Robert Kiyosaki, author of bestseller Rich Dad Poor Dad as well as 25 others financial guide books, has spent his career working as a financial educator, entrepreneur, successful investor, real estate mogul, and motivational speaker, all while running the Rich Dad Company.
What Do You Need to Know About Settlement?
You’ve got a contract and you’ve arranged for financing. The next step is settlement. Chances are you’ve been through a settlement before, probably when you bought your own home. Especially the first time, it can be a bewildering experience. Buyers and sellers are expected to sign piles of documents, many of which contain lots of...
Key Definitions for This Module
Closing: The process by which ownership of a property passes from the seller to the buyer. Also known as “settlement,” closing includes the delivery of a deed, financial adjustments, the signing of notes, the disbursement of funds necessary to complete the sale, and appropriate recording of documents. Closing agent: A third-party agent of your choosing...
“What Other Loans Can I Get?” Alternative Financing Sources
Sometimes you need to seek alternative loan sources because you don’t meet the qualifications for conventional loans. But an alternative source might also be something you choose because it gets you a better deal. There are three basic possibilities: government-sponsored loans, assumable loans, and owner or private party financing. Let’s cover those quickly… 1) Government-sponsored...
What Documents Should You Have?
Lenders use a Uniform Residential Loan Application, also known as Fannie Mae 1003. This form covers both owner-occupied and non-owner-occupied loans. It’s available online from the Department of Housing and Urban Development web site at www.hud.gov. Go to the HUD Forms page, then scroll down to Miscellaneous Forms and click on Fannie Mae. On the...
“How Do I Qualify for a Loan?” – The Three Main Criteria
Underwriting is the process by which a lender determines if you’re qualified for a loan. In other words: Are you a good risk? If you’re working with a mortgage broker, he or she will help you get prepared. But you’ll need to have your financial information in order no matter whether you’re working with a...
Lender Information Worksheet
Here’s an information worksheet to help you organize the information you receive from lenders and your mortgage broker. Make several copies of this form so that you can have one for each call or online search you perform.
How Do I Find a Lender? Shopping for a Conventional Loan
Get ready to do some shopping. Shopping, for a mortgage? Yes, indeed. If you choose to get your financing through the conventional method — that is, finding a commercial bank, savings and loan, or mortgage banker — you’ll have to take the time to carefully survey the market. Just as you shop for other services,...
The Most Common Types of Mortgage Loans
Later in this module you’ll learn more about government-sponsored loan programs, as well as private party and seller financing. You’ll understand these valuable alternatives better if you first get a good grip on conventional loans, the most common type of mortgage loan. Conventional loans are offered by banks, savings and loans, and mortgage companies. They...
Fannie, Freddie & Ginnie: Who’s Who
The secondary lenders who buy loans from primary lenders are usually agencies of the federal government (primary lenders can also function as secondary lenders). Below is a brief description of the three major federally sponsored programs and information on how to reach them. Each has an extensive and useful web site. 1) Federal National Mortgage...
Who Lends Money? Some Financing Basics
Mortgage loans come from many different sources and in many different forms. Let’s start with some basics about the types of lenders and sources of financing… “What are primary and secondary lenders?” Financial institutions make loans based on the idea that the property being purchased serves as collateral, or backing, for the loan. The institutions...