1. Before applying for a loan pay all your bills on time. Bills that are reported to credit bureaus take priority. Paying bills on time will create a positive history and increase your credit score rating.
2. Before and during your loan do not apply or open any new credit cards, car loans, debt or lines of credit. This will for a period of time decrease your credit
score.
3. Before and during your process save as much money as possible. Try even paying your minimum payment due on each bill. Don’t try paying off your credit cards when you are in the processing stages of a loan. This allows you to save more for your down payment. Use cash to make purchases while getting qualified.
4. Prior to and during your loan process do not cancel any credit cards or lines of credit. Canceling open lines of credit or credit cards can lower your credit score rating especially if it is one with a history of being paid on time.
5. Before and during the process keep your credit cards, auto loans, school loans at fifty percent or below their available limits. When limits are maxed out or have no room it burdens your credit score rating. This implies to the credit bureaus that your income isn’t covering your monthly bills and therefore you need to charge.
6. Before getting approved seek out a lender who will help you find a grant or assistance that you may qualify for to receive a down payment. Many cities and states offer grants or loans.
7. Before getting approved find a lender who has a variety or products. No Down Payment Programs do still exist. Find a lender who knows what they are and the locations the homes need to be in.
8. Before getting approved ask parents, grandparents, aunts or uncles for your inheritance now. I know this sounds morbid, but if they wait until they pass you may be taxed on your inheritance. You can use gift money as a down payment with most loan programs. You may only need 3.5% of the purchase price for the down payment.
9. Before you get approved consider a 2 or 3 unit home as an option to buy. If you need more income this can be a great way to increase your chances on an approval. Most loan programs will allow you to count a portion of your future rented apartment income to help you get qualified.
10. Before deciding on a lender seek out a trusted company or referral with many loan program choices. Most mortgage companies offer a variety of lenders. They most likely can even choose from local lender to fit you into several optional loan programs. All rates are controlled by the Federal Reserve. If you trust your lender that is key to a safe loan program with great rates for your specific needs.
Showing posts with label Loan. Show all posts
Showing posts with label Loan. Show all posts
"Why should I choose debt settlement over debt consolidation?"
Why should I choose debt settlement over debt consolidation? The reason is very simple: When people understand that their debt status needs urgent attention, it becomes too late for consolidating through a loan. Consolidation is an intelligent option when the credit score is good with no defaults. If there was a default in payment, missed payments on loans, bills, etc then the only choice left is Debt Settlement. Only if your credit
history is proper without any defaults, you will be able to obtain a lower interest rate. If you really want to compensate at least a bit for the extension of the repayment program or avoid a bankruptcy, without increasing your debts more, Debt settlement is a viable option.
Debt Settlement Advantages Over Consolidation: When you opt for a Debt Settlement, you actually get a reduction in the debt amount. Through negotiations with your creditors, debt settlement agents can obtain new terms on your debt. With Debt settlement you also have a possibility to get a 60% waiver off your loan amount. When your have financial constraint, debt settlement agents will negotiate on your behalf to your creditors and get a deal that can improve your current situation. This definitely works 99.99% well because, if a solution is not arrived, then the possibility of filing a Bankruptcy is high which neither beneficial for the creditor nor you.
The most important advantage is that, after you get a Debt Settlement your credit score will start ticking back. If you already have a bad rating due to defaults, then settlement would be a wise option to reduce debts and become debt-free.
Why would we think about Debt Settlement or Consolidation? Leave aside credit rating, cause when we are in debt that might be the last thing we worry about. The other issues that led to frustration and shame would include, but be limited to the following:
* Bankruptcy and it's implications.
* Harassing collection calls.
* Piling pending bills & ever increasing loan amount.
It is rather funny to opt Debt Consolidation, where it’s like trying to think you are free of debt, but reality is that you get debt from another resource and repay current debt resulting in Debt again. At times the second loan can end being higher than your original loan commitment!! Debt Consolidation and Debt Settlement are really handy in clearing debts, but we should know when to choose what. As far as I am concerned, I would go with Debt Settlement as I will not only become debt-free sooner, but also can get up to 60% waive-off!!
history is proper without any defaults, you will be able to obtain a lower interest rate. If you really want to compensate at least a bit for the extension of the repayment program or avoid a bankruptcy, without increasing your debts more, Debt settlement is a viable option.
Debt Settlement Advantages Over Consolidation: When you opt for a Debt Settlement, you actually get a reduction in the debt amount. Through negotiations with your creditors, debt settlement agents can obtain new terms on your debt. With Debt settlement you also have a possibility to get a 60% waiver off your loan amount. When your have financial constraint, debt settlement agents will negotiate on your behalf to your creditors and get a deal that can improve your current situation. This definitely works 99.99% well because, if a solution is not arrived, then the possibility of filing a Bankruptcy is high which neither beneficial for the creditor nor you.
The most important advantage is that, after you get a Debt Settlement your credit score will start ticking back. If you already have a bad rating due to defaults, then settlement would be a wise option to reduce debts and become debt-free.
Why would we think about Debt Settlement or Consolidation? Leave aside credit rating, cause when we are in debt that might be the last thing we worry about. The other issues that led to frustration and shame would include, but be limited to the following:
* Bankruptcy and it's implications.
* Harassing collection calls.
* Piling pending bills & ever increasing loan amount.
It is rather funny to opt Debt Consolidation, where it’s like trying to think you are free of debt, but reality is that you get debt from another resource and repay current debt resulting in Debt again. At times the second loan can end being higher than your original loan commitment!! Debt Consolidation and Debt Settlement are really handy in clearing debts, but we should know when to choose what. As far as I am concerned, I would go with Debt Settlement as I will not only become debt-free sooner, but also can get up to 60% waive-off!!
Tough Times for Credit Card Issuers as President Obama Signs Bill
Summary: New legislation and how it will affect credit card holders and the issuers of credit cards.
President Obama signs bill
As a result of years of pressure from many quarters and headed mainly by the consumer groups as well as Democrats, President Obama lent his signature to a bill that effectively outlaws raising of rates of interest and fees with regard to credit cards. This legislation concerning the credit card interest rates and fees have been a long time in the works. Initially, a bill was passed by the House in 2008 and once again in the early part of this year. There are many practices that issuers of credit cards target consumers with which are abusive to say the least and the bill that hopes to outlaw these practices were praised by President Obama
at a bill-signing ceremony at the White House recently. He hoped that the bill will help to bring about a substantial change.
at a bill-signing ceremony at the White House recently. He hoped that the bill will help to bring about a substantial change.
Objections from the banking industry
The advocates of the banking industry are objecting to these changes vehemently saying that it would only result in Americans having their credit tightened. However, the bill was passed with overwhelming margins in the House and Senate earlier in the week. Senators from both parties supported this legislation. The government denied the allegation that this bill was designed to protect the consumers who have been fiscally reckless and negligent with their credit cards.
New law to be effective from February 2010
The new law will come into existence as it take effect somewhere in February 2010. But, the consumers will have to deal with hikes in rates till that time and the legislation will have no retrospective effect. So, during these next months consumers using credit cards are bound to be careful. According to the new legislation consumers under the age of 21 will find it more difficult to obtain a credit card. Any rate hikes are also banned under this with the exception of consumers who are late by more than 60 days. They can hope to get their rates back to the original rate if they pay the minimum amount over the next 6 months.
Possible aggravation of the credit card crisis
This bill will cause the banking industry to suffer great losses and is being decried by them. They point out that this bill will only aggravate the existing credit crunch and will most probably end up in the banks having to ditch a number of risky credit cards. Meanwhile, the American Banker’s Association has threatened to reintroduce higher interest rates for all credit card holders along with the charging of annual fees. This course of action will effectively penalize those consumers who have been paying their bills on time and building good credit.
Increasing interest rates and fees
Over the last few months of this year the credit card companies have been steadily increasing interest rates and fees by a significant percentage according to a report by the Federal Reserve board. 80% of all American families have at least one credit card. Out of this number only about 44% of these families who use credit cards carry a balance. This legislation should not be construed as a means of escaping the payments that are due on a credit card by fiscally irresponsible consumers. It would also be ideal if a way could be found to accommodate those who have made regular payments and generally looked after their credit rating.
Home Loan Application Tips and Info
Steps for you to take to assure that your home loan application process is a smooth one! The following is an overview of what you will need to know about the home loan process--from Pre-Approval to Closing:
1. Call for a Pre-Approval analysis and letter
3. Select the home loan product, rate and term options that best meet your needs.
4. Complete your home loan application in person, by phone, fax or mail (depending on the lender). A fee of $350-$500 will be due at the time of application to cover the cost of the credit report and property appraisal.
5. Provide the lender with all the items or documents required to complete the application.
6. When all the necessary documents are received, the lender will order an appraisal and credit report, will underwrite the application and keep you informed on the status of the application. Call if you don't hear back on a regular basis.
7. The lender should provide you with a "Good Faith Estimate".
8. Monitor your application's progress by finding out when it is to be submitted to underwriting, when it receives underwriting approval. Keep an eye on your interest rate 'lock-in' date and if there seems to be a delay in the processing, ask if further information or documentation is required. Respond promptly to expedite the home loan approval.
9. When the underwriting is complete, the lender will advise you of the decision on the home loan and any conditions associated with the loan and closing. Some lenders will provide a written commitment letter.
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