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home staging for profit, staging homes business training
home staging, staging homes for profit, home staging business training

Three Essential Parts of a Loan

by Barbara Jennings, CRS/CSS

Collateral

Collateral relates to the appraised value of your home and how the amount of the loan equates to the value of the home. As an example, a home that is appraised for $600,000, which has a loan balance of $420,000, is said to have a 70% loan-to-value (LTV) ratio. Lenders generally require a home to be appraised by someone they approve on first and second mortgages. The rates typically change in increments of 5%. The lower yur LTV, the better rate you will get.

If your LTV approaches 80% or higher, the lender may require mortgage insurance be paid which will raise the payments. The downside is that homeowners insurance is not a personal deduction to the IRS, but property taxes and interest you pay are.

Credit

You probably already know that there are 3 credit reporting agencies (repositories). They are called Experian, Trans-Union and Equifax. But they can be confusing to the average consumer. They each have a formula for computing the risk factor - otherwise known as your "credit score". What many people don't realize is that the score your bank, broker or other residential lender runs will be different from the "raw score" from the credit bureau. The credit report merges the scores from all 3 into one report.

Because the report is a "merged" report it incorporates "weighting". The mortgage history you have gets the primary weight, but they also factor in your credit history on other types of loans you have had. This is why it's so essential to make your mortgage payments on time. A borrower might have a raw middle score of 599, but because a mortgage loan is weighted more, a mortgage lender might get a score of 629 on you.

This is another reason why it's important to work with a professional when you apply for a loan, whether a business loan or a mortgage loan. A good professional knows how to apply and understand these concept for your situation, they can also give you advice and will know the best lenders to submit your application to, if they are a broker.

Mortgage Loans (part 1)


Barbara Jennings, is a leading home staging and interior redesign trainer. Author of 9 books on decorating, she is one of America's leading experts on how to start, manage and grow a home staging or interior redesign business.

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ANNOUNCING! HOME STAGING FOR YOURSELF! PRE-SALE

home staging for yourself

At last the perfect check list for staging your home. This brand new 80-page guide is so comprehensive, it will virtually leave no stone unturned in its quest to help you completely stage your home to sell for the highest price possible in the shortest time possible.

Developed for the homeowner as well as the professional stager, this professional check list guide is exhaustive, helping anyone to tackle the awesome job of determining what needs to be done to prepare a property for sale, and do it in a logical sequence that makes total sense.

No long dissertation on how to do it, it just give you in bulleted, outline format the "to do" list for every spot in your home, beginning at the curb and ending in the back yard and every place in between. You'll love it. So easy to use. So thorough.

If you're a stager, use the Guide to help you in your consultations. If you have a homeowner who insists on doing all the work themselves, give them the Guide as part of your consultation service, or sell it to them as an additional value-added product to augment your consultation. Absorb the cost as part of your consultation fee, or pass it on to your client.

If you're a homeowner and aren't working with a stager, use the Guide as your personal, custom guide for preparing your own home for sale. If you then decide to hire a stager, give them the guide with your personal notations included so that you make sure they do every task you have circled in the outline or detailed in the notation places.

The Guides are currently in transit and will be available as soon as they arrive. We expect an early run on them, so get yours immediately, as we may run out. Homeowners can purchase a single copy to assist them; professional stagers can buy them at a discounted price in small quantities.

For more details, visit: Home Staging for Yourself