When you’re in debt, one thing that can seem out of reach is buying a new car

You might not have the credit required to get auto loan financing, and managing monthly payments might put your other debt repayment plans at risk. However, being in debt is no reason to drive a car that’s breaking down or unsafe. There are plenty of good, affordable used cars out there, and late model used cars have a lot to offer in terms of reliability, gas mileage, safety features, and performance. If you’re in the market for a pre-owned vehicle, here are a few tips you can keep in mind to make your shopping experience fruitful and stress-free.

 

  1. Set a budget

 

The first thing to do is figure out exactly how much money you’ll be able to put towards this purchase. Be realistic, but bear in mind that the more you can invest in a new (used) car, the more reliable it is likely to be and the less you’ll have to pay for maintenance and repairs in the near future.

 

  1. Choose your car

 

Next, pick a make and model that fits in your budget and has the features and options you need. If this is going to be a family vehicle, make sure it has room for all the passengers you’ll be carrying, and if you have a baby or toddler, verify that it will have the space and hardware to allow you to safely install a car seat.

 

  1. Find sellers

 

There are lots of online car buying directories that can help you located used vehicles from reputable sellers. They can also provide you with reviews, videos, comparison tools, and other site features that can help you in your purchasing process.

 

  1. Check the vehicle history

 

Once you’ve found a specific car you’re interested in, get a vehicle history report. You’ll want to know if it was in any major accidents or has had any significant repairs done on it. The internet has made it easier than ever to get a comprehensive history report on any car, so don’t skip over this important step, and don’t let a seller talk you out of requesting it.

 

  1. Take it for a test drive

 

Just because you’re not at a dealership doesn’t mean you can’t take the car for a test drive. Make sure it handles properly, feels right, doesn’t make any strange or ominous sounds, and that you feel comfortable and safe driving it.

 

  1. Negotiate the price

 

Don’t be afraid to give the seller a counter offer and try to bring the price down from what they’re asking for it. This is expected. Also, don’t be afraid to walk away from a deal and keep trying if you don’t feel like you’re being offered a good value for your money. There are always other cars.

 

Once you’re satisfied with the deal, make sure the title paperwork is processed correctly and enjoy driving off in a pre-owned vehicle that’s now all yours!

mortgage brokers

How do mortgage brokers get paid?

Home loans provide their services cost-free to interested debtors and are instead compensated by lenders. We delve into some of thedifferent commission structures that mortgage broker obtains to help you ensure that you’re receiving affordability and not engaging with a broker who may have a conflict of interest.

Exactly what is a mortgage broker?

A mortgage broker functions as an intermediary between debtors and lenders. They help clients find a loan that suits their situation by researching, contracting and negotiating for bargains concerning the client.

What activities will a mortgage broker do?

  • Assess your borrowing requirements. Agents should also determine your serviceability potential across different situations.
  • Identify home loan products that fulfil your requirements
  • Negotiate in your stead for the best deal
  • Provide support for just about any questions you have many throughout the process
  • Organize the paperwork to secure the house loan

How are mortgage brokerages paid?

Mortgage broker gets a commission payment from lenders. This payment will vary concerning the lender as well as how big is the transaction.

Upfront commission

The upfrontcommission is the payment a broker will get for introducing the home loan customer to the lending company. It is normally around 0.3-0.5% of the loan value. For example, for a $850,000 mortgage, a 0.3% commission rate would total about $2,550 in the broker’s pocket.

Trail commission

Trail percentage is a recurring percentage that is computed based on the rest of the loan amount every year, which is paid to them monthly. Some lenders offer a continuing fee of 0.1-0.2% predicated on the rest of the value of the house loan. This commission payment is paid for the broker providing ongoing service to your client.

Claw back of commissions

If a person refinances the home loan suggested by their mortgage broker to some other lender in just a certain timeframe, then your initial lender can take a clawback commission payment from the broker. It is because it could be costly for a lender to set up a fresh loan for the customer, and the lender loses away if the client then decides to release the loan.

A few mortgage broker  in these situations has opted to spread the fee to their clients. Thisis not against the law in Australia so long as they follow the right guidelines.

It’s estimated that only 1-2% of total loans are subject to claw back every year, and therefore it does not represent a major issue for the broking industry, but it is still important for brokers to educate their customers about howclaw back provisions work.

Issue of interest

Because most mortgage brokers get commissions, an issue of interest can occur in some cases. For instance, an agent might promote a certain home loan with a lender that offers an attractive commission over one which offers a lesser commission, regardless of whether or not it is the best product to your requirements. That is why it’s important to speak to your broker about their fee structure.

What are my rights as a client of any mortgage broker?

The National Consumer Credit Protection Function (NCCP) aims to protect you as a customer of the mortgage broker by ensuring that the broker will not recommend an ‘unsuitable’ loan for you. This means the mortgage broker must carefully consider your needs and requirements, together with your finances, to make sure that you will be able to service the loan without enduring financial hardship. See more this site: mortgagebroker247.com.au

Build Up Your Credit Status with Quality Guidance

We operate a finance counseling business.  Much of our service is aimed at giving people and families advice and suggestions on how to cope with bills and expenses.  And nearly half of our advice focuses upon telling people how to manage credit card debt.  For some reason, no matter how much they hear it, folks still tend to operate as if a piece of plastic is a license to spend as if they have an unlimited source of money coming in.  At the same time, we can often take pride in having helped some folks manage to not just get their debts in order but to smartly manage their funds.

 

Our most recent customer was a couple who had managed to not just get out of debt, and to qualify for a loan they used to refurbish their home.  They did the improvement to give the wife needed additional closet space to properly store her clothes and shoes.  Fortunately, she got many of her classiest and most stylish wardrobe items from New York and Company, taking advantage of significant discounts of $25 and $50 off on items purchased with  Groupon promo codes.  Of course, she wasted no time taking advantage of these and other deals currently offered in her effort to substantially expand her wardrobe for the upcoming fall season.  He was accustomed to her classy wardrobe and stylish appearance, but things had become so cramped he was forced to store his suits in a closet in a separate room.

The solution they agreed upon was to expand the master bedroom suite of their home by adding a larger walk-in closet.  This increased the amount of space, but required a contractor perform substantial structural modifications to the home.  She was enthralled with the idea of having a master suite closet with enough space for both of their wardrobes, plus shoe storage.  And she eagerly agreed to the project.  We were happy to assist them in getting the home improvement loan, since they’d managed to get their finance situation in order.  However, we advised them to keep a close record of the money spent on this project, since the significant savings achievable by using Groupon coupons for discounts and savings might be too tempting.

8 traits of a good mortgage broker 

As a first time homebuyer, one of the best assets you can have on your side is a good mortgage broker. However, it can be extremely overwhelming to choose one! The market is saturated with mortgage brokers and this article will help you to identify and choose a quality mortgage broker.

What makes a good mortgage broker?

Since mortgage brokers became more common place around two decades ago, this question has been a frequent one! While regulations and licensing has changed, the ultimate goal of a mortgage broker is to help provide the homebuyer with choice at little to no cost out of pocket! Here is a list of the top 8 traits of a quality mortgage broker to help you choose from the many mortgage brokers out there.

  1. A good mortgage broker is licensed – As of July 1st, all Australian mortgage brokers must be licensed by the ASIC (Australian Securities and Investment Commission) and expected to                adhere to the standards of the NCCP (National Consumer Credit Protection). This isn’t a quality of good mortgage broker as much as it is a requirement.
  2. A good mortgage broker is a member of a professional industry association – A mortgage broker through the MFAA (Mortgage and Finance Association of Australia) is required to sign and comply with a code of conduct and meet strict guidelines regarding their education. Many MFAA mortgage brokers are also members of the FBAA (Finance Brokers Association of   Australia).
  3. A good mortgage broker comes recommended – Most mortgage brokers will tell you that the majority of their new clients come from personal recommendations. Ask your friends and family for their recommendations and experiences!
  4. A good mortgage broker goes through a thorough interview process with you – A good mortgage broker wants to get to know you and will sit down with you to find out what your goals, financial situation and plans are.
  5. A good mortgage broker utilizes a large panel of potential lenders – A quality mortgage broker is more loyal to you than to a lender. After the initial interview, your broker will look through the lenders they have accreditation with to find the best match for you personally.
  6. A good mortgage broker is an excellent communicator – Especially for the first time homebuyer, the process can be stressful! The good mortgage brokers will stay in frequent contact during and even after  purchasing a home.
  7. A good mortgage broker will disclose all costs and fees upfront – As the majority of mortgage brokers  work on commission, there more than likely will be little to no out of pocket cost to the homebuyer.
  8. A good mortgage broker sees you as a lifelong customer – After working with a quality mortgage broker, you’ll feel like you’re part of the family. Visit this site for more information : mortgagebroker247.com.au

When looking for a good mortgage broker among the many qualified mortgage brokers out there, look for the above characteristics. This will help you really find a mortgage broker with your best interests in mind.

Getting the Professional Advice You Need From Trusted Mortgage Brokers

Have you ever thought about using the services of a mortgage broker Melbourne when buying a new home? Don’t worry, you aren’t the only ones to be a little unsure and in today’s world, most are trying to save money. However while it’s necessary to cut corners, it isn’t always advisable to do so when it comes to mortgages as these are complex and very important. You might not be aware of how valuable these services could be. If not, read on and find out why you need help from a trusted mortgage broker.

Offering You Impartial Advice for Newcomers

You have a great job, you’re well paid and you like the sound of buying a five bedroom home with indoor swimming pool. Now, this is your dream home and that’s fine but is this really the ideal option for you? Will you have the means to buy a half a million dollar house and make large monthly payments on top of other bills? This is what the brokers think about and actually work out whether this type of home, for two people, is suitable and workable. A mortgage broker can offer real advice that doesn’t suit them, but you and what you’re going to need. If they don’t think your finances will stretch to a five bedroom home then they’ll let you know and they are doing this for your own good.

Making the Choice Easier To Digest

Searching for a mortgage is not going to be easy. You have a variety of options available to you and it’s hard to know which way to turn. However, brokers can offer real advice as to which avenue you may want to explore. Let’s say you had a great job and you had ideas of buying a home for future selling, they’ll let you know how sturdy the market is for this. Mortgage brokers Melbourne understands you’re unique so know everyone requires different help. This is what they can provide.

Understanding Which Options You Have Available

Standard mortgage lenders are not going to take a chance on you when you have bad credit and a poor credit rating. You might think since you have a deposit saved and working a steady and well-paid job now, that’s all that matters but think again. When you have poor credit, your options are greatly reduced; as is, when you have low-income. However, mortgage brokers are more than willing to work with you in order to find a suitable avenue. There are many good lenders who specialize in poor credit and the brokers know which way to turn. Brokers can let you know what options are available to you and will tell you which they think is best also. You won’t get any better professional advice today.

Getting Help from a Professional Who Knows Their Trade Will Make It Easier On You

No-one likes to be told they cannot afford one type of house or that they need a specialist lender but if that’s the truth you need to hear it. Sometimes, you personally don’t want to listen to fact and you don’t think about the long-term aspects until someone, a third-party person, tells you what you need to hear. That is the biggest and best reason why brokers are needed and they really do offer so much. When you get assistance from a mortgage broker like http://www.mortgagebroker247.com.au/, you can fully grasp what is needed and make your mortgage search far simpler.

Investors Struggling With Lender Policy Changes

A mortgage broker is important whenever anyone has concerns about how the recentpricing and policy changes may impact on his or her investment plans. Mortgage brokers will tell you exactly which lender products are available that will suit our needs. Mortgage providers provide various financial products such as home loans, personal loans, car loans, asset finance, deposit bonds, risk and general insurance.

Investors are however shelving their investment plans due to the changes in pricing and lender policy changes.

Recently tightened lending rules

Mortgage brokers Melbourne have complained that recently activity has fallen by more than 10%.This is following the recently tightened lending rules for foreign buyers .loan applications that are solely based on foreign income are now not accepted. Current rules for non-residents stipulate that they must be employed, not self-employed, or shareholders must be met face-to-face and will only be lent up to seventy percent of the value of the property.

Moreover, the offshore investors have to deposit a large sum of money of up to five thousand dollars for homes valued for more than one million us dollars and ten thousand dollars on homes valued at more than one million us dollars. Most property of high value is just sitting on the market.

Rise in interest rates

Banksno longer offer adiscount on interest rates on new investors who do not have a mortgage over their home with the bank. The big banks are scrapping or scaling back lucrative discounts routinely offered to new property investors, something that has raised the interest rates.This has lowered the demand from investors. Mortgage brokers Melbourne have also been informed that banks would be scrapping a one thousand us dollars rebate for new investors.

  Evidence of non-nab loan repayments

Acceptability of evidence will be based on the loan type. The loan statement or internet account summary dating not less than six months showing scheduled amount or aminimum of one-month loan repayments must be provided for principal loans and interest loans!

Loan statement, or an internet account summary, or internet account listing no older than six months showing the current limit or current interest rate must be provided for interest only or line of credit loans!

Documents requirement

Rules regarding documents required to obtain a loan tightened. For offshore investors, they must provide a copy of the original visa, income and passport documents.

Numerous changes prompted by claims of money laundering amongst foreigners in the Australia property market. These changes are however starting to have an impact on some investors. Mortgage brokers come in handy at such a time as they offer expert advice to suit your needs. A mortgage broker Melbourne is always available to provide advice regarding the most recent changes in lending policies. More details in this link: http://www.investopedia.com/articles/stocks/07/beat_the_mistakes.asp

Changes such as removal of discretionary pricing on investment through to loan and evaluationrestrictions!  Amid the entirecrisis, however, property investment still represents a sound investment option for buyers the more reason why one should talk to a mortgage broker.

Assessing Mortgage Finance in Nigeria

Mortgage brokers are going to be the very best people to consider when it comes to buying a home. These people are professionals and as such they go through a considerable training program so that they can advice people on which mortgage finance is going to be best for them. So, how can you assess the finance options today? Read more at http://www.mortgagebroker247.com.au/ Research the Nigeria Mortgage Finance Options

If you are interested in buying property in Nigeria you should be aware of the different financial options available. There are some mortgage finance routes that will be totally suitable for you and others which are not. For instance, a standard home loan can be suitable for those earning a fairly decent wage each and every month; however, this financial option may not be suitable for everyone. That is why when it comes to obtaining a mortgage you have to use your initiative and research what is out there. It will make things much simpler in the long run. If you aren’t too sure, your mortgage broker could help you here.

Are You Self-Employed or Have a Low Income?

Despite what you might think, those with low income can still be eligible for a mortgage; though the finance options in Nigeria can be quite different. People with lower incomes or who are self employed often find they aren’t eligible for regular mortgage finance options which means they require special financial options. This can be quite annoying for most, but you have to be aware of the different financial options available. Some mortgage brokers are specially trained to deal with those who require low income mortgages. These brokers can help point you to the appropriate financial home loan. Click here to read more info about low income mortgage.

Assessing Mortgage Finance in Nigeria

Meet Certain Criteria Qualifications

Most mortgage finance will require each buyer to meet a certain criteria. For example, if the mortgage was over a certain amount, the buyer or buyers who have to earn a reasonable wage each month so that they would meet one criteria of the finance. However, there are many different qualifications buyers have to meet so it is important to remember this when it comes to obtaining a mortgage. A mortgage broker can help you to determine what it is going to take in order to meet all criteria for a home loan.

Buying When the Housing Market Is Strong

You have to also remember that buying a home or obtaining a mortgage should be done when the time is right. It isn’t wise to go ahead and take a mortgage when your finances aren’t right or the marketing isn’t good because it can be a bad idea. However, that is why mortgage brokers are necessary.

Know Your Market

Mortgages are complicated at the best of times and that can cause a lot of problems. However, when you know what finances are available then things can be much simpler. It doesn’t matter how much money you have to spend or what type of home you want to buy, you need to understand the financial options available. Talk to a mortgage broker to get more help about mortgage finances.

Independent Mortgage Advice: Do I Need It?

Mortgage brokers can be one of the biggest tools for anyone looking to purchase a home. However, brokers aren’t just good to help you find a good mortgage but to offer up real, independent advice. Of course, you probably don’t think mortgage advice is necessary especially if you are ready to take the challenge and purchase your first home but it might be. So, do you really need independent mortgage advice?

Get Unbiased Information

The big question everyone is asking is whether or not they need independent mortgage advice and the truth is, yes you do! Independent mortgage advice is important for a number of reasons. You are not only going to be told everything you need to know about mortgages and the process associated with it but you get unbiased views also. This is really important because it will allow you to understand fully. A mortgage broker Melbourne can advise you how the process works and you can decide whether you are happy with it. Read more at http://www.abc.net.au/news/2016-03-03/could-mortgage-broker-activity-be-the-new-housing-risk/7217340

Sort Out the Myths from Facts

There are a lot of myths surrounding mortgages and the loan process and that can put a lot of people off. However, when you get independent mortgage advice you can actually sort out the myths from the facts and that can give you a lot of help. Getting to know the facts about the mortgage process can give you the confidence to go ahead and take the next step. You absolutely need all the advice you can get whether it’s from mortgage brokers or an independent service line.

Independent Mortgage Advice  Do I Need It

You Need Independent Mortgage Advice

It doesn’t matter whether you want to buy a first, second or third home, you should always get independent advice. Independent mortgage advice is something every buyer will need and even though you probably don’t think you need it, think again. Getting a small portion of advice can be very useful and it can allow you to understand what direction you want to head into. You can also feel a little safer and at ease knowing a few basic things about mortgages. You might not be ready for the full commitment of a mortgage but getting advice from a mortgage broker Melbourne or another independent advice service can be worthwhile. Click here to read more info about independent mortgage advice.

A Mortgage Broker Melbourne Can Help

Mortgage brokers might not seem to be the best people to turn to when it comes to obtaining mortgage advice, though they can be. You have to remember brokers deal with all sorts of people and usually have a vast amount of experience which means they know what mortgage is going to be right for someone. If they seriously don’t think you will be eligible for a mortgage or don’t believe you are in a strong finance position, they will let you know. This is what they do; they guide and give independent mortgage advice to all who require it. You will get so much help and you do need it.

Be Sure Before Buying

Before you take the plunge and actually acquire a mortgage, you have to be fully aware of what is involved and be sure you are happy. Too many people don’t get independent advice and end up making a terrible mistake. This doesn’t need to happen to you; if you get independent advice from a mortgage broker Melbourne you can be sure about your next move.

The Biweekly Mortgage Scam – How To Avoid?

A mortgage broker will tell you that the biweekly mortgage payment scheme can be both good and bad. If you don’t handle your payments in the right manner the biweekly mortgage payments aren’t going to work for you. However, dealing with biweekly payments can in fact be a good thing, as long as you avoid a few simple errors. So, how can you avoid the biweekly mortgage scam? Click here to read more info about mortgage broker.

Set Up Regular Payments Directly To the Lender

If you want to avoid the so-called biweekly scam you may want to ensure you handle the payments. You should set up a payment system so that you personally send a check off to the lender without going through the bank. This is probably the very best way to help avoid the so-called scam and ensure your lender receives the payments. A mortgage broker can help you to set this system up or tell you more if you are interested in these payment types. Read more at http://www.foxbusiness.com/features/2015/09/02/biweekly-mortgage-payments-could-be-bad-idea.html

Is This A Good Idea?

Biweekly mortgage payments can in fact be extremely good for most home buyers. They have the ability to save a great deal of time repaying their loans back. For example, many home buyers have found they are able to make one or two extra payments per year; so instead of the standard twelve payments, buyers make thirteen or fourteen. However, there are many who don’t like the idea of the biweekly payments because they think it’s a scam but in reality it isn’t as long as the payments are handled correctly. It can be a good idea if you are willing to give it a try. Ask mortgage brokers Melbourne for more information.

The Biweekly Mortgage Scam – How To Avoid?

Avoid Automated Banking Systems

To be honest, when the bank sets up the biweekly mortgage payment you can easily spend more money than you save. For instance, some banks may charge you a set up fee and while the fee isn’t usually more than a few hundred dollars, it can still be quite costly. Secondly, you can’t be sure whether or not the bank is in fact directing the money as it should. It may be they are sending the money in one sum rather than two. Automated banking systems can work for a lot of utility bills, but sometimes for a mortgage payment, they don’t always work properly. You may want to talk to a mortgage broker about setting up one of these systems.

Avoid the Scams

There are quite a few little scams when it comes to the biweekly mortgage payments. However, hopefully you won’t fall victim to them. If you are going to choose to make payments every two weeks, you might find you can repay your mortgage back potentially five or six years ahead of time. This can make all the difference and it certainly will be something you want to give a lot of thought and consideration to. Biweekly payments don’t always have to be a scam, not if you handle them correctly. If you want to know more contact a mortgage broker or talk to a mortgage adviser.

Five Facts about Mortgage Underwriting Services

Mortgage brokers are crucial services to have when it comes to buying a home but they are only one service you require. Underwriting services are also something you have to consider and despite the fact you haven’t thought about these services, they are crucial because they can determine whether or not the mortgage is successful. The following are just five facts you should know about underwriting mortgage services.

You Have Professionals Working On Your Side

Usually, there is one person who handles the verification process of the documents presented; and it is the same person who approves or denies the loan. This person is the mortgage underwriter. However, while he has the final say over the loan, he gathers all necessary documentation from others. Loan officers and processors, along with the real estate agent come together working to ensure all facts are given. A mortgage broker Melbourne can play a part in this too but usually the underwriter has the final say. Read more at http://www.mpamagazine.com.au/

Helping To Prevent Fraud

Mortgage underwriting services can also help stop fraud in its tracks. There are special services that work with the underwriting services that not only help to stop fraud but prevent it from occurring also. Some of the services can help to check on the title, giving special reports on the home and clearing the loan conditions, too. Your mortgage broker Melbourne can give you more information here.

Five Facts about Mortgage Underwriting Services

Your Lender Can Bring In Their Own Underwriting Services

Most lenders will look to ensure they are loaning money to a good buyer and that means they will bring in an underwriting service. Some lenders will bring in a service they are closely associated with or to make the buyer feel at ease, will bring in a third party, unbiased underwriting service. These services will still do the same with the exception that they don’t have any ties to either party. If you are worried about this, why not talk to a mortgage broker Melbourne.

Mortgage Underwriting Services Check the Eligibility of Buyers

Underwriting services are the people who decide who gets a mortgage and who does not. However, this effectively means they take a very close look at every area within a buyer’s life. They will look at their income today, what type of job they do as well as take a very in-depth look over their history and credit. All of these things can of course affect a mortgage and it is the underwriting services that have the task to check important information. Mortgage brokers can of course pass most of the information on but the underwriting services must complete certain checks too.

All Buyers Go Through the Process

An important fact to remember is that each and every buyer, whether they are accepted for a mortgage or declined. This is a crucial step and something everyone has to go through. Though, this can be a great service to use simply because they ensure you are going to be able to handle a mortgage. Talk to your mortgage broker Melbourne and see what they think about this service.

Underwriting Services Are Crucial For Every Buyer

It doesn’t matter what type of home you wish to purchase or the amount it will cost, buyers have to go through underwriting services. These are quite important because they determine your eligibility which is what you need of course. If you are thinking about buying a home you will need to use mortgage brokers and mortgage underwriting services.