information resources, UK, credit, obtain finance, credit cards, credit card
guide, debt consolidation, home loans, personal loans, car loans, debt
consolidation, mortgage, remortgage, one stop shop for credit advice. Locating
credit information on the web. UK information resources directory for obtaining
finance, credit, home loans, debt consolidation, personal loans, mortgage
arrears, car loans, and other forms of finance services on the web.
Credit needed for real estate mortgage financing differs from credit needed
for consumer loans. If you need help getting a home mortgage, these credit
tips will help you.
Contrary to what many credit advisors say, paying off credit cards each month
is not always the best action to take. When making credit card payments,
don't pay the balance in full each month -- let a little roll over. Carry
a balance on your credit card every other month --as little as a dollar.
Paying balances in full does not increase your credit score; paying balances
in full may in fact lower your credit score. Accounts with zero balances
do not compute significantly in your total score. For instance, a credit
card with a perfect payment history and no balance will not raise your credit
score as much as a credit card with a low balance. Any balance keeps the
card active so it computes in your credit score.
You most likely have been advised to cut up your credit cards and close your
accounts. Following this advice degrades many credit scores.
Canceling Credit Cards
Canceling credit cards can lower your credit score. Keep your longest-term
credit card account open to show long-term credit history. If this account
has prior late notations, negotiate with the creditor to drop negative reporting
on your credit history file. Slowly close out newer accounts after they are
paid off. Keep your best accounts open -- those paid on time or reporting
"pays as agreed" and with the longest history.
Credit card companies may raise your rate if you cancel a card before it
is paid off; it is best to keep accounts with outstanding balances open until
you pay them off.
Perfect Balance of Credit
1. Mortgage over one year old with all payments on time
2. Visa Card or Master Card with less than 10% of available credit as balance
3. Discover or American Express Card with less than 10% of available credit
as balance due
4. Auto loan either paid off or paid down with low payments compared to monthly
Credit scores do not reflect income -- credit bureaus do not have income
reported to them. However, real estate lenders look at the consumer
debt-to-income ratio -- the amount of monthly debts in relation to the amount
of earnings. Consumer debt is more highly regarded/scores higher if total
debt is under 20% of net income, or total monthly payments on all debts is
less than 35% of monthly gross income.
Lenders want the total debt ratio (the percentage of total monthly payments,
including the new mortgage, to income) to be less than 33% for a typical
conventional mortgage. This means the new mortgage payment, credit card payments,
and all other monthly debt payments should not equal more than about one-third
of the monthly income.
Lenders want the mortgage debt ratio (the percentage of the new mortgage
payment to income) to be less than 28%.
Non-prime loans have lower standards; some lenders allow debt-to-income ratios
as high as 55%. Borrowers with less than perfect credit qualify more easily
for a non-prime loan compared to an "A-paper" loan.
Once you total your monthly expenses and determine your debt ratio, you can
estimate how much you can afford for a house payment. For example, if your
income is around $3,000 per month, you can afford a home with payments around
$1,000 per month (including taxes and insurance) with a conventional loan,
if your other debt does not total more than 5% of your income.
For investors, these equations change. Lenders expect 10%-25% down on investment
property and allow about 75% of the rental income to offset the debt ratio.
Understanding your credit helps you manage your credit so you can obtain
real estate financing, either for the house of your dreams or for your financial
(c) Copyright 2005 Jeanette J. Fisher. All rights reserved.
Professor Jeanette Fisher is the author of "Credit Help! Get the Credit You
Need to Buy Real Estate," "Doghouse to Dollhouse for Dollars: Using Design
Psychology to Increase Real Estate Profits," and other books. Jeanette and
her husband chose real estate investing to be able to care for their daughter
with special needs. While buying and selling millions of dollars worth of
real estate, the Fishers were forced into becoming credit experts.
Forget what you've been told about credit. Get the credit you need to buy
real estate. Visit Real Estate Credit Help Center:
http://www.plan4loans.co.uk information resources, UK, obtain finance, loans,
secured loans, unsecured loans, home loans, personal loans, car loans, debt
consolidation, mortgage, remortgage, flexible mortgage, one account mortgage,
isa mortgage, pension mortgages, one stop shop for loan advice. Locating
loan information on the web. UK information resources directory for obtaining
secured & unsecured loans, mortgages, debt consolidation, personal loans,
finance, remortgages, arrears, car loans, and other forms of loan services
on the web.
Home Mortgage Loan Refinance Benefits To Refinancing Your House
By Carrie Reeder
Here are some of the benefits to doing your home loan refinance online:
Everything seems to happen faster - Online, when looking for a mortgage
loan you can search around, fill out an application and a few minutes later,
you can be receiving a pre-approval letter via email. There was no calling,
no driving & no waiting on hold for an answer. The mortgage company will
usually contact you quickly and give you all the information you need to
You will be more informed and make better decisions - People nowadays
that use the internet as consumers, use it primarily to make better purchasing
decisions. If you are sitting at home on the couch with your phone book calling
every mortgage company listed, you are not going to know what the current
interest rate is. You arent going to know what your contacted companies
competitors are like. All you will know is what that loan officer tells you.
Online, you can view a lot of information very quickly. - After looking
at a few mortgage loan websites, you will know quickly that when you refinance
you have many options. Do you want to get cash out of your home? Do you want
to borrow more than your homes current value? Do you want an interest only
loan? And, you will know right away which mortgage companies offer these
options. There are many different kinds of refinance loans, and all of these
options can be learned after a few minutes of searching online.
Deal with large, reputable companies When applying online,
you should quickly be able to spot the larger, more reputable mortgage companies.
I always prefer to use the companies that will submit your application to
multiple lenders. That way, your credit is only pulled once, and you can
receive multiple offers from up to 4 lenders. For a list of these recommended
mortgage companies, see the link below.
Save money Many online mortgage service companies can save
you money by cutting out fees like origination fees and underwriting fees.
You will also save money using mortgage services where more than one lender
competes for your business. When you can receive multiple offers, you will
know that you are choosing the loan with the lowest rate possible and the
best terms you can qualify for. I usually recommend applying with about 3
different mortgage companies that will submit your application to multiple
lenders and give you multiple offers. That way you can really maximize your
Less Commitment You can search around online and apply to 2-3
different lenders without feeling guilty for working with more than one company.
That way you make can make sure you are getting the best deal. Often when
you start working with a mortgage broker in person, even if the person
isnt doing the best job for you, you start to feel obligated to continue
to work with the person. This is not so online. If you arent getting
what you want, you are free to move on with no guilt.
For a list of recommended mortgage companies to refinance with online, click
on the link here:
refinance mortgage lenders. The mortgage companies recommended on my
website, for the most part, will submit your application to more than one
lender and provide you with multiple offers.
Carrie Reeder is the owner and webmaster of
ABC Loan Guide. Visit
her site to read loan articles and find links to recommended lenders for
refinancing your mortgage.
http://www.plan4mortgage.co.uk information resources, UK, obtain finance,
cheap mortgages, cash back mortgages, home loans, personal loans, car loans,
debt consolidation, mortgage, remortgage, flexible mortgage, one account
mortgage, one stop shop for mortgage advice. Locating mortgage information
on the web . UK information resources directory for obtaining mortgages,
home loans, debt consolidation, personal loans, finance, remortgages, arrears,
car loans, home finance and other forms of mortgage services on the web.
How to Shop Around for the Cheapest Mortgage Deal Online
By Bwalya Mwaba
Before you start shopping around for a mortgage, you need to establish exactly
what you want so that you do not waste your time looking at deals that will
not save you money. You should also learn how to compare mortgages or choose
what features of the finance package are important to you.
The first step is to ask your friends or family for recommendations of potential
mortgage lenders. Then contact several lenders and let them know that you're
shopping around for the best rates. You may want to discuss your needs with
banks, credit unions, mortgage companies and brokers. Comparing loan plans
or packages will help you get a better deal.
Your next step is to read expert opinions in national newspapers and magazines.
These publications usually publish editorials that rate mortgage and loan
deals from various banks and lenders. This information will give you a better
idea of what to expect.
1. Loan Comparison Websites
Some web sites offer services that allow you to compare thousands of mortgage
loan deals from different lenders. All you have do to is, enter a few details
about the kind of mortgage you're looking for and their software will produce
a list of lenders based on your search criteria. You can then contact the
lenders that you're interested in. This is one of the fastest and easiest
ways to shop around for a mortgage online. The only disadvantage with this
approach is that some of the web sites that offer this service only show
results from mortgage lenders who have paid to be included or from whom they
2. The Major Banks and Finance Companies
Visit the web sites of most of the major banks and find out if they have
any special offers. You can do this easily by making a list of all the banks
and building societies that you know and visiting their websites and taking
note of their rates for the mortgage deals that interest you. Look for their
"press release" link and find out if they have recently launched any special
deals. You may also consider subscribing to their news feed if they offer
subscriptions on their site.
3. Mortgage Brokers
You can also get a loan deal through a broker. Most independent brokers
investigate all the loan deals on offer from every lender in the market to
find the best for you. Some brokers only choose from a selection of lenders
so check how independent the Mortgage broker is before applying. If you do
not want to go directly to the lender for a mortgage, you can approach an
advisor or a broker to search the market for the best mortgage deals.
So if you want to get the best deal on a mortgage or home loan, you can either
shop around yourself or you can use the services of an independent mortgage
broker. Using the methods outlined above you should be able to find a deal
that's right for you.
- Please note that all articles on this web site does not constitute
professional advice. All articles are intended to provide a general view
of many topical subjects from a variety of sources. We are not responsible
for the content or any sponsored links that you may choose to visit from
this web site. We suggest you to consult a solicitor and your doctor for
advice relevant to you own situation before making any important decisions.
The author is not an expert in any given field. By printing, downloading,
or using you agree to our full terms. Below is a summary of some of the terms.
If you do not agree to the full terms, do not use the information. We are
only publishers of this material, not authors. Information may have errors
or be outdated. Some information is from historical sources or represents
opinions of the author. It is for research purposes only. The information
is "AS IS", "WITH ALL FAULTS". User assumes all risk of use, damage, or injury.
You agree that we have no liability for any damages. We are not liable for
any consequential, incidental, indirect, or special damages. You indemnify
us for claims caused by you.