This article describes some basic steps one can take to improve the chances of approval for a mortgage loan.
Have Stable Monthly Budgeting Habits
It is a good practice whether awaiting for a loan approval decision or not to always maintain a stable monthly budget that utilizes wise spending, saving, and income earning habits.
Maintain Healthy Credit Scores
Your credit scores and your credit reports will have a big impact on the lenders decision to approve or deny you the funds you need to buy a home. You want to ensure that your credit score is as high as you possibly can get it. This means checking your reports and ensuring that all info and activity is accurate and that their are no mistakes that are hurting the appearance of your credit history.
Make sure you understand credit score basics so that you are able to do what you need to do if something is out of place. If you don't understand what your looking at than how will you know if it is OK?
Pay Off Unsecured Consumer and High Interest Debt
If you have credit card debt, owe money on store credit accounts, personal bank loans, or any sort of high interest debt than you really should pay it off.
Lenders are not going to want to lend money to folks that owe on a lot of rip off high interest credit cards or other sorts of unsecured debt.
At the very least you need to consider a debt consolidation loan with more favorable terms.
Be Upfront with The Bank or Lender - Tackle Obvious Approval Issues First
If there are some obvious weaknesses on your loan application it is a good idea to bring them up first. This allows you to offer an explanation instead of coming up with an excuse for when they find out about it anyways. Plus you will be able to avoid applying for the loan if the weakness is a automatic disapproval trigger for the lender.
If nothing else this will make you appear and feel more responsible as a borrower.
Related Articles
Four Highly Effective Habits of the Financially Healthy and Wealthy
Showing posts with label loan. Show all posts
Showing posts with label loan. Show all posts
Sunday, March 20, 2011
Debt Settlement Risk Factors
Debt Settlement Risk - Three Key Fundamental Risks
Debt Settlement has some fundamental risks that come with the decision to pursue efforts of settling debt for a discounted price with your creditors.
This article provides an outline of three existing debt settlement risk.
3 Financial Risks
No Guarantee
Related Articles
DIY Credit Card Debt Settlement
Debt Settlement has some fundamental risks that come with the decision to pursue efforts of settling debt for a discounted price with your creditors.
This article provides an outline of three existing debt settlement risk.
3 Financial Risks
No Guarantee
- There is never a guarantee that you will be able to settle debt with a lender. Just because you want to settle and make an offer does not mean that they will take it.
- You will most likely have to pay taxes on any debt forgiven by your lender.
- The government and the IRS count those funds as income. So you will get a 1099 for the discounted amount of debt in most cases.
- Your credit score is not going to be in good shape. there is no doubt that you will have to become delinquent in order to have any real chance of settling any debt with your lenders. Those missed payments and default statuses go on your credit history and payment history records.
- Also just because you settle a debt successfully does not mean that other potential creditors are going to view that as a good thing. Think about it. You borrowed money and did not pay the full amount back.
Related Articles
DIY Credit Card Debt Settlement
California Hardest Hit Fund Foreclosure Assistance - Strategic Focus
The California State Housing Authority has taken targeted measures to provide assistance to homeowners in financial hardship through the Hardest Hit Fund.
Like all states receiving help from HHF they have worked hard at developing innovative mortgage assistance programs targeted to the specific needs of their homeowners foreclosure assistance needs.
In addition to developing new programs they have adopted the approach of improving and expanding existing efforts and foreclosure prevention programs already in place.
California has decided to hyper focus borrower assistance resources towards aiding low to moderate income homeowners.
A core theme in the development and design of their approach is to ensure that their programs and the operations of their assistance efforts remain flexible and agile. This is in response to the success that the Obama home affordable mortgage assistance programs have had with the same approach.
To get the most bang out of their buck California foreclosure assistance efforts has put significant measures in place to have lenders, loan servicers, and PMI insurers to match their efforts dollar to dollar.
Related Articles
California Foreclosure Prevention Programs - Hardest Hit Fund Program
Like all states receiving help from HHF they have worked hard at developing innovative mortgage assistance programs targeted to the specific needs of their homeowners foreclosure assistance needs.
In addition to developing new programs they have adopted the approach of improving and expanding existing efforts and foreclosure prevention programs already in place.
California has decided to hyper focus borrower assistance resources towards aiding low to moderate income homeowners.
A core theme in the development and design of their approach is to ensure that their programs and the operations of their assistance efforts remain flexible and agile. This is in response to the success that the Obama home affordable mortgage assistance programs have had with the same approach.
To get the most bang out of their buck California foreclosure assistance efforts has put significant measures in place to have lenders, loan servicers, and PMI insurers to match their efforts dollar to dollar.
Related Articles
California Foreclosure Prevention Programs - Hardest Hit Fund Program
California Mortgage Foreclosure Crisis - Hardest Hit Fund Assistance
The Hardest hit Fund has contributed approximately 700 million dollars to aid California's fight to stop foreclosure.
California homeowners have endured comparatively high levels of financial hardship. Many borrowers in California have lost the ability to make mortgage payments due to a loss of income, divorce, medical issues and other typical causes of unpreventable hardship. The difference in California is that a large population of homeowners have been adversely affected by the unwinding housing, mortgage, and foreclosure crisis. Factors such as rising monthly mortgage payments and unprecedented statewide declining home values have created a compounding effect compared to other states. These horrific economic conditions have triggered an even worst and unforeseen trend in which homeowners are now strategically defaulting on their mortgage because of the overwhelming drop in home values and thus home equity.
The housing slump and economic hardships experienced in California are dramatically worst in comparison to other states. This difference appears both in the size and severity of the declining trends of the housing and mortgage slump as well as the rising rates of foreclosures. The typical mortgage solutions and foreclosure alternatives that work in other states do not prove as effective in California because of the limited dollars available to help this large segment of California homeowners suffering through financial hardship and mortgage default.
These circumstances have led to the decision to financially assist the state of California in it's fight to stop foreclosure and provide homeowners assistance through available resources of the Hardest Hit Fund which was created trough the Making Home Affordable Plan.
California homeowners have endured comparatively high levels of financial hardship. Many borrowers in California have lost the ability to make mortgage payments due to a loss of income, divorce, medical issues and other typical causes of unpreventable hardship. The difference in California is that a large population of homeowners have been adversely affected by the unwinding housing, mortgage, and foreclosure crisis. Factors such as rising monthly mortgage payments and unprecedented statewide declining home values have created a compounding effect compared to other states. These horrific economic conditions have triggered an even worst and unforeseen trend in which homeowners are now strategically defaulting on their mortgage because of the overwhelming drop in home values and thus home equity.
The housing slump and economic hardships experienced in California are dramatically worst in comparison to other states. This difference appears both in the size and severity of the declining trends of the housing and mortgage slump as well as the rising rates of foreclosures. The typical mortgage solutions and foreclosure alternatives that work in other states do not prove as effective in California because of the limited dollars available to help this large segment of California homeowners suffering through financial hardship and mortgage default.
These circumstances have led to the decision to financially assist the state of California in it's fight to stop foreclosure and provide homeowners assistance through available resources of the Hardest Hit Fund which was created trough the Making Home Affordable Plan.
California Mortgage Help from Hardest Hit Fund Program
California Housing Finance Agency has taken measures to offset the consequences of elevated levels of foreclosure and mortgage default by developing government mortgage assistance programs through the Hardest Hit fund. The California Foreclosure Assistance Plan provides debt help and mortgage assistance for homeowners in financial hardship.
The California mortgage assistance programs have been developed by working with lenders, loan servicers, borrowers, housing counselors, and private mortgage insurers to create, develop, and utilize targeted mortgage solutions that will reduce the growing amount of foreclosures and help financially troubled homeowners keep their home.
Four California Homeowner Assistance Programs
The California Foreclosure Assistance Plan is composed of four mortgage help programs. Three of the four programs focus on creating an opportunity for homeowners to keep their home. The fourth program provides homeowners with foreclosure relocation assistance in the form of financial aid.
Though the foreclosure and home assistance programs will help a great deal of homeowners in financial hardship they will only put a dent in the entire California foreclosure crisis. These programs that are funded through the Making Home Affordable Plan's Hardest Hit Fund will act as an effective compliment to the Federal mortgage assistance programs such as the Home Affordable Modification Program and the Home Affordable Refinance Program.
The California mortgage assistance programs have been developed by working with lenders, loan servicers, borrowers, housing counselors, and private mortgage insurers to create, develop, and utilize targeted mortgage solutions that will reduce the growing amount of foreclosures and help financially troubled homeowners keep their home.
Four California Homeowner Assistance Programs
The California Foreclosure Assistance Plan is composed of four mortgage help programs. Three of the four programs focus on creating an opportunity for homeowners to keep their home. The fourth program provides homeowners with foreclosure relocation assistance in the form of financial aid.
- Monthly Mortgage Payment Assistance for Unemployed Homeowners - Provides homeowners with financial aid to help pay the monthly mortgage payments.
- Home Loan Reinstatement - Helps homeowners bring their loan current by providing financial assistance to pay of part of the past due balance.
- Mortgage Balance and Principle Cuts - Gives borrowers with upside down home loans financial aid to pay off part of the principle balance on the mortgage loan.
- Moving Assistance and Financial Aid - Provides borrowers who are losing their home due to a short sale or deed in lieu up to 5,000 dollars in foreclosure relocation assistance. This cash for keys like program provide financial assistance to homeowners who will incur moving expenses due to foreclosure.
Though the foreclosure and home assistance programs will help a great deal of homeowners in financial hardship they will only put a dent in the entire California foreclosure crisis. These programs that are funded through the Making Home Affordable Plan's Hardest Hit Fund will act as an effective compliment to the Federal mortgage assistance programs such as the Home Affordable Modification Program and the Home Affordable Refinance Program.
Saturday, February 5, 2011
Understanding Loans That are Unsecured
Understanding unsecured loans and debt is a key part of healthy personal finance.
Loans that are not secured do not have a guarantee backed by an asset of comparable value like secured loan does. This means that debt which is unsecured carry more risk for creditors than a comparable secured loan. Thus a unsecured loan carries less of a risk for the borrower. Following this logic, unsecured loans are more costly for consumers.
Creditors that lend via unsecured loans set higher interest rates and sizable fees that the borrower will have to pay. The lender asks for more to hedge the increased risk involved in investing in unsecured debt. If the borrower does not repay the loan as agreed creditors will not be able to seize or collect any type of collateral if the loan is no secured by an asset.
The comparably higher risk associated with unsecured debt derives from two fundamental notions.
Types of Unsecured Loans
Below you can find a list of typical unsecured lending products
Loans that are not secured do not have a guarantee backed by an asset of comparable value like secured loan does. This means that debt which is unsecured carry more risk for creditors than a comparable secured loan. Thus a unsecured loan carries less of a risk for the borrower. Following this logic, unsecured loans are more costly for consumers.
Creditors that lend via unsecured loans set higher interest rates and sizable fees that the borrower will have to pay. The lender asks for more to hedge the increased risk involved in investing in unsecured debt. If the borrower does not repay the loan as agreed creditors will not be able to seize or collect any type of collateral if the loan is no secured by an asset.
The comparably higher risk associated with unsecured debt derives from two fundamental notions.
- The borrower will elect to pay secured debt before unsecured debt.
- There is no collateral guarantee to hedge the risk of default.
Types of Unsecured Loans
Below you can find a list of typical unsecured lending products
- Personal Loan
- Credit Card Accounts
- Peer to Peer Lending
- Debt Consolidation Loan
- Store Financing Loans
- Some Small Business Loans
- Some Corporate Loan Debt
Related Articles
Subscribe to:
Posts (Atom)