How to Get Approved for a Loan During Financial Hardship

  1. Make a Down Payment

Life is unpredictable, which means that you may find yourself going through financial hardship when you least expect it. Loss of a job, a sudden illness or death, or other unexpected events may leave you with a stack of bills and monetary obligations and not enough resources to pay them with. When you find yourself needing a personal loan, you may wonder if you will be able to be approved during your time of financial hardship. In this article, we will share how to get approved for a loan during times when your finances are not looking so great.

It may seem counterproductive when you require a loan, but having some money to put down when you apply for a loan will show your creditor that you are serious about paying back the money you are hoping to borrow. This will also help to keep your interest rates lower and help you pay back your loan in a shorter amount of time.

  1. Have a Co-Signer

This is especially helpful if your credit score is not so high or you do not have income at the time of your loan application. Having a co-signer will increase your chances of being approved for the loan you are applying for, as your creditor will see less risk in lending money to you if they have another individual who would be willing to pick up payments if you fall behind.

  1. Maintain a Good Credit Score

From the time you begin accruing credit, it is important to always pay your creditors on time and at least the minimum payment each time it is owed. This will show that you are an individual with little risk to lend to, making it more likely that your loan application will be accepted during a time of financial hardship. If you have no income, it may still not be as easy to become approved for your loan as it would be with a job but having a good credit score will make it much more likely that your application will be accepted than if you apply without a decent credit score and a regular means of income.

In conclusion, you may feel as if you do not have anywhere to turn during times of financial hardship. However, these tips can aid you in getting approved for a loan when you need it most. Talk to the professionals at Mortgage Broker Atherton to get informed about your personal situation.

What Is Refinancing and How Does It Work?

Refinancing, ideally referred to as loan transfer is the process of transferring your existing loan account to another bank or non-banking financial institution with the aim of getting a lower interest along with better services. If you’re not satisfied with your high-cost loan, don’t lose hope as it is possible to move your loan from your existing lender to a new one and save a substantial amount of money.

Well, how does refinancing work? Well, the process of a loan transfer is quite straightforward and we are going to take a closer look at how it works in this brief post.

The first step is to initiate the transfer process by writing a transfer request letter to your current lender. Upon receiving the letter, your lender will review your application an issue a No Objection Certificate along with your payment history.

Once you get the documents mentioned above, you’ll need to submit them to the new lender, where they will be thoroughly verified to ascertain you’re capable of repaying the loan.

After the verification, the new lender will prepare for your account closure by sanctioning the loan amount to your former bank or lending institution. Once the transaction is done, your documents will be turned over to the new lender.

Since refinancing is treated as a new loan, you’ll have to undergo the procedures of technical and legal verification, along with credit appraisals which are done by your new lender. Keep in mind that when your loan account is transferred to the new institution, you will have to pay a loan processing fee. This is one of the biggest cons of refinancing as the costs can be pretty high depending on the amount.

This is generally how refinancing works. However, before you transfer your loan, there are a few important things to keep in mind:

  1. Before refinancing, ensure you go through the terms & conditions including the processing fees, legal charges, stamp duty and other fees you may encounter during the process.
  2. Try and make the transfer during the initial years of the loan. Doing this after three or four years won’t reduce your interest burden as you’ll have paid a large part of the interest by that time.
  3. Before refinancing, it is advisable to compare the interest rates offered by various lenders so that you can find the best ones. At the same time, you should try negotiating with your current lender for better terms and a lower interest rate before deciding to move to another bank. Lastly, only consider refinancing if it results in substantial long-term benefits.

The Benefits Of Using A Mortgage Broker

A professional mortgage broker works on behalf of the client to originate, negotiate and process both commercial and residential mortgages. Here are some of the benefits of hiring a mortgage broker.

The Benefits Of Using A Mortgage Broker
  1. Access To Many Loan Products

Mortgage brokers have relationships with many lenders. Therefore when you approach them looking to apply for a mortgage, you can get options from these lenders. A mortgage broker with a larger network can guarantee a good loan product with a favorable interest rate to suit your needs.

  1. Favorable Loan Product

Remember, a mortgage broker works for you and not the lending institution. His/her role would be that of a problem solver and knowledgeable consultant. Since they have access to numerous products, he/she can get you a loan offer that has a favorable interest rate, repayment terms and much more.

An expert mortgage broker should interview you to find out what you need both in the short and long term. There is much more to getting a loan product than simply getting a 30 year or 15 year option. An experienced mortgage broker offers innovative and sophisticated strategies to give you a good product.

  1. Expertise And Flexibility

A good mortgage broker can help you navigate any issue. He/she will handle the process and remove any bumps along the way. For instance, if you have credit issues, the mortgage broker should know the best lenders with favorable products to meet your needs. If you need a bigger loan than what your bank can approve, the broker should come in handy and provide sustainable financing from another lender.

  1. Time-Saving

When using a mortgage broker, you only need to make one application compared to doing so with every lender. The broker should give you a formal comparison of any recommended loans and provide you with the best information. You can gain access to the cost different of various loans, the rates, points and also the closing costs for each loan on offer.

  1. Cost Saving With No Hidden Fees

Lenders offer mortgage brokers loans on a wholesale platform. Therefore, you can get the best rates in the market and you can count on the most favorable rates. The best broker should reveal how much they initially paid for the loan and also the cost of their brokerage services. That way, you’re sure of how much you will be paying beforehand.

Take your time to find the best broker such as Mortgage Broker North Shore for your mortgage needs and enjoy these benefits.

Fixed Rate Mortgages Vs Arm Loans – Which One Is Better?

In a general sense, there is nothing wrong with an adjustable rate mortgage. But if you have heard cautionary tales, there is good reason. To add, this probably isn’t the best time to be looking at getting an ARM mortgage loan. I will discuss why and talk more about the differences between a fixed rate loan and an adjustable rate loan.

the_difference_between_a_fixed_rate_loan_vs__an_adjustable_rate_loanBack in 2006, I took out an ARM loan on the first home I purchased. The idea behind an ARM loan is that you can get a better introductory rate, and then as time goes by, the rate can fluctuate up and down. It is kind of a gamble, and truth be told, I didn’t get the best introductory rate because of my credit.

In the current market, you might have noticed that rates have been on the rise, consistently. In fact, I believe the FED has hiked interest rates three times in one year. That’s not good, but interest rates have been at historical lows for quite some time.

That being said, it makes more sense at the moment to lock in the best rate. Securing a low fixed rate mortgage is the best idea. If you were to do that, then you would be able to enjoy that rate, knowing that it would never go up on you.

There is something to be said about fixed rate mortgages under all circumstances. It’s nice having a conventional mortgage, and that is what I have with my condo. The rate is 5 percent, and I have just shy of 7 years left to pay on the mortgage.

Are you still interested in looking at ARM loans? I wouldn’t if I were you, but to each his own. You will have to make the decision about the type of home mortgage you want to get. If you get an adjustable rate mortgage, you just want to be sure that you are comfortable with the loan.

Have you already submitted a mortgage loan application or spoken to a mortgage broker? If so, it’s time to get down to the details. What interest rate are you going to be offered based on your credit? Remember that while the FED has been raising interest rates, they are still low. And when it comes to fixed rate mortgages, you have the choice of a 15 or 30 year loan. Which one is going to suit you best as you get ready to buy a home?

What is a Home Loan

What is a Home Loan?

Owning a home can be one of the best things ever, and it is a good idea to know more about ways of owning a home and the best option for you. Lending institutions have provided an easy for people to own homes without having the cash to pay for it. One of the most common options people go with is taking a home loan. With a home loan, you will have a chance to own a home and pay for it over a period of time.

A home loan is a loan that financial institutions give and get the security over the property you are buying using the loan. The loan will be 25 to 30 years, and you need to make regular payments every month or fortnight. The loan will be paid over the contracted term. The security of the loan is the property, and this means the lender can sell the property to settle the debt if you are not able to pay the loan. Many people in the country are able to own homes through loans because of the high property prices.

There are different types of home loans. They can be classified by purpose, or the type of interest rate. The two main types of home loans using interest type are fixed rate home loans and variable rate home loans, but there are many other types.

The variable rate home loan means that the interest rate will fall and rise over the term of the loan. This can be as a result of the change in official cash rate or decision by the lender. This type of home loan will offer flexibility. You must meet the monthly requirement, but you have the chance to pay more if you want to. You will not be charged with a break fee because there is no fixed term for the break, and this means having the freedom to sell the house without paying extra fees and charges, which usually applies to fixed rate home loans. The downside is the fact that the rate can rise anytime, and can be bad if you are on a tight budget.

Fixed rate home loan is where the interest rate is fixed for a given amount of time, with 1,2,3,4 or 5 years being the most common. This type of loan comes with certainty because you know the repayments you are going to make. If you decide to sell before the end of the fixed term, you end up being charges a “break fee”.