Posted by Elizabeth Dennis on May 8, 2011 | 1 Comment
If you are planning on buying a home, chances are you will need a mortgage lender. And today, there are more options than ever when trying to find someone to qualify you for a loan. One of the more popular options now a days is to use mortgage broker. There are several important differences between using a mortgage broker and a traditional loan officer from a bank. In addition, there are also pros and cons associated with each one.
Today, most mortgages issued actually come from mortgage brokers. These people are there in order to marry a buyer with specific loan. There are many different services that brokers will undertake including assessing borrower’s credit worthiness, finding a product that matches the client’s needs, gathering the required documentation, completing the lending forms, submitting materials and explaining any legal issues. For their services, many brokers will charge a fee of one to three percent of the loan amount.
As of 2004, there were approximately 53,000 mortgage brokerage companies in the United States. These companies employed almost a half million people and accounted for 68% of all residential loans. In order to keep the mortgage brokerage industry on the up and up, there are more than ten federal laws, five federal agencies and forty-nine state laws or licensing boards keeping an eye on the business.
The most important service provided by a mortgage broker is to act as a go between for the lender and the buyer. As a result, they will work with dozens, if not hundreds, of lenders as a freelance agent. When a buyer comes to a mortgage broker the broker will analyze the client’s credit to see which lender best fits the buyer’s needs. The loan application is then submitted to several lenders and the one that offers the best terms is then chosen. The most talented mortgage brokers can generally find a loan for just about any type of credit or credit history. Once a buyer is presented with the choices for lenders, be sure to shop around and make sure that the terms are reasonable.
As with most things, there are some disadvantages to working with a mortgage broker. At times, a buyer can get overcharged for the broker’s fees and the broker can make false promises of being able to find anyone a reasonable loan. In addition, they may not have access to certain bank programs that a traditional lender would have. Finally, when dealing with out of town lenders, they might not understand local heating or septic systems, thereby slowing down closing until all of their questions have been answered. At these times, using a local bank may be the way to go.
But there are still many advantages as well. A mortgage broker will do all the heavy lifting for you and can look at wholesale rates which will typically be lower. They can also finance tricky deals and may be the best option when trying to finance unique or commercial properties. Mortgage brokers can also be easier to get in touch with and have less levels of bureaucracy.
Posted by Elizabeth Dennis on May 2, 2011 | No Comments
If you have liability insurance, you are probably familiar with bodily injury coverage. This coverage allows your insurance to defend you in legal matters in cases such as accidents. You always want to have bodily injury coverage in your car insurance policy.
Many people do not understand what bodily injury coverage actually is. Bodily injury coverage is the part of your insurance plan, which covers you in cases such as getting hurt in an accident, getting sick and needing prolonged care and even in cases where you possibly die in a car accident.
If you are in an accident, bodily injury coverage will ensure you are taken care of in times of need when you are involved in accidents, which are not your fault. No fault accidents happen on a daily basis, you want to make sure you are prepared because you never know what can and will happen.
Bodily injury coverage will pay for costs of surgeries or medical care required because of a car accident. Hospital fees are outrageously high and if you do not have the bodily injury coverage clause in your car insurance coverage, you could be stuck with loads of money to dish out to the hospital for the care you received due to a car accident.
If you need care for a home nurse for a prolonged period, the bodily injury coverage insurance will pay for this. This is also expensive over a period and without bodily injury coverage, you might have to pay for this type of particular care.
If you lose your vehicle due to a car accident, bodily injury coverage will help with making ends meet during this period of your life. If you are killed during an accident, your bodily injury coverage will pay for the expenses entailed with the car accident and sue the other driver for expenses for your family.
Your bodily injury coverage will pay for an accident even if you are at fault but there is a “cap” on how much they will pay. These types of accidents occur often because no one is perfect and bad things do happen to good people.
Every state mandates all car owners to carry minimally liability car insurance. Check with your local DMV (Department of Motor Vehicles) to find out your own states mandated limits. You want to ensure that you are driving legally on the road as well as being covered during accidents, no matter if they are your fault or someone else’s fault. You cannot afford to drive your vehicle without bodily injury coverage insurance.
Contact your insurance sales agent and inquire about bodily injury coverage for your vehicle. If you already have this coverage, feel free to ask your insurance agent what precisely does it cover and not cover? If you do not have this coverage, you will want to add bodily injury coverage to your insurance policy. You simply cannot afford to not have bodily injury coverage for protection of not only your vehicle but for you.
Posted by Elizabeth Dennis on April 25, 2011 | No Comments
Car shoppers are consistently offered numerous things by dealerships upon obtaining car loans for new cars. One of the things offered are extended car warranties. Dealerships are known to offer car shoppers what is called vehicle service contracts also commonly called an extended warranty.
These look great initially but ensure that you always look at the fine print. Most of these contracts require you to bring your car back to the dealership for repair work. When you buy extended warranty plans from a particular dealership such as this, you might be left hanging if that particular dealership goes out of business.
Some will say that when you buy extended warranty plans, it’s equivalent to throwing your money out the window. Extended warranties are great if you need them, if you do not, it can prove to be expensive and a waste of money. Some car shoppers opt for extended warranties because they want peace of mind.
Make sure you review your coverage plan carefully and choose the right plan that fits your needs. It is obvious with the high cost of repairs that a coverage, which covers minor repairs that come along with normal wear and tear, is wise options.
Do not be lured into cheap extended warranty plans. It is true that you get what you pay for and you do not want to be stuck with having a cheap extended warranty plan that does not cover your repairs when you need it most.
Some people will buy extended warranty plans simply because it is the cheapest. This is not always the best way to go when seeking extra coverage for your vehicle, in fact, it could prove more expensive in the end if your vehicle breaks down a lot or you gain a major repair such as an engine or transmission and your cheap plan does not cover this.
Cheap auto extended warranties do not cover many minor repairs and when you do file claims with them, they will leave you in the cold. Some companies will require you to pay for the repairs yourself while reimbursing you later. You do not want to do business with these types of warranty companies. You want to buy extended warranty plans from a company that will take care of you when you need them.
It is wise to gain as much information on warranty companies as possible before you buy extended warranty plans. You can search the web or go one-step further and contact the Better Business Bureau. If you cannot find any information on a particular company, it is wise to buy extended warranty plans from that company.
You must be warned that there are chances when you buy extended warranty plans for your vehicle, no matter the company you buy it from, will not always cover everything that goes wrong with your vehicle. If you do not perform required oil changes and other required maintenance, your auto warranty company reserves the right to pay for any repairs, which are a direct result of your neglect of your car. Make sure you keep up on the required maintenance of your car.
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