .

There are two distinct programs available via HomePath.

The first program is called the HomePath Mortgage. The Home Path Mortgage resembles a traditional home loan you might find from a bank.

The standard HomePath mortgage is meant for buyers who are purchasing the foreclosed property to be their primary residence; and for homes which are generally move-in ready.

The second HomePath program is called the HomePath Renovation Mortgage.

The HomePath Renovation Mortgage is aimed at buyers buying a home in need of heavier work or repair; and, real estate investors doing fix-and-flip, for example.

Via HomePath Renovation, a foreclosure buyer can purchase a home and simultaneously borrow the lesser of either 35% of the home’s value-after-repairs, or $35,000. The purchase and renovation loans close simultaneously, which reduces borrower closing costs.

The Benefits Of A HomePath Mortgage

For buyers of foreclosed homes, the Fannie Mae HomePath loan boasts several distinct advantages over other financing types such as the FHA loan and VA loan .

As one example, via HomePath, lenders require just 5% down on a purchase for buyers who are purchasing a home to use as a primary residence. For investors, the minimum downpayment is just 10 percent.

These downpayment requirements are in-line with Fannie Mae’s other, non-HomePath loan programs but with one major exception — via HomePath, private mortgage insurance (PMI) is not required.

There is no PMI ever on a Fannie Mae HomePath loan.

Other unique traits of the Home Path program include :

  • Home appraisals are not required
  • Less-than-perfect credit is allowed — even below 660
  • Buyers can accept up to 6% seller concessions to offset total closing costs

Furthermore, downpayments on a HomePath Mortgage can be gifted from a family member; or, made via a grant or loan from a non-profit organization, state or local government, or employer.

As an added bonus to buyers, Fannie Mae offers a “First Look” marketing program to buyers who plan to buy a foreclosed home to make it their primary residence.

Designed to promote homeownership and neighborhood stabilization, First Look makes properties available to primary home buyers 20 days prior to real estate investors.

First Look gives primary home buyers an opportunity to buy HomePath-eligible homes without the pressure of bidding against bona fide investors.

Am I Eligible for a HomePath Mortgage?

As with all mortgage loans, the HomePath Mortgage requires borrowers to meet qualification standards known as “mortgage guidelines”.

For example, in order to qualify for the HomePath Mortgage, your lender will verify your income via W-2s and tax returns; your assets via bank statements; and, your credit scores via an official credit report.

Subject properties must also be marked as Fannie Mae HomePath-eligible. Your real estate agent can help you to locate participating properties.

Condominium can be non-warrantable via the HomePath Mortgage program but lenders will require the project to carry minimum insurance to protect against loss.

Interest-only mortgages are not allowed via HomePath and not all lenders will offer the HomePath Renovation Mortgage option.

If at first your loan is declined, consider re-applying with a different mortgage lender.

What Are Today’s Mortgage Rates?

For today’s buyers of foreclosed properties, consider the Fannie Mae HomePath program. Mortgage rates are low, program terms are generous, and there are thousands of eligible homes nationwide.

Get today’s live mortgage rates now. Your social security number is not required to get started, and all quotes come with access to your live mortgage credit scores.

The information contained on The Mortgage Reports website is for informational purposes only and is not an advertisement for products offered by Full Beaker. The views and opinions expressed herein are those of the author and do not reflect the policy or position of Full Beaker, its officers, parent, or affiliates.


A Guide to Getting Your First Mortgage #reverse #mortgage


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A Guide to Getting Your First Mortgage

Before committing to a mortgage, make sure you meet with several lenders or brokers and weigh your loan options. (iStockPhoto)

To buy your first home. you likely will need a mortgage. In fact, before you even start looking at houses, you should look into your mortgage prospects.

If you have good credit, a healthy income and money in the bank, you’ll be able to secure mortgage preapproval quickly and proceed straight to the homebuying process. But if you have less-than-stellar credit, are self-employed or have little cash to bring to the table, you’ll want to start the process way before you look at houses – maybe more than a year before.

“You have to get a copy of your credit report,” says Don Frommeyer, chief executive officer of the National Association of Mortgage Professionals and a mortgage broker in Indianapolis. “You have to know what’s in there.”

The free credit report you can get annually, while it helps you identify problems, won’t show you the same credit score your mortgage officer will see. “The score is invariably higher than what you get when someone in the mortgage company runs it,” says Casey Fleming, author of “The Loan Guide: How to Get the Best Possible Mortgage” and a mortgage broker in the San Francisco Bay Area.

That makes meeting with a mortgage officer (or two or three) at the start of the process crucial. In competitive markets, agents won’t even show homes to buyers without mortgage preapproval.

Be prepared to produce documents, and lots of them, starting with several years of tax returns and many months of bank statements. Lenders will want proof of your income, and they will want to know about all your debts. They also will want to know the source of any big deposits. If your parents give you money for a down payment, they will need to write a letter documenting that.

The other thing you’ll need, besides documents, is money – and lots of it. You’ll need money for your down payment, closing costs and more than a year’s worth of taxes and insurance payments, for a start. Lenders will also want to see that you have adequate reserves in case you lose your job or the furnace breaks down.

“What happens if you have to buy a new furnace?” Frommeyer says. “There are always added costs when you buy a house.”

Financial experts disagree over how much money you need for a down payment. While 20 percent is often considered a rule of thumb. you can buy a house with as little as 3.5 percent down with a Federal Housing Administration mortgage, 5 percent with a conventional mortgage or nothing down with a VA loan available to military veterans.

But the less you pay down, the bigger your monthly payment will be. Plus, if our down payment is less than 20 percent of the purchase price, you’ll have to pay private mortgage insurance or the FHA equivalent, known as mortgage insurance premium.

The PMI can add about $92 a month, for example, to $475 principal and interest payments on a $96,500 loan to buy a $100,000 house. With 20 percent down, the principal and interest payment on that house is only $373 a month, at 4.25 percent. FHA mortgages also require an upfront MIP payment equal to 1.75 percent of the purchase price.

You may also get a lower interest rate with a higher down payment. “The less you put down, the more expensive the mortgage insurance is and the higher the interest rate,” Fleming says.

Here are 12 things to know before getting your first mortgage:

Meet with a mortgage officer before looking at homes. This will help you determine whether you have credit problems that need to be solved first. It will also let you know how much house you can afford before you begin your search.

Pay off as much debt as you can first. This will help keep what’s known as your debt-to-income ratio down. Lenders look at your income and all your debts – student loans, car payments, credit card debt – to determine how much you can afford to borrow. If your total debt, with the new house payment, would be more than 43 percent of your income, you’re unlikely to get the loan. Some lenders may want a lower ratio.

Develop good credit habits way before you plan to buy. Missing payments on student loans or habitually paying your bills late will lower your credit score and make borrowing for a home impossible or more expensive. Once a bill goes into collections, it can take months or years to recover from the damage.

Consider consolidating or refinancing student loans. If you can’t pay off student loans before you buy a home, investigate whether you can lower your payments. You’ll have to decide whether it makes sense to stretch student loan payments over more years to buy a home sooner.

Show a solid work history. If you’ve just finished graduate school in engineering and gotten your first engineering job, a lender may not care that you don’t have two years of work history. But if you’ve just left graduate school and gone to work at Starbucks, you’ll have a hard time getting a mortgage until you’ve had that job for two years. That goes for part-time jobs, too. However, taking a part-time job on the side and using the money to pay down debt or add to your cash reserves may be helpful even if the lender isn’t willing to consider that income.

Be prepared to document everything. You’ll need tax returns, bank statements, brokerage statements and documents to verify the source of any money you plan to use. The lender will also verify your employment and income, once at the beginning of the process and again a day or two before closing.

Don’t buy anything on credit or apply for any credit while your loan is pending. You may be tempted to buy new furniture for your new home and put it on a credit card. Or, perhaps you realize you’ll have enough cash left for a down payment on a new car. “Once we start this process, don’t spend a dime that you don’t have, don’t put anything on credit cards, don’t apply for any credit,” Fleming warns. Otherwise, you may jeopardize the deal.

Talk to several lenders or mortgage brokers. Not all lenders offer the same loans, so it makes sense to shop around. Be careful that you’re comparing apples to apples. All lenders let you choose whether you’d like to pay more upfront, in the form of “points,” to get a lower interest rate. If a lender offers you a “no closing costs” loan, find out where you’re being charged extra to compensate for that.

Shop for closing agents. The actual closing costs, such as document preparation, legal fees and title insurance, vary considerably. In a state where those costs are high, you can save several thousand dollars on the transaction by choosing a different closing agent. Ask both your real estate agent and mortgage officer for recommendations, as well as friends and family.

Make sure you have enough cash to cover all your costs . In addition to closing costs charged by the lender and the closing agent, you’ll need to pay for a home inspection, an appraisal, a survey and city, county or state transfer taxes. Not only that, most lenders ask for at least a year’s worth of homeowners insurance and property taxes upfront.

If you’re self-employed, prepare to jump through more hoops. People who own small businesses often can’t qualify for a mortgage until they’ve been in business two years, though exceptions are likely for professionals, such as doctors, who leave a staff position and become self-employed in the same field. Most self-employed professionals write off enough expenses on their taxes to make their adjusted gross income much lower than their actual income. The lender will consider that lower number your income.

The house may also have to qualify. If you’re getting an FHA mortgage, the house has to meet certain standards. Lenders may also set standards for home conditions for conventional mortgages. Plus, the house has to be insurable.


Getting a Mortgage if You’re Self-Employed – Credit Academy #usda #mortgage #rates


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Getting a Mortgage if You’re Self-Employed

Post-credit crunch, it has become trickier for self-employed workers, freelancers and contractors to get a mortgage – but it’s not impossible.

If you work for yourself, and are looking to remortgage or buy a new home, find out how you can get the right mortgage for your circumstances with this guide.

The past few years have seen it get more and more difficult for first-time buyers and existing homeowners to get a mortgage, but one group of home-buyers has suffered more than most: the self-employed.

Before the credit crunch in 2007, self-employed workers could apply for a “self-certification” or “self-cert” mortgage. With these loans, borrowers didn’t have to prove their income using bank statements or payslips; instead they simply told the mortgage lender what they earned. Applications were often “fast-tracked” through with no checks being made.

Although self-cert mortgages were aimed at freelancers, contractors, business owners and people with several strands of income, the loans were sold more widely. Abuse of the system led to self-cert mortgages being dubbed “liar loans” because people where exaggerating their income in order to secure a bigger mortgage.

As a result fast-track and self-cert mortgages were banned, making it now much more difficult but not impossible to get a mortgage if you’re self-employed.

Myth Busting

There s no such thing as a self-employed mortgage . You are going to get a normal mortgage, you just have to jump through more hoops to prove your income than someone who is on a company payroll.

What You Need to Get a Mortgage

The key change for self-employed workers is the need to prove your income to any mortgage lender you apply to. Most will want to see at least two years’ accounts or tax returns. The more accounts you can show the better.You ll need

  • Two years accounts
  • An accountant
  • A track record of regular work
  • A healthy deposit
  • A good credit history

When lenders determine how much to lend to you, they generally base their calculations on your average profit in the past few years. Lenders prefer borrowers to employ an accountant to prepare self-employed workers’ accounts. Some lenders state the accountant must be certified or chartered – so bear this in mind when choosing one. You can find a local chartered accountant here. Make sure your accounts are up-to-date and in order before you apply lenders aren t impressed if they are presented with out-of-date figures.

If you don’t have two years’ accounts, don’t panic. Some mortgage lenders will still consider your application, especially if you can prove a track record of regular work, you have left employment to work as a contractor in the same industry, or you have evidence of work lined up for the future.

In other cases, if you already have a mortgage and want to remortgage to save money or move home, your existing lender may be able to help. They have a history with you, and know you meet your repayments so are far more likely to help than a lender who doesn t know you.

As with any other borrower, it will massively increase your chances of being accepted for a mortgage if you have a decent deposit or chunk of equity in an existing property. Find out more about how a deposit can help, and how much you need, with our guide .

A squeaky clean credit record will also boost your chances of getting a mortgage. Find out more with our guide tounderstanding your credit rating and find out how to improve your credit rating. A lender won t just credit check you, they will also credit check your business by running a check on your business address. So make sure that credit report is in the best possible shape too, sort out any unpaid or late debts and check the report yourself to make sure there aren t any mistakes that could damage your chances of getting a mortgage.

How Your Business Set-up Affects Your Mortgage Chances

When you set up your own business you have a choice of three main business structures to choose from. Which one you pick will influence how lenders view your income.

Sole trader

As the name suggests, sole traders are one-man bands. Keeping records and accounts is fairly straightforward – and you get to keep all the profits.

It’s these profits a lender will look at when assessing your income. If you do your tax by self-assessment and get HMRC to calculate it for you, you may get a form called an SA302, which shows the total income received and total tax due. Your lender may want to see this alongside your accounts, so dig it out and have it ready.

Partnership

If you go into business with someone else, you might set up a partnership. When looking at your income, mortgage lenders will look at each partner’s share of the profit. So, make sure you have accounts that show exactly how much money you made so your potential mortgage lender can easily see your annual income.

Limited company

Setting up a limited company means you keep your business separate from your personal affairs. A limited company will have at least one director and, in some cases, a company secretary.

Directors normally pay themselves a basic salary plus dividend payments. Make sure the lender takes both these elements of your income into consideration when assessing mortgage affordability

Proving Your Income

In order to prove your income you will need to be able to provide your lender with at least two years of accounts. Get these put together by a chartered accountant so your lender can be confident they are accurate. But make sure you understand the figures and can talk the lender through them if asked. For example, if you have a dip in your income at a certain point, be able to explain what happened and why. If you can clearly explain fluctuations it is a lot more impressive than if you get flustered when questioned, and therefore increases your chances of getting a mortgage.

There are a couple of common problems you may come up against when proving your income. Firstly, in the past you, and your accountant, will probably have been keen to legally reduce taxable income in order to pay less tax. However, this could count against you when applying for a mortgage as suddenly you need to show the biggest income possible.

Get advice from your accountant and a mortgage broker before you apply

Secondly if you’re a director of a limited company, you might have profits that you choose to retain in the business, rather than take out as salary or dividends.

Some mortgage lenders consider retained profits when assessing an application, but some don t. In some situations this can mean company directors find it more difficult to get a mortgage than their employees. A mortgage broker will be able to help you find a lender that will take retained profits into account. You can find a mortgage broker here .

If you are looking to borrow more than £500,000 ask your broker to look at mortgages offered by private banks such as Coutts or C. Hoare Co. Private banks are more flexible about what they take into account when assessing income, for example they will include other assets and incomes.

It’s a good idea to take advice from both your accountant and a mortgage broker before you apply for a mortgage.

Finding a Mortgage

A mortgage broker is invaluable when you are self-employed. They ll know which lenders are willing to lend to self-employed, which take retained profits into account, if any lenders will accept less than two years of accounts and, most importantly, who will offer you the best rate.

If you don t want to use a broker you can compare mortgages and find the lowest rates with our mortgage tables .

The Dos and Don ts of Self-Employed Mortgages

  • Do. Keep up-to-date records and accounts.
  • Do. Hire a certified or chartered accountant to prepare your accounts and tax return.
  • Do. Speak to a mortgage broker about your options.
  • Do. Speak to your current lender if you’re self-employed and want to remortgage or move house.
  • Don’t. Minimise your income too much for tax purposes – it will affect your chances of getting a mortgage.
  • Don’t. Assume it’s impossible to get a mortgage if you’re self-employed – it’s not.

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Getting a Mortage after Filing Bankruptcy #refinance #my #mortgage


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Most people probably assume that obtaining a mortgage to purchase a home, refinance or to consolidate debt after a bankruptcy is out of the question. In fact, many people are able to obtain these mortgage services.

Mortgage After Bankruptcy

Most people probably assume that obtaining a mortgage to purchase a home, refinance or to consolidate debt after a bankruptcy is out of the question. In fact, many people are able to obtain these mortgage services, even 1 day after a bankruptcy discharge in some cases. Loan programs and lenders are available that require little or no time after the discharge of a bankruptcy. Here are a few tips to speed up the road to credit recovery and the mortgage services you desire. First, continue timely paying on items such as your home and cars that were not discharged in the bankruptcy. Having at least a couple credit items you are paying on- time will help. Second, limit the amount of other debts such as credit cards or bank loans. Too much debt will make it more difficult to qualify for a loan, particularly revolving credit accounts such as credit cards.

Here are a few tips to speed up the road to credit recovery and the mortgage services you desire. First, continue timely paying on items such as your home and cars that were not discharged in the bankruptcy. Having at least a couple credit items you are paying on- time will help. Second, limit the amount of other debts such as credit cards or bank loans. Too much debt will make it more difficult to qualify for a loan, particularly revolving credit accounts such as credit cards.

Your debt-to-income ratio is one part of the puzzle lenders will look at in determining your ability to repay a mortgage. Another important aspect is providing all necessary documents in a timely manner to your loan consultant. Items such as paystubs and tax returns are generally needed in order to establish your income and show the ability exists to repay the loan.

Information on your credit report needs to be checked for accuracy. Items that you feel are inaccurate need to be disputed in writing with the three major credit repositories. (Equifax, Experian and Trans Union). This may take persistence to ensure the items are removed appropriately. The removal of this inaccurate information will help establish a more favorable debt-to-income ratio and make the process of qualifying for a loan easier. Finally, if you are unable to qualify for a loan initially, do not despair. Sometimes this process requires a little patience. Follow the tips mentioned earlier and more options are usually available 6 months to a year after the bankruptcy discharge.

More Help on Getting a Mortage after Filing Bankruptcy

  • Credit Report – Credit reports are documents provided by major credit reporting companies (most notably Experian, Trans Union and Equifax) which contain personal information about individuals such as: how much money the individual has borrowed, how much debt is owed by the individual and the individual\’s bill payment history. – read more

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The two most common consumer bankruptcies are Chapter 7 and Chapter 13, our sponsoring lawyers handle these types exclusively so you can be sure you are getting accurate legal advice when you file bankruptcy. Our Bankruptcy attorneys will fight to protect your rights and your property, fight the aggressive and annoying creditors for you, and they can help you keep your home, vehicles and other property.

A lawyer will be committed to getting you debt relief and providing you with valuable information, services and advice to get you a better financial future. There are many convenient locations to make filing bankruptcy or learning about the alternatives we offer, even easier.

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If you have equity on your house, then it is possible to use that equity in order to pay off your Chapter 13 bankruptcy at a much faster pace.
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    ATTORNEY ADVERTISEMENT NOTICE: BankruptcyHome is a group advertisement and is not a lawyer referral service. Attorneys who appear on BankruptcyHome pay advertising fees to be included on the site. Using BankruptcyHome does not create an attorney-client relationship between yourself and an Attorney. BankruptcyHome is not a law firm and the information contained on this site is not legal advice. The attorneys listed do not in any way constitute a referral or endorsement by this website. To see the attorney in your area who is responsible for this advertisement please click here. If you live in Alabama, Florida, Missouri, New York or Wyoming, please click here for additional information

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    Getting a Mortage after Filing Bankruptcy #mortgage #marketing


    #mortgage after bankruptcy

    #

    Most people probably assume that obtaining a mortgage to purchase a home, refinance or to consolidate debt after a bankruptcy is out of the question. In fact, many people are able to obtain these mortgage services.

    Mortgage After Bankruptcy

    Most people probably assume that obtaining a mortgage to purchase a home, refinance or to consolidate debt after a bankruptcy is out of the question. In fact, many people are able to obtain these mortgage services, even 1 day after a bankruptcy discharge in some cases. Loan programs and lenders are available that require little or no time after the discharge of a bankruptcy. Here are a few tips to speed up the road to credit recovery and the mortgage services you desire. First, continue timely paying on items such as your home and cars that were not discharged in the bankruptcy. Having at least a couple credit items you are paying on- time will help. Second, limit the amount of other debts such as credit cards or bank loans. Too much debt will make it more difficult to qualify for a loan, particularly revolving credit accounts such as credit cards.

    Here are a few tips to speed up the road to credit recovery and the mortgage services you desire. First, continue timely paying on items such as your home and cars that were not discharged in the bankruptcy. Having at least a couple credit items you are paying on- time will help. Second, limit the amount of other debts such as credit cards or bank loans. Too much debt will make it more difficult to qualify for a loan, particularly revolving credit accounts such as credit cards.

    Your debt-to-income ratio is one part of the puzzle lenders will look at in determining your ability to repay a mortgage. Another important aspect is providing all necessary documents in a timely manner to your loan consultant. Items such as paystubs and tax returns are generally needed in order to establish your income and show the ability exists to repay the loan.

    Information on your credit report needs to be checked for accuracy. Items that you feel are inaccurate need to be disputed in writing with the three major credit repositories. (Equifax, Experian and Trans Union). This may take persistence to ensure the items are removed appropriately. The removal of this inaccurate information will help establish a more favorable debt-to-income ratio and make the process of qualifying for a loan easier. Finally, if you are unable to qualify for a loan initially, do not despair. Sometimes this process requires a little patience. Follow the tips mentioned earlier and more options are usually available 6 months to a year after the bankruptcy discharge.

    More Help on Getting a Mortage after Filing Bankruptcy

    • Credit Report – Credit reports are documents provided by major credit reporting companies (most notably Experian, Trans Union and Equifax) which contain personal information about individuals such as: how much money the individual has borrowed, how much debt is owed by the individual and the individual\’s bill payment history. – read more

    Find Other Articles

    Educate Yourself On More Topics

    Chapter 7 Articles

    Chapter 13 Articles

    Chapter 7 and Chapter 13 Bankruptcy Help

    The two most common consumer bankruptcies are Chapter 7 and Chapter 13, our sponsoring lawyers handle these types exclusively so you can be sure you are getting accurate legal advice when you file bankruptcy. Our Bankruptcy attorneys will fight to protect your rights and your property, fight the aggressive and annoying creditors for you, and they can help you keep your home, vehicles and other property.

    A lawyer will be committed to getting you debt relief and providing you with valuable information, services and advice to get you a better financial future. There are many convenient locations to make filing bankruptcy or learning about the alternatives we offer, even easier.

    Recent Bankruptcy Articles

    Recent Bankruptcy Articles

    Home Equity and Bankruptcy
    If you have equity on your house, then it is possible to use that equity in order to pay off your Chapter 13 bankruptcy at a much faster pace.
    – read more

  • Fair Credit Reporting Act
    The primary purpose of the Fair Credit Reporting Act is to ensure fairness and accuracy of credit reporting, and that the procedures followed are reasonable.
    – read more
  • Most Common Reasons for Bankruptcy
    A list of ten most common reasons people usually file for bankruptcy, including harassment from creditors and to end wage garnishments.
    – read more
  • Student Loans and Bankruptcy
    According to new changes, your student loan will only be discharged if the bankruptcy court is convinced that paying back the loan would bring about undue hardships for you or the people who are dependent on you.
    – read more

  • Copyright © 2015 LeadRival. All rights reserved

    ATTORNEY ADVERTISEMENT NOTICE: BankruptcyHome is a group advertisement and is not a lawyer referral service. Attorneys who appear on BankruptcyHome pay advertising fees to be included on the site. Using BankruptcyHome does not create an attorney-client relationship between yourself and an Attorney. BankruptcyHome is not a law firm and the information contained on this site is not legal advice. The attorneys listed do not in any way constitute a referral or endorsement by this website. To see the attorney in your area who is responsible for this advertisement please click here. If you live in Alabama, Florida, Missouri, New York or Wyoming, please click here for additional information

    Free, Online, Fast, No Obligation, and Confidential


    7 Steps To Getting A Business Loan #steps #to #getting #a #small #business #loan


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    7 Steps To Getting A Business Loan

    While it is not as easy as it once was before the Great Recession, all banks and other lenders still need to loan money to small business. The key is to know how to do it and get the best terms.

    Here is a simple 7 step process:

    Step 1: Start before the loan is needed.

    It is critical to build a relationship with the people at the lender before the business actually needs the loan. Let the key contacts get to know the company before asking for anything. Remember, people do business with who they know, like, and trust. Lenders work the same way.

    Step 2: Decide what the money is needed for.

    There are good and bad reasons for business loans. Good reasons include financing a piece of equipment, real estate, long term software development or large seasonal sales variances. Bad reasons include financing ongoing losses, office build outs, or acquiring non-essential business assets.

    Step 3: Decide how much money the company needs.

    Most small businesses don’t ask for a large enough loan. Underestimating the amount of money can lead to problems with a lack of working capital sooner than planned. Overestimating can make lenders question the business owner’s assumptions and credibility. Have a well thought out budget that is supported by financial projections (profit loss statement and a cash flow statement) that is reasonable and shows that the research was done.

    Step 4: Know the score.

    Lenders still look at personal credit scores as a way to judge the reliability of the principals who are borrowing the money. It is important to know what lenders look for and how the scores compare to those expectations.

    • Credit score: A credit score of above 650-700 is considered acceptable, but does not guarantee a loan. Most lenders will look for a credit score that is at least in the 700-800 range.
    • Debt to income: Personal debt payments should not be more than 33 percent of gross monthly income.
    • Time in business: Lenders give unsecured working capital lines and term loans to businesses which are over 2 years old and have a reliable record of incoming accounts receivables.
    • Report on industry risk: Industry risk is rated based on the government SIC codes which are ranked. A small business owner needs to find out how their industry is rated.
    • Report on cash flow: The higher the operating cash margin, the better the chance is for a business to survive slower market conditions and ensure long term survival and growth. In the final analysis, most lenders give money based on the company’s cash flow since it measures the ability to successfully repay the loan.

    Step 5: Find a lender.

    Research which type of lender is the best fit for the business’ loan needs.

    • Commercial banks: This is best for traditional loans that fall into the strict parameters discussed.
  • Non-bank lenders: These are increasing in record numbers for lenders looking to get a higher return. (Help can be located using sites such as Fundera .)
  • Region-specific lenders. Local community banks and other lenders that have an interest in economic development in a certain geographic or industry area.
  • Micro and alternative lenders: Crowdfunding sites like Kickstarter and IndieGoGo can be helpful for capital needs under $10,000. Personal loans can also be sourced from peer to peer sites like Prosper and The Lending Club .
  • Step 6: Prepare the loan application package.

    The “Loan Package” is the paperwork submitted in order to apply for a loan. It generally includes:

    • A business plan including business owners’ resumes.
  • Financial results and projections (Profit Loss, Balance Sheet and Cash Flow Statements).
  • Personal financial information including three years of tax returns.
  • Remember that lenders will be searching a small business owners’ personal social media sites as part of their research.

    Step 7: Wait.

    Expect to get an answer within two to four weeks. Check in each week for a status. It is typical that the lending institution will need additional documentation.

    Have you been successful in getting a business loan? If so, tell us how and who was the lender.

    Take the Mystery Out of Your Financial Statements

    If you want to better understand your financial results, but also how to use this information to make better decisions, the Interpreting Your Financial Results Workshop is for you. During this 6-hour workshop, you’ll learn how to read and better interpret your financial statements so that you can make better decisions. Reserve your spot today.

    Like the topic? Be sure to share what you’re reading.


    Auto Insurance from a Teachers Insurance Company in NJ #getting #your #auto #insurance #from #a


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    Getting Your Auto Insurance from a Teachers Insurance Company in New Jersey

    A teacher’s job is never done. Just as you’re always there for your students, your car insurance company should be there for you.

    Why not get your insurance from Teachers’ Insurance Plan of NJ — the only auto insurance company to exclusively serve the state’s educational community and their families. Our insurance is created just for teachers and we have special benefits for your unique needs.

    If you work for or are retired from a school district or diocese, or a higher education institution, you may be eligible for Teacher’s Insurance and should consider the benefits of getting your auto insurance from an insurance company for teachers in New Jersey.

    We have exclusive rates just for teachers

    At Teachers’ Insurance, you’ll find special rates just for educators. We believe you’re particularly responsible people and by focusing only on members of the educational community, we end up with lower costs. Those savings are passed along to you. Plus, we have lots of great discounts to help you lower your rate even more. Click here to learn more about the discounts we offer to teachers.

    We have perks designed just for teachers

    As a Teachers’ Insurance customer, you’ll enjoy special perks like At School Zero Deductibles, roadside assistance and your choice of claims options.

    We help you understand your car insurance

    While we cover the basics of car insurance for teachers, we also have experienced insurance professionals available by phone to guide you through your insurance purchase and explain everything. Read more about the basics of car insurance for teachers.

    We give back to New Jersey’s educational system

    We provide grants and scholarships to school districts; have donated more than $180,000 to New Jersey schools and school districts since 2007; and we support safety organizations by working with Keep Kids Alive, Drive 25® to reduce speeding in residential areas and school zones.

    If you’re interested in auto insurance from an insurance company for teachers, get your free insurance quote online or call 844-232-2728 to speak with a Teachers’ Insurance adviser.

    Helpful Links


    Government Grants for Small Business—Think you Qualify? #getting #funds #to #start #a #business


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    Government Grants for Small Business—Think you Qualify?

    Published: October 17, 2011 Updated: February 25, 2015

    Looking for “free money” from the government to start your small business? Then you’ve come to the right place, because I’m here to tell you that – for the most part – there isn’t any.

    Despite what you might have heard to the contrary, government grants are rarely available to small businesses. But why is that?

    Well, government grants are funded by your tax dollars. Any grants must be appropriated through Congress and The White House and are tied closely to specific agency agendas, such as the Department of Energy or the Department of Agriculture. To further complicate matters, the government has very stringent rules about who it provides grants to and what those funds can be used for.

    That being said, certain businesses – particularly those in high tech/R D fields – may qualify for government small business grants.

    To explain more, HERE are answers to the most frequently asked questions about small business grants. I’ll also introduce other, more readily-available, government-backed financing options specifically designed for small businesses.

    Can I get a government grant to start and grow my small business?

    Let’s dig a little deeper into what government grants are available for business purposes and what aren’t.

    Despite what you might hear on TV infomercials or online, the government (federal or state) does not provide grants for any of the following activities:

    • Starting a business
    • Paying off debt
    • Covering operational expenses

    However, as mentioned above, there are exceptions. Grants are available to specific industries and targeted causes identified by the federal government, such as scientific and medical research, conservation efforts, etc. This leads to our next question:

    What if I’m involved in R D? Can I get a grant?

    Possibly. The federal government does provide grants to small business engaged in scientific research and development (R D) under the Small Business Innovation Research (SBIR) Program. The program is overseen by the SBA (with participation from lots of agencies) and awards grants to stimulate high-tech innovations. In 2014, for example, SBIR awarded 300 grants with an average funding amount of $624,807.

    Eligibility for an SBIR grant is straightforward, but securing a grant takes time and effort. Read more about the process in this post SBIR: How It Works and How to Qualify .

    Doesn’t the SBA offer small business financing?

    While the SBA doesn’t give money to small businesses to in the form of grants, here’s the good news – it does administer loan programs that make it easier for small businesses to get the capital they need to start up and grow. export. recover from a disaster. and many other use cases.

    With SBA loan programs. the SBA doesn’t provide the funds to start or grow; instead, it provides a guarantee to banks and lenders for the money they lend to small businesses owners. This guarantee protects the lenders interests by promising to pay a portion of the loan back if the business owner defaults on the loan. So when a business applies for an SBA loan, it is actually applying for a commercial loan through a bank or authorized SBA lender. structured according to SBA requirements with an SBA guarantee.

    Read more about how it all works in SBA Loans Explained – A 101 for Small Business Owners. You can also get help finding the right loan for your business type and needs by checking out this Financing Wizard on Business.USA.gov .

    The bottom line

    If you need capital, don’t waste your time pursuing “free money.” Chances are you won’t find it. Consider a small business loan or line of credit instead. Credit unions and community banks are especially friendly to small business borrowers and can frequently offer lower interest rates than traditional banks. Read more about your choices in Don’t Qualify for Conventional Business Loan? Understand Your Options .

    Don’t forget you can always talk to your local SBA office or Small Business Development Center about which financing options may be right for your business.

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