Unfortunately, many people are confused about the true role of the owner builder. Simply put, an owner builder is someone who takes on the role of managing the construction process without hiring a builder, or general contractor. Sometimes they are also called an owner-contractor or self-builder. In essence, he or she is the general contractor.

Being an owner builder does not mean having to actually do the physical work yourself. You can, if you want, but it is not required. In fact, this is an important point, because many borrowers think that they have to do much of the labor themselves to save a lot of money.

However, to successfully complete an owner builder construction loan, you never have to lift a hammer if you don’t want to. You will still save a lot of money just by managing the process. Consider this: many general contractors never do any actual labor. Instead, they manage the process and charge for the service, not to mention the gathering of the materials and supplies.

Therefore, if you want to be an owner builder, you should focus on the management. Only do the labor that you are truly qualified to do. Otherwise, you’ll waste both time and money – things nobody can afford to waste in the middle of a construction loan.

This revelation often becomes misleading for borrowers. They erroneously reason that the role will be easy if they are only managing the process. Unfortunately, this almost always leads to improper planning and disorganized construction.

Just because being an owner builder, focusing on overseeing the project planning and construction, does not have to be complicated, that doesn’t mean it is easy. It takes time and energy. To be successful, you must approach the planning phase with as much care as the actual construction.

As the owner builder, you will have to 1) choose the right set of home plans for your area, 2) get the plans approved with your county’s code compliance and building permit office, 3) choose and hire the best possible sub-contractors and material providers, 4) compile an accurate budget based on bids and contracts with these sub-contractors, and then 5) actually manage the construction itself. If you don’t give steps 1 – 4 the care and attention they demand, then step 5 will potentially be a disaster.

Therefore, who makes a good owner builder? Experience has led to this simple litmus test. You should consider building your own home without a general contractor if you answer “yes” to these three questions:

1) Do you want to build the exact home you have in mind, without compromising either quality or amenities?

2) Do you want to save, on average, 15% to 40% on your new home’s construction costs?

3) Are you willing to spend the time and energy in the planning and management of the construction?

There are two very important things to note about the three questions above. First, notice that the first two questions involve possible incentives behind being an owner builder. Indeed, control and money are the two main reasons that people decide to become owner builders. You may have your own specific reasons, but if you don’t have a hefty amount of interest in the control and savings that come with the project, then you probably won’t be satisfied as an owner builder.

The second thing to note is that the most important criteria listed in the questions above involves time and energy for management. There is no mention of physical labor or any detailed knowledge of construction skills.

Therefore, if you think you will want an owner builder construction loan in order to build your own home without a general contractor, it is a good idea to ask yourself the three questions above. In general, make sure you understand the role of the owner builder and are comfortable with the major benefits and advantages that come with it. And, never forget that a successful owner builder will focus on the planning of the project as much as the actual construction itself.

Owner builder construction loans from Owner Builder 101 and Chris Esposito are designed specifically for individuals who want to save money while building their home to their exact specifications – without a general contractor. Visit ownerbuilder101.com, or call (877) 876-3688.

The finest way of having chosen one amongst the mortgage companies is that of sharing with the people around you their experiences. All you need to do is talk to the relatives or friends of yours who’ve of late bought a home.

The first and the foremost question to be asked is that whether they’re satisfied with service provided by Mortgage Company with which they had dealt with regards to purchasing of home.

Agents pertaining to real estate can also prove to be a fine source in regards with recommendations relating to mortgage companies. As agents see the people working out the monetary process on a day-to-day basis, a feel is developed for the mortgage companies that’re easy for working with, as well as the companies that aren’t easy for having worked with.

Even though word of mouth is the best way of developing the list of the impending mortgage companies, it definitely mustn’t be the only way to be used by you. Note that each and every one has diverse monetary situation. Moreover, what might work for one personality might not be suitable for the other one.

Effective use

Making use of the list containing mortgage brokers compiled by you, appointments can be made for going in and having a word with each and every one. Such an activity would give you an idea of demeanor and personality of every company.

Besides, if you face any problem regarding the calls o yours getting returned, or having set up appointments in the form of the prospective customer, the likelihood of your situation getting improved is less if the mortgage is secured through company.

Note that any of the mortgage companies fall in the category of service industries. Majority of people find process of home buying and mortgage approval do frightening that they end up forgetting that shopping should be done for the mortgage company they would be happy with.

The mortgage company must be glad to have quoted you with specified rates of interest, and intimate you regarding the time of locking in the rates.

These companies must also inform you about the specified costs involved in acquisition of a loan. In other words, you should get a fine faith estimate with regards to closing costs, origination fees, and discount, payment of which should be made, along with the other costs involved while having a home purchased.

Updating

Any of the mortgage companies must be upfront regarding every technical detail of loans. They must apprise you of penalty for the pre-payment, money needed for down payment, and the documents needed for making provisions for the approval of loans.

Mortgage companies must also inform you about guidelines that should be met o qualifying for loan, that too, with them. All this would be inclusive of your income, credit history, liabilities, assets, employment history, and the other specifications required.

Charles Bretz is a Financial Advisor and Author on Money Matters.Get Your Free Money Guide. Click Here

The US government is hammering up on its duties these days and doubling its efforts more than ever to put the right rescue programs in place to prevent property foreclosures. In the forefront is the US Department of Housing and Development or the HUD. HUD’s web page provides helpful tips and advice to homeowners whose mortgages are on the rocks with the threat of foreclosures. HUD suggests that the best step to do is have a talk with your lender to help you figure out the necessary measures that will save your home.

Incentives to lenders are given by the government to those who are willing to provide troubled mortgagees extra leeway to avoid foreclosures. Mortgagees who are willing enough to settle with their lenders can get assistance from the government prior to foreclosure. Trained foreclosure counselors from HUD are available to individuals who need help in this process.

The Federal Housing Administration/HUD in collaboration with the Department of Veteran Affairs and the Department of Labor together with mortgage lenders are into information campaigns on government initiatives to stop foreclosures. If you are currently in a financial mishap, several government programs can give you a new window to stem pending foreclosure. Call up the right government agency to help you stay in your current home.

People in dire financial losses due to natural disasters can seek assistance from the government to stop a possible foreclosure. Victims in the 9/11 tragedy can still get help from disaster reliefs that the federal government set in place. For those who are in the military service, deployed or disabled, their families can avail of special programs to give relief to help keep their homes intact, too.

The best thing that an individual can do to keep his home and ward off foreclosure is to communicate with the lender. Lenders are updated with their information given their partnership with the government. They can also provide you with flexible payment schedules and options to help you maintain your home, especially if you only missed out a couple of payment dates. However, the longer your payments lag behind, the shorter your options become.

Take advantage of these government programs now to help avoid foreclosure. It is better to act on it quickly to spare you from probable nasty situations that may arise from your mortgage.

Greg Shuey is a Utah mortgage broker helping families and individuals obtain mortgage loans. Together with Chase Gunderson, we specialize in all types of home loans, especially FHA Streamlines. To start your FHA Streamline are, or to learn about Utah FHA Streamline Loans, visit our site.

Here are 5 pieces of information to demand of your mortgage broker before signing anything:

1) Yield Spread Premium – This is what the broker gets paid for marking up the rate of the loan above wholesale. The more of a markup, the more they get paid. It’s the same concept as a car salesman being paid more based on how much more he’s able to convince his customer to pay above sticker, only the salesmen is your broker, and the desk manager is the lender. It’s fair for the broker to make money, but negotiate this figure to make sure you don’t get ripped off.

2) Current Wholesale Rates and Par Pricing – When a borrower asks “What are today’s rates?” the broker hears “What rate would you like to sell me today?” When you’re asking about rate, make sure to be more specific. “What’s today’s wholesale rate for a 5 year fixed at par pricing?” It’s critical to mention par pricing, as that’s the actual wholesale rate before any broker markup.

3) Mortgage Loan Disclosure Statement – It’s all very well to accept what your being told at face value, but as my father always said, “a verbal contract isn’t worth the paper it’s printed on.” Brokers are eager to offer a GFE (Good Faith Estimate), but it leaves out valuable information such as YSP. You’re entitled to an MLDS, so make sure you get one.

4) Origination Fee – On the MLDS, make sure to look at the origination fee. Despite anything your broker tells you, this money goes directly to the broker’s coffers, and is entirely separate from the YSP. Your broker’s goal is to make a point in front and one in back. That’s ridiculous. A point total is fair, in whatever ratio you and the broker negotiate.

5) No Fees/No Closing Costs – Nothing else in life is free, why would this be? Do you think the appraiser and underwriter are going to work pro-bono? Between the title, escrow, notary and various other services you’ll require, the total cost will end up around $3000. Obviously, companies that offer “No Fees” make their money elsewhere. Elsewhere would be the YSP. Sure it looks good from the front, but the broker’s making a killing on the back.

Understanding these 5 key items will help you protect yourself from being taken advantage of. Be aware in advance; most brokers won’t like being asked these questions, but what’s more important, their friendship, or your financial wellbeing?

Rate1st.com provides a safe, simple, and efficient way for borrowers to compare rates from hundreds of lenders without compromising their personal or credit information. For more information on home mortgage loans please visit Rate1st at Rate1st.com.

There are no requirements like credit score or income or anything else. Basically seniors with equity in their home and over the age of 62 can qualify.

Reverse mortgages require you to get counseling from a 3rd party advisor on whether or not a reverse mortgage is right for you. This mandated counseling is to specifically prevent seniors from being taken advantage of.

One of the main questions is what these funds from a reverse mortgage can be used for. Reverse mortgages funds can be used for anything including paying off an existing mortgage, traveling, home improvements, or simply enhancing the standard of living.

There are several websites that discuss reverse mortgages and provide details for seniors. Getting started with a reverse mortgage is usually done with a competent loan officer that can give you details, tell you how much you can qualify for and provide some insight into whether or not a reverse mortgage is right for you.

After this initial conversation with a reverse mortgage broker or loan officer, you will then need to proceed with either the paperwork or the required counseling with a 3rd party. Your loan officer will provide you with a list of counselors you can communicate with to discuss the reverse mortgage, your financial situation and alternatives.

This is the basic place to get started. You can find reverse mortgage lenders by searching on the internet or contacting local mortgage brokers in your area.

Reverse mortgages aren’t for everybody, but they can be used successfully to assist seniors who may be living paycheck to paycheck.

Many seniors choose to use this reverse mortgage to pay off an existing mortgage. You should inquire as to whether or not you’ll be able to do this or to use the mortgage to purchase a new home with a single transaction.

The great part about a reverse mortgage is that it can be a tool to aid in retirement not only for seniors having a difficult time with their finances, but also for seniors who are looking to take that trip they’ve always wanted to take or visit the grandkids more often.

Some seniors use this reverse mortgage to increase the equity in the home through home improvements as well which can put them in a better situation to refinance the home if they’ll be leaving it to their heirs or an estate.

Brian Armstrong is a loan officer in the state of Utah and is licensed to help seniors establish a Utah reverse mortgage.

You can contact Brian through his website where he provides information on reverse mortgage in Utah and also helps seniors in Idaho and Montana.