Will You Qualify for that New Mortgage or Re-Finance?

The Federal Reserve continues to raise short-term interest rates, but long-term mortgage rates are still at 40-year lows. This may be one of your last opportunities to lock in great interest rates below 6%. So, we put together a brief checklist for you to follow in order to make sure that the process goes smoothly for you.

First, it is a good idea to check your credit report to make sure there will be no surprises when your lender takes a look at it. You can get a free copy of your credit report and credit score at http://www.trimyourdebt.com/GetYourCreditScore.aspx. Remember a score above 700 usually means you will get the best interest rates. Usually a rate below 680 is considered to be of higher risk and so the lender requires a higher interest rate to mitigate the increased risk of loss.



If you find any incorrect information in your credit report, be sure to get it cleaned up before applying. Cleaning up negative items from your credit will also ensure that you get a better credit score. For information on how to get your credit cleaned up before you get that new mortgage, visit http://www.trimyourdebt.com/CreditRepairGuide.aspx.

Next, list out all of the debts reported on your credit report and add up all of the monthly payments. Also include what your payment would be with your new mortgage. In order to estimate your monthly payment with a mortgage interest rate of 6%, you can use $6 per thousand dollars of mortgage. So for example, if you need a $150,000 mortgage, then multiply 6 times 150, which equals $900 per month. Add this payment to the other monthly debts listed on your credit report and this will be your total debts.

Now take out your most recent paycheck stubs to do a debt-to-income calculation. The calculation is done by taking the total debts from above and dividing this number by your gross monthly income. The ratio should be less than 38%. If your ratio is too high, then you need to do your best to start paying down your debts. The quickest way to do this is to follow the debt plan that is available at http://www.trimyourdebt.com/welcome_budget_short.aspx.



The final item that you will need to provide to your lender is documentation that shows your assets such as bank account statements, 401(k) statements, any cash value of life insurance, etc. Your lender wants to see where your down payment will be coming from.You are now ready to check for the best rates and start looking for a lender. To get free rate quotes with no obligation and no credit check, feel free to visit us at http://www.trimyourdebt.com/MortgagePlanner.aspx.

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About the Author
Don Blackhurst is the co-founder of TrimYourDebt.com (http://www.trimyourdebt.com),/ which provides free budgeting tools, debt planning, and credit help. He has been working in the banking and finance industries for over 15 years and has an MBA with an emphasis in Finance and Econometrics. Written by: TrimYourDebt.com

Your Competitors Offer Leasing Finance, you should ask yourself WHY?

The simple answer to this question is that they are offering finance to their customers as a sales, marketing & deal closing tool. It cements their relationships with their customers because leasing finance can usually be offered the same day. The customer is then more likely to return in the future because of the financing is arranged with minimum hassles and no time consuming trips to the bank manager. This type of financing arrangement is known as a “Vendor Program”

Can I Offer Finance to my Customers?

Again, the answer to this question is yes. You can benefit from establishing a relationship / partnership with an appropriate lender and start taking advantage of the sales & marketing opportunities and shortened sales cycle. Your Company, Sales Team and Customers all benefit from a Vendor Program arrangement that can be set up with minimal training and effort on your part.



So now, let us take a look at the benefits in a few more details

Sales Benefits

Finance adds value to your product, by including finance as part of your whole package you make it easier for your customer to buy therefore your sales team will find it easier to close more deals. Deal closing opportunities present themselves via price flexibility, you could discount products & claw back via finance or sell at full price but offer low cost finance. If you have customers who arrange their own finance then you already have the demand for the service, which means that some customers who require finance are probably going elsewhere! Fast finance decisions means that customers are less prone to changes of mind or finding a better deal elsewhere. If you allow others to offer finance facilities you will not be in control of the interest rate & sales could be lost / delayed. Finally, additional Leads can be gained by innovative pricing schemes.



Customer Benefits

You offer, a single point of contact for customers requiring finance for equipment. Quick finance decisions means quick delivery of equipment. Leasing allows customers to upgrade and replace equipment easily with just a simple adjustment in rentals. A near guaranteed acceptance of all finance proposals, start up companies are the more difficult proposals but can be done. Finally there are the tax benefits of leasing, payments are 100% tax deductible, cash and existing credit lines are preserved.

Company Benefits

If you offer finance it presents a barrier to competitors, if it's easy for your customer to keep trading in and trading up with you, your competitors do not get a look-in and as used equipment comes back to the vendor, the second-hand market can be controlled. Vendor maintenance can be made a condition of the leasing, increasing the vendor's profits from maintenance activity. Your company can earn commission on finance deals all for filling in a simple finance proposal form. You can choose whether to earn a commission on any deal because you set the interest rate and best of all any commission earned is 100% profit. Just think what could you do with the commission on finance sales, it could allow you to employ extra salesmen with the profits and generate even higher profits!

If you are NOT offering vendor finance & your competitors are you should ask yourself why Today?

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Copyright © Mark Dalton
Eland Business Services Limited
www.ebslfinance.co.uk



About the Author

Mark Dalton is the founder of Eland Business Services Limited. For more information about business finance in the UK please visit www.ebslfinance.co.uk

Written by: Mark Dalton