To Understand Bridging Loans

by Nathaniel Richardson on

Have you ever been stuck in between a new property and the old one, paying both mortgages. Paying two mortgages can be challenging, especially when it is not planned. Thankfully, bridge loans have been created by lending institutions to help address this financial challenge.

Bridging loans are temporary term loans that assist to bridge this lag time between the closing of the present property and the purchase of the new home. While it is not a common scenario, under some occasions there is a longer time frame than was initially anticipated. The bridging loans can help the buyer to manage their dual mortgage payments, with the funds from the bridge loan being also used towards the down payment on the new property once closing occurs.

The Bridge Loan Procedure

As with any home mortgage, the buyers must go through underwriting for approval for a bridge loan. Every lender will often have their own approval guidelines that must be adhered to in order for the property owner to be approved for the bridge loan. And, these qualifications are generally more lenient than traditional home lenders in regards to debt to income ratios, meaning that these ratios can often be higher than with traditional mortgage loans.

The reason that there are different requirements associated with a bridge loan is that they are temporary and generally designed to help a property owner in moving from their current property into their new home. And, the funds from the bridge loan are generally applied to the new home loan in the event that they are not used during the transition period prior to closing on the new home.

The Benefits when Buying a Home

There are a number of benefits to the property buyer of bridge loans, including:

• It allows the home owner to place their property onto the market faster than normal and generally with less restrictions than if they did not have the additional financial cushion.

• A lot of bridge loans do not require monthly mortgage or loan payments, giving some financial assistance to the current property owner.

• The bridge loan can give the property owner some flexibility with restrictions on their home sale, allowing them to reject offers that are less than desirable without financial worry of carrying two mortgages in the event that their new property closes on time.

Disadvantages of Bridge Loans

While there are several advantages to using bridging loans when selling or buying homes, including:

• The fees associated with bridge loans are typically higher than traditional home loans and even home equity loans.

• Some home owners may not qualify for a bridge loan due to the lending qualifications

• Even though the bridge loan helps the home owner in covering mortgage costs throughout the transition time between properties, they must still pay for both loans and the interest that is accruing on the bridge loan.

How good is Cenlar Mortgage?

by Nathaniel Richardson on

At certain points in our lives, there are those moments when you encounter problems that are seemingly hard to deal. Sometimes these problem crash on you suddenly and you don’t know where to go. The loss of a love one, marriage problems, sudden financial ruin and bankruptcy, these serious problems often come in the worst time and alters one’s life forever. During those days of turmoil, a helping hand is very much needed and it comes in various means. Consolation from a friend or love one, a brief vacation, advice from religious institutions and financial savers.In problems due to financial ruin, often people run to mortgage, which is a good option if one can really manage it carefully, but can be a quagmire if not used properly. Mortgage is a financial term that denotes a loan acquired by pledging one’s interest (mostly real estate) as collateral.

Acquiring mortgage is not a simple matter, it involves putting into mind many considerations and one must think it over many times if mortgaging is the only solution left.

Cenlar (Central Administration loan and reporting) is a company that provides services for people opting for mortgage. It is a financial institution that provides sub-servicing loans to client in 50 states and has been in the business for almost 40 years. Cenlar mortgage is one of mortgage firms that have garnered respect among served clients alongside a fair number of insults and bad reviews.  What are the reasons why people have given bad reviews for Cenlar? And what are the good qualities people saw on their transactions with this financial institution? This will be tackled through the help of this article about Cenlar Mortgage. Let us start tackling this issue by asking first this question,

What’s My Credit Score? AKA The Cost Of Credit?

What are the good points of Cenlar?

First Cenlar is under the regulation of the Federal office of Thrift supervision, this basically tells us that this institution is legal, and any misdemeanor of the company will make it liable for legal action. This is the foremost reason why people trust Cenlar mortgage. Alongside this, Cenlar Mortgage Company has been catering mortgage services to 50 different states with different loan laws for 40 years, which tells us how proficient their services are. With this information in mind, one can have the peace of mind in trusting this company especially regarding mortgages.  On the other hand, as with all establishments there are also negative reviews about their services and how they transact with their clients.

What are the bad points, people saw about Cenlar Mortgage?

Complaints come from dissatisfaction, and dissatisfaction comes from inadequate service. This perception of inadequate service is the main factor why people complain about Cenlar Mortgage company management.

People complain about Cenlar’s changing of policies without prior notice to their clients. It shows a seemingly poor company-client communication which is foremost in delicate institutions such as Cenlar, where the client is in financial problems. Another review about Cenlar is its poor customer services rendered by off-shore employees such as call centers abroad, and it’s seemingly lack of professionalism and expertise of customer representatives.

Stating the good and bad points of Cenlar Company, it is up to clients worldwide to consider if Cenlar Mortgage Company is a trustworthy company or a scamming agency. People should see the intention of each institution and see their overall performance in order to weigh if a company is worthy your trust. All we look  at Cenlar, we can see a company that has endured 40 years in the mortgaging business which is a feat in itself and is still in service until today.

Free Mortgage & Loan Resources

by Nathaniel Richardson on

If you went by the many commercials that assault all of us each day, getting new refinance rates on your home is no more difficult than going to the grocery store to buy a loaf of bread. While it is true that mortgage rates are probably lower than they have been in decades and lower than they will be for a long time in the future, that doesn’t mean that entering into a process to find new refinance home mortgage rates is going to be as simple as the marketing gurus on TV would like you to think.Some analysts have projected that the eloan business may take over as much as ten to twenty percent of the business for new mortgages and of the home mortgage refinance business in the next few years. So when you start looking for a lender for your new home loan, it makes sense to consider internet lending services such as Lending Tree, E-loan or Quicken because the competition they bring to the mortgage business is healthy for everyone.

The advantage of using an eloan service for internet shopping for your mortgage lies in the fact that they offer quick service to your inquiry. Because the initial application process is automated, you can access internet lenders 24 hours a day. The various big name eloan service providers advertisements say you will know about your approval within an hour or two. What that really means is they are going to run a quick check of your credit rating and that score alone will tell you if the approval will go forward. When it comes to home loans for bad credit holders, internet lenders are not a way to get a loan that your local banks or other financial institutions will not give to you.

Lending Tree is one of the most well known eloan providers in cyberspace. Their commercials showing a consumer making bankers compete for their loans are fun to see and they leave a lasting impression. But they are not leading you on because that is exactly how Lending Tree works. After you get past the initial application and they take your information, they can get a mortgage or refinance mortgage quote to you quite quickly. Lending Tree takes your application information and submits it to a network of lenders who really do compete for that loan. Now the banks who compete are part of the Lending Tree network and you don’t get to chose who bids on the loan. But the concept of competition in the eloan business is healthy and gives the consumer some power, which is always a good thing. title=”You deserve a fresh financial start if you’re struggling with debts.” width=”394″ />There are reasons to approach the eloan process with some caution. One concern that many people have is that once you establish your account with Lending Tree, Quicken or one of the other major eloan providers, you will be asked to input to their internet data collection screens a lot of very private financial information. If you are nervous about putting that much private financial data out into cyberspace, you are being a smart consumer There are crooks who can snatch that information from your computer or even during transmission if you are using a wireless network. So be smart and make arrangements to mail in your financial data or call them and give them the details they need. This is not being paranoid. It is being careful with the kind of financial information that can make or break you.

Reviews of eloan providers are generally favorable. They are legitimate lenders who can finance your mortgage successfully. But many people who go forward with an eloan provider notice that they are not as responsive during the time between the start of the mortgage development process and closing. They are not local so they will not be as able to deal with your questions or problems as well as a local lender.

It is smart to get to know who you end up borrowing from and get some references and reviews as to how well that bank or mortgage company worked with the eloan process before you agree to use that lender to finance your loan. If you that kind of caution, you will avoid the traps that some fall into when using cyberspace to finance their new home.