Even today, in these challenging economic times, there is no shortage of investors, and developers seeking commercial real estate mortgage loans. The problem is lenders are not funding deals like they were just a year or so ago.

If you want to better your chances of securing an approval and closing your deal, bring these things to the table.

Cash = Commitment

100% financing is extinct. Some borrower cash in the deal is now a strict requirement of all legitimate lenders, including private and “hard money” lenders. From a lenders perspective, the bigger the borrower down-payment the better, but, if there is enough equity in a building or project, lenders will work with as little as 10% down. They might build in a mezzanine facility or structure in some preferred equity, but, quality deals can get done with small amounts of borrower cash. That-being-said, don’t ask for 100% financing. Lenders today are looking for commitment and nothing represents commitment like cash in the deal. (Note: If a lender, or broker tells you they offer 100% financing, beware, chances are good that, in-the-end they won’t be able to fund and you’ll lose your deposit and due diligence money.)

Credibility

Lenders are looking for credibility. Now is not the time to ask a lender to fund your experiment. Don’t try to buy your first hotel during a credit crisis. Finance companies will ask about your experience in the hospitality industry and will be nervous if you lack a track record in the industry. The same goes for retail, office and industrial. Now is the time to go with what you know or partner up with an investor with experience in a particular industry you’re trying to break into. Trust me; lenders are going with what they know and they know first-timers are high risk.

Credit

You don’t have to have perfect credit to get approved for a commercial loan, but your credit report better not portray as a dead-beat either. If you are credit score challenged, be prepared to be able to mitigate that negative factor with either a co-signer, a larger down payment or cross collateralization of other real estate you own. Lenders don’t know you personally but they know precisely how many times you’ve been 15 or more days late on all of your mortgages and all of credit card payments. They look at your credit report as a report on your financial character. This may not always be fair, but to be fair to lenders, it’s really all they have to go on.

Equity

Equity is protection to a lender. If you can show equity in a building or a tract of land lenders will feel more secure and will be more likely to place the money in the escrow account and schedule a closing date. There are simple ways to increase a lenders protective equity (I said simple, not easy). The most obvious is to make a bigger down-payment; another is to ask the seller to carry-back some portion of the debt. One effective method to also consider is to increase the value of a property by taking steps to getting it fully entitled. Sometimes some simple engineering can drastically increase the value of a project. A change in zoning has been known to double real estate values and can often be accomplished simply by petitioning the local zoning authority. Inexpensive site work may also have a dramatic effect on how a bank views a property and they will definitely appreciate your spending money on the deal.

We are facing challenges today in the credit arena, but deals are still getting done, buildings are being bought and developments are still moving forward. If you want your deal to be one of the ones that gets funding take steps to show the lenders what they want to see.

MasterPlan Capital LLC – Financing for all types of Commercial Real Estate – Purchase / Refinance / Development – Simple (1 page) Application Online at: www.masterplancapital.com Quick Answers – Fast Closings – Commercial Mortgage Loans From $1MM – Equity Financing / Joint Ventures From $10MM

Glenn Fydenkevez is a former officer at one of Wall Streets biggest investment houses. His company, MasterPlan Capital, is involved, nationwide, in the financing of and investment in commercial real estate. E-mail him at glenn.fydenkevez@masterplancapital.com

The definition of a “Jumbo Mortgage” is a mortgage loan whose total amount is higher than the standard conventional limits. Jumbo loans are simply mortgages for higher-than-normal loan amounts. The gold standard of “normal” in the lending industry is what is called a “conforming, conventional” loan; that is, a loan that conforms to the secondary market agencies’ conventional underwriting requirements regarding credit, income/asset verification, property features, etc.

As of February 20th, 2007, the maximum amount for this “conforming” loan is $417,000 for a single unit property, $533,850 for a 2-unit property, $645,300 for a 3-unit property and $801,950 for a 4-unit property. The conventional limit for second loans is $208,500 and all loan limits are 50% higher for properties in Alaska, Hawaii, Guam, and the U.S. Virgin Islands. These limits change periodically with the real estate market.

Most lenders are willing to lend over and above these conforming amounts, but the larger jumbo loan amount translates into a larger risk for the lender should you default on the loan. Simply stated, the more the bank lends, the more it stands to lose if something goes wrong and they need to foreclose on that property.

Because the lender is taking an increase in risk with the size of the loan, they will typically charge a higher interest rate than they would on a loan that is within the “conventional” loan limits. All lenders vary in the premium they add for jumbo loans, but a good rule of thumb is to expect to pay an interest rate about 0.5% higher than you would for an otherwise identical conforming loan.

With conventional lenders, these jumbo loan amounts are set in stone, particularly if they are backed by Fannie Mae or Freddie Mac. In other words, a mortgage for $417,000 from one lender at 6% will almost always be about 6.5% for a loan of $417,001 from the same lender.

FHA mortgage loans for Buying a Florida Home or FHA home loans to Refinance is simple with FHA mortgage Programs.com FHA home loans allow first time home buyers and current home owners buy a home with less than 3.5% down or FHA home mortgage refinance up to 96.5% of the homes value. Research FHA loan programs which help you with buying a home with no money down, learn about FHA loan qualifications, or get a free FHA home loan prequalification. www.FHAmortgagePrograms.com will show you the advantages of FHA home loans, why FHA loan qualifying is easier and how the regulated closing costs of FHA loans protect you.  Get Started Now www.FHAMortgagePrograms.com Need a Florida mortgage? Consider an FHA loan THE Government-insured Federal Housing Administration FHA loans now make up about 25% of the Florida FHA mortgage market. Here are five things you need to know about FHA before purchasing a Florida home.    -1. Chances are good that you’ll come across one. During the heyday of no-money-down Florida mortgage lending, you were unlikely to have a Florida buyer using a government-insured Federal Housing Administration (FHA) mortgage  loan, which lets borrowers purchase a home with a down payment of as little as 3.5%. and the seller to pay up to 6% of your FHA closing cost. Now FHA home loans  are the only game in town for Florida homebuyers who can’t put down the minimum 10% many banks require to get a conventional loan. About a third of Florida buyers have 10% or less saved for a down payment on a new Florida home, according to a recent Zillow.com survey. No wonder FHA loans for Florida homebuyers have skyrocketed from 3% to a whopping 25% of the market. While you may not need to take out an FHA mortgage to purchase your next Florida home, there’s a good chance you’ll be selling to  to a Florida homebuyer that does. 2. Borrowers can qualify with any income. Historically FHA loans have gone mostly to low-income Florida mortgage applicants. But, in fact, there’s no cap on what a Florida homebuyer can earn to qualify for an FHA home loan. “The overriding factor that we look at is the ability to make the mortgage payments. Florida loan limits may be higher than you think too: Though the max is $423,750 in Miami Dade, Broward and Palm Beach county areas , buyers can take up to $729,750 in high-priced Florida mortgage markets like key west Florida. . 3. Expect a tough appraisal. The Florida  home will need a clean bill of health from a government-approved FHA appraiser, and the seller must fix any issues before a buyer can close on the Florida mortgage loan. A few years ago the FHA eased up on repair requirements for minor problems like missing handrails or cracked windows. But it still won’t budge on leaky roofs or mold damage. If you’re selling a Florida home, know that an FHA appraisal stays on record for 6 months, even if the deal goes falls though  or the buyer switches Florida mortgage lenders. “Get one low FHA appraisal and you’re stuck with it. 4. These FHA loans are pricier than they seem. Nominal rates on FHA mortgages are comparable to those Florida conventional loans. But hefty fees on the FHA variety up the cost. There’s a 1.75% upfront mortgage insurance premium charge as well as a 0.55% annual insurance premium for five years and until the principal balance hits 78% of the sales price or the FHA  home’s appraised value. If you’re buying a Florida home, ask if the seller to pay up to 6% of your closing cost including prepaid taxes and insurance. 5. They’ve gotten easier to obtain. FHA mortgage loans  once had a well-deserved rep for onerous paperwork and a longer, more difficult closing than conventional Florida mortgage  loans. But thanks to a new automatic underwriting system and the looser repair requirements, Florida FHA mortgages take only a few days longer than conventional loans to close, says Thomas Martin of www.FHAmortgagePrograms.com FHA mortgage loans still require written documentation of income, including pay stubs and tax returns. But stricter underwriting across the board means that you will probably need such paperwork no matter what type of loan you get.  

In the mortgage business, you need to always have a steady stream of new potential clients. Since the average person does not need a new mortgage all that frequently, repeat business is just not as frequent. Fortunately, there are many good companies out there that will trade mortgage leads. Figuring out which ones are the best will require research on your part, but that being said, you can’t really know what kind of mortgage leads you’re getting until you start to buy them.

Buying leads in bulk, fresh and with a live transfer can work, but it might result in a case of working hard, rather than smart. For example, if you make it a habit to regularly buy 50 leads at $2 per lead, you may close one mortgage loan out of all those leads. Sometimes it will work, and sometimes it won’t. That can add up to a lot of frustration (and extra cost) very quickly.

Buying fresh (real time) leads can work more cost-effectively. You could take the same $100 you would have spent in the above scenario, and instead get about three to five fresh leads consisting of purchase leads and refinance leads. You’ll probably want to set up a filter beforehand: specific to state, type of loan, credit, Loan to Value, loan amount, and so on. When a lead comes in and matches the filter, it is automatically streamlined straight to your email account, and is only about ten minutes old. Talk about a fresh lead!

Another approach to try is the live transfer lead. This is an alternative to getting fresh leads through email. This might sound better than it actually is in reality however. Picture it: you sit at your desk, and wait for the lead company to transmit customers to you via telephone. However, what if you step away from your phone? If that should happen, the call will end up going into your voicemail, or worse, the potential customer will hang up without leaving a message. This could also amount to working harder instead of smarter. You really don’t want to be held hostage at your desk by the phone.

Before investing with companies to find the best mortgage leads, perform proper due diligence. Ask about and understand the companies’ terms of service, and find out what their return policy is. Call the company and speak with a sales representative, and don’t be afraid to ask for a free trial of their services. Does their service at least include a free lead or a credit towards your first deposit? If the company is truly confident of the quality of their leads, then they should not have any problem accommodating you at all.

Many loan officers have been successful with all the different lead types mentioned above. Some may work fantastically for you, while others may wind up being a dud. If you find that making a particular type of lead work for you is too much of a struggle, just pick a different kind of lead!

Income verification: for this, if you are in service, you need to fill up w-2 forms, your current pay package, and tax returns. If you are self-employed, you need to submit your profit and loss statements and tax returns for the past two years) as well as extra income that you might have. This includes overtime, commission, veteran benefits, social security, etc.

Once you have submitted your income proof, your lender will verify your income and also your assets, both movable and immovable. For this, you need to submit a list of all bank account details, account statements, list of stocks, investments, and saving bonds, etc.

To judge your eligibility for a mortgage loan, your lender will also verify your credit history. For this you need to submit copies of credit card statements for the past six months, a list of all consumer debts, which includes furniture, student loans, car loans, and other installment loans with the creditor’s contact numbers and addresses. Other than these, you also need to show evidences or copies of rental payments or mortgage.

Have these documents ready and get your home mortgage loan at the earliest. You should, however, keep the fact in mind that requirement for documents that you need to submit might vary from lender to lender. Hence, ask your lender well in advance about what document take into account that different lenders may have different information requirements. For this reason, ask your lender well in advance about what document you would have to produce.

Myself webmaster of www.castlemortgagegroup.com dealing in all type of mortgage loans in Florida, Georgia & Alabama with home equity loans, Florida Home Loans, refinance loans, constructions loans.

Anyone who has gone through the process of buying their first home knows the combination of thrill and terror that can come with the experience. If you’ve never borrowed money for such a huge investment, feelings of confusion mixed with stress should not be a surprise. If you’re a newbie home buyer, one of the most important first steps you should take is to remember that you should approach the entire home buying process with care and do your research before even looking at a house.

Here are a few tips for finding your first home mortgage loan:

Decide early on if you should apply for your mortgage with a direct lender or a brokerage company. If you choose to use a lender you could very well save some bucks since you’ll avoid paying commission to brokers. But keep in mind that brokers have the knowledge and resources available to find mortgage lenders that best suit your situation. Brokerage companies will also deal with various administrative details that come with getting a home mortgage. This is usually part of what your fees include.

Do careful research and find out all about any programs that you may qualify for. If this is your first mortgage you may be able to take advantage of programs such as FHA or VA and other specialized federal loan programs depending on your location. Your mortgage lender will have detailed information on all of these different options available for you. They could be very beneficial to you with first time home buying and should not be ignored.

Another important step in the home buying process is pre-qualifying for your first mortgage. By exploring the pre-qualification process you will know from the get go exactly how much house you can afford and will be able to weed through the different homes on the market at the time. There’s nothing worse than falling in love with a house and then finding out that you can’t qualify for the money needed to buy it. Lenders both locally and online have free mortgage calculators that enable you to see how much you’ll spend each month in payments. Take advantage of this important tool before looking for a home.

Remember, during the mortgage loan application process there’s no such thing as a stupid question. If you don’t understand a term or any of the jargon involved in real estate, then by all means ask your lender or broker for clarification. You’ll need to know the difference in the types of interest rates and the many fees that may be charged. You can possibly avoid paying certain fees by educating yourself and shopping around.

Although buying a home seems like a daunting task, don’t forget that it’s just like buying anything else in life, only one of the bigger investments you’ll make. Go into the process with your eyes wide open. Know what you’re getting into. Do your research and you’ll get a good deal. Make your first home purchase and finding your first home mortgage loan as enjoyable as possible.

Well today I want to speak about how companies in the mortgage industry do their marketing and lead generation. This is an art because of course their main job is to find new clients to be able to give a real estate loan. Mortgage companies can make good money for each person or family who decides to take out their new home loan through that company.

A company that is successful in the lead game is usually good at other parts of their business and often has a nice budget to work with. Not only will they have a talented team of strategic marketers working with them they will also have deep pockets to spend on all sorts of targeted advertising.

One of the first steps to take if you are serious about getting high quality mortgage loan leads and coming across professional you are going to want to set up a very professional looking webpage that represents your company and lists clearly all your services that you offer including what kind of rates you give and why people should work with your firm over others.

Make sure that with this website you have some method set up to capture potential customers email address or contact information. Offer them a free report or electronic book about mortgages in return for them signing up to your list.

There are also other ways than just a good looking website that will help your company increase your chances of getting and converting people into taking out mortgages with your firm. You can use companies like Google or Yahoo to do targeted pay per click advertising on the internet.

The reason this form of advertising to find quality leads is because you will most likely get only targeted traffic. You can also target just the region you are living in which is referred to as geographic targeting. Geo targeting is great because say you live in New York and offer mortgages there you will only get web surfers clicking on your ad that are coming from New York.

Last but not least and while we are on the topic of getting good leads on local and prospective clients for your lending business don’t forget about traditional media like magazine and even good old fashioned newspapers. These can be a great way to target the market with people right in your area that may be looking for the mortgage solution that you are offering.

If you have taken credit to buy a new home or car, or personal loan, then it is necessary for you to check the interest rate on regular basis. If at some point of time you find that the loan rate is getting cheaper, then it is wiser to get the exiting loan refinanced. Some of the advantages of getting your existing mortgage refinanced are:

* Lower Interest rate/ Mortgage rate relief: If you have, plans to stay in your existing home for years, then refinancing will help you lower monthly mortgage payment.

* Many homeowners choose to go in for short-term mortgagee. This will help them in paying the principal amount only. Hence, you save money and by the time you retire, you get more savings.

* With the help of cash out refinance you can tap the equity accumulated in your home. This can be used for paying other debts, pay for your college fees, make home improvements, or pay for other credits you have taken.

* Refinancing helps to save dollars in long term

* Here with the increasing interest rates you can convert your adjustable rate mortgage to fixed one. This will help you to save money and have peace of mind.

But before refinancing your needs, it is wiser to look at the other side of the coin. When you get loan refinanced, then you might have to incur certain expenses ( like fees for making the documents, etc.) If you have the motive to pay low monthly payment for loan, then see that some saving also takes palce. This will help you to overcome refinancing cost well.

Second thing you should consider is taxes. When you pay interest on mortgage, some tax is deducted. Hence, consult a tax advisor before you plan for refinancing. For more information about the same you can visit mortgage loan refinancing services provider as well.

Getting a home mortgage loan can be one of the most exciting experiences in a person’s life but if you want to be approved, there are some things you need to know. The following hints will make the process easier and less stressful.

Hint #1: Get Pre-Approved

Too many buyers make the mistake of shopping around for a home before they start looking for a lender. The result can be disappointment. For one, you may not qualify for enough of a home mortgage loan to purchase the places you are the most interested in having. In fact, you might be shocked to find out you don’t qualify at all. With the tightening restrictions now, many people who thought they would breeze through the home mortgage loan approval process have found out the hard way how wrong they were.

Another advantage of getting pre-approved is that you have more to bargain with. Let’s say you see a great house but it’s about $15,000 more than you want to spend. If you’ve been approved for a certain amount, you can use that as leverage to get the price down, especially in this market. Also, you’ll be more likely to find a good pricing area in which to focus your search efforts – that means you won’t have unrealistic expectations.

Hint #2: Have Required Documents Ready

When you go into the home mortgage loan process, you might think you’re trying to get government security clearance or applying for a passport. You are required to provide a great deal of documentation. For example, you will obviously need to prove your identity using identification and social security cards. Be sure to have both. Make sure your license or ID is current.

You’ll also need proof of employment in the forms of pay stubs. If you don’t have pay stubs, acquire a notarized letter from your employer showing when you were hired, how often you work, and what you earn. Make sure this will be sufficient for your lender. Make sure you also have copies of your taxes for the previous two years. If you don’t keep copies, you can contact the IRS who will either mail or fax you copies. There is a slight charge involved in most cases.

Make sure you also have information about your current landlord or mortgage. The lender will want to see this as well.

Hint #3: Correct Errors on Credit Report

A few months before you decide to apply for your home mortgage loan you need to request free copies of your credit report from all three of the bureaus – Equifax, TransUnion, and Experian. Review those reports carefully to make sure no mistakes are present. There’s a good chance you’ll find something wrong but, hopefully, it will be something small and inconsequential.

If you do find any serious mistakes, immediately write up a letter to the reporting agency and work on getting the mistake corrected. Any negative errors could end up ruining your chances of getting a home mortgage loan. 

Finding a “no money down” mortgage loan is actually easier for someone with poor credit. Subprime lenders are more willing sign off on these deals than conventional lenders. But before you jump into a mortgage contract, make sure you understand the terms and are getting a good deal.

Benefits Of A “no money down” Mortgage

A “no money down” mortgage allows you to buy a home with little to no money due at closing. In essence, you are trading a rent payment for a mortgage payment, which makes the jump easier. However, you will pay a higher interest rate for these terms.

By not paying closing costs, it makes getting out of a home much more cost efficient. For example, say you pay $6,000 at closing for your traditional mortgage. In a year, you have to move for a number of reasons. You are out that money, even with a lower interest rate. With a “no money down” loan, you wouldn?t worry about that losing that money.

What “No Money Down” Means

“No money down” can mean two different things when it comes to mortgages. With some lenders, “no money down” means that no down payment is required, but closing costs are. Usually closing costs will equal 3% to 6% of the loan amount, which equals a couple of thousand.

Other lenders describe home loans where no money, not closing costs or down payments, is required. Instead, closing costs are included into the principal amount, usually up to 2% of the loan?s value.

Locating “no money down” Lenders

With adverse credit, you will want to shop around for a subprime lender. Online you can find hundreds of financing companies, many with competitive financing rates. If you don?t know where to start, check out a mortgage broker site. They connect to several lenders and can get you mortgage quotes in minutes. Then expand your search as you come across lenders.

When you request a loan quote, be sure to select the “no money down” term. This may mean checking a box or selecting a specific loan term. Just be certain you know what “no money down” means with each lender before making a decision about a financing package.