Home Equity Loans, are they the solution or the problem

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Home Equity Loans

Home equity loans are loans that are made to people in need of finance. They are issued against the security of their homes. With this kind of loan, the home of a borrower is kept as collateral against the sum borrowed by them. This type of loan, equity home loans is sometimes used by individuals who are in desperate need of money. Other reasons a person might use a home equity loan is to gain working capital to invest in a business or a piece of investment real estate.

Home equity loans, in recent times especially have emerged as a main source of finance for people who are in desperate need of money. More & more people are increasingly resorting to home equity loans to fund immediate financial needs, the main reason being the collateral & security factor. Usually, to take up a loan of such huge amount, people have to sell off their assets & dispose of their belongings to raise the finance, for their needs. But, the six standing character of home equity loan is the fact that, the borrower needs not to submit extra collateral except the house against which we is getting the loan, like we needs to do for getting any other loan credited in his account. Also equity home loans are beneficial & affordable since the interest that accrues, actually accrues on the amount that the borrower has drawn till that time, or while repayment of the loan, the borrower needs to pay the interest only on the amount that is yet to be repaid. All these enticing factors are drawing more & more number of individuals, looking for a loan that involves easy repayment terms.

The best part of home equity loans is that of revolving credit, once the amount of loan that the lender will lend to the borrower has been fixed by the lender, calculating on the value of the home against which loan is sanctioned, the borrower needs not to borrow the entire amount simultaneously but can actually draw according to his needs, & pay the interest only on the amount that we has drawn till that time & not the entire amount of loan that has been sanctioned. The lenders to attract more & more borrowers also give the borrowers lots of schemes, which make the repayment of the loan all the more easy. The fact that borrower needs not give any other collateral, or pay any extra interest makes the entire thing even more easy for the borrower.

3 Big Myths About Debt Relief Solutions

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By Jason Rodriguez

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We know the pressure can be overwhelming many times when you are facing an enormous debt load and don't know what to do about it. There are solutions that provide debt relief, but you have to evaluate options carefully because everyone's circumstances are different. It's important to avoid bad information, so here we present three common myths about debt relief solutions.

Myth number one: You absolutely must pay every penny of your debt

We're not advocating that you abandon your responsibility just because you don't feel like paying your credit card bills or other financial obligations. Likewise, you would never encourage people to enter into an agreement when you know you will never be able to pay off the debt. This is irresponsible and borders on fraud.

However, many honest folks work hard to pay off their bills but end up taking on a little more than they can handle. In these situations, the consumer may simply not be able to meet his obligations fully. If credit card companies know your situation, they may arrange a settlement wherein you pay only a fraction of the original amount. This may not be good for your credit, but if your financial situation is bad enough your credit is not foremost on your mind.

Myth number two: If you damage your credit, you'll never be able to fix it

Bad credit does have some long-term ramifications, and you may have trouble qualifying for loans if you haven't been paying your bills. If you're looking for a car loan, mortgage, or any other kind of credit, you may be forced to pay higher interest rates or even be denied completely because of your poor credit history.

However, you can repair your credit over time, even though this requires some patience and discipline. If you have a poor credit score, this probably means that you have not been able to pay your bills because you are charging too much to begin with. Look at this as a learning experience and develop a better budget for the future.

Myth number three: Bankruptcy should only be the very last resort.

Bankruptcy should never be taken lightly, because it will affect your ability to get credit for some years to come. However, saying that bankruptcy should only be a last resort is not a good idea. What if you find yourself facing tens of thousands of dollars of credit card bills that you simply cannot pay? Should you use a home equity loan or withdraw your retirement funds to pay down this debt?

Absolutely not! These funds would be protected if you declared bankruptcy, while your credit card debt would be wiped out. Never put your most valuable possessions on the line to pay off unsecured debt.

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Don't let the fear of your debt take over your life. To learn more about how to deal with debt and debt relief solutions, visit us at http://findingdebtsolutions.com.

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Article Source: http://EzineArticles.com/?expert=Jason_Rodriguez
http://EzineArticles.com/?3-Big-Myths-About-Debt-Relief-Solutions&id=2594875

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How to Avoid Bankruptcy and Get Out of Debt

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By J. Star

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Are you carrying over $10,000 in credit card, medical, student loan, business and/or other unsecured debt? Does it seem like bankruptcy is the only option? Many people do not realize the options they have to avoid bankruptcy. After researching all your options and consulting with your financial and legal advisors you may determine that bankruptcy is the best option for you. But it is important to research your alternatives first.

Here is a quick breakdown of what they are:

1. The Debt Snowball. This option is only available to those who still can afford to pay there current debt but want to get debt free faster. It is a simple account method where you stack your debts according to lowest to highest balance or highest to lowest interest rate. You then put all extra money above the minimum payments towards the debt at the top of the last. As you pay off debts you put the money that you were spending on the previous debt(s) toward the debt next in line. Using this method you will pay off your debts much faster and will save thousands in interest.
   
   
2. Debt Consolidation. In debt consolidation, you take out a larger loan to payoff a group of smaller loans. In order for this to be effective the loan used to payoff your other debt must have a lower interest rate than the average of all interest rates across your other debt. With a lower interest rate your payment will go down and thus giving you some financial breathing room.
   
   
3. Debt Management Plan. In a debt management plan you negotiate the terms of your existing debt in order to lower your interest rate and/or extend your payment period.
   
   
4. Debt Settlement. Settling your debt involves negotiating a flat payoff of your debt at an amount significantly less than your actual payoff. In order to be able to negotiate such a settlement you must be late on your payments to the creditor.
   
   

This is a brief overview of the options for avoiding bankruptcy. No two people are the same and no solution is right for everyone. Study the options, understand the pros and cons and then, together with your advisors, choose the path that is right for you.

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Lime Financial's primary objective is to help lighten the weight of debt and credit disarray from the lives of our clients.. Learn more about our Debt Settlement Services.

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Article Source: http://EzineArticles.com/?expert=J._Star

http://EzineArticles.com/?How-to-Avoid-Bankruptcy-and-Get-Out-of-Debt&id=2620257

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You Can Beat Credit Card Debt by Erasing 50% of Your Debts!

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By Scott Chaflin

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Would you like to have the debt that you keep paying to credit card companies legally removed? A huge number of people in America are living with over $10,000 in past balances on their credit cards, and unfortunately, 95% of these people will be bankrupt in the next 2 to 3 years because the debt will keep piling up because of the interest.

It is no surprise that credit companies keep you in the dark when it comes to the options available to you to erase some of the money you owe them, but there are things you can do.

Fact: Credit cards are debt traps.
Fact: Many Americans have been kept in the dark about their options for erasing their debt.
Fact: 95% of all bankruptcies are caused by credit-card debt.

$1000.00 will take over 20 years to pay off

Did you know a simple $1000.00 charge will take over 20 years to pay off if you only pay the minimum payment? Unfortunately, this is true and CC companies do not share these facts because they do not mind forcing you into bankruptcy and stealing everything Americans own through their interest fees.

We have seen 25 year olds over $25,000 in debt, and many of these people will have to file for bankruptcy in the next 2-5 years. There is no reason to stay in debt when you do not have too as many private companies are staring to release free information that can help any consumer erase half of their debt so they can take more guilt free vacations without having to worry about another phone call or letter from their creditor again.

Every American who has a past due balance should check for free to see if they can get their debt erased so you can move on with your life and forget about paying your CC company all of your earnings.

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I have found this resource to help you reduce your debt by 50%. They are a reputable and safe company to work with.There is no charge for them to help you.

The have put information together that can give you little known tips to get out of debt and tactics to get your debt erased by 50%. There is no charge, all you have to do is enter your email address.

To read this information and find out how much money you get get erased, Click Here.

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Article Source: http://EzineArticles.com/?expert=Scott_Chaflin
http://EzineArticles.com/?Take-Advantage-of-the-Recession-and-Erase-50%-of-Your-Credit-Card-Debt&id=2624380

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Never Pay it Back - Free Debt Relief Grant Money

Image by Getty Images via Daylife

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By Sarah Beckham

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Getting out of debt is a serious concern among American citizens today. Free government debt grants are the perfect solution to the current American financing problems, because they are not loans, nor are they a consolidation program. The purpose for government grant program availability is to get you out of debt, not deeper into it.

Personal debt relief grants are actually free government money that you will never have to pay back.

This is true. The government gives away over eighty seven billion dollars to qualified applicants who apply for personal debt relief grants each and every year. There is a great need for free grant money among the American population today, because nearly everyone has suffered some type of astronomical financial setbacks as of late. As a result, more and more American taxpayers are applying for, and receiving this generous financial assistance.

What can be accomplished by obtaining free debt relief grants from the United States government?

There is very little that you cannot do to repair your financial situation if you are found eligible to receive personal debt relief grant funding. Many American taxpaying citizens have recently found that by applying for this financial aid they were able to acquire enough free government money to completely turn their circumstances around in a very positive way. Many have...

• Received personal debt grants to pay off past due utilities to avoid disconnections.


• *Used free government money to pay past due automobile payments to escape vehicle repossession.


• *Obtained thousands of dollars to pay back rent and have avoided eviction.


• *Some have received tens of thousands to pay defaulted mortgages and back taxes and have saved their homes from foreclosure as a result.


• *Personal debt relief grants can even be issued to pay off your past due credit card balances.

The top three best benefits of obtaining personal debt relief grants...

1. You can actually escape the dreaded last resort of bankruptcy.
   
2. Since you have used free government money to pay off all of your creditors, your credit rating will instantly improve...dramatically
   
3. Last but definitely not least...you will never have to pay this money back...ever.
   

Shouldn't you follow the links below to find out if you are on of the millions of Americans who can be approved for thousands of dollars in free government money by applying for personal debt relief grants?

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Get Grants for Individuals and see how much money you qualify to receive today and never pay back.

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->> Claim your Apply for Personal Grants...

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Article Source: http://EzineArticles.com/?expert=Sarah_Beckham
http://EzineArticles.com/?Never-Pay-it-Back---Free-Debt-Relief-Grant-Money&id=2364575

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Adjustable Home Loans Explained

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By Corey T Bruhn

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Adjustable home loans provided people with all credit grades the ability to buy homes or refinance their mortgages just a few short years ago. Adjustable home loans offered lower rates then a fixed rate loan and this helped people buy a little more house then they could afford with a fixed rate loan.

When The Adjustable Rate Mortgage Problems Started

When the real estate and credit markets started to slow and property values fall many people found themselves unable to refinance their ARM mortgage. This inability to refinance was the direct result of banks cutting loan programs for bad credit borrowers and property values falling.

Many borrowers were now facing ARM mortgages with rates and payments that were increasing to a point where they were not able to pay their payments. Foreclosures then started to happen at an alarming rate. If you are one of these borrowers the tips bellow can help you save your home.

What You Can Do If You Cannot Refinance Your ARM Mortgage

Today all the major lenders know that adjustable rate mortgages are the main reason people are losing their homes and the banks are losing money. To combat this many banks are now letting people modify their existing loan in order to make their mortgage more affordable and also more stable by making the ARM a fixed rate loan.

In most cases the lender will evaluate your current income and other assets to determine your ability to make the new payment amount. Generally they will want to see your debt to income ratios are 40-45%. Any higher and they my not modify your loan due to risk factors.

How Can I Figure My Debt Ratio

Your debt to income ratio can be figured by taking you monthly bills like credit card payments,car payment mortgage payments and property tax payments and dividing it by your gross monthly income. So if you had $800 in payments every month and made $2000 your debt to income would be 40% or 800/2000=.4 or 40%. Bills not figured into the equation are utility payments,phone bills and other similar expenses. Getting a loan modification for adjustable rate mortgages is not as hard as people think but keep in mind your lender is only going to modify loans that will be paid back.

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Adjustable Rate Mortgages can be feast or famine these days. Find out what an adjustable rate mortgage is and if this type of loan is right for you. Read our adjustable rate mortgage help information at http://www.adjustablemortgageinfo.com/

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Article Source: http://EzineArticles.com/?expert=Corey_T_Bruhn
http://EzineArticles.com/?Adjustable-Home-Loans-Explained&id=2013318

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See Our Disclaimer Here.

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Apartment Finance - How About Some Good News?

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By Jeff Rauth

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Apartment finance is weathering the current credit crisis nicely compared to other sectors of the commercial mortgage business. For example, owner occupied conventional mortgages are experiencing significant restrictions and loan requests above 60% loan to value, that do not fit the SBA guidelines have few, if any options.

In contrast, 80% financing on purchases and 75% loan to value on refinances, is still an option. Long term fixed rates, like five, ten year and even 30 year is available. Also, interest rates themselves are very low (2/10/09) as we are seeing low 6%'s and even high 5%'s for strong borrowers on these long term high rate. As a result many borrowers that went with floating conduit loans are now opting to refinance into long fixed rates due to concerns with where rates will go if inflation kicks in.

Apartment Finance

One of the main changes with multifamily finance is with underwriting going "global". Many veteran apartment owners will be unaccustomed to the additional scrutiny. Historically, most of the underwriting focused on the property itself, primarily in concern to the cash flow of the property. Better known as the debt coverage ratio, underwriting wanted to determine if the properties income could carry all of the associated expenses, and the proposed loan. That's essentially was the main focus.

Now however, underwriters also want to examine all of the borrower's income and expenses both personally and from other, none related businesses. What they are investigating is whether the borrower is above water on a cash flow basis, over the entire financial picture, including the subject property.

Most borrowers will put up with the additional "brain damage" as they really have no other choice with apartment finance. As the golden rule points out "he who has the gold, makes the rules". And besides just accepting it, the loan programs are still very attractive for the borrower.

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Jeff Rauth is President of Commercial Finance Advisors, Inc out of Birmingham, Michigan a national commercial mortgage firm. Their focus is on commercial loans from $400,000 - $10,000,000. 248 885-8797. apartment loans or commercial bridge loans

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Article Source: http://EzineArticles.com/?expert=Jeff_Rauth
http://EzineArticles.com/?Apartment-Finance---How-About-Some-Good-News?&id=1991024

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See Our Disclaimer Here.

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Home Financing Tips For Buying a House

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By R A Smith

If you are thinking about buying a home, one of the first things to do is find out what price range you can afford. Getting pre-approved for home financing can determine the maximum price and loan amount that you can get, based on your credit scores, income, and down payment. A mortgage pre-approval can save time and effort in your home search, and tells others that you are ready and able to buy a home.

Here's a Collection of Other Home Financing Tips:

Need flexibility on credit issues?

In addition to a low down payment, an FHA mortgage allows lower credit scores than conventional home financing. A bankruptcy only needs to be discharged for 2 years, and 3 years on a foreclosure.

Need payment choices for a tight budget?

Some lenders offers flexible mortgage terms with a 30 year fixed rate that gives you a payment choice each month for interest only or a fully amortized payment, which could help when money is tight.

Do you want an option for lower closing costs?

If you need to reduce your closing costs, you typically have the choice of decreasing the points by increasing the rate. Mortgage rates are priced to allow you to buy the interest rate up or down.

How long will you keep your mortgage?

If you plan to keep your mortgage for less than five years, you may be able to save money on your payments with a 5 year fixed rate plan. Also consider financing your home with zero points.

What debts are counted in your debt ratio?

Monthly debt payments are added to a mortgage to calculate a back-end debt ratio, including: credit card minimum payments, car loans, student loan, personal loan, alimony, child support, tax liens.

Are you required to have an impound account?

An impound account is money collected with the monthly loan payment to be set aside in reserve to pay property taxes and insurance. It's usually required on mortgages with less than 20% down payment.

Buying a condo with an FHA mortgage?

A condominium project must be FHA approved in order to get an FHA loan. If the project is not approved, the FHA spot loan program is designed to provide financing for an individual unit.

What about opening new credit accounts?

Applying for a new credit card, or financing the purchase of anything, just before or during the mortgage process can drop your credit scores, and lower credit scores can cause a higher rate or worse.

Are you planning a job or career change?

If you plan to make a job change, especially if the change involves commission or a different line of work, wait until after your new mortgage has funded, to avoid creating a potential problem.

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Article written by Rick Smith at http://www.crhome.com, additional loan information at http://www.ditech.com

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Article Source: http://EzineArticles.com/?expert=R_A_Smith
http://EzineArticles.com/?Home-Financing-Tips-For-Buying-a-House&id=1974969

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Debt Consolidation Home Owner Loan

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Debt Consolidation Home Owner Loan
By James Eccles

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A debt consolidation homeowner loan is a secured loan, finance or a sum of money (usually large) that can be possibly secured against your house or another asset, i.e car. Because it is a secured loan it is also easier to attain with higher sums of money available, at lower rates with a higher approval rate, because it is safer for the bank to lend you the money i.e. secured.

Secured homeowner loans are generally preferred by the people seeking finance, as opposed to an unsecured lend, due to lower interest rates, so they are a lower cost to the borrower.

Debt consolidation home owner loan- how to get one?

There are many ways of getting a home owner loan for means of debt consolidation.

There are government organisations that you can speak to in every country to help in all matters of finance, another thing worth trying is checking to see if you are absolutely 100% liable for the debt, as at times it is possible that it is not completely your responsibility to pay the money back.

One way is to just try Google, and look for the search terms "Debt consolidation" or secured finance etc or you could try some of the branded firms like firstplus, or direct line etc, other than that there will be ads in your local newspaper or yellow pages, even the national tabloids, and TV adverts.

If it was a large sum of money you want, then you could also look into remortgaging to release some capital from your existing assets, to improve credit scores, try taking out a small loan and paying it off promptly to enhance credit scores.

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To apply for a homeowner (secured/same thing) loan apply here

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Article Source: http://EzineArticles.com/?expert=James_Eccles
http://EzineArticles.com/?Debt-Consolidation-Home-Owner-Loan&id=1990901

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See Our Disclaimer Here.

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Home Loans - Possible Hurdles and Solutions

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By Agni Putra

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A Home Loan is a long-term legal contract between a customer (home loan seeker) and the bank. Hence it is very important for a home loan seeker to be fully aware of all the legal terms and conditions that involve in the processing of a home loan.

A home-loan seeker may face several difficulties including certain legal issues in the processing of a home loan. He/she has to be very careful and must have a good knowledge of all the legal aspects pertaining to home loan processing. The following tips will greatly help you to educate yourselves in this regard and obtain a hassle-free home loan.

1. Home loans process starts with documentation.
Documents pertaining to a property are of great value and play a key role in completing the process. So, a home loan seeker must be very careful when submitting the documents to the bank. Never submit any fake or unclear documents that may create confusion or misguide the banks; banks have every right to take legal action against those who misguide them.

2. The details that you furnish in the application form should not include any discrepancy.
Banks make a careful study into these details, and if they find discrepancy, your application is certain to be rejected without any prior notice.

3. Retain all your receipts of the amount paid towards the credit card bills as banks may ask for the receipts of the payments once the details are found in CIBIL.

4. A panel of advocates will scrutinise the documents submitted by the home loan seeker.
They will obtain the search reports from the concerned sub-registrar office to find out the details of deeds and the vendors pertaining to that specific property. If they find any discrepancy in the documents, banks will ask the customer or vendor for clarification or for other supporting documents.

5. Property that the home loan seeker intends to acquire will be evaluated by technical valuers
If any find any deviations in the property, customer has to submit additional documents to support the deviations.

6. Upon completion of the entire process, vendor has to verify all his original documents with the bank official before disbursement of the loan, and the customer has to submit latest Encumbrance Certificate (EC) recording all transactions of the property in original.

7. Customer (home loan seeker) has to sign all the legal documents and the Home Loan Agreements in regard to the disbursement of the loan, and the property will be hypothecated to the bank till he/she repays the entire loan amount subsequent to the registration of the property. Customers are advised to carefully read the agreement copy before signing it.

8. If the customer fails to repay the loan, banks may appoint agents to collect the easy monthly instalments (EMIs) from the customer, and he/she has to co-operate with them.

9. If the customer gets defaulted, bank can seize the property to recover the loan amount; and once this happens he/she will be added into the defaulters list of the CIBIL (Credit Information Bureau of India Ltd).


Finally, it is advisable to take as less loan amount as possible so as to save the interest paid on the loan. Also, be punctual in repaying the loans to maintain a good credit history.

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Agni Purta is assistant manager of the http://www.myloandetails.com The site provides services to the people who intend to go for a home loan.

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Article Source: http://EzineArticles.com/?expert=Agni_Putra
http://EzineArticles.com/?Home-Loans---Possible-Hurdles-and-Solutions&id=1854622

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See Our Disclaimer Here.

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Home Financing Tips For Buying a House

---

By R A Smith

If you are thinking about buying a home, one of the first things to do is find out what price range you can afford. Getting pre-approved for home financing can determine the maximum price and loan amount that you can get, based on your credit scores, income, and down payment. A mortgage pre-approval can save time and effort in your home search, and tells others that you are ready and able to buy a home.

Here's a Collection of Other Home Financing Tips:

Need flexibility on credit issues?

In addition to a low down payment, an FHA mortgage allows lower credit scores than conventional home financing. A bankruptcy only needs to be discharged for 2 years, and 3 years on a foreclosure.

Need payment choices for a tight budget?

Some lenders offers flexible mortgage terms with a 30 year fixed rate that gives you a payment choice each month for interest only or a fully amortized payment, which could help when money is tight.

Do you want an option for lower closing costs?

If you need to reduce your closing costs, you typically have the choice of decreasing the points by increasing the rate. Mortgage rates are priced to allow you to buy the interest rate up or down.

How long will you keep your mortgage?

If you plan to keep your mortgage for less than five years, you may be able to save money on your payments with a 5 year fixed rate plan. Also consider financing your home with zero points.

What debts are counted in your debt ratio?

Monthly debt payments are added to a mortgage to calculate a back-end debt ratio, including: credit card minimum payments, car loans, student loan, personal loan, alimony, child support, tax liens.

Are you required to have an impound account?

An impound account is money collected with the monthly loan payment to be set aside in reserve to pay property taxes and insurance. It's usually required on mortgages with less than 20% down payment.

Buying a condo with an FHA mortgage?

A condominium project must be FHA approved in order to get an FHA loan. If the project is not approved, the FHA spot loan program is designed to provide financing for an individual unit.

What about opening new credit accounts?

Applying for a new credit card, or financing the purchase of anything, just before or during the mortgage process can drop your credit scores, and lower credit scores can cause a higher rate or worse.

Are you planning a job or career change?

If you plan to make a job change, especially if the change involves commission or a different line of work, wait until after your new mortgage has funded, to avoid creating a potential problem.

---

Article written by Rick Smith at http://www.crhome.com, additional loan information at http://www.ditech.com

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Article Source: http://EzineArticles.com/?expert=R_A_Smith
http://EzineArticles.com/?Home-Financing-Tips-For-Buying-a-House&id=1974969

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