Loan

Do You Qualify for a Home Equity Loan?

When you apply for a home equity loan, lenders consider your creditworthiness when deciding whether or not to extend a loan. Your creditworthiness is assessed based on three things: credit history, income, and loan-to-value ratio.

Credit History

As with any loan, your credit history will have a major effect on home equity loan availability and loan interest rates. Fortunately, qualifying for financing on a home you already own is much easier than qualifying for a new home loan. If you have good credit, you should have no trouble qualifying for a home equity loan. You should also be able to obtain a relatively good rate. If you have bad credit, you should still be able to obtain a home equity loan, but your rate will probably be a bit higher. Before applying for a home equity loan, take time to pull your credit report. If possible, improve your credit rating by removing mistakes and old debt.

Income

Even though the equity that has built up in your home belongs to you, lenders will still want to make sure that you can pay back any amount that you borrow. To determine your ability to repay, lenders will assess your monthly income and your total debt-to-income ratio. (Debt-to-income ratio is a term used to describe how much of your monthly income goes towards paying your mortgage, credit card debt, loan installments, and other financial obligations, including the home equity loan for which you are applying.) Most lenders will want to make sure that your total debt does not exceed 38 percent of your monthly income.

Loan-to-Value

The loan-to-value ratio is the amount you owe on your house versus the amount your house is worth. For example, if your house is worth $100,000 and you still owe $70,000, your loan-to-value ratio is 70 percent. When you get a home equity loan, the value of your home is re-assessed. The lender will add your current mortgage balance to the requested home equity loan amount, and divide the sum by your home’s current value. The final amount is the new loan-to-value ratio. Many lenders want to keep this amount below 80 percent. However, some lenders are willing to loan you 100 percent of your home’s value or more. Here is a list of recommended Home Equity Lenders online. It’s important to use a reputable lender online to make sure your personal information is secure.

ABC Loan Guide can help you find a company that provides a Free Credit Report and Score Online as well as a No Equity Home Equity Loan.

May 30, 2010

Land Purchase Loan – Three Questions To Ask Your Lender

A land purchase loan is different in many ways from other types of secured loan, such as mortgages or commercial property loans. A land purchase loan can often require a great deal more information from the would-be borrower.

When there is a down-turn in the economy, or a credit crunch, there are likely to be fewer people looking for a land purchase loan. So there is no need to be put off by the current conditions as it means there will be more lenders looking for your business. This means you can shop around and find the lender who will give you the best deal.

So when you are comparing lenders, what should you be looking for? Here are some of the questions you should be asking.

• Do you offer a long-term fixed rate? Land values are fluctuating at the moment. Interest rates are falling but they could start rising at any time. Having a variable interest rate would make it extremely difficult to budget your repayments. On the other hand, having a short-term fixed rate can lead to an unpleasant shock at the end of the deal. For stability, find a lender who offers a long-term fixed rate.
• What fees do you charge? Many lenders charge quite unnecessary fees – often known as pink fees. Examples are underwriting fees and document preparation fees. These give the impression of being legitimate but they are actually part of the normal process by the lender of getting your application approved. Alternatively the lender might inflate legitimate fees – for instance they might double the charge for the credit report or the appraisal fee. Obtain a run-down of the fees and costs before applying for your land purchase loan and avoid a lender where the fees are excessive.
• What is the time frame? Provided you have all your financial information to hand when you apply, it should not take more than 48 hours, or 72 at the most, to approve your application. Following approval, the appraisal process should take 1-3 weeks at the most and title 1-2 weeks. A good lender should be able to close your loan within three weeks of application. (Of course, if there are problems at any stage, it will take longer.) Many lenders pride themselves on a speedy turn-round so get this information in advance.

Obtaining a land purchase loan can be a good or bad experience depending on the lender. How good an experience it is often depends on whether the lender specializes in land loans or not. Just remember that YOU are in the driving seat. Make sure you get the land purchase loan YOU want, not the one the lender tries to push at you.

Are you looking for a land purchase loan and worried about the credit crunch? Visit http://www.bizwrite.co.uk/realestate/lending.html to find out how you can access the biggest selection of lenders in the country and get instant multiple loan offers from qualified lenders.

May 28, 2010

Find an Easy Auto Loan Approval

If you’re looking for easy auto loan approval you just need to do your homework and things will go much faster.

Ideally, you would want to take advantage of an easy auto loan program to avoid hours or possible days trying to get your new vehicle. This is definitely possible if you know exactly what you should do. Aside from getting all the documents in place prior to your application, there are simple mistakes that you can avoid to make your loan processing fast and easy.

If you have previous credit issues, be prepared to explain each and every problem. These credit issues alone might stall your application because in the lender’s point of view, your situation will need some re-evaluation. Creditors will try to protect their interests in the same way that you want to protect yours. You don’t want to pay high interest rates and they don’t want to get stuck with a loan that is not repaid. A clear and concise explanation of your credit problems up front can sometimes make a huge difference in getting an easy auto loan approval. Getting an fast auto loan is a two-way street: find a trusted lender and be an honest and diligent borrower.

Before you visit the office of the credit company, arm yourself with all possible paperwork: documentation to prove your financial standing such as paystubs and credit card statements are helpful. The more you can supply up front, the faster the process will be.. However, do not assume that just because you have all supporting papers, you will not be asked to give references. Prepare a list of names of people whom you know will back you up.

Know what you can afford. When you meet with the loan officer you should know what payments you can afford AND what you want to pay for the vehicle.

Just following these few simple steps can greatly improve you getting an easy auto loan approval!

If you follow just a few simple steps you’ll see that it’s fairly easy to get an Easy Auto Loan. Get all the tips you need and more by visiting Quicker Auto Loans

May 27, 2010