Posted by admin on Jun 11, 2010 in
Credit Tips
While having your own home is an important part of your financial picture, too many people make decisions without thinking things over. Many people have what I would like to call a “pie in the sky” view of life. They tend to think that when things are going well it will always be that way; this is not always the case. Making a mistake with your mortgage is a fast way to end up with terrible credit. When some people find that they qualify for a mortgage, they make the mistake of going out and taking on new debts.
But doing this could be a big mistake. There have been cases where people who thought they would get a mortgage went out and got an expensive car, only to find out at the last minute that the mortgage couldn’t be approved. You should never assume that you will get anything until you actually have it. Another thing you will want to avoid is changing your job while you’re in the process of applying for a mortgage. When lenders look at your credit history and employment data, they want to deal with someone who has stable employment and good credit.
If you suddenly change your job while you’re in the middle of setting up a mortgage, this could give your lender the impression that you are not stable. They may then begin to see you as a risk. If you get into a situation where you have to change your job while applying for a mortgage, contact the lender and let them know what you plan to do. When you change your job, the lender wants to make sure you will be able to meet your payment obligations on the house. Between the pre-approval and closing stage, lenders need important information about your finances. Unfortunately, many people are already packing up to move into their new house during this time. Read more...
Tags: Avoid, Credit, Gaining, Mortgage, Tips
Posted by admin on Mar 5, 2010 in
Finance
By devoting extra caution and time, commercial borrowers can avoid serious business opportunity investment financing mistakes. The most obvious benefit will be to reduce the potential for critical commercial loan problems, both now and throughout the life of the business financing terms arranged.
A key factor that distinguishes business opportunity financing from other forms of business financing is the lack of commercial property ownership. Although the transaction will usually involve a long-term lease agreement, the buyer is acquiring a business that does not include real estate in the purchase price.
The two mistakes described in this article are more typical than expected by most commercial borrowers. While we will not be addressing all possible business opportunity financing problems in this article, we will include two of the most severe issues to anticipate and avoid.
Length of Business Financing -
A common mistake when acquiring a business opportunity is to finance the acquisition with business financing that expires within two to five years. One reason for this occurring is the failure to negotiate a longer-term lease, since it is typical for financing terms to expire with the lease.
A viable solution is to insist on a lease that is at least ten years long. This will facilitate business finance terms that can typically be for a ten-year period. One key factor that limits business opportunity financing to a ten-year period is due to the absence of commercial real estate collateral.
Use of Excessive Seller Financing -
Although nominal seller financing (such as 10-20%) can be helpful to a business financing transaction, attempts to finance either entirely or primarily with seller financing are generally inadvisable. There are several different issues which can result in this being a serious mistake. Read more...
Tags: Avoid, Business, Financing, Investment, Mistakes, Opportunity