A Qualified Mortgage Consultant Can Help Boost Credit Scores
Consumers interested in purchasing or refinancing a home will pay an interest rate based on current market conditions and their ability to pay back the loan. The borrower's income and debt ratios are taken into consideration by the lender, as well as the predictability factor provided by credit scoring. It's important to have a mortgage professional in your corner that has a keen eye for solutions to improving credit scores in an effort to get the best interest rate possible.
Interest rates associated with various loan programs are broken down into schedules based on credit score ratings. While each lender has its own guidelines, it's safe to assume that as the consumer's credit score goes down, interest rates will go up.
A borrower with an outstanding credit rating will get what is called an A-paper loan. This type of borrower is rewarded with a lower interest rate because they have a proven track record of using credit sensibly and paying their bills on time.
Loans designed for consumers with less-than-perfect credit sometimes referred to as sub-prime can range anywhere from A-minus, B-paper, C-paper or D-paper loans.
If you have already taken out a mortgage loan with a higher interest rate because your credit score was a little under par, you will really appreciate the value in doing a little work to improve your credit score. Refinancing from a D-paper loan to a B-paper classification can save literally thousands of dollars in financing fees over time, even though the B-paper loan is still considered sub-prime.
A qualified mortgage consultant will guide you through the nuances of the process of improving your credit score to refinance and save money. First and foremost, he or she will want to review the terms of the existing mortgage loan to determine if you have a pre-payment penalty clause written into your contract. In general terms, that means that if you sell the home or try to refinance before the pre-payment penalty expires and you have not already paid off 20 percent of the original loan amount, you will most likely have to pay a 3 percent fee back to the lender to compensate for the high risk and high costs incurred to provide that financing.
Next, you should obtain free copies of your credit reports from www.annualcreditreport.com and start working on improving the credit score six months prior to the expiration date on your existing pre-payment penalty.
There are five factors that make up the credit score and your mortgage consultant can coach you through some basic strategies to improve your credit score. This means very conservative use of credit cards, paying off debt as much as possible and not applying for additional credit cards unless you will benefit from such action. You will want to verify that negative items you have paid off are being removed from your credit report, and that good credit history is being reported to all three bureaus. You'll also want to dispute any errors that appear on your credit reports and seek to have those removed entirely.
Once your credit score improves, it's time to refinance at a better interest rate. Your mortgage professional should look for a program that carries no more than a two-year prepayment penalty so you can continue to refinance as your credit score increases. You can repeat this process until you reach A-paper status and secure the best interest rate available.
This is a strategy that also works well for first time home buyers who do not have enough credit history under their belt to get an A-paper loan at the time of purchase. The important thing is to work with a mortgage consultant who can give you a roadmap to follow and a strategy for success in building personal wealth.
Source By: Super Admin
Thursday, September 4, 2008
Monday, September 1, 2008
Cheap Online Secured Personal Loan
Cheap Financial Solution - Online Secured Personal Loan
The most sensible and practical solution to any financial crisis is online secure personal loan. Definitely, you might be thinking that why we are calling online secured personal loan as practical solution? The reason is the low cost involved in the online secured personal loan. Here, low cost implies low annual percentage rate, which is the sum of rate of interest and various costs of the loan because the people generally takes APR as the criterion for loan.
The factor which makes the personal loan cheaper is basically
•Online method of applying
•Collateral
Online method of applying is considered as the cheapest mode as it involves low cost and no processing fees. It saves time and money which can be further used to satisfy other needs. Online method offers you the facility of applying by sitting at home or office as per the convenience. Now if we take into consideration another factor which makes the loan cheap is the collateral placed. Collateral makes the lender feel secure against the loan amount and in turn he offers low rate of interest and favourable terms and conditions. More the equity in the collateral more the amount one can borrow.
Sometimes we all have to face the situations when our bank balance and our savings are not enough to meet the expenses. In such situation we all search of a mode which provides cost effectiveness and fast money. And, one of such mode which offers the combination of these two factors is online secured personal loan
As coin as two sides in the same manner if we evaluate the online secured personal loan it also has two aspects. The good aspect we have seen in the above paragraphs and bad aspect is that it carries risk with it. In other words if the person tends to miss any repayments in such case the lender has the right to repossess the collateral in order to recover his money. But if the person is sure that he will be able to meet all the repayments then he is not required to feel the trauma of repossession.
On availing online personal secured loan the person willing to avail loan is not required to stand in the long queues of bank or any financial institution rather he can apply through internet as he feel convenience.
Whether the person have poor credit score or good credit score he can apply for online secured personal loan. The difference will be in the rate of interest offered to both them as poor credit scorer has to pay little higher rate of interest. It can be also considered as a chance for them to improve their credit score which will help them in future to avail loan at initial rate of interest.
Source By: Peter Taylor
The most sensible and practical solution to any financial crisis is online secure personal loan. Definitely, you might be thinking that why we are calling online secured personal loan as practical solution? The reason is the low cost involved in the online secured personal loan. Here, low cost implies low annual percentage rate, which is the sum of rate of interest and various costs of the loan because the people generally takes APR as the criterion for loan.
The factor which makes the personal loan cheaper is basically
•Online method of applying
•Collateral
Online method of applying is considered as the cheapest mode as it involves low cost and no processing fees. It saves time and money which can be further used to satisfy other needs. Online method offers you the facility of applying by sitting at home or office as per the convenience. Now if we take into consideration another factor which makes the loan cheap is the collateral placed. Collateral makes the lender feel secure against the loan amount and in turn he offers low rate of interest and favourable terms and conditions. More the equity in the collateral more the amount one can borrow.
Sometimes we all have to face the situations when our bank balance and our savings are not enough to meet the expenses. In such situation we all search of a mode which provides cost effectiveness and fast money. And, one of such mode which offers the combination of these two factors is online secured personal loan
As coin as two sides in the same manner if we evaluate the online secured personal loan it also has two aspects. The good aspect we have seen in the above paragraphs and bad aspect is that it carries risk with it. In other words if the person tends to miss any repayments in such case the lender has the right to repossess the collateral in order to recover his money. But if the person is sure that he will be able to meet all the repayments then he is not required to feel the trauma of repossession.
On availing online personal secured loan the person willing to avail loan is not required to stand in the long queues of bank or any financial institution rather he can apply through internet as he feel convenience.
Whether the person have poor credit score or good credit score he can apply for online secured personal loan. The difference will be in the rate of interest offered to both them as poor credit scorer has to pay little higher rate of interest. It can be also considered as a chance for them to improve their credit score which will help them in future to avail loan at initial rate of interest.
Source By: Peter Taylor
Friday, August 29, 2008
5 Criteria To Get Your Home Loan Mortgage approved
Why do some people get their home loan mortgages approved in a breeze while others struggle through with hiccups? What are the differentiating factors between one application and another? What do lenders look at when they evaluate you?
In reality, getting your home mortgage approved depends on how your background matches the list of criteria set forth by the lender. Although these rules that they have are not always entirely hard and fast, the loan application officer does not stray too far away the guidelines he or she has been entrusted with. Needless to say, applicants should at best present themselves as creditworthy creditors and have the adequate documented records as proof of this.
Believe or not, lenders have a scoring system for aspects of your background that they are evaluating. The following are areas in which you will be scrutinized on:
1. Employment History
You must have been in employment for not less than 2 consecutive years within the same industry. This shows that you have the capability to be sustained in a permanent position, and do not hop from one job to another. Lenders look for stability and consistency as best they can, and your employment history is a good basis for them to evaluate your capability to generate income to finance your mortgage.
2. Credit History
The next indicator of your credit-worthiness is your short-term debt, a.k.a. your credit card bills. It's ok to have some debt on your credit card, but you must show a history of on-time payments. Apart from that, too much debt on credit cards with credit lines fully utilized shows the possible inability to pay for debt. Therefore, at least six months before applying for a loan, it would be best to clean up your short term debt as much as possible.
3. Outstanding Liabilities
The size of your income dictates the amount of liability you can support. As a rule of thumb, lenders stipulate that a person's total monthly payments for liabilities should not exceed 42% of his or her monthly earnings. With this, total liabilities include credit card debt, car loans, student loans, existing mortgages or child support collectively. This means that in order to qualify for your home loan mortgage, you need to reduce your monthly repayments on liabilities to the point which is acceptable by the lender.
4. Cash and Asset Reserves
Another aspect to show that you can afford your home loan mortgage is to provide proof to the lender on the amount of cash and liquid assets that you possess. The minimum reserves that you have must be sufficient to pay at least 2 months of monthly repayments for mortgage payments. Some lenders even go to the extent of requiring 6 months worth of reserves in order to qualify.
5. Existing Housing Repayments
Finally, if you already have existing housing rental payments, there should not be any late repayments for these within the past 12 months. This again shows your priorities as a responsible tenant and is adequate proof to the lender that you potentially will be a responsible borrower as well.
Some applicants who may lack supporting documents for their home loan mortgage applications should compensate by providing documents that will help to prove themselves to be responsible pay masters. These could be payments receipts of utility bills, phone bills or even car insurance, which are useful documents to be used to prove that you are indeed creditworthy.
Source By: Super Admin
In reality, getting your home mortgage approved depends on how your background matches the list of criteria set forth by the lender. Although these rules that they have are not always entirely hard and fast, the loan application officer does not stray too far away the guidelines he or she has been entrusted with. Needless to say, applicants should at best present themselves as creditworthy creditors and have the adequate documented records as proof of this.
Believe or not, lenders have a scoring system for aspects of your background that they are evaluating. The following are areas in which you will be scrutinized on:
1. Employment History
You must have been in employment for not less than 2 consecutive years within the same industry. This shows that you have the capability to be sustained in a permanent position, and do not hop from one job to another. Lenders look for stability and consistency as best they can, and your employment history is a good basis for them to evaluate your capability to generate income to finance your mortgage.
2. Credit History
The next indicator of your credit-worthiness is your short-term debt, a.k.a. your credit card bills. It's ok to have some debt on your credit card, but you must show a history of on-time payments. Apart from that, too much debt on credit cards with credit lines fully utilized shows the possible inability to pay for debt. Therefore, at least six months before applying for a loan, it would be best to clean up your short term debt as much as possible.
3. Outstanding Liabilities
The size of your income dictates the amount of liability you can support. As a rule of thumb, lenders stipulate that a person's total monthly payments for liabilities should not exceed 42% of his or her monthly earnings. With this, total liabilities include credit card debt, car loans, student loans, existing mortgages or child support collectively. This means that in order to qualify for your home loan mortgage, you need to reduce your monthly repayments on liabilities to the point which is acceptable by the lender.
4. Cash and Asset Reserves
Another aspect to show that you can afford your home loan mortgage is to provide proof to the lender on the amount of cash and liquid assets that you possess. The minimum reserves that you have must be sufficient to pay at least 2 months of monthly repayments for mortgage payments. Some lenders even go to the extent of requiring 6 months worth of reserves in order to qualify.
5. Existing Housing Repayments
Finally, if you already have existing housing rental payments, there should not be any late repayments for these within the past 12 months. This again shows your priorities as a responsible tenant and is adequate proof to the lender that you potentially will be a responsible borrower as well.
Some applicants who may lack supporting documents for their home loan mortgage applications should compensate by providing documents that will help to prove themselves to be responsible pay masters. These could be payments receipts of utility bills, phone bills or even car insurance, which are useful documents to be used to prove that you are indeed creditworthy.
Source By: Super Admin
Tuesday, August 26, 2008
Refinancing Your Home Mortgage Loan With Bad Credit
There are numerous reasons a person has bad credit. Late or partial payments, missing payments, and too many outstanding debts could all be factors that have left you with a poor credit rating. If you want to refinance your current mortgage but are afraid a poor credit rating will disqualify you, be aware that there are mortgage lenders that can help you qualify for a loan. Refinancing your home with bad credit is not impossible. Mortgage lenders can help you be approved for a home refinancing loan and will offer you advice on how to improve your credit rating.
Bad credit can result from many other factors besides missing or making late payments. Illness, unexpected expenses, and unemployment can affect your credit rating adversely as well. When you refinance your existing mortgage you may even be able to get cash back to help you pay off your debts and restore your credit rating. Regardless of your credit history, you can be approved for a home refinance loan. You could lower your monthly mortgage payments and have the extra cash you need to pay off high interest debts. Refinancing with bad credit is not only possible; you could be approved quickly when you apply for a refinancing loan online. Online lenders can offer you free quotes and great terms, even with bad credit.
If you have bad credit, contact a lender who specializes in sub prime refinancing loans. The application is fast and easy. You could be approved for a home refinancing loan in just hours and the low rates you'll receive will save you money each month, allowing you to pay off your debts and begin rebuilding your credit. Mortgage lenders can help you with refinancing your home even if your credit history is less than perfect. A mortgage loan is secured by your home, so the risks for the lender are much less than with a non-secured loan. Bad credit will not prevent you from refinancing your mortgage and may even put you on the path to freedom from debt entirely.
Apply to refinance your mortgage today and you could be saving money on your monthly mortgage payments in a very short time. No matter what your credit history, lenders are anxious to approve your loan today. Complete an application now to see the great interest rates and low monthly payments that are available to you.
Source By: Super Admin
Bad credit can result from many other factors besides missing or making late payments. Illness, unexpected expenses, and unemployment can affect your credit rating adversely as well. When you refinance your existing mortgage you may even be able to get cash back to help you pay off your debts and restore your credit rating. Regardless of your credit history, you can be approved for a home refinance loan. You could lower your monthly mortgage payments and have the extra cash you need to pay off high interest debts. Refinancing with bad credit is not only possible; you could be approved quickly when you apply for a refinancing loan online. Online lenders can offer you free quotes and great terms, even with bad credit.
If you have bad credit, contact a lender who specializes in sub prime refinancing loans. The application is fast and easy. You could be approved for a home refinancing loan in just hours and the low rates you'll receive will save you money each month, allowing you to pay off your debts and begin rebuilding your credit. Mortgage lenders can help you with refinancing your home even if your credit history is less than perfect. A mortgage loan is secured by your home, so the risks for the lender are much less than with a non-secured loan. Bad credit will not prevent you from refinancing your mortgage and may even put you on the path to freedom from debt entirely.
Apply to refinance your mortgage today and you could be saving money on your monthly mortgage payments in a very short time. No matter what your credit history, lenders are anxious to approve your loan today. Complete an application now to see the great interest rates and low monthly payments that are available to you.
Source By: Super Admin
Wednesday, August 20, 2008
The Internet Is The Best Way To Get Fast Secured Loans
When it comes to getting fast secured loans then the internet is by far the best way to do so, there are many online lenders who can offer you cheap rates of interest while throwing in offers to attract your attention. Where before the popularity of the home computer and the internet you were stuck with the deals the high street lender offered, you now have access to hundreds of online lenders who can beat the high street lenders deal all from the comfort of your own home.
In some case you might find that you need your loan in a hurry, again looking online for a lender that specializes in fast secured loans is your best option, a secured loan can be used for almost any purpose from home improvements to having to replace a major appliance and they also offer some of the cheapest rates of interest along with being one of the easiest loans to get approved for.
A secured loan means that you put up your home or something of the same value as security against the money that you are borrowing, if your credit rating is anything less than perfect then this type of loan is your best option. The internet has the ability to speed up the loan application process and by you filling in all the necessary and basic information the lender is able to get back to you in the shortest time possible with an answer. While of course certain factors have to be taken into account you will at least get approval for the loan quickly of course you should get several quotes online before making the decision of applying for the loan.
So when it comes to getting fast secured loans then the internet should be used to your advantage, it does come in useful for other things besides playing solitaire, so make it work for you and get the best deal available.
Source by: By: iSnare.com
In some case you might find that you need your loan in a hurry, again looking online for a lender that specializes in fast secured loans is your best option, a secured loan can be used for almost any purpose from home improvements to having to replace a major appliance and they also offer some of the cheapest rates of interest along with being one of the easiest loans to get approved for.
A secured loan means that you put up your home or something of the same value as security against the money that you are borrowing, if your credit rating is anything less than perfect then this type of loan is your best option. The internet has the ability to speed up the loan application process and by you filling in all the necessary and basic information the lender is able to get back to you in the shortest time possible with an answer. While of course certain factors have to be taken into account you will at least get approval for the loan quickly of course you should get several quotes online before making the decision of applying for the loan.
So when it comes to getting fast secured loans then the internet should be used to your advantage, it does come in useful for other things besides playing solitaire, so make it work for you and get the best deal available.
Source by: By: iSnare.com
Thursday, August 14, 2008
Use The Internet When It Comes To Low Cost Secured Loans
When it comes to finding low cost secured loans then you have the most valuable tool sat on your desk, your home computer and a connection to the internet can save you a huge amount of money and time when it comes to getting the best deal and the cheapest rates of interest.
Low cost secured loans can be found, there are many lenders who specialize in just trading online and this is where you can make the best savings. A secured loan means that you put up something of value such as your home and in return for this you get the cheapest rates of interest and the best deal, you should bear in mind though that your home is at risk if you don’t keep up the repayments.
To take full advantage and get the best deal on your loan then you should compare rates from different lenders, the majority of lenders will give you a free quote online and from here you simply choose the cheapest. Factors to take into consideration when looking for the best deal online are the rate of interest of course, the terms of the loan and the extras that the lender offers.
Some lenders will offer you enticements to take the loan with them and these are what you should look for, for example some will offer a fixed rate of interest for a specific period of time while others will give you 5 months or so before you have to start repaying the loan. When looking for the cheapest secured loans online make sure that you understand exactly what the loan entails and the total amount that you will have to pay back on the loan, remember your home is at risk of repossession if you don’t keep up the repayments.
Source by: By: iSnare.com
Low cost secured loans can be found, there are many lenders who specialize in just trading online and this is where you can make the best savings. A secured loan means that you put up something of value such as your home and in return for this you get the cheapest rates of interest and the best deal, you should bear in mind though that your home is at risk if you don’t keep up the repayments.
To take full advantage and get the best deal on your loan then you should compare rates from different lenders, the majority of lenders will give you a free quote online and from here you simply choose the cheapest. Factors to take into consideration when looking for the best deal online are the rate of interest of course, the terms of the loan and the extras that the lender offers.
Some lenders will offer you enticements to take the loan with them and these are what you should look for, for example some will offer a fixed rate of interest for a specific period of time while others will give you 5 months or so before you have to start repaying the loan. When looking for the cheapest secured loans online make sure that you understand exactly what the loan entails and the total amount that you will have to pay back on the loan, remember your home is at risk of repossession if you don’t keep up the repayments.
Source by: By: iSnare.com
Saturday, August 9, 2008
A Guide to Getting a Bad Credit Remortgage
There are several reasons why you might be in the market for a bad credit remortgage.
You might be wanting to try to lock in a lower interest rate, or perhaps you simply need to use the bad credit remortgage as a way to consolidate some of your debts.
Regardless of your reasoning, securing a bad credit remortgage can sometimes seem like a daunting task in the end, though, it's usually much easier than you might think.
Defining bad credit
If you're looking for a bad credit remortgage, then you already know (or at least have a suspicion) that your credit is less than perfect.
If you're like a lot of people, though, you might not be exactly sure what this means or how credit is determined.
Your credit rating is a numerical score that's given to you based upon reports from your previous creditors, who are the people who have issued you a credit line or a loan in the past.
If you've made your payments on time, then they send in a positive report and your credit rating goes up.
If you've missed payments or defaulted on your debts (meaning that you didn't pay them back), then they issue a negative report and your credit rating goes down.
The lower your credit rating score is, the more of a risk it's considered to lend you money after all, if you've had problems repaying your debts in the past then it's reasonable for lenders to thing that there's at least a decent chance that you'll have those same problems in the future.
This makes it much harder to get loans and credit offers, and the ones that you do get usually have much higher interest rates and require some form of security deposit or collateral.
The bad credit remortgage
A mortgage is a special type of loan, used to purchase a home or other real estate and using that same property as collateral for the loan.
The mortgage lender has a legal claim to the property, so if you fail to repay your loan then they can repossess and sell the house or real estate.
A bad credit remortgage is a mortgage loan designed for people with lower credit scores, and is issued on property that you already own (and may or may not still have a mortgage on.) Since the house or real estate serves as collateral, you're more likely to be approved for a bad credit remortgage than some other loans meaning that the bad credit remortgage can be used in the place of the loans that you weren't approved for.
It can also be used to restructure payments on your previous mortgage (since the new loan pays off the old one, and is for a lower total amount) and reduce monthly payments, usually with a slightly lower interest rate.
Source by: John Mussi
You might be wanting to try to lock in a lower interest rate, or perhaps you simply need to use the bad credit remortgage as a way to consolidate some of your debts.
Regardless of your reasoning, securing a bad credit remortgage can sometimes seem like a daunting task in the end, though, it's usually much easier than you might think.
Defining bad credit
If you're looking for a bad credit remortgage, then you already know (or at least have a suspicion) that your credit is less than perfect.
If you're like a lot of people, though, you might not be exactly sure what this means or how credit is determined.
Your credit rating is a numerical score that's given to you based upon reports from your previous creditors, who are the people who have issued you a credit line or a loan in the past.
If you've made your payments on time, then they send in a positive report and your credit rating goes up.
If you've missed payments or defaulted on your debts (meaning that you didn't pay them back), then they issue a negative report and your credit rating goes down.
The lower your credit rating score is, the more of a risk it's considered to lend you money after all, if you've had problems repaying your debts in the past then it's reasonable for lenders to thing that there's at least a decent chance that you'll have those same problems in the future.
This makes it much harder to get loans and credit offers, and the ones that you do get usually have much higher interest rates and require some form of security deposit or collateral.
The bad credit remortgage
A mortgage is a special type of loan, used to purchase a home or other real estate and using that same property as collateral for the loan.
The mortgage lender has a legal claim to the property, so if you fail to repay your loan then they can repossess and sell the house or real estate.
A bad credit remortgage is a mortgage loan designed for people with lower credit scores, and is issued on property that you already own (and may or may not still have a mortgage on.) Since the house or real estate serves as collateral, you're more likely to be approved for a bad credit remortgage than some other loans meaning that the bad credit remortgage can be used in the place of the loans that you weren't approved for.
It can also be used to restructure payments on your previous mortgage (since the new loan pays off the old one, and is for a lower total amount) and reduce monthly payments, usually with a slightly lower interest rate.
Source by: John Mussi
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