When history books are written, the year 2007 will probably be called “The year of real estate upheaval.”
First there was all the talk about the real estate bubble. Then came the subprime lending crisis, followed by a surge in the number of foreclosed properties hitting the market. Then just last week, there were widespread reports about falling prices and a surplus of newly constructed homes across the country.
What does it all mean if you are trying to get your first mortgage and get started in real estate?
There’s some good news. Despite all the uncertainty in the markets, you can still strategize your way to a great first mortgage by following these very basic tactics:
Strategy One: Build or rebuild your credit. Educate yourself with some good
basic information about how credit reports work. If you don’t know your credit history, make an online visit to
Experian or
Equifax. If you don’t have a credit history established yet, start by getting a credit card, using it, and making your monthly payments in full. Then take the next step by getting a loan and paying it back reliably. In less than two years, you can establish a record of excellent credit-worthiness.
Strategy Two: Work with the down payment you have. Shop around and
compare programs online to find one that is right for your financial situation. Many current mortgage products are targeted at first-time buyers who don’t have tons of money to put down on a property. One warning? Don’t take a mortgage with a monthly payment you cannot reasonably expect to make. As a lot of unfortunate people discovered in the last six months, over-borrowing is a recipe for losing a home.
Strategy Three: Give yourself a mortgage education online. You really can learn a lot in just an hour or two, using one of the many excellent
mortgage calculators you can find online. Plug in the price of the property you are considering, play with different down-payment numbers and you can quickly get up to speed about how far your money can take you. And please don’t fail to investigate the many
excellent courses at Trump University.
So those are the strategies. But let me include one other piece of advice too . . .
Don’t forget smaller local banks
Their personalized attention and service can make them a great choice. As our Executive Editor Barry Lenson recalls, “The first mortgage I ever got was through a small regional bank,
American Bank of New Jersey. After about a year, I made a mistake and dated a check for the wrong year. I got a call from a woman at the bank who said, 'You’ve never made a mistake before, Dear. I’ll hold your check until you can bring me another one today or tomorrow.’”
That bank was obviously trying to build its community. Try getting that kind of service from a bank that is half the country away!
Michael Sexton is President of Trump University.
8 Comments Post a comment
shortly about how manybanks in Singapoor and how many off shore system, curious to tak the economy pulse there to see how it works,hmm, but the point is that what I would love to know is how may we use the 1031exchange used at max into Trump Mortgages Corporation, Middle East sustainment..hmm, like start with preaprouval for loans, that the one by one the churches development touch, from fine art of restauration till the land combined with poverty sustainment there as we talked before..where our people start to work, we sustain it from micro to macro level as part of development plan..hmm, but building green with 1031 green points than may we use it like the high quality tech we use in building green, that part of maturity loan to make it shorter
by constant yield compoundet not annually but in the beginning, like reducing the high rate interest deducting thetax retourn preparation as quality incorporate product and more, if tax liability flexible to recapture the depreciation by creating values as work of our customers we sustain like long term sustainment and financial education to fully enjoy the new perspectief of work as create value sustainment by bank and enlarge as options also covered by 1031 in energy field, yes, the green type like from corn, or geothermal ones so we may help people to invest in they*re business as doing what they love to do, but also sustain the community urgency to develop the base resources as Summit stock option with huge retourn as cleaner energy, as a home is able to make the difference in the development dynamics as track selling the whole home sustainment industry*s also as stock investment, from vines to timber long term to just name it how wide we may learn our customers to produce values actief but passief too, for they*re work as community covering effort of development. water furnance, each industry may benefit by the Starker Exchange trust, reducing taxes but create values and invest in security of our customers hmm, the wide we may invest and help people to make the dreams reality the harder the necesity of education is required, are soo many millions of people we may touch transform the life..islam investment hmm, will not disrupt the dollar stability, will sustain it real, sotfly just this. so investments in education it start from schools which we may use the roof as lightpannels to serve the whole neighborhood, so reduced costs huge investments and that real exchange is the only one i sense able to cover all the subtle interconnectivity as global development cherished by sucess into the long term prevision, in relatief short 10 years this community we sustain is able to produce at a healthy foundation and share the benefits into covering the inicial sustainment we provide them and what they learn they teach the childrens too..like reducing taxes sustaining the employment continuity avoiding that the foreclosure phenomen touch ever our mutual trust .reviving the neighborhood we increase the equity.
better search in depth and after talk about, counselling is welcomed.
have a great day , Daniela
As far as there being "no fail" financing strategies in Real Estate, a person first of all has to know how to manage their money. And that takes time and years of practice. It begins in your younger years, before you reach your majority, at the tender age of 21.
Many parents forget to teach their children how to manage money. It comes by giving an allowance (for chores that are accomplished, not "just because" that's what the neighbors do).
It comes long before graduation from high school or college. It begins when the children are growing up. And, unfortunately, too many parents give their children too many "material things" without letting them learn the value of earning these things through their own accomplishments. If the parents would teach their children to take pride in earning some of their own money during their teen years, they would help their children build self esteem and equip them to manage their money as they move upward into the business world.
I enjoy seeing processes that assist potential investors improving their financial situations to achieve their goals. I would like to add that, if you are able to develop a Property Investment Entity (PIE) by engaging with others perhaps friends, relatives or associates etc. This would entail the PIE to collectively invest in properties of interest and therefore assist you in achieving your property investment and relatively allowing you repaying the loan back to the PIE group at an interest rate ROI established by the PIE group. This investment entity will also give you the leverage to be apart of further collective property investments as they expand their portfolio. Well I wish you all the best in achieving your investment PIE.
Kelly
New Zealand
(As for Daniella this Trump University blog is for Business Intelligence
not How the Sky is falling Chicken Licken- I would like you Blogged Out of these forums in the future)
This is an excellent article. Mr. Sexton:
This is an excellent article. May I emphasize that people should get and exercise their credit. I am working with a young couple presently to purchase a 5 acre lot of land. They have an excellent income, and good credit, along with a 40% down payment. However they have no credit cards. They are going to get a land loan for around 9% interest with close to $2000.00 closing costs. If this were a person like me that has exercised their credit with credit cards, and credit lines they could have finance the required 60% with a credit card advance at under 6% interest with no closing costs. I find that banks are willing to lend money easily and inexpensively through credit cards and credit lines verse applying for a real estate loan which can become very complex. On that note, I can’t believe how little education people have in regard to understanding a real estate contract or a mortgage application. I believe this is a large part of the problem with the sub-prime lending defaults. It would be nice if high schools could add some basic training in understanding real estate contracts and mortgage applications to one of their math or business classes.
Cordially,
Mr. Dennis O'Donnell
CEO, Big O, LLC - www.bigollc.com
Vice President, Precision PCB Services,Inc. - www.pcb-repair.com
Owner/Realtor, Lucky U Realty - www.Lucky-U-Realty.com
for Oroville Real Estate
It sounds like you might have some great ideas and a sharp mind. Unfortunately, most people have no idea what you are saying because, as the previous posters have said, your posts are lacking in grammar to the point they are unintelligible. Because you are using some English words not quite correctly, if you would separate one thought from another by using a capital letter to begin a sentence and a period at the end of each sentence, we might be able to get a clue what you are trying to say. As an example, if you read this post, I have used three complete sentences so far, this one being the fourth. Also I don't understand what "hmm" means or why you use it in your writing. Get a grammar book and learn when to use commas. You would probably also have more people read your post if they were not quite so long. I'm sure you write English much better than I could ever hope to learn your native language. Good luck and God bless you. --Gail