Month : April 2014

Home Ownership

Prepare to get rid of the hurdles in home loans

Getting home loans was never as tough as it is today. However, knowing the hurdles you may face in getting these loans can make your work a lot easier and can guarantee your success for approval of the same. 

When the situation gets tough everything gets tough. Well, the same applies to loans, the lending business and even the financial status of the individuals. If you are really wondering what we are talking about, you need to just look at a few years back only. The state of recession fuelled by the sub- prime crisis, triggered an atmosphere of uncertainty where people got fear for their financial security.

Lenders too suffered huge losses on account of non-payments and defaults by customers. There were several lenders and the credit card companies at prnewswire.com which suffered because of the bankruptcy filing and the foreclosures. The market had less buyers which deflated the cost of the properties and thus the foreclosed properties could not be sold by the banks and the lenders forcing them to bear heavy losses.

All this saw the lending norms of the lenders getting tough. Qualifying a loan was no longer an easy task for the borrowers. They had to complete a detailed process and the need for documentation rose to the higher levels. When it came to the approval of the home loans, getting them became all the more difficult. looking at the huge amounts involved in these loans and the losses suffered by the lenders in the past, these loans took a longer time to get approved.

However, for an individual buying a home in all and all cash transaction was never easy. There are almost 90% of the customers who still prefer taking a home loan to buy a house and are ready to fulfil the tough lending norms , no matter what it takes them.

Here are some points which prove to be a hurdle for people getting approval for home loan.

1)      Higher credit score requirement: to get approval for home loan a borrower have to maintain perfect credit score for attaining best deal available in market. Although a little lower credit score can also help you to get approval for loan but higher interest rate and fees is charged by people who have a little low credit score. Every lender have minimum credit score criteria set which have to be maintain by borrower to get approval for loan. If in case a borrower don’t fit to the minimum criteria of credit score then he will face difficulties in getting approval for loan and if in case his loan get approved then he have to pay very high interest on the borrowed sum.

2)      Greater scrutiny of income and asset: now a day’s lender has started verifying assets and income of borrower before lending them money for mortgage. This is because lenders want surety that borrower can repay the loan amount and this surety can be gained only when a borrower will prove that he can manage to pay off the loan amount easily and have an asset which he can pledge with lender as collateral against the loan amount.

3)      Every changing borrower requirement: earlier lenders only use to look for a decent credit score to give approval for loan to buy any size house but now they have set many criteria’s for borrower to qualify for getting approval of loan. Now a borrower should have at least 700 credit score to get loan approval. If in case they get approval for loan at credit score less than 700 then they have to pay high interest amount on the borrowed sum. Even they should have total debt ratio below 36%, he also have to arrange for minimum 20% down payment and should have a stable job to get approval for loan.

4)      Home appraisals are coming low: due to short sale of home the prices of real estate is going down day by day which has made home appraisals low. Now a days appraisals are completed by appraisers who are inexperienced and don’t know much about the market in which they are working. Because of all this all loan application are being rejected. This is because the interest rates are so low that lenders don’t lend money unnecessarily. For home buyer it is the best time to buy home as mortgage will be available to them with very less interest rates.

5)      Fewer opportunities for small business owners and independent contractors: there is a loan which is named as liar loan in which there is no need of documentation to present in front of lender from borrower. By the help of this loan some borrower deceives their way to get mortgage which they were not getting because of their poor credit score. but these loans have proved to be very helpful loan for people who are self employed and who don’t get regular pay check so they can use t to show lender as a prove of their income to avail fiancé in future. This money is used by businessmen to pay themselves the minimum amount required too get rid of payroll taxes.

6)      Condo purchases face additional tests: condo loans are the toughest loan which don’t get easily approved as other loans get easily approved. These loans are not easily approved and for people with bad credit score is impossible to get qualify for these loans even if they are ready to pay the highest interest rate which lender can charge against the total amount of loan.

So, just check out the hurdles and prepare yourself to cross them with ease.

Mind Over Money

Why There is No Need to Ever Have Financial Stress

Stress About Money

When people stress about money it’s usually because they feel they don’t have enough in their life. If you’re short on money to pay bills then you need to look at where else your money goes. If you have time to stress about money then you have time to make money. Get a second job, sell stuff or cut back on everything else you spend money on.

I used to stress about money all of the time because I didn’t have enough money to cover my bills every month. Yet I always found money to be able to go out at night. I did that to escape from the fact I didn’t have money but it never solved the problem. The problem was I went out all the time. It’s pretty much a deadly cycle. If I had instead chosen to actually do something about it my life would have been so much easier.

So stressing didn’t solve nothing. Replace your stressing with thoughts of ideas to make more money and you won’t have any more stress. You have the ability to control how you react to life, so use that ability to make a happy life for yourself. Whenever something that could be stressful happens in my life I always remember the poem (this is the only poem I have ever brought up in my life) by Charles Swindoll called Attitude:

The longer I live, the more I realize the impact of attitude on life.

Attitude, to me, is more important than facts. It is more important than the past, than education, than money, than circumstances, than failures, than successes, than what other people think or say or do. It is more important than appearance, giftedness, or skill. It will make or break a company … a church … a home.

The remarkable thing is we have a choice every day regarding the attitude we will embrace for that day. We cannot change our past. We cannot change the fact that people will act in a certain way. We cannot change the inevitable.

The only thing we can do is play on the one string we have, and that is our attitude … I am convinced that life is 10% what happens to me, and 90% how I react to it. And so it is with you … we are in charge of our Attitudes.

It’s a great poem that really sums up why you don’t need to stress. Are there times when I get stressed out? Of course, but it definitely happens a lot less now that I think about what actions I can take to solve the problem instead of focusing on the drama.

What stresses you out? Have you ever thought of what you could do to keep that from stressing you out?

Debt Management

Payday Loans: Helping People to Remain Debt-Free

People are wary of payday lenders because of a few horror stories that they have heard from friends and acquaintances. However, online reputable lenders do exist, and they genuinely want to help people. They know that you are experiencing a difficult financial situation, and they do not want to make it worse.

Below are five reasons online payday loans can help you eliminate financial difficulties.

1. Maintain Your Privacy

It’s difficult enough to have to face a financial hardship, but it can be even harder when you need to ask for a loan. However, online payday loans make it so that you can obtain the money that you need without having to ask your friends or family for money. You can apply for a loan in the comfort and privacy of your own home and be approved without ever having to enter the lender’s store. In addition, you can receive an answer in a matter of hours.

2. Save Your Time

Sometimes, people are forced to ask friends and family for a loan or their employers for an advance because they have bad credit. Because it is so uncomfortable, it can take people a long time before they build up the nerve to ask. Another option is to apply for online payday loans for people with bad credit. It’s a superior choice because it only takes a couple of minutes to fill out the application. The system will send your application to several lenders, and you will only need to wait minutes for them to contact you with their best offers.

3. Save Your Money

Some people find that asking for a loan from people that they know is so distasteful that they will go to great lengths to avoid it. They would rather write checks that they know will be returned, or they place charges on their credit cards and further plunge themselves into debt. However, banks charge insufficient funds fees, and credit card companies charge late fees and interest charges when a bill is left unpaid or a balance is left on the account. Applying for online payday loans saves money because the cost of a payday loan can be much lower than the fees that your bank will charge for a bounced check.

4. Save Your Credit Score

In other cases, people decide not to do anything when they are in this situation. The result is that their bills are left unpaid, and this fact will be reported to the credit bureaus. In turn, the credit bureaus will lower these consumers’ credit scores. With an online payday loan, you can avoid this unpleasant scenario.

5. Confront Unexpected Expenses

Unexpected expenses can come up at any time, and they can be very expensive. If you would have been able to confront this expense if the emergency waited until your next payday, an online payday loan will be a good option for you.  Online payday loans from Northcash make it possible for you to survive until your next payday when you will re-pay the loan in full.

Nam is a finance expert writer who has a particular interest in covering topics on loans. He’s a regular contributor on PaydayLoansGuide.org