Before you settle for home mortgage loans, you need to carry out several preparations in order to make it easier for you to find the mortgage loan with the features you want. Carrying out these preparation procedures would also help you in avoiding the pitfalls that may cost you a lot of time, effort and money as well as the home you desire to purchase.
One of the first and most important things you need to do before applying for home mortgage loans is to establish your finances. Buying a home is very big financial investment and you need to have your finances in check before making the big move. One of the questions you should ask yourself is the amount of money you can borrow. This amount is established by use of the debt to income ratio calculation which would take into account the amount of income as well as the debts that you currently have. You also need to establish the amount you should borrow and this is arrived at after you have established how best you can manage your money and your debt.
While establishing your financial status, you need also to find out you FICO scores. This will help you in establishing how the fico score affects the home mortgage loans available for you. The FICO score is what the lenders use In determining the credit risks of all their clients as well as the amount of interest rates they will have to pay. The higher the FICO score the better the interest rates you will need to pay. For this reason you will need to ensure that you have made all the necessary moves to improve your FICO score before you start planning for home mortgage loans.
Once you have made all the above preparations, you need to find out the types of documents you need for the applications. Do not wait until the last minute to collect and organize all the necessary documents as this will delay the application process and may even make you miss out on the home you want. With all the documents at hand, it is advisable to get them pre-approved as this could make a big difference. Taking the time to have the loan pre-approved you will have a better chance as compared to those who have not been approved. This would also help you in saving a lot of time getting the home mortgage loans because you would have completed the underwriting process with the lender.
When you are in the process of obtaining a home mortgage loan, there are undoubtedly many aspects of the process that are new to you. The language that applies to loans, for instance can be different from the meaning applied to the same term in everyday life. It is far better to review each clause of the prospective loan document as soon as you have access to it and make certain that you understand the terms that are used and how they apply to your own financial situation. Here are some concepts regarding your loan that will be important in ensuring your loan package is acceptable in the long run.
There are many aspects that go into determining the loan cost on your home mortgage loan. The interest rate, mortgage type, loan fees, and term of the loan are just a few of these. You may understand the words, but it is important to take a look at what the words will cost you in dollars and cents. Even a few dollars less in the early stages of a loan can save you thousands of dollars over the entire loan period. It’s important to take advantage of such savings.
The basic mortgage types that are common when you apply for a home mortgage loan include the fixed rate mortgage, the adjustable rate mortgage, reverse or negative equity mortgages and interest only mortgages. Each of these has advantages and disadvantages and you are the best equipped to determine whether the type of mortgage will work for you. The important factor is that you review the documents and proposals so that you know precisely which type of loan you are getting. Being surprised in a few months by a two to five hundred dollar increase in your monthly payment due to an adjustable rate mortgage can result in the loss of your home.
When reviewing the loan documents for a home mortgage loan, one of the important factors that you should check and understand is that of interest rate on the loan. Mortgage interest rates can vary from low to high, depending upon such other factors as the type of loan, applicable usury laws, credit rating, term of the loan and others. Review the stated rate and make certain it is what was agreed upon. If you are expecting a fixed interest rate and the documents provide for an adjustment in 24 months, chances are good that the mortgage has been prepared with a variable interest rate.
Actually, checking the broker’s reputation should come well before preparing or reviewing the documents for your home mortgage loan. Sometimes though, you won’t see a problem until you actually get the documents in writing before you. If there is anything that is unclear or incorrect, the time to get the problem corrected is before signing. A reputable broker should be willing to work with you to correct problems or clear up any communication issues.
Even if you have a less than good credit rating title on your credit history report, you can get a bad credit home mortgage loan. The lower your credit score, the larger would be the down payment required by the lenders. A score less than 600 would require at least a 5% down payment; whereas a score of less than 580 may require about 20% down payment. However, you should be cautious of the greedy lenders, because they may ask for close to a 50% down payment on your bad credit
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However, a larger down payment on the bad credit home mortgage loan is even beneficial at times. This is because a down payment of 20% or more can help you in avoiding private mortgage insurance, and can save you a lot of money in terms of the premium costs on the bad credit home mortgage loan.
To get a bad credit home mortgage loan, you can apply online for the pre-approved loans. By applying for these loans, you can know your budget and can find out how much you can borrow, instead of focusing on whether the bad credit home mortgage loan would be approved or not.
Finally, a very important thing to keep in mind while applying for a bad credit home mortgage loan is that you must fill out the application form correctly. Before submitting the application, you must make sure that all the information provided by you is correct and is spelled correctly. If while processing, your information cannot be matched, then it may lead to a delay in the approval of the application, or sometimes, even in the rejection of the application for your bad credit home mortgage loan. You can’t become too dependent on cash advances to keep bailing you out of a hole if you keep getting into trouble. Of course if you keep paying them back on time, then the cash advance company will be more than happy to keep doing business with you and will keep giving you the money when you request it, but dependency can be a bad thing.
If you get into financial trouble, then you will obviously want to get out of it; that is natural. Imagine how you would feel if your friend helped you out of the same situation? You probably wouldn’t feel too good about not paying them back. That is what a cash advance is like: a friend paying off a bill for you. But if you pay off the bill, the company is off your back, and you will feel better about yourself because you did it with your own money and you didn’t rely on anyone else but yourself to get that debt off your back and out of your system.
The other notable thing about cash advances is they are relatively easy to get and the money is in your checking account within a few days. Some companies even send the money to your account within 24 hours after your application form has been approved. This is helpful in the way that you do not have to wait around for the money to come when you want to get the bills paid up as soon as humanly possible. So if you do need the money urgently, then you will receive the money more quickly than you might expect.
Mississauga Santa Claus Parade , November 30, 2008 / Habitat For Humanity
Image by bill barber
I’m still officially down for a bit, but I posted these for my extended families and friends. I don’t really expect comments since I won’t be commenting on yours for a bit.
Taken from Wikipedia en.wikipedia.org/wiki/Habitat_for_Humanity
Habitat For Humanity International (HFHI) (generally referred to as Habitat for Humanity or simply Habitat) is an international, ecumenical Christian, non-governmental, non-profit organization devoted to building “simple, decent, and affordable” housing. Homes are built using volunteer labor and are sold at no profit. In locations outside the United States, Habitat for Humanity charges interest to protect against inflation. This policy has been in place since 1986.
The organization was founded in 1976 in Americus, Ga., by Millard and Linda Fuller, whose vision grew out of their experiences at Koinonia Farm. The international operational headquarters are located in Americus, with the administrative headquarters located in Atlanta, Ga. Staff members at all locations serve to support and promote the activities of local, independent Habitat for Humanity groups, which initiate and manage construction, mortgages and homeowner selection worldwide.
In 1996, U.S. President Bill Clinton awarded Fuller the Presidential Medal of Freedom, the nation’s highest civilian honor, calling Habitat for Humanity “…the most successful continuous community service project in the history of the United States.”[1] By 2004 Habitat had built 50,000 houses in the U.S. and over 175,100 around the world, with Habitat groups working in over 100 countries. Although headquartered in the United States, two thirds of Habitat construction takes place in other countries. In 2005 Habitat built its 200,000th house, bringing the number of people sheltered in Habitat houses worldwide to one million. On November 13-14, Habitat for Humanity will build its 3000,000th house in Collier County, FL.[2]
On 4 August 2005, Habitat announced the selection of a new Chief Executive Officer for the organization, former president of stores of Musicland and executive pastor of the Edina, Minnesota Christ Presbyterian Church, Jonathan Reckford.[3]
In the fall of 2007, alternative rock bands Switchfoot and Relient K went on the Appetite For Construction Tour, partnering with Habitat while raising awareness for the organization and donating a dollar per ticket sold. The tour was highly successful, raising over 0,000 for donation to the cause. [4]
According to the official website,
Homeowner families are chosen according to their need; their ability to repay the no-profit, affordable mortgage; and their willingness to work in partnership with Habitat. Habitat for Humanity does not discriminate according to race, religion or ethnic group.
Independent, local affiliates of Habitat for Humanity International are allowed to interpret these guidelines as is deemed most appropriate for the location of the affiliate.
Homeowners are usually expected to put approximately 500 hours of “sweat equity” into their own or other project homes, although this amount may vary by location, the number of wage-earning adults in each family, and the recipients health issues.
Mortgage payments from homeowners are deposited into a locally-administered “Fund for Humanity,” the proceeds of which go toward future construction. In an effort to discourage predatory lenders from targeting Habitat homeowner families, mortgage agreements allow the Habitat for Humanity affiliate the right of first refusal. Should a homeowner family decide to sell their home during the period of their mortgage, the affiliate may buy it back at a price at least equal to the equity that the homeowner has paid into the mortgage.[5]
Habitat homeowners in the United States pay no interest on their no-profit mortgages. Habitat for Humanity organizations outside the United States adjust the no-profit loans to compensate for the inflation rate in their area, with the goal that “the repayments from one house should ideally build another house of the same design.”[6]
Habitat builds simple houses with locally appropriate materials. This could mean concrete block homes in Third World nations or poured concrete-walled homes in hurricane-prone regions of the United States. Chapters of Habitat in more developed countries are strongly encouraged to donate ten percent of the money they raise for local housing to the national group for the purpose of building Third World homes. For instance, Habitat New Zealand’s tithe helps to support an equal number of housing outcomes abroad, predominantly in the Pacific region.
Habitat relies on volunteer labor in order to construct simple and affordable homes for its partner families, as well as to build community and civil society in the areas in which it works. Most volunteers are unskilled prior to first working with Habitat, although some professional or retired tradesmen or contractors may donate their services. Many churches and other houses of worship (synagogues, temples, mosques etc.) sponsor houses and provide a large amount of the volunteers from their congregations. Some corporations and businesses who value good corporate citizenship provide financial support to the projects and/or donate materials for use in construction. Many politicians and celebrities have volunteered with Habitat, reflecting its profile as a highly regarded non-profit.
Habitat for Humanity International develops special programs to support local Habitat organizations. These programs are designed to engage specific groups for annual projects or on an ongoing basis.
Habitat has initiated a special program to help restore housing to the areas affected by Hurricanes Katrina and Rita. The effort is focused on getting the local affiliates in these areas back on their feet and prepared to build for their communities. It has also become a catalyst for other organizations, corporations and the government to provide help and support in rebuilding these areas, and has received considerable national media attention.
The program pre-builds housing components in nearby less-affected locations such as Jackson, Mississippi, allowing much of the construction to be accomplished while basic infrastructure is being restored. Pre-constructed components can then be shipped to the affected areas and built at a faster rate. Within two months of the time of the disaster, construction had begun on houses in the Louisiana cities of Covington and Slidell, near New Orleans.
Operation Home Delivery is Habitat for Humanity International’s hurricane rebuilding program, Harry Connick Jr., and Branford Marsalis are honorary chairs, and one of the many projects along the Gulf Coast, is the Musicians’ Village at New Orleans Habitat for Humanity.[7]
Habitat for Humanity runs a year-round alternative break program known as Collegiate Challenge for student groups age 16 and up.[8] Although summer, fall, and winter break trips are available, most participants go during their spring break. Collegiate Challenge volunteers travel to affiliates throughout the United States and participate in week-long building activities at their host’s work sites. More than 14,500 volunteers took part in Collegiate Challenge in 2008, making it one of the world’s largest alternative break programs. Since its inception in 1989, more than 150,000 students have participated in Collegiate Challenge.
As suggested by the name, Habitat for Humanity International places a strong emphasis on building outside the United States. Its international character dates back even before its formal inception, as founder Millard Fuller received considerable inspiration while on a three-year trip to the Democratic Republic of Congo (then Zaire) during which he and his family sought to apply Koinonia principles outside the limits of the small Georgia farm.
Volunteers today can build with Habitat affiliates throughout the world on Global Village Trips.[9] After having gone through training, trip leaders organize travel plans with the support of the Americus-headquartered Global Village Department, first formally established in 1988. Participants from all over are then able to register for trips to their destination of choice. Teams generally number between eight and fifteen, with trips usually last between nine to fourteen days.
When people of different faiths and cultures come together to build a house, individuals learn from and find new respect for one another. Coming together for the common goal of building a house with a neighbor in need has proven to be a successful way for bringing healing to divided communities and creating a sense of cross cultural unity.
There are many projects that go hand in hand with the house building projects that allow these homes to supply their own electricity through the use of solar. US companies such as Pacific Gas and Electric (PG&E) have partnered with Habitat for Humanity to provide complete solar grids for a few homes.[10] There are also other solar projects, mostly in the US, like one in San Francisco,[11] as well as normal citizens that are trying to make a difference by raising funds to get more of these solar homes built.[12]
During Home Builders Blitz 2008, more than 1,000 building industry professionals in 110 Habitat for Humanity affiliates built 263 new homes across the United States. This was the second national Home Builders Blitz program, which was begun on the local level in 2002 in Raleigh, N.C. Since then, the professional homebuilders industry has supported Habitat by building more than 800 homes.
Former U.S. President Jimmy Carter became involved with Habitat for Humanity in 1984 and has since become its most high-profile proponent. He has been involved in fund-raising and publicity as well as actual homebuilding, taking part in the annual Jimmy Carter Work Project “blitz build”.[13]
In 2008 Habitat for Humanity celebrated the 25th annual building project with the Carters and renamed it to include Mrs. Carter. The Jimmy and Rosalynn Carter Work Project focused on supporting the Gulf Coast community seeking to rebuild after hurricanes Katrina and Rita. Despite periodic downpours, volunteers got most of the work done during one week in June to finish building and fixing 60 houses and frame 48 more.[14]
Originating in 1991 with a Charlotte, North Carolina home built entirely by a crew of female volunteers, Habitat’s Women Build program encourages women to make a difference by building homes and communities. Women Build projects provide an environment in which women can feel comfortable learning construction skills they might not otherwise have the opportunity to learn. Globally, more than 1,200 homes have been completed by Women Build volunteers. [15]
Habitat ReStores are retail outlets that re-sell new and used building and household materials donated by large companies, job sites, and individuals. For some Habitat affiliates, like Habitat for Humanity Toronto, the ReStores generate sufficient revenue to cover all administrative costs. This means that every dollar donated to the organization goes directly to home building, and not to pay for overhead such as administrative costs.[16]
The video for rock band Bon Jovi’s song “Who Says You Can’t Go Home” features Habitat for Humanity volunteers as well as the band building homes as part of Habitat for Humanity in Philadelphia, close to Bon Jovi’s native New Jersey. It reflects Jon Bon Jovi’s dedication to the organization and highlights the importance of community unity, faith, and involvement.
The Habitat Bike Challenge began in 1995 as a product of Yale University’s Antony Brydon’s desire to spend a summer biking across the United States while raising money for Habitat. Along the way from coast to coast, riders raise money by explaining Habitat’s mission and even building along with Habitat affiliates in the towns they stop. Riders must raise a certain amount before the trip and spend nearly three months of their summer spreading the word about Habitat and getting communities involved. Bike and Build grew out of the Habitat Bike Challenge in 2002. Over five seasons, Bike & Build has contributed ,144,231 to housing groups to fund projects planned and executed by young adults; this includes 1,327 donated from the summer of 2007.[2]
Although Habitat for Humanity enjoys high name recognition and regard as a non-profit, it has also been the subject of criticism. An article in the Weekly Standard [17] magazine questioned the cost-effectiveness of Habitat building projects. It is difficult to estimate effectiveness, as total volunteer hours on-site and aggregated homeowner financial data are not available.
However, Habitat houses in the United States are more affordable for low-income families than commercially built houses because volunteers help build the homes, which are sold at no profit. [18] In many countries, purchasing a Habitat house costs even less per month than renting substandard housing.[19]
Families are required to show an ability to pay for their home in addition to the need for housing. With these requirements, homeless and low income families may fail to qualify for a Habitat home. Most American Habitat affiliates perform credit checks and criminal record checks on applicants before partnering with them for the construction of a home. Some critics therefore allege that Habitat misrepresents the nature of its work by partnering with families that might be considered nearly “middle-income.”[20] To address this, many Habitat affiliates in the United States partner only with families that fall below the government-set “poverty line” for their area. The current poverty rate is measured according to the United States Department of Health and Human Services Poverty Guidelines.[21]
The credit and income requirements help assure that Habitat applicants are able to maintain their houses. Foreclosures on Habitat houses have been very low: 2%, according to official figures. The homeowners’ monthly mortgage payments are used to build more Habitat homes.[22]
Habitat’s founder, Millard Fuller, and his wife were dismissed by the Habitat board of directors on January 31, 2005, citing “a pattern of ongoing public comments and communications by the Fullers that have been divisive and disruptive to the organization’s work”[23] after Fuller was accused of “suggestive comments and inappropriate touching” toward a female employee during a ride to the Atlanta airport in 2003. Some Fuller supporters claim that the firing was due to a change in corporate culture.[24]
Before Fuller’s termination, attempts were made by former President Jimmy Carter to broker an agreement that would allow Fuller to retire with his ,000 salary intact; when Fuller was found to have violated the non-disclosure portion of this agreement, he was subsequently fired.
In response to his dismissal from the project he founded, Fuller has established The Fuller Center for Housing.
In January 2008 a dispute arose between the parent organization and an unspecified number of local Habitat for Humanity affiliate organizations over the terms of their cooperation agreement. These local affiliates contended that the agreement gave the international organization too much power over the assets and operations of the local chapters. One of the affiliates, Habitat for Humanity of San Antonio, reached an agreement with HFHI in July 2008 to “continue working together in their efforts to make affordable housing possible.”[25]
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