Make Yourself Creditworthy of Home Loans

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Responsible Credit Card User. Having and using credit card is not bad the user oftentimes makes it bad to have a credit card. The secret is being responsible. One of the best ways to build and maintain good credit is to use your credit cards, but to maintain them at a balance that you can afford to pay off in full each month. 

Improve Your Credit Score. The better the credit history, the higher the credit score in turn the higher chance to become creditworthy to the lenders. To improve your credit score you must know how to calculate it.

 • 35% of your credit score is derived from your payment history, so always making your payments on time boosts your score

 • 30% relates to account balances, which have to be at manageable and reasonable amounts • 15 % is the length of relationships with creditors (credit card companies, mortgage companies, auto loan lenders and more)

 • 10% is related to credit types because the credit scoring agency likes to see you can manage different types of credit such as credit cards, student loans, auto loans, mortgages, etc. • 10% is about establishing new credit, so it can improve your credit score to apply for new credit, preferably a type of credit that you may not already possess 

 Start or Continue to Make Bill Payments on Time. You should always pay your bills on or before the due date. Late payments continue to drag down your credit score so start making your payments on time right away. Keep up or improve your credit score once you know it by using the factors that influence your credit score. Get Your Credit in Order. This goes beyond just paying bills on time; it is also your responsibility to check to credit report. Review your credit report to spot incorrect and negative information and to get an idea on what is showing in your credit report. If there is mistaken information on your report, contact the credit agency to discuss the erroneous items. The law entitles you to one free credit report a year from each of the bureaus by visitingwww.annualcreditreport.com. Clean or Freshen Up Your Credit. Contact the creditor or collection agency as soon as you saw some negative items such as late payment, write-offs or collection accounts. Clarify you want to take care of the debt or issues and work out payments arrangements or a reduced payoff balance to resolve the flaw on your credit. And insist on getting an arrangement so that you can work out to take care of your debts. You should keep all of your credit reports up-to-date. Carefully look for these negative items that may appear on your report: • Inaccurate information • Late payments • Collection accounts • Charged off accounts Be Credit Wise. Always remember that lenders review credit reports to verify your ability to manage credit loans you already have. The type of credit also determines getting approval of the mortgage being applied for. If your credit cards are maxed out then it’s a bad sign, it will be better if you have variety of loan types such as auto loan, student loan, credit cards and other revolving accounts. Do not max out any credit and never use the full credit amount you have. Long Relationships Count. Having too many open credit accounts and loans can drag down their credit score, this is not necessarily true. Close newer established accounts before you close old accounts if you decided to start closing accounts. The length of your relationship with a creditor does benefit your credit score. Be Patient but Follow-up. So now everything seems to be in order after you pulled your credit reports in turn you should be credit worthy and ready to apply for mortgage. Applying for a home loan is not an overnight process. Be patient and to follow-up with the creditors, collection agencies and credit bureaus until the negative and inaccurate items are corrected and your credit score improves if you need to make yourself creditworthy. Patience is a virtue.

Victim warns others to watch out for loan scams

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A personal loan scam victim warns residents to be vigilant of phone calls from fraudsters.

LISA (not her real name), from West Suffolk resident, lost £110 after sending over a code for an online voucher as a fee for someone who contacted her by phone promising a loan.

They agreed over the phone that she will be receiving the money within 15 minutes; the money was supposedly for Lisa’s new furniture.

But instead of receiving the said money, she was asked to pay an additional £295 in voucher form Good thing is that she refused.  She rather contacted the police and is now warning residents not to fall prey to such schemes.She said: “I feel absolutely gutted and stupid that I fell for it.

They’re very crafty and I just don’t want anyone else to fall for it. “The company has been harassing me with over 20 calls a day, emptied my bank account and left me nervous of borrowing from other providers.” She added.

This incident isn’t new to Suffolk Police.  They have been receiving details of similar occurrences from residents and are also urging people not to provide personal information to cold callers.

Ukash was the code given by Lisa, which can be bought from high street shops with cash and spent online using the code rather than providing bank or credit card details.

A police spokesman said: “They are never genuinely used as advance fee payment for loans or other similar products.

They are simply designed for the purchase of goods from the internet or other retailers.

“Anyone offering a genuine loan will not ask for a cash payment up front for the service. “Fraudsters will try anything to get you to part with your cash so if you receive any unsolicited calls from people asking you for cash or voucher details then please do not give it to them.”

This is a great example that anyone can be a victim of these scams.  We must be very watchful and on guard of ourselves in all time.

We will never know when fraudsters will attack in any form or ways they can possibly think of

How To Apply Home Loan With Bad Credits

We all know that to easily apply for loans, applicants must have the best qualifications or some may even refer to it as “triple threat”.  One must have an excellent credit rating, a large down payment, and low debt-to-income ratio with steady significant income.  This isn’t easy for everyone, some may have bad credit but they do not have to forget about the idea of owning a home.  If previously been turned down for a load, homebuyers can still get a home loan.

Do not loose hope because even with bad credit you can help improve your chances for obtaining a mortgage, here is how:

source: http://springhillgrouphome.com/2013/01/how-to-apply-home-loan-with-bad-credits/

Flaunt other assets.  If you do not have large amount of cash on hand or in banks, and or large cash reserves for down payment, you can show loan officers the financial assets you do have.  Make a list cash value on your home loan application, if you have a sizable 401k or other retirement accounts make sure to include them.  This will prove that if you’re ever in a bind paying your mortgage, you’re able to pull from one of these other sources to make ends meet.  Showing a low loan-to-value rating is a huge plus if you’re seeking to refinance.

Stress job stability. Make sure to mention that you have been working for the same industry or better same company for years, this will have to offset a bad credit history.  It will also help if you mention regular pay raises and if you have a cost-of-living increase every two years, or an annual merit-pay increase.  It will be impressive if you mention how your income has risen over the years.

Show discipline. It is a factor if you show that you are disciplined, consistent and stable.  Establish to the lenders that your bad credit is a thing from the past.  Show them that you know how to save, that a part of your monthly salary goes to a savings account or you have been contributing yearly to a retirement account.

Willingness to stay put. Strong ties to the community can help, (i.e., relatives living in the community) Prove lenders that you are going to stay put in that home for some time/

Don’t bite off more than you can chew.  Be reasonable and start on something that you can afford.  Know that you can always move up later, its better to own a house you can afford than to do a higher lift out of your level, this can put you on a more bad credit afterwards.

Have proof. Prove that you never were late on your rent.  It’s another thing to be able to show them. Be prepared to give documentation to back up all of the items on your compensating factors list.

Everyone deserves second chance they say, true enough.  All you have to do is prove yourself to be worthy.  There will always be doubts but the bottom line is there are certain red flags that give home loan lenders pause.  If you have bad credit history, highlight positive aspects of your financial profile.

How To Apply A Home Loam For First Time Buyers

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Purchasing and owning a home is one of the biggest financial investments you’ll ever make, and no doubt you’ll have many questions regarding the process. First-time buyers enjoy some special privileges and opportunities.

Some banks will offer first-time buyers a bond above 100% to help you cover the transfer and legal costs as well as the purchase price. And almost all institutions now offer a 30 year bond repayment period, to make the monthly costs more accessible, an option which banks created specifically for first-time buyers.

Make that very clear on your application that you’re a first-time buyer.

It is a general rule, make a quality purchase, buying a house is a big decision so you have to decide wisely.  When house hunting you can follow this tips.

Take a digital camera with you when house-hunting. Having photographs in front of you will help you recall specific details of each home you see – which is particularly useful if you’re viewing up to six homes in a single day.

Write down key points about each home you see as you’re inspecting it. In particular, record its size, special features, design and other factors which may influence your decision.

Take note of the area and its surrounds. Is the house close to all amenities, or is it in a remote location? Would you be happy to live in that particular neighborhood?

When you’ve narrowed down your options, ask to view the homes you like best a second time. This will help you to narrow down your options further.

Banks have many considerations before lending you loan, they don’t just look at your financial situation; they also consider the property that you want to purchase.  Then it is still subject to approval, if what you wanted to purchase seems that you will not going to afford it chances are you will be decline. The more money they have in their account, the less danger there is that you’ll suddenly be called on in the future to pay large amounts towards repairs or maintenance – affecting your ability to pay the installment on your home loan.

Get Help from Professionals, admit it, you are not so familiar with the big leap you are about to do.  It’s always advised that you get someone knowledgeable to help you interpret the information and prepare your application.

It is essential to ascertain whether you are ready to make such a big, constant financial commitment.  If you are secure in your job and gross a regular monthly salary, you’ll have a quite good idea of whether or not you can afford to buy a home.  Also important to bear in mind are the costs and fees linked with purchasing your new home.  You’ll need to have money saved to place a deposit on the home, and you’ll also have to consider moving costs, home-owners’ insurance and rates on your property.  To make certain that you can afford the purchase, it’s necessary to calculate all your monthly operating cost and those concerned in buying your first home.  As a general rule, your bond repayments, together with taxes and property insurance, shouldn’t go beyond 25% to 30% of your gross income.

Springhill Group Home : How To Apply For Bank Loans

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Nowadays, banks doors are seem to be close for the public because of the effects of unfettered credit card debt, housing foreclosures, and price increases on everything from a gallon of gas down to a can of sardines, bank loans are fast becoming a shrinking commodity due to economic downfall.  The banking world is acting in response to the economic turmoil by tightening the reigns in the lending department.

With the cards stacked up against many bank loan applicants and with the big chances of getting knocked back can seem prohibitively high, this became sour news to consumers and small businesses in need of additional funding.

It may seem impossible so forget all the doom and gloom rather present a clear, compelling case, backed up by hard facts, you stand a great chance of getting the money you want.  Banks are still also a business and they want to lend money to viable businesses alone.  They will definitely lend you money if you can show them that your business can produce enough profit to prosper and you are able paying them back.  It will also be a plus point if you have track record to point to.

Being prepared is always the key, you will have a higher percentage of getting what you want if came prepared.  You need to know exactly what you want before you start pitching for a bank loan because if you aren’t clear in your own mind what you want, tendencies are you will be turned down at once.

You’ll need to present a credible business plan and be able to speak with confidence about your business’s commercial offering.  You may ask help from a business adviser towards your business plan.  Plan your dialogue; know exactly how much money you need and how you will spend it.  It will make you look organized and goal oriented.  You must explain them clearly how the cash you are asking for will increase profit in your company or business.  Be ready to present monthly cash flow projections for the next four quarters.  This is necessary so will be able to demonstrate you can comfortably meet interest and loan payments or in other words you can really pay them.  Expect that the higher amount you’re asking for the more details you are ask to give.  It is also better to include a ‘repayments’ figure in your calculations.

You must give the impression to the bank that you are the real deal.  Be ready to detail any market research you have carried out.  The people in your team is also a plus, make them realize that you have the best team and your business is a sure hit.

Nothing beats being honest but also remember to be energetic and enthusiastic to build rapport to the one your dealing with.  The bank will need a true picture of your business so it will also be a good idea if you mention weakness in the business but not too much or else you will fail.

After making sure about those details, also it is better to have all documents to hand so that you are able to furnish the bank with up-to-date personal and business financial histories. Bring with you acceptable credit score or personal reference, and to go through your latest accounts, tax returns, assets and liability statements.

Lastly, you need to think about terms.  This is very important.  How many years will you need to repay the loan?  Make sure you have fixed rate of interest, or a variable rate which moves up and down with the Bank base rate.  The terms should fit your business strategy, and ensure you can continue to meet your repayments even if the company hits turbulence.

Newscenter Springhill Group Home – Two Land Banking Fraudsters Convicted

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Two men jailed in the UK’s first criminal trial involving land banking fraud in the City of London Police investigation

A £3 million was proven to be gathered from 300 investors the pair cheated, evidence was pointing the two as culprits.  Their strategies were to fool their victims like elderly and those who are vulnerable into buying plots of land that were either worthless or massively over-priced.

Found guilty of five counts of money laundering, the two men (42 and 32 years old) were sentenced to seven and six years at Isle worth Crown Court.

Their claim was that the locations of the supposed to be valuable plots were marketed as being in a prime position for development and would quickly increase in value.  But the truth of the fact is that investors were putting their money into plots located on farmland, in the Green Belt, within an Area of Outstanding Natural Beauty or on the sides of hills, with no chance of gaining planning permission let alone building houses.

The two were just funneling off the funds into a network of bank accounts while the investors received small returns while others lost everything.  In a matter of two years they manage to con 300 victims, one of which is an elderly man who was suffering from terminal cancer losing almost £300,000 and a woman fooled by as much as £373,000.  In order for people to buy their schemes, cold calling and high pressure sale tactics were put into play to target and then bully them.

According to DC Dave Parkinson, from the City of London Police, ”The pair preyed on the vulnerable, exploiting their desire to put their savings in something tangible that would provide them with long-term security. They cared not from whom they stole, but only for what they could take.”

“Plots of land that were good for nothing and worth a fraction of the asking price were marketed as a sound investment with planning permissions in the pipeline and development round the corner. The gang used all the tricks of the trade to give the appearance of legitimacy, picked off their targets over the phone and then disappeared without trace with their savings.” He added.

Springhill Group Home Loans: Avoid House Loans and Bank Financing Frauds

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Scams that are perpetrated through in house financing are almost limitless.  Having a house is not just a luxury but it is a necessity.  Buying a house is not just an investment but having a place you can call home.  This is a place where you can create memories and a place where you could go home to after a long day, a place where you can be with the family.   A place where you can be stress-free so buying should also be stress-free.  Nowadays it is hard to have one of your own added the trouble of being scammed by people who will do anything just to steal money to others.  Here are some tips to avoid house financing frauds:

Brokers will always find a way for you to extend payment terms.  Pay attention to the actual price and interest rate.  We often take more importance to the monthly rate rather than the actual price, remember it is always better to pay in shorter term; the longer you pay the higher the cost will be.  If ask, “what sort of payment you are looking for?”, he just wants to get an idea of how willing you are to pay so that he can tweak the loan to fit the payment by extending it.

Know your credit score, the scenario often goes like this.  A scam will let you believe that it is bad, he will tell you that he is not sure and he will talk to the manager and let you know.  And of course a few moments later he will go back and congratulate you because the manager granted and wishes to finance you.  They will give you an insanely high rate a 12 – 13 %, when you could have gotten a rate of half that you had financed trough your bank.  They have really approved you trough their bank but probably much less but they charge you above the interest.

Do not fall for “pay no interest for 6 months”, it is a trick!  Because it is definitely untrue, once the grace period is done sure your interest rate would skyrocket!

Fraud on the other hand is also being committed by the barrowers without the realizing it.  The FBI defines mortgage fraud as "any material misstatement, misrepresentation or omission relied upon by an underwriter or lender to fund, purchase or insure a loan."  Lying about your application falls under the category of mortgage fraud.  Even a tiny white lie wouldn’t do, it is considered to be a mortgage fraud.  But more often than not, barrowers are not aware of this because a real estate professional suggested it’s no big deal.

It is actually a big deal, you can be penalize or sued because of it.  The so called “creative financing” went out in the 70’s.  If the lender finds put about you false application, even a tiny detail on it, not only they can demand immediate full payment of your plan but they could ask you to pay 6-figures fines. That is aside from the possibility of being sued for it.

If approached by someone who gives you offer that is too good to be true, most likely it is a fraud.  Being part of a mortgage fraud has it consequences; remember house loans and bank financing frauds are against the law.  Always make your own investigation first before engaging in to businesses and availing plans.