Stated Income Mortgage Loan - Get Approved Online
October 31, 2009
A stated income or no doc mortgage loan allows individuals with difficult to document income to buy a home. With a documented credit score and reasonably stated income, you can qualify for a mortgage at a slightly higher rate. Online mortgage lenders allow you to easily compare rates on stated income mortgage loans, guaranteeing that you get the best rate.
Getting Started
To apply for a stated income or no documentation mortgage loan you will need to provide necessary paperwork verifying your credit score and employment. You must provide your social security number since your credit worthiness is based almost entirely on your credit score. Typical stated income loans will require a credit score of at least 680, but some lenders will offer loans for scores as low as 580.
You will also need to prove you are employed - self-employed individuals qualify. You will need to disclose your income, which must be reasonable in your profession.
Finding Mortgage Lenders
Just like with any type of mortgage loan, it pays to compare lenders’ rates and fees. Even a quarter of a percent difference can save you thousands over the life of your mortgage. However, you also need to factor in fees when comparing lenders. Fees often hide the true cost of a mortgage loan.
Everything You Need to Know About a Secured Loan
October 31, 2009
If you’re not familiar with the term, a secured loan is a loan which requires a security deposit of some kind (also known as collateral) to protect the lender against nonpayment. The secured loan is the preferred type of loan for lenders who deal with people with bad credit, but is also used when purchasing certain types of property (such as an automobile or real estate.) Interest rates tend to be lower with a secured loan than with an unsecured loan (which doesn’t require collateral, but charges higher interest rates to cover the additional risk.)
Types of collateral
Just about any property with value can be used as collateral for a secured loan, though some types are more common than others. Jewelry and rare coin collections can be used as collateral for some loans, though they are usually held by the lender to help protect them from theft or loss. Automobiles and real estate are popular forms of collateral, and lenders usually allow you to keep them while you repay the loan? you simply turn over the deed or title and the lender is given a legal claim to the car or house in case you should default on you secured loan (which is a fancy way of saying that you don’t pay it back.) Car financing and mortgages are both forms of secured loans, in which the automobile or real estate that you’re buying with the loan serves as the collateral for the lender.
What Is the Fair Credit Reporting Act and What You Should Know About It
October 30, 2009
The Fair Credit Reporting Act (FCRA) and the recent update to this law called the Fair and Accurate Credit Transactions Act (FACTA) protect consumers against inaccurate information being reported by credit bureaus and the privacy of that information. What does this mean to you?
When you make purchases on a credit card, make payments to your accounts, open new bank or credit accounts, borrow money, buy a house or a car, and even fund your education, your financial information is reported by creditors and lenders to a credit bureau.
The three major credit agencies that serve as clearinghouses for this information are Equifax, Experian, and TransUnion. Each lender and credit company may report your information to a different agency, depending on the location of the business and the service agreement between the companies, so each credit agency might print very different information on your credit report.
Real Estate Lender - Get Approved For a Mortgage Loan Online
October 29, 2009
Real estate lenders now offer mortgage loan quotes and application online. You can be approved for a mortgage loan online in a matter of a few weeks. With online real estate lenders you can also be sure you are getting the best mortgage loan rate by requesting quotes.
Online Mortgage Loans
Real estate lenders accept online applications through their secure servers. Once your application is approved, final paperwork will be sent to your home so you can review the terms. You will need to sign the paperwork in front of a notary and then mail the forms back to the real estate lender. Your paperwork will be processed, and you will be on your way to buying a home.
Before You Apply
Before you apply for a mortgage loan online, take the time to compare financing rates and fees from several different real estate lenders. Rates can vary as much as 5%, costing you thousands over the course of your loan.
Real estate lenders offer basic quotes online by asking a few basic questions. Within minutes you can look at financing offers from several different lenders, allowing you to pick the best financing rates quickly. However, your actual mortgage rate will be based on more detailed information.
High Risk Home Mortgage Lenders Online
October 28, 2009
Online high risk home mortgage lenders specialize in offering loans to people with adverse credit due to bankruptcy or other financial problems. By analyzing online quotes, you can find a reasonable mortgage loan even with poor credit. Loan approval is then just a matter of filling out your online application and reviewing some final paperwork.
High Risk Home Mortgage Lenders
High risk home mortgage lenders, also called sub prime lenders, provide a service for people with poor credit. Through slightly higher mortgage rates and fees, lenders are able to offer mortgage loans to high risk lenders. There are predatory lenders who charge extremely high rates and fees, but you can avoid them with comparison shopping.
Finding Lenders
The internet makes finding high risk home mortgage lenders easy. Through mortgage comparison websites, you can request quotes from several lenders by answering a few basic questions. You commit to no obligations when you requests quotes online.
These generic quotes will help you narrow down your list of possible mortgage lenders. Once you have picked a few possible mortgage lenders, you will need to request a detailed quote from them to make real comparisons.
Comparing Financing
Knowing Me, Knowing You: Why ID Protection Plans Are Flawed For Fraud
October 27, 2009
ID theft is a major consumer concern, though there is apparently much confusion about proactive protection initiatives and apparently safe and unsafe spending behaviour. For example, many consumers remain reluctant about shopping online, but they may still give out personal details over the phone in a cold call, or they may have redundant or dormant accounts and financial products which are susceptible to fraud.
If reducing fraud vulnerability wasn’t sufficiently difficult already, consumers are now being offered anti-ID theft services and ID protection insurance by banks, insurance companies and credit reference agencies. There is considerable debate around such policies however, as they do not offer full financial compensation. In The Observer last week, Richard Brown, Chief Executive of consumer finance site moneynet ( http://www.moneynet.co.uk ) stated that:
"Few, if any, of them appear to offer insurance protection against actual financial loss in the event that a credit company, for example, refuses to cover the loss ? and this is what consumers really need. While ID protection services may have a degree of value, they shouldn’t be used as a reason to take an otherwise uncompetitive product."
A Guide to the Bad Credit Personal Loan
October 26, 2009
Here is a useful guide to the bad credit personal loan. If you find yourself in need of extra money but without the good credit needed for an unsecured loan, you may want to consider getting a bad credit secured loan. These loans require you to place some item or property in the lender’s trust as collateral for the loan, and should you not repay the loan then they are free to sell the item that you granted them as collateral. Some lenders require that you turn over the collateral to them in order to get your bad credit secured loan, but many will allow you to keep the collateral.
What are common collateral items?
Common items that are used as collateral for a bad credit secured loan include items like automobiles and real estate, though precious jewelry or other items are also used from time to time. When using an automobile or piece of real estate, the person seeking the bad credit secured loan is often able to keep their car or house; they simply turn over the deed or title to the finance company or other lender who is then granted a legal claim to it until the loan has been repaid.
What Is a FICO Score and How Do I Make It Work for Me?
October 26, 2009
Whether or not you receive a loan and what interest rate you get on your credit card may be determined by something called a FICO score. Named for Fair, Isaac & Co., a California-based company that developed the credit score, the FICO score is the most widely used scoring method to determine credit worthiness.
Scores range from approximately 300 to 800 and are provided to lenders by the three credit bureaus, Equifax, Experian, and TransUnion. You also have access to your FICO scores, but will be charged a fee by each credit agency providing your report.
According to Fair Isaac, the credit scores of the American public are divided as follows:
? 499 and below 1 percent ? 500-549 5 percent ? 550-599 7 percent ? 600-649 11 percent ? 650-699 16 percent ? 700-749 20 percent ? 749-799 29 percent ? 800 and above 11 percent
A score of 720 or higher will probably get you the best interest rates on a home mortgage. Your credit card company looks at your credit score to decide whether or not to raise your credit limit or charge you a higher interest rate. The higher your credit score, the better you look to lenders and the lower your interest rates.
Finding the Best Mortgage Lender Online
October 25, 2009
Finding the best mortgage lender online is simply a matter of doing some smart shopping. Begin by gathering your financial information, and then request quotes from several lenders. Compare the rates and fees for each quote to find the best mortgage lender.
Online Mortgage Lenders
Online mortgage lenders bring you all the services of a mortgage broker with the convenience of the internet. With online lenders though, you can quickly compare rates without feeling committed to a loan. Most mortgage loan information can be found on a lender’s website, but you can also contact a representative through email or the phone.
Start Prepared
Start prepared by gathering all your financial information in one spot for easy access. Bank statements and previous tax records will usually be all you need. Also, determine how much you would like to borrow and use as a down payment.
Gather Quotes
Online mortgage lenders provide almost instant mortgage loan quotes by asking you basic questions about your income, the loan amount, and your credit rating. These types of quotes will allow you to quickly compare rates and come up with a handful of potential mortgage lenders.
What Happens When Your Credit Is Damaged? Do You Have Recourse?
October 24, 2009
The good thing about bad credit is that you can fix it. If you start now, over time, your bad credit can turn into good credit, and you could qualify for the loans you want at the rates you want. The most important aspect of rebuilding your credit after it has been damaged is showing lenders and creditors that you are serious about repaying your debt and that you can be a reliable borrower over a significant period of time.
Negative account histories remain on your credit report for up to 7 to 10 years, depending on the type of action. Bankruptcy can stay on your report for up to 10 years, and collections drop off after 7 years.
Advice varies widely as to the best methods to rebuild your credit. Some points most experts agree on include:
