Borrowers can get into difficulties with making their mortgage repayments for a variety of reasons. Changes in financial circumstances as a result of becoming unemployed or splitting up with a partner are probably the two most common causes of mortgage arrears.

Dangers of Ignoring Mortgage Arrears
Unlike most other debts, failure to make mortgage payments could result in you losing your property and becoming homeless as a result.

If you find yourself in a situation where your financial outgoings continually exceed your income, continuing to repay the mortgage on your home should be your main priority.

You should start to take action as soon as your financial situation starts to deteriorate. The longer you wait before you start to address the issue, the more likely it is that your debts will continue to rise and the less likely that you will be able to obtain a satisfactory outcome.

Communicate with your Mortgage Lender
Repossession of a property is not most lenders' preferred option when it comes to dealing with mortgage arrears. However, if you don't keep your lender in the picture regarding your financial position, your mortgage provider might decide that no other option is available.

If you do not have any significant assets that you can sell to raise cash, solving your mortgage arrears problem is normally facilitated by using one of two basic strategies (or a combination of the two):

• Increase your monthly income;
• Reduce your monthly spending.

If you can persuade your lender that you are able to take steps to 'balance the books', they're much less likely to foreclose on your mortgage and make you homeless.

Increasing Income
Often, only a very slight increase in income can tip the balance in favour of healthier personal finances.

Do you have the option, for instance, of working paid overtime in your current job? If so, work some more hours. Find yourself an additional part time job - bars, restaurants and market research companies are always looking for part-time staff, often to work at times which do not clash with normal daytime working hours. In many cases, employers are willing to take on staff with no prior experience, such is the difficulty in recruiting and retaining staff in some sectors.

Alternatively, if you have space in your home, you might consider renting out a room to someone. You can earn up to £4,250 per annum, without income tax liability, by renting out a room in your home. However, you might need your lender's permission, first. Consent is likely to be forthcoming if the lender thinks that this will improve the odds of the mortgage repayments being made!

Reducing Outgoings
Reviewing your spending habits can often lead to surprising conclusions. Try to stop using your credit cards, particularly if you are building up debts on them, which you are not paying off. Credit cards are not a 'quick-fix' solution, simply because of the extortionate rates of interest that they charge.

Paying cash for absolutely everything can be a sobering experience as it does make you realise just how much you are spending, in a way that 'paying by plastic' does not. It can help you to control how you match your income to your outgoings and also stops you adding to your expensive credit card debt.

By Paul Giles

Buying a home can be a long and laborious process. With the country in the midst of a credit crunch, the housing market faces an uncertain period.

After finding the property you want, sorting out the mortgage can be a confusing process, with lots of jargon involved.

It's always best to research as much as possible before committing to mortgages. But with so much jargon associated with the buying process it can be rather confusing.

Here's a quick guide to every mortgage-related fee you may encounter during your research:

Buying a home can be an expensive business, however not all lenders will charge all the fees listed above, it's advisable to research all factors involved in a mortgage contract in order to gain a better understanding of the financial commitment involved.

Choosing a mortgage lender does not have to be a difficult task, but it does have to be a task that you take very seriously and make serious considerations about before you do it. Mortgage lending is done by a number of different people in today's world and that is the reason why you must be careful; some people are good, some are bad and it is the careful consideration and shopping around for comparisons that you do beforehand that will ensure that you work with a lender that is good for you. While all lenders are different and offer different products, the ideal lender for you will have a number of different characteristics.

Experience

A good mortgage lender will have experience in handling people that are just like you. In today's age of the internet, it is impossible for a person to have a lot of experience as a lender without someone having written a review about them. Whether you are talking about a specific bank or else you are talking about a specific individual that is an agent for other lending activities, you are going to be able to find something online about them if they have a lot of positive experience with clients. You can even ask them right away for testimonials from clients they have had in the past and cross-reference the two pieces of information to get an overall view of just how experienced they might be.

Skill

Mortgage lenders are essentially people that are supposed to make you feel good about the mortgage that you have. This means that while part of their job is educating you on the mortgage products and options you have available to you, another large part of their job is in the field of making you feel good and confident about the mortgage product that you pick. This should be regardless of whether you follow their advice or not. Therefore, a good mortgage lender, regardless of the decisions that you make, will be courteous to you at all times and will make you feel very good about the decisions that you make. If your lender does not do this, then you need to be wary about continuing with them because quite often there is a link between someone's ability to make you confident and the confidence they themselves have in what they are saying.

Options

Lastly, a good mortgage lender will be able to offer you options. Most lenders work for a specific company, so this really has more to do with what the company has to offer rather than with what the lender has to offer and that is why it is down here at the bottom of the list. Options are usually given everywhere, but the places that you are likely to get the best options are from places like big banks. If you can get good mortgage options from a particular bank and then find a lender agent that possesses experience and skill, then you are going to be in a good position to make sure that you end up with a mortgage agreement that is truly good for you.

By Manuel Koch

Adjustable Rate Mortgage:

Almost self explanatory, the interest rate on your monthly repayment will adjust according to the bank rate. So your monthly repayment will go up and down as the bank or mortgage lender decides according to the fluctuations in the interest rate. Sometimes this can save you more money than if you were opting for a long term fixed rate. However, it is a gamble and the market need monitoring so that you can switch to a fixed rate in a hurry if needs be. This switching can also be problematic, as the optional fixed rate when you want to switch, will often be higher than a regular mortgage rate would be offering. So check the small print. (Always!) Experts actually stress that you check the small print carefully on this one and that if you take an adjustable rate mortgage out try it for a three year period only. Some adjustable rate mortgage contracts do have a clause written in that allow you to change fairly easily.

VA Mortgages:

VA stands for Veterans' Affairs and amazingly, twenty nine million American veterans and service employees can qualify for a VA (veteran) loan. These VA loans will usually be at an extremely competitive rate, are easier to qualify for, often need no down payment and do not require to be insured. VA loans also have other advantages and service personnel would be well advised to look into this opportunity.

Interest Only Mortgage:

A quick way to describe this is to say that it is like having a line of credit. You just keep paying the interest but the principal stays the same. This means reduced payments - which can be a good option in times of financial stress. However, it also means that you have never paid off your house! The length of the term can be anything up to fifteen years. Once the loan comes to full term, you then have to pay back the total loan principal. If the realty market has increased significantly then this may offer no problem.

High End Mortgage:

This may not affect Mr. Jo Average. These have come into play in New York where a second mortgage may be needed to 'top up' the finances. This is because the first mortgage has a government ceiling on it that may be lower than the house cost. Most people that require this type of mortgage will use specialist help as it is inevitably a higher interest rate and also requires a top notch credit rating.

FHA Mortgages:

FHA stands for the Federal Housing Administration. This is a scheme to insure a mortgage on a property. Its history goes back to the 1930s where it was used to help higher risk families obtain financing. Because they were paying insurance on their mortgage, the lender was not taking the risk, thus making it easier for people to buy their own home.

In Part 1: Fixed Rate Mortgages, Reverse Mortgages, HUD Mortgages, Assumable Mortgages.

There has been a large amount of media coverage relating to mortgages and more specifically the recent increase in interest rates. There are so many different types of mortgages that it could get confusing, but several of the most popular ones can be de-mystified.

Fixed rate mortgage:

This gives the borrower a feeling of stability as the payment amount will stay exactly the same throughout the whole period of the mortgage time. Most fixed terms are for five years or for three years, but in fact they are available for six months, and up to ten years. A fixed rate mortgage will allow for more efficient budgeting, as regardless of the increases (or decreases) in the interest rate, they will remain locked in for the duration. Some contracts allow for the possibility of changing, but there is often a large penalty payment for borrowers who want to alter the existing contract. Fixed rate mortgages are the winners if mortgage rates look like they will go up fairly significantly.

Reverse Mortgages:

This is a loan that allows you to access some of the equity that you have accrued in your home. It really isn't a mortgage because there are no immediate repayments. When agreed, you, or on your death your estate, will repay on the cash advances plus the interest. The owner of the house will still be responsible for repairs and property taxes etc. Many older people opt for this, so that they can remain in their own home and leave it to the children, but also have some spending money for themselves.

HUD Mortgages:

HUD stands for the Department of Housing and Urban Development. Part of HUD's mandate appears to sponsor loans to community and faith based organizations. There are a variety of programs offered, and if you think you can squeeze into this mandate check out the HUD web site.

Assumable Mortgage:

Here you will be taking over the mortgage that the previous owner already has in place on the house that you are planning to buy. This assumable mortgage is often a competitive interest rate (or else you do not want it), but it may require a large down payment. This will be because the previous owner has paid some of the balance off and usually the property has also increased in value. Beware of the odd clause that you would not wish to adopt - you will have to take the mortgage as is. This means that if you wanted to make a yearly lump sum payment off your principal and the option is not there, that is tough luck! In spite of the low interest rate that an assumable mortgage often carries, it is usually a bad financial move to take out a second mortgage in order to accommodate the assumable mortgage. If it is a very low rate, then you can do the math, but normal advice would be that if you can't find the higher down payment, then scrap it and negotiate a whole new mortgage.

In Part 2: Adjustable Rate Mortgages, VA Mortgages, High End Mortgages, Interest Only Mortgages, FHA Mortgages.

Yes it's true, we have lost a lot of good men and women due to the recent slow down in the real estate market. If homes are not selling, then there are no loans being made. Your eight year run of good luck and great business cycle has run its course. There are two things you can do. For those lucky few seasoned veterans, you will probably be fine. It's just time to tighten up the belt, cut expenses and hang in there for the next 5 years and the real estate market will come back, which means the loan industry will make a come back too. It's been that way for the last 30 years. This business goes through up and down cycles.

The second thing you can do is jump ship and get out. If you haven't got out yet, get out NOW, run, don't walk and get the heck out of there. What I am finding is that most mortgage brokers are jumping ship like people on the Titanic. The problem is people are scrounging just to find a job to pay the bills.

I know and you know that this is just temporary until you find your stride again. I admire those who do what they have to do to make things work. If that is you, then you obviously are person who can roll up their sleeves, sometimes, even swallow some pride, but the point is, you do what you have to do to pay the mortgage bill, to put food on the table and continue on with life. When you get lemons, you make lemonade. If this sounds familiar, then I am talking to you. I'm talking to you right now because up until now, you haven't been shown another way.

When you are down, the only place you can go is up. This is the time when you might need to do some soul searching. This is the time where you might need to be receptive to new ideas. This is the time in your life that you will thank me for sharing one the world's greatest secrets for making money.

By Ac Wan

Whether you are a first-time-buyer purchasing your first home or an existing home owner looking for a remortgage product, it is important to seek out expert mortgage advice to ensure you secure the right home loan for your personal circumstances.

Evolution of the UK Mortgage Market

The UK is often referred to as having the most sophisticated mortgage market in the world. A wide variety of products are now available from dozens of lenders where only a few lenders existed before.

Mortgages are now available to people with all kinds of credit histories and employment situations and are also available to purchase property for investment purposes. This situation is vastly different to several years ago when only a few lenders offered prime mortgage products to people with stable employment.

The UK home loan market has therefore evolved considerably in only a few short years and the need for expert advice has never been greater. Such advice on is no longer the sole domain of overbearing bank managers and because of this the financial intermediary industry has flourished.

Advice Providers

Because of the increased sophistication of the market it is wise to seek advice from either an independent broker or financial adviser when searching for your next home loan.

Independent brokers have specialist software that can scan the entire market in minutes, helping them to provide quality mortgage advice that will help you choose the right product for your individual circumstances. The right advice can help you save money over the term of the loan, whether it is for a buy-to-let property or your own home.

Likewise, independent financial advisers (IFAs) can sometimes provide advice on mortgages as well as ancillary finance products such as insurance and pensions. Often these products go hand in hand with home loans so it can be a good idea to receive advice from an IFA if you have one already.

If, for example, you are looking to purchase or remortgage a buy-to-let property your IFA may be able to provide you with advice on which products to apply for in addition to any investment advice they may provide to you.

If you are seeking a mortgage for your own home your IFA may be suitable for providing you advice on both your home loan and your home and contents insurance. You may also use the opportunity to receive advice on life assurance product or mortgage and income protection insurance.

Where to Seek Mortgage Advice

Finding a broker or IFA who can offer you mortgage advice has never been easier. There are thousands of registered brokers and IFAs in the UK, many of whom advertise on the internet and in the local press. There is also a wide range of online and offline directories which contain listings of mortgage brokers in most local areas. However, with the ease of communicating over long distances these days, it is not always necessary to receive advice from a local mortgage broker.

You may also seek out referrals from friends of relatives. Mortgage advisers and IFAs sometimes specialise in different fields of financial advice which means that not all advisers will be suited to providing you with information on the specific issues you are seeking advice on. A positive referral from a friend or relative may therefore save you the time and hassle of finding an adviser yourself and reduce the risk of inappropriate advice.

The buy to let sector has been one of fastest growing areas of the UK property market in recent years.

Both large and small investors have made good returns by investing in properties to rent out to tenants. Steadily increasing property prices and shortages of affordable housing, particularly in London and South East England, have encouraged a buoyant buy to let market. As a result of this surge of interest in buy to let property, many financial institutions that were not previously represented have entered the buy to let mortgage market.

Investment in the Buy to Let Market

The growth in the buy to let market has been driven by a combination of factors.

Changes in employment patterns and companies altering the way that they administer their pension schemes have resulted in an increasing number of individuals discovering that their pension income projections for retirement are considerably lower than was originally anticipated. Increases in property values, over previous decades, have also encouraged many individuals with a potential pension shortfall to invest in buy to let property in order to generate income to bridge the gap.

However, for the rental property sector to remain healthy, tenants are required to occupy the buy to let properties.

Tenants in the Buy to Let Market

In recent years, the demand has been stimulated by a number of demographic changes in the UK which, in turn, have increased the demand for rental property.

The steady rise in property prices has resulted in many first-time buyers being priced out of the property market. As a result, many of these people have ended up renting property as an alternative. Increasing numbers of divorces and relationship breakdowns have also increased the number of households in the UK and, therefore, the demand for rental property.

Increased levels of immigration, principally from the newer EU member countries of Eastern Europe, have also had a significant impact on the rental property sector, most notably at the cheaper end of the market.

Ironically, the increased demand in this sector is having a knock-on effect on another part of the buy to let market, the student letting sector. In some towns and cities with relatively large student populations, competition between students and immigrants has led to a shortage of lower cost rental property, resulting in rents rising significantly - potentially good news for the buy to let investor.

Future of the Buy to Let Market

The current uncertainties in the financial markets are affecting the UK property sector as a whole and the buy to let area is bound to be affected, particularly if property prices fall to any significant extent.

Some commentators are predicting meltdown. But the most likely scenario is that buy to let mortgage providers will become increasingly fussy about how much they will lend and to whom. Inevitably, these lenders will insist on stricter terms and conditions in order to safeguard their financial interests.

The long-term future of the buy to let market is inextricably linked with the rest of the UK property market and until the outstanding issues in the global market have been addressed, accurate predictions from a UK perspective are difficult to make.

If you're looking to find out the basics of home mortgage refinance, you'll want to know some of the tricks to make the process easier. Chances are, you're looking into it because you're unhappy with your current interest rates, or you'd like to think about changing your thirty year mortgage into a fifteen year mortgage, putting more money back into your pocket in the process. Here are some helpful suggestions to make your upcoming decision a little easier on both your time and your wallet.

The world of home mortgage refinance can be a tricky one if you don't have a lot of experience in the area. For this reason, you may want to enlist the services of a mortgage agent or broker. Though it will cost you some money in commission, the agent will be able to show you the differences between a good refinancing plan and a bad one.

Today's refinancing industry is much more competitive than ever before, meaning the choices are nearly endless. However, for the newcomer (and even for some who are experienced) it is hard to tell where the hype ends and the substance begins. An agent can help you separate the wheat from the chaff and save you some valuable money in the meantime.

Though it may be tempting to go for a home mortgages refinance through your current bank, don't jump in without considering your options. Websites such as Lending Tree can put you in the hands of many different lenders bidding to give you a new loan. This way, everyone wins and you can get the cheapest possible interest rates. Of course, you needn't go through Lending Tree. There are competitors with equal services and you can shop around on your own if you have the time and inclination.

Finally, know your market. This may not be the best time to acquire a home mortgage refinance program. The market goes through its ups and downs and it takes some timing to procure the best interest rates. If you go in while the market is hot, you may not get as good a deal as when it's a seller's market. Take all of this into consideration when searching for a loan and you'll be better off and get a much better refinancing deal.

When looking at getting a mortgage, there are some terms that you should familiarize yourself with so you know what your mortgage lender is talking about. Below is a list of the most commonly-used "mortgage phrases" and their meanings to help you understand them better:

Adjustable Rate Mortgage (ARM) - A mortgage in which the interest rate is adjusted periodically based on an index.

Appraisal - The determination of property value based on recent sales information of similar properties.

Asset - Valuable items, encumbered or not, owned by a person, corporation, or entity.

Biweekly Mortgage - Mortgage loan payments that requires a payment twice monthly, yielding thirteen payments per year instead of twelve. This significantly reduces the time a principal is paid off.

Closing - Final arrangements to transfer title of property as well as allocate charges and credits.

Closing Costs - Closing costs are fees paid by the borrower when a property is purchased or refinanced. Costs incurred include a loan origination fee, discount points, appraisal fee, title search, title insurance, survey, taxes, deed recording fee, and credit report charges.

Credit Report - A report to a prospective lender on the credit standing of a prospective borrower. Used to help determine creditworthiness. Information regarding late payments, defaults, or bankruptcies will appear here.

Debt-to-Income Ratio (DTI) - The ratio of aggregate monthly debt to aggregate monthly income.

Down Payment - Money paid by a buyer from his own funds, as opposed to that portion of the purchase price which is financed.

Earnest Money Deposit - A deposit made by a potential home buyer to show that they are serious about purchasing the property.

Equity - The difference between the current market value of a property and the principal balance of all outstanding loans.

Fixed-Rate Mortgage - A mortgage where the interest rate does not change for the life of the loan.

Good Faith Estimate - An estimate of charges which a borrower is likely to incur in connection with a loan closing.

Gross Monthly Income - The total amount the borrower earns per month, not counting any taxes or expenses. Often used in calculations to determine whether a borrower qualifies for a particular loan.

Interest Rate - The percentage of an amount of money that's paid for its use over a specified time period.

Lender - The bank, mortgage company, or mortgage broker offering the loan.

Loan - The principal, or amount of total borrowed money, that is repaid with interest.

Loan Officer - An intermediary between lending institutions and borrowers, loan officers solicit loans, represent creditors to borrowers, and represent borrowers to creditors.

Loan-To-Value Ratio - The relationship between the amount of the mortgage loan and the appraised value of the property expressed as a percentage. A LTV ratio of 90 means that a borrower is borrowing 90% of the value of the property and paying 10% as a down payment. For purchases, the value of the property is assumed to be the purchase price, for refinances the value is determined by an appraisal.

Mortgage - A legal document that pledges property to a creditor for the repayment of the loan, and is the term used to describe the loan itself.

Mortgage Broker - A mortgage company that originates loans, joining the borrower and lender for a real estate loan, earning a placement fee.

Origination Fee - The fee imposed by a lender to cover certain processing expenses in connection with making a loan. Usually a percentage of the amount loaned.

Pre-Approval - A term used to mean that a borrower has completed a loan application and provided debt, income, and savings information that has been reviewed and pre-approved by an underwriter.

Principal - The amount of debt, not counting interest, left on a loan.

Purchase Agreement - A written contract signed by the buyer and seller stating the terms and conditions under which a property will be sold.

Refinancing - The process of paying off one loan with the proceeds from a new loan, using the same property as security.

You'll probably hear several of these phrases from your mortgage lender when getting a loan. Whenever you don't understand something, be sure to ask him or her to explain it in layman's terms to be sure you understand the whole mortgage process.

There is an idea floating around out there in the ether. Some folks are actually talking about paying off their mortgages and getting out of debt for good. Poppycock! That's madness. What is so great about financial freedom anyway?

Face it. Your mortgage, for which you probably broke traffic laws to get to the closing, has become a ball and chain. The dollar amount of your home loan may have actually increased over the years, while the appraisal value may have gone down. This begins to look rather hopeless after a while.

Now, there are some friends of mine who claim that they do NOT want to pay off their mortgage. They say they need the tax write off. I just can't get my mind to go there. Saving a few bucks on taxes cannot compare to owning your home outright. You must eliminate your mortgage if you really want to build wealth, which begs the question.....how?

The typical comsumer has mortgaged the largest loan he could, right? Didn't you sit down and figure out your budget with your lender? They have formulas for this kind of thing, and we all went for it. They were right. Your mortgage is probably just the right amount to guarantee that you can make your payments....almost comfortably. By the way, they also know that you will probably be refinancing in the next 5-7 years, and that you will, indeed, never get out from under the beast that is called " closed-ended loan with front-loaded interest". It is a killer, make no mistake.

You have GOT to do something about it. So how do you pay off a mortgage? Simple. Just add more money. If you pay down your principle balance, they charge you less interest. If you make just one additional payment per year, you will save 5-7 years of payments at the end of your mortgage. Great. Where am I going to get an extra $1199 this year? You could scrape up $100 per month couldn't you? Sounds fun doesn't it? Not.

Suppose you could use someone else's money? Would that work? Yes, I think it would. In fact, if you could apply $5,000 to principle on your 30 year mortgage, just once, you would eliminate $28,000 in interest charges. Why, if you did that several times, you could pay off your mortgage in a fraction of the time! So, who is going to let you use their money, because most of us don't have the extra 5 grand sitting around. Ah, but perhaps you do.

See the whole time you are slaving away and making your mortgage payments, you are building equity. Not much at first, but it is happening. You also may have some built in value in your home or elsewhere. This is the beginning of leverage.

The bank has available to you, a completely different kind of credit. It is called "open-ended" credit. It is nothing like your mortgage.

Your mortgage is closed-ended credit. Money only flows in one direction. The Bank's. You have to make full payments, on time, and you can never ask for them back. The interest is extremely loaded onto the front of the loan, so that the bank gets paid their profit first, long before you actually make progress on your part of the loan. That is why banks have the biggest, nicest buildings in every town or city.

But open-ended credit, in the form of a Home Equity Line Of Credit (HELOC) or a Personal Line Of Credit (PLC) allows you to create real cash flow. Cash flows in and out, and every time it does, the balance in the account changes. The bank can only charge you interest on the actual daily balance. So get the picture here. If you were to borrow 20 dollars today, and pay it back tomorrow, you would only owe interest on 20 dollars for one day.

If you were to borrow, say $5,000, and make a payment to the principle on your mortgage today, and then deposit your $5,000 paycheck tomorrow, what would happen? Well, you would owe the interest on $5,000 for 1 day....about $1.75 - $2.00. But you cancelled $28,000 in interest charges on your 30 year mortgage! Whoa! Does this sound too good to be true? Yes and no.

The fact is, this is just math and money. Neither of them ever sleep. If you do the math right, this idea becomes fact. The problem is, it is a lot of math. You would constantly have to be monitoring your cash flow, expenses, fluctuations, and lifestyle. Life changes all of the time. You cannot just pull a dollar figure out of a hat, and go borrow some money from your HELOC. You could easily get yourself in an expensive financial hole. It would have to be a precise number, and that number would always be changing. Boy, if only there was computer software.......

Did I mention that there is computer software that can help you do this? Oh yeah. There are several companies out there that offer software of different kinds. Some companies are just banks who want to "help" you refinance, some offer a course on how these ideas work, others are legitimate software developers. Most of them charge $3500, so make sure you pick the right one. The big names in the business are: United First Financial, Sydney Financial Group, CMG, Free and Clear, and McCory. More are popping up all of the time.

Do your own research, and make sure that you are not getting stuck with nothing more than a fancy spreadsheet. You want a tool that is responsive and dynamic and flexible with your changing financial tides.

Call these companies at their customer support centers and see how long you have to wait. You want to deal with professionals. You want live customer support for life. You want free updates. You want a written guarantee. But mostly you want the best, most intuitive, interactive, simple to operate system, and not a static piece of software with an owner's manual. Don't fall for a 10 year projection on your payments. Keep in mind that the optimum numbers will change as your life happens.

If you do this right, you can be debt free in 1/3 to ½ the time. You will save a fortune in interest payments. You can discover a whole new way of thinking about money, like how to make other people's money work for you, instead of the other way around. Enjoy.

Thanks to Federal Regulators there is once again good and bad news. The bad news is more paperwork and tougher standards when applying for and ultimately purchasing your home. Creating tightened guidelines for stated income and piggy back loans and stricter rules for option arms and interest only is meant to create security for the lenders.

Good news for home buyers? YES! Ever since the days of School House Rock we have known that "Knowledge is Power!" nothing has changed. If the borrower knows the rules, they can be prepared to meet the lending institution requirements and come out ahead or no worse for the wear.

Here are the basic steps to survive and flourish under the new "Rules"

1. Be prepared to have payroll stubs and or tax returns available. Instead of using stated income, using actual income will ensure that you get the right size payment and decrease the chances of default later on.

2. Keep your credit report up to date. Check for errors in information. If you find errors contact the reporting credit bureau in writing in order to get the error corrected.

3. Keep credit card payments current. Pay off your credit cards as often as possible in order to help lower your debt to income ration. This will aid you in getting a loan and improve your credit.

4. Once you have applied for a loan, it is important that you do not make any major purchases as it may stop your loan from being approved. Make all purchase after the closing and funding of the loan.

Although initially the new rules may seem insurmountable, the reality is preparation is the key. The new rules will stabilize the demand for real estate and slow the price increases on property. With real estate becoming more affordable, there will be less default and increased access for potential home buyers. Welcome Home!