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Bridging loans are just increasing in popularity. They are a type of short term finance. There are a lot of home buyers out there that are trying to buy a new home before they sell the home they’ve already go. They usually get financing through a financial product known as a bridging loan or home equity loan. Bridging loans have a lot more features that borrowers really tend to like. A smart borrower will look at both a home equity loan and a bridging loan and determine which is right for him. Bridging finance is one of the best ways that people can get to buy a new home.
What is the definition of bridging loans?
Bridging loans are just transient. They form a kind of a bridging, as the metaphor implies. It is a name which speaks directly and truly to what the loans are all about. The bridging loan is attached to the buyer’s current house. The money from the loan is utilized to make a down payment on the home that the buyer is moving into.
What is the underlying structure of how bridging loans work?
Most of the funding for bridging loans is done under a common sense approach. There are some strict guidelines, however, for the long-term financing that is acquired with the new home price.
There are some lending organizations that strike out the bridging loan payment for the purposes of qualifying for a loan. The buyer is allowed to buy the new home by bundling the current loan payment. Most buyers have a current mortgage on the home they already live in. The buyer will be in control of two houses for a very short period of time. There are some basic fees for bridging loans like administration fees, appraisal fees, escrow fees, title policy fees, notary fees, and other fees. There is sometimes a wire fee. Bridging loans may not even entail monthly payments for a few months afterward.
Every new home buyer has been in the position of having to get rid of a current home before they can move into a new home. Except for young couples that are just moving into their home for the first time, a lot of people are moving into a second home that was better than the first home. Bridging loans help this process out, and they make it easier for the buyer to get the home they want without a lot of hassle, danger, and cost. Bridging loans are great for young families that are moving into a bigger home.
Marriage is great! When two people who love each other decide to take the ultimate step and vow to be joined by this most binding of institutions (although the high rate of divorce in this country flies against that particular statement, we won’t open that can of worms though). I love weddings, the dancing, the laughing, the people, and most important the booze and the cake! What’s not to like, right? The bride and groom get all the fawning love and attention of their near and dear ones and a heap load of presents, too! It’s the most perfect way to embark upon this new, amazing journey that will last you a lifelong. Before you walk down the aisle however, you need to make sure you and your potential spouse have a few pertinent conversations. The usual stuff like whether or not they plan on having children, do they have a crazy stalker ex on a restraining order, whether they’re secretly spies, you know, stuff like that. The most important bit though, is having the ‘money’ talk.
The money talk is that conversation where you and your fiance sit down, and discuss everything to do with finances. The reason this is important is because you don’t want to start off the wonderful new adventure with a crippling financial pit fall, so instead you show complete honesty and tell your significant other what’s what, and plan for a future properly.
Must have pre-marital financial conversations
• Debts. Simple and straightforward, if you owe anyone any money, be it a student loan, a car loan, house loan, or even some cash borrowed from a friend or relative, disclose it now. This is the basic foundation of this conversation, you chart out all that you owe, who you owe it to, how much you’re paying as the installment, and when it is due. This way, you know how much money is guaranteed to go out of the house post-marriage, and the future can be planned accordingly.
• Assets. The exact opposite of the first step, here you talk about all the financial assets you own. Whether it is a business, property, or even a really rare collectible Pokemon card. What your investment portfolio, if any, consists off, what your bank balance is, if you are owed any money, and how much you earn. Talk about the breakdown of your salary, what the basic pay is, what the bonuses are etc. If either of you own a business, share all details such as net profit/loss, assets held, the whole nine yards. This complete disclosure of current and future income will again form the building block of your financial future together.
• Joint or separate. One of the most awkward topics of conversation to broach, and all the more necessary because of it. You need to decide, as a couple, whether you will merge your financial identities into a joint account, or you’ll stay independent in that respect. This is important because you do decide to open a joint account, the process needs to be gotten underway, and your personal accounts need to be taken care of. This kind of process does take time, and you don’t want to be interrupted about it when on your honeymoon!
• Budget. If the running of the household costs X amount, you need to decide how X is split up between both parties. This is important regardless of whether or not you have a joint account. Decide, for example, who commits the physical act of actually paying the light bill, and whose pocket the money to pay it comes from. This way there’ll be no defaults on the assumption that the other person would deal with it.
• Insurance. Your better half needs to know if there is an insurance policy drawn out on your name, whether it is a health insurance policy or life insurance, or even property insurance on your home. This way, there’ll be no overlap, and the spouses will both know what to expect if something untoward happens. Do not forget to disclose any insurance policy made on your behalf by your employer either, as these things tend to slip the mind.
If there are no policies taken out, consider getting at least life insurance policies, as your soon-to-be better half will come to depend on a higher combined salary that the two of you bring, or even the priceless effort that a stay at home spouse provides, and will need some security in case something goes wrong.
In fact, Byron Udell, CEO of AccuQuote recommends getting a life insurance policy long before you decide to get hitched. “Young people who have life insurance protection now can simply change the beneficiary to reflect their spouse and/or children once they’re married and need financial protection for their new family.”
Entering into a marriage without this discussion is like playing a blind hand at poker, you may not necessarily lose, but the odds drop sharply on this happening. Life isn’t a game of poker however, and should not be treated as such. Instead enter into the marriage with everything laid out on the table, and improve the odds of it being a more comfortable and blissful one.
Author Bio: Frank Mitchell has worked as a life insurance agent for 10 years. After an accident in 2011 that kept him at home for more than a year, Frank started offering advice on forums and other social media networks. He now works as financial advisor and in his spare time writes articles on subjects he is passionate about. On the weekends, you’ll find Frank dirt biking.
The personal finance is so important and so skillful job. Mainly the new members of the financial market like to enjoy the financial planning for good investment opportunities in this market. The return on investment is the earnings of the financial marketer who plan and execute it to get this return more and more. So the proper planning of investment is the part of personal finance. If you fail to maintain the balance of earnings and investment you will lose everything in this financial market. The main and important part of the personal finance is the investment plan, so you need to know how it happens in individual ground.
At first you need to do to prepare a list of investment scheme at where you may like to invest to fulfill your personal or family goals. A personal investment plan will create a preparation of where to invest, how to invest, how much to invest and at last what return you will earn. A good plan of investment will effect on the percentage of return on investment. The investment strategy must be prepared on the basis of comparison of all investment instruments’ return and risk ratio. Which investment‘s return and risk ratio is comfortable for you, you may invest maximum portion of investment on this. The portfolio monitoring is the major part of after investment job on the financial instruments which help you to understand the way of reevaluation and re-balancing of investment.
There are lots of investment plans in the financial market such as securities, bonds, mutual funds and insurance policies. By this all investment scheme you prepare your portfolio. There are some employer qualified plans of investment which also have good return on investment and low risk factor. You just follow the steps of investment planning which will help you to increase efficiency of investment.
If you are currently being pursued by a debt collector, you will be aware of the tactics they use to get to you. Many naturally feel intimidated by the harassment. However, the reality is there are only certain things a debt collector can rightfully do and there a few things you can do to stop the harassment.
What Debt Collectors are Allowed to Do
Debt collectors actually have a limited number of rights. Unfortunately, they will often tend to push these rights and if the debtor is unaware of his own rights they will continue to use tactics that are outside their bounds. Indeed, ignorance on the part of the debtor is often the biggest asset that debt collectors have. Fortunately, the Office of Fair Trading has laid down some rules as to what debt collectors can or can’t do and it is vital that you are familiar with them.
The first thing a debt collector must do once the debt has been passed over to him is to contact you by letter. This letter will essentially serve as a ‘validation notice’ and must include details such as how much money you are said to owe. This validation notice must be served within five days of receiving notice that the debt has been passed to them. The letter should also include details of the creditor who is owed the money in addition to details on how you can proceed should you feel you don’t owe the money.
What They Can’t Do
First, debt collectors cannot contact you at times that are considered inconvenient, such as 7 o’clock in the morning or late at night, unless an agreement has been made between the collector and the debtor. In addition, collectors cannot contact you at your work premises either in person or by phone.
They also cannot actually visit your home unless they have permission from you and if you nominate a third party such as a lawyer to negotiate the process for you they cannot refuse to deal with them. If on the other hand you choose not to appoint a lawyer the collector may contact another third party to obtain your details (address, phone number and workplace) but they can only contact this third party once. In general, a collector is not allowed to discuss the debt with anyone apart from you, your spouse or your lawyer.
Finally, collectors are not allowed to use threats or foul language towards you, cannot tell you that you will be arrested unless you pay up and, most importantly, they cannot seize your possessions unless they have been granted permission to do so by the law courts.
What You Can Do
If you continue to have trouble with a debt collector and feel you are being harassed, there are several institutions you can turn to. The Consumer Credit Counselling Service, the Office of Fair Trading and the Citizens Advice Bureau will all be happy to offer advice including how to find out about IVAs.
An IVA (Individual Voluntary Arrangement) is an agreement made between you and your creditors that will help you pay back the money. This agreement is legally binding. An agreed period of time will be set – typically around 5 years – in which you will be able to pay back the debt by installments. This will mean you will not have to file for bankruptcy and, once in place, it means debt collectors will no longer be able to contact you.
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