Tag Archives: lenders
Getting A Home Loan – How To Find The Best
When you have a credit score ranging from 720-750 chances are you will get a nice interest rate an affordable loan overall. If you have a down payment and a nice credit history, then you will definitely get the best loan possible!
For the rest of us, we will have to spend a little time working on our credit. These days a lender has to do a lot of investigating to see if you are a credible applicant to give a loan to. Lenders will probe your credit report for late payments, missed payments and judge you based on your debt to income ratio.
You could be approved for a loan with scores ranging from 620-650 but it will not look nice on paper. You will be at the banks mercy to pay large amounts in closing costs, extremely high interest rates and usually other fees as well.
Do not worry; there are easy things you can do to quickly put you in a better loan obtaining position. First you need to get a copy of your credit report. Check for any mistakes or old information to be deleted.
Then you need to know your debt to income ration since this is vital information lenders look at. To make it better, start paying off balances or earn more income. If you can increase your pay and post it towards your balances you will be in the perfect position even quicker.
Why is there such a dramatic change with in the last few years in the housing industry you ask? It is simple to understand what went wrong and who is truly at fault for such a struggling economy.
The government gave too much control and confidence to the banks for their lending objectives. Bankers were so greedy to make money that they gave huge loans to irresponsible and unqualified applicants.
It was simply way too easy to get quickly approved for a home loan back then. As long as you could provide a viable credit score lenders would make you an offer. All you had to do after that was decide how to decorate.
Today a lot of those people are struggling to repay their home loans. This in turn has created a huge fall in our economy. People are skipping payments and are finding themselves in a foreclosure situation.
It crucial to be aware of your credit situation before you apply for a home loan, especially in today’s economic crisis. Do not settle for any a loan approval.
Take the time to boost your credit score so you qualify for the best loan possible! Do your homework and you will be excited with the money you will save.
Online personal loans Gaining foothold in the UK credit market
One can find a variety of personal loan products in the market bad credit loans, business loans, car loans, career development loans, cosmetic surgery loans, debt consolidation loans, education loans, holiday loans, homeowner loans, home improvement loans and wedding loans.
A recent study indicates that secured personal loans have the largest market share in the UK loan bazaar.
This can be attributed to the fact that secured deals offer maximum loan benefits like quick attention, high credit limit (normally between £5,000 and £250,000), competitive low APR (normally 6.7% onwards), flexible payback terms and negotiable clauses subject to basic credibility parameters like past credit history, DTI ratio and property value.
The above-mentioned benefits can only be availed by homeowners and property owners, because these loans necessities pledging collateral against the loan amount. Secured loans:
Are suitable for big monetary requirements, as the credit range is quite high
Are probably the only option for people who have been denied an unsecured loan
Are most suitable for bad credit holders, as loan benefits are maximum .
Cons of availing personal loans in secured form:
As an alternate form of repayment, collateral protects the lenders investment, i.e., in case of repeated defaults or non-repayment, the lender can take over the pledged collateral to recover his money. Also, a secured loan deal has an additional thing time-consuming property evaluation procedure, which requires a lot of time.
Growing popularity of online loans:
Another study indicates that the online personal loans are catching up in the UK loan bazaar, as more and more people are opting for loans over the Internet. This can be attributed to:
Convenient presence of numerous lenders, who make loans more accessible and the entire loaning process very expedient
Greater transparency in lending rates across the country
Cheap loans as compared to conventional lending institutions, as their overheads are comparatively less .