Want To Buy A Home But Worried About Your Credit? What To Know

Posted by on Jun 3, 2016 in Uncategorized | Comments Off on Want To Buy A Home But Worried About Your Credit? What To Know

If you have decided you want to take out a home loan and you aren’t sure if your finances are in a good enough state to purchase a house, there are a few things you’ll want to look into. It can be difficult to get a mortgage if you haven’t been financially responsible in the past and if you aren’t good at making payments on time. Your credit score is going to have a big impact on whether or not you can get approved for a home loan, but some other factors will apply as well. Here are a few financial things to look at. Debt to Income Ratio Your debt to income ratio can be more important than your credit score when it comes to getting approved for a mortgage. This is the total amount of debts you have added together, in comparison to the amount that you bring in annually. If you are looking to get approved, you may want to pay down the balances on your auto loan, credit cards, or other debts that you have. Longest Standing Accounts Mortgage lenders like to see that you have long lending history with a specific company, or that you have been able to keep an account open for months or years. If you don’t have anything on your credit report that shows you’re trustworthy in the long term, you may want to find a company that you have had an account with for years that doesn’t report to the credit bureaus, and have them write a letter about your account. Money Saved It’s ideal to show the bank that you have 2 months of mortgages or more in a savings account, so you aren’t going to default when you have to pay the loan monthly. If you can show that you have more than that, and that the likelihood of a default is minimal, it can improve your chances even if your credit score isn’t the best. There are some lenders that will give mortgages to people who don’t have the highest credit scores; you’ll just have to expect to pay a higher interest rate. If you are interested in investing your money in real estate and you want to purchase a home, don’t let your less than perfect credit score hold you back. Instead, look at these different factors and use them to your advantage to get the lender to award you the mortgage.  For more information, contact a company like Financial One...

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3 Reasons To Hire A Mortgage Broker

Posted by on May 2, 2016 in Uncategorized | Comments Off on 3 Reasons To Hire A Mortgage Broker

One of the most important parts of buying a new home is making sure that you get the best possible interest rate and loan, mostly because you do not want to end up paying more for your home than you have to. However, it can often be quite difficult to find the right loan due to the sheer number of available lenders, but a mortgage broker can help make the entire process much simpler. Listed below are three reasons to hire a mortgage broker. Avoid Wasting Time One of the most important ways that a mortgage broker can help you is by not wasting your time. This is going to be accomplished by a mortgage broker discussing your finances and loan requirements when you first hire him or her. Once that information is provided, the mortgage broker can then begin looking for a loan that you qualify for and that meets your requirements. The only time that the mortgage broker will show you offers that do not meet your exact requirements is if no loan offers perfectly match your criteria. In that situation, the mortgage broker will show you those offers that come as close as possible to your requirements.  Access To Many Lenders One of the best parts about hiring a mortgage broker is that he or she can help you make contact with many lenders that you may overlook normally. The reason for this is that the mortgage broker will be able to send your application and shop for loans with lenders that may not exist in your area or that you may not even know offer home loans. In this way, the lender will greatly increase your chances of finding a decent interest rate and loan. Avoid Unrealistic Expectations Finally, a mortgage broker can discuss your expectations for a home loan and interest rate and explain why those expectations may be unrealistic. This can greatly reduce the chances that you will be disappointed with the available loan offers due to having unrealistic expectations of how much you may be approved for or the interest rate that you qualify for.  Contact a mortgage broker today in order to discuss how he or she can help you find the best loan and interest rate for you. A mortgage broker can help you avoid wasting time and being disappointed by having unrealistic expectations while also providing you with access to a very large number of lenders. Contact a company like Premium Mortgage Corp for more...

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3 Things You Need To Know About Home Equity Loans

Posted by on Mar 17, 2016 in Uncategorized | Comments Off on 3 Things You Need To Know About Home Equity Loans

If you own your home, you might be considering getting a home equity loan. A home equity loan is a great way to free up some cash and use the equity in your home for other things you might need. However, home equity loans are not always advisable, there are some situations where you should avoid getting a home equity loan. Here are some things you need to know about home equity. 1. Don’t Use A Home Equity Loan For Luxury Purchases As a general rule you should only use your home equity when you have something that needs to be covered, not a luxury or a want. For instance, you shouldn’t take out the loan to pay for cars, expensive furniture, or other unnecessary things. Instead, a home equity loan should be used to make improvements or even remodel the home to increase its value. If the money used from the loan doesn’t serve to improve the property value, or if the items that you are purchasing will quickly depreciate, don’t do it. Only use the equity in your home on things that will improve your overall value. 2. Consider Using Home Equity For Retirement For many homeowners, their house is their largest asset. In fact, if they don’t have a retirement fund, the house may be the best way to get the money that they need for retirement. However, you don’t have to sell the home to get the money you need, you can take out a home equity loan to cover expenses. There are programs with some lenders if you are over a certain age where you can get a reverse mortgage that allows you to use the equity in your home to live off of. 3. Don’t Use Equity If You Are Planning on Selling In The Immediate Future Home equity loans should only be taken out if you are planning on staying in the house for a long period of time. In order to really get your money’s worth out of the home equity loan you need to be in the house long enough to make it worth the investment. If you expect to sell the house soon, you shouldn’t take out a home equity loan, even if it is to remodel. Let the new buyer remodel the home, you should keep your equity if you are selling. These are just a couple things you need to know about home equity. Contact a local bank, like MCS Bank, for more...

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Securing A Business Loan: Facts About Collateral

Posted by on Feb 4, 2016 in Uncategorized | Comments Off on Securing A Business Loan: Facts About Collateral

All companies need working capital in order to perform their business, and a business loan can be a great way to obtain some money upfront so you can get things moving in the right direction. Many lenders require businesses to provide collateral in order to secure the loan. The purpose of collateral is to give banks some kind of assurance that the business will not default, and if they do, the bank may use the collateral to repay the balance. Here is what you need to know about using collateral for a business loan. What Can Be Used As Collateral? In many cases, business owners will need to provide their own homes as collateral for a business loan. Offering your home gives banks the assurance that they can recoup their losses by selling your home if you don’t pay up. While this option is very risky for the owner, it is often the only option they have to secure the loan. As long as you’re making monthly payments on the loan, this should not be too much of a concern. Other options for collateral can include your current company’s inventory and accounts receivables. The lender may seize these assets in the event of default. Make sure you give the bank accurate information about what kind of collateral you have to offer. What Happens If You Do Not Pay? If something happens to your business and you’re unable to repay the loan, the lender may seize your assets in order to recoup any financial losses they’ve incurred. If you have put your office building up as collateral, for example, the bank can declare that property theirs. This also goes for any equipment you may have put up like company vehicles, computer equipment, or other assets. This is why it is so important to repay a collateral-based loan. You stand to lose a lot of merchandise, property, or other important assets if you fail to make payments. What Are Some Alternatives To Collateral? Some lenders will provide companies with loans that don’t require the use of collateral. The Small Business Administration has a wealth of resources for companies including other loan options. Another alternative you can try is to obtain a peer-to-peer loan. These types of loans require investors who will help contribute to the total amount of money you need to borrow. The investors set the interest rate that you must repay the loan in order for them to make a profit. Most peer-to-peer lending services do not use collateral, so it’s a good option to look into if you’re not too keen on collateral-based business loans....

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Three Types of Payday Loan Scams to Avoid

Posted by on Dec 18, 2015 in Uncategorized | Comments Off on Three Types of Payday Loan Scams to Avoid

Preying on people who are in need of payday loans is a very low form of scam, but it’s also disturbingly common. It’s important to educate yourself about the types of scams you may be exposing yourself to so that you can avoid them when you get your payday loan. Here are three types of scams that you may encounter when you’re seeking a payday loan. 1. Telephone scams These scammers may get into your confidence and then get personal information from you. A common form of this scam type is when the scammer will call you on the phone claiming to represent a payday loan company and, on this false pretense, convince you to give out your information to them. They can then use your information against you, blackmailing you into paying them money. Another approach is to first obtain your information some other way and use it to convince you that they’re a legitimate debt collection agency, thus persuading or intimidating you into sending your money to them.  2. Identity Theft Of course it’s important to give out identifying information to anyone who’s lending you money, otherwise they’d have no guarantee that they’d be able to get their money back or even find you again. However, some scams take advantage of this by pretending to be a payday loan company just in order to get personal information from you so they can then impersonate you. This form of identity theft is especially likely if you’re using an online payday loan company. Online information can often be hacked from databases, and these types of companies are frequent targets of such hacking. 3. Fake fees A disreputable company or scam impersonating a payday loan company can pretend to offer you a loan and then trick you into paying them instead. They may do this by telling you that you need to send them “insurance” money and then keep charging you unnecessary fees until you’ve paid them more than the original amount of the loan (which of course you’ll probably never receive in the first place).   After reading about these three payday loan scams, you’ll be better equipped to resist any attempts to scam you. However, these types of scams are just some of the ways you can lose money on a payday loan. Make sure you do plenty of research on not only the payday loan company you select, but also on typical payday loan fees and interest, so you’re ready to get the best deal on your loan. For any loan, be sure to visit reputable establishments, such as Weyco Community Credit Union, to ensure your financial...

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Tips For Making A Smart Decision About Cash Advances

Posted by on Nov 12, 2015 in Uncategorized | Comments Off on Tips For Making A Smart Decision About Cash Advances

Cash advances are helpful for people who need to make sure that they have a larger sum of money than normal before their paycheck. This money could be to pay the co-payment for a hospital bill, for auto repair expenses, or for any other emergency where you need to have cash available. However, cash advances are not always the right decision for your personal financial situation. Here are some questions that you should ask yourself in order to determine if you should get a cash advance or seek another method of payment. 1. Does the Business Require Cash? The first thing that you want to look at is if the business requires cash. If they do, then you are going to have to get a cash advance. If they don’t, then you have a few options. You can either choose to use a credit card to pay for whatever you need, or you can use a cash advance. To determine if you should use your credit card or get a cash advance, you are going to need to look at their respective interest rates. If the interest rate for your credit card is lower than that of the cash advance, then you should use your credit card because you’ll end up paying less money overall. If the cash advance has a lower interest rate, go for the cash advance. 2. Can You Pay the Entire Loan Off Immediately? Cash advances are essentially mini, short-term loans. However, sometimes cash advances have higher rates if you don’t pay them off immediately. As a result, it’s best to get a cash advance if you can pay off the entire loan in less than a month in order to prevent higher interest rates from kicking in. If you’re not sure that you’re going to be able to pay the entire loan off immediately when you’re paid, then you might want to consider other financial options such as asking friends for a short-term loan or trying to open up a second credit card to pay the expenses. 3. Will the Item You Purchase Make or Break Your Career? Finally, if the item you purchase is absolutely necessary for you to do your job, such as a new car battery, then go with the cash advance, no questions asked. If the item is a luxury item and you just want to get it when it comes out, rather that wait until payday, you might be better off financially if you wait. For more information, talk to a company that specializes in cash advances, like The Money...

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The Top Mistakes Borrowers Make When Seeking VA Loans

Posted by on Oct 14, 2015 in Uncategorized | Comments Off on The Top Mistakes Borrowers Make When Seeking VA Loans

After you have served long enough that you meet the requirements of a VA loan, you may be eager to pursue one. But if you make certain common mistakes when applying for the loan, the process will be much more difficult and your dream home might slip through your fingers. Not Determining If You Are Qualified Make sure that you are qualified. If you were honorably discharged, you are qualified. But even if you were dishonorably discharged, you may still qualify depending on the circumstances. You may qualify if you are active duty depending on how long you have been in service. Not Getting Pre-Approved Some borrowers confuse being pre-qualified with being pre-approved. If you are pre-qualified for a loan, you have simply received a quick appraisal that can give you a sense of whether you will be approved, but is not an official approval. The pre-approval process is more challenging, but once you are pre-approved, you will receive a letter that you can take to home sellers to demonstrate that a bank is willing to lend to you. Not Working With An Experienced VA Lender Not all lenders have VA experience. If the lender makes a mistake when submitting your file, the mistake can be expensive. For example, the VA funding fee might be rolled into the loan amount to allow you to avoid paying the fee, but this can lead to you becoming disqualified for the loan. Looking At Homes That Aren’t Qualified When you are looking at a home, make sure that the home is qualified for VA loans before you make an offer. Certain condominiums and town homes are not qualified and veterans will fall in love with a home only to discover that it isn’t available to them. Fortunately, there are online condominium check tools you can use to quickly determine if one is qualified. Confusing An Appraisal With An Inspection Even though your home receives an appraisal, this is not the same as having your home inspected. For example, if the home has termites, this will likely not be discovered by the appraisal. VA loans are still the best loans that anyone can be qualified for. They do not require a down payment, they place restrictions on closing costs and have very competitive interest rates, even for those who have bad credit. Talk with a VA lender today to get a free VA loan...

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Tips to Get Your Home Ready for a Home Equity Loan

Posted by on Aug 19, 2015 in Uncategorized | Comments Off on Tips to Get Your Home Ready for a Home Equity Loan

If you are thinking about taking out a home equity loan, you need to prepare yourself and your home. Sure, you want to work on sprucing up your credit report, but there is so much more than that that needs to be done. Take a moment to review the following tips for getting your home ready. This way, when you do apply for the home equity loan, you will have a better shot at receiving an approval. Improve the Curb Appeal Part of the value of the home comes from its curb appeal. After all, it is hard to convince a bank that your home is worth the money you want if it does not look all that fantastic from the outside. Some of the things that you can do to efficiently improve the curb appeal would be to plant flowers, add landscape mulch, give the siding a fresh coat of paint, and paint all of the trim work and doors. Update All Fixtures Whether you have outdated sink faucets or old light fixtures—you will want to replace them with something more modern. This will need done throughout the entire home, as these updates are affordable yet help increase the value of your home. The more your home is worth, the easier it will be to qualify for the home equity loan. If you are having a hard time coming up with money, you can always find used modern fixtures that will work just fine. If they are still in great shape, it will not matter if they are used. You can find these online, at flea markets, or at home improvement stores that carry strictly used or discontinued items. Clean Up the Clutter Sure, the value of your home is supposed to be determined strictly according to the structural integrity and efficiency of the home. However, it may be hard for an appraiser to see all of the beautiful woodwork or updated electrical outlets if your home is packed full of stuff. Therefore, this is the perfect time to do a little deep cleaning. Think about how you would want the home to look if a real estate agent was bringing strangers through your home. If you simply cannot part with certain things but you know that they need to be out of the way, you can always put them in a garage or rented storage unit until your home appraisal is complete. With the previously mentioned tips in mind, you should have a much easier time getting your home ready for the home loan application...

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3 Tips For Buying A Home With A Less Than Perfect Credit Score

Posted by on Jun 17, 2015 in Uncategorized | Comments Off on 3 Tips For Buying A Home With A Less Than Perfect Credit Score

In an ideal world, everyone who wanted to purchase a house would have a great credit score, high and steady income, and 20 percent down for a down payment. However, this is simply not the case. Instead, there are many people who feel like they can afford a home and are ready to purchase, but don’t have the best credit score. Luckily, there is still hope. Here are some things that you can do to help get qualified for a home loan, even if your credit score is less than perfect. 1. Get An FHA Loan There are certain loans that are backed up by the government. These loans are put in place to help first time homebuyers, veterans and other people who might not be able to get a loan get into a house. Many times these programs don’t require you to have a large down payment, and they don’t have as strict requirements when it comes to credit scores. When you talk to the mortgage lender, let them know about your credit score. By giving them a heads up that it might be low, it can help them decide what kind of loan would be best for you. 2. Buy Low In Your Budget If your credit score is low, but you have a good income, then you might want to consider buying a house that is lower in your budget. Say that you could afford a $2,000 mortgage payment. But with a poor credit score, the lender will be less incentivized to lend you the money if it is right at your debt to income max. Instead, try going for something that is far lower than what you could “afford.” That way the banks won’t be nearly as worried about you making your payments since they see you can easily afford it. 3. Be Honest With Your Lender Before the lender actually goes through the process of getting your approved, or closing on the house, they will want you to give them hard numbers. You might be tempted to inflate these numbers to help your chances. But eventually you will have to provide all the documentation to prove everything. If you have not been straightforward about income, credit score, debt and much more, you could be in trouble. Additionally, if you have many lenders pull your credit score it could hurt it even more. This is why it is better to be honest at the beginning, and see what they can do for you, before you have them pull your credit and try to get you approved. If you have specific questions about home loans, contact a business like Dynamic Mortgage Concepts Inc to learn about what your options...

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What To Do When Your Student Loan Payment Is Late

Posted by on Mar 27, 2015 in Uncategorized | 0 comments

Your student loan is late and you have either no money or a negative number in your bank account. This happens quite a bit, so don’t panic. For most people, their student loan payments are the largest payments they need to make every month, other than their rent. Student lenders are used to late payments, but that doesn’t mean you can just ignore it. A late payment will go on your credit report and will stay there for some time. The suggestions below can help you avoid hurting your credit report and manage your loans for a bit.  Call Your Lending Agent and Ask for an Extension Call your lending agent, communicate your problems and ask them if they can give you a break. It’s important that you actually receive an extension when you call. Some agents will tell you to make a partial payment in good faith. In general, these partial payments will not help your situation. You will still be marked as late, it will still go on your credit report and collections will still begin against you after a certain amount of time. Making a partial payment is not an extension on your due date unless they specifically tell you they will extend your due date. Take Out a Pay Day Advance If your lender absolutely needs a payment, one easy way to deal with it is to take out a pay day advance. There are loans online that will let you borrow a few hundred dollars — sometimes up to a thousand dollars. You can then use this money to pay off your loan and to avoid being late. Though you will be charged some interest, this may not be as bad as getting a black mark on your credit report. Talk with a cash advance service, like USA Cash Services, to weigh your options.  Change Your Due Date Most student loans will let you change the due date on your loan at least once for the duration of the loan itself. You can change your due date to something that falls after your next pay day to give yourself some breathing room. However, this can usually only be done once, so make sure you save this option for when you really need it. Often the due date can be changed online without having to call into the billing department. If you find that you’re late on your student loans a significant portion of the time, you might want to consider restructuring your debt. A debt consolidation service can help negotiate with your creditors to make sure that your debts are paid on time and that your payments are...

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