Risky Home Mortgage Loans New Ban

http://newscenter.springhillgrouphome.com/2013/02/risky-home-mortgage-loans-new-ban/   .

Due to the collapse of the housing market, a new rule announced is aiming to prevent the return of high-risk no-document home loans. This has only happened now and for the very first time, federal regulators are enforcing out rules to make sure borrowers can afford to pay the cost of their mortgages. The Consumer Financial Protection Bureau will necessitate lenders to offer loans that don’t ensnare borrowers. Late this yaer or early next year if the new law takes effect, upfront fees will be limited and interest-only loans will be curtailed. Lenders would be obligatory to verify and inspect borrowers’ financial records.

 Today’s current strict credit standards would not tighten but the new rules are intended the kind of no-holds-barred lending that was seen during the housing bubble before 2008. Loading homeowners with burdensome loan payments would do anymore; financial firms are banned to do so. They cannot require the borrower to pay the total more than 43 percent of their income. But this on the other hand could make it harder for people with lower incomes to qualify for a mortgage if banks are tempted to ease their requirements.

 According to the Mortgage Bankers Association, four out five home loans are now “re-fi’s.” Most 30-year fixed rate mortgages are close to record lows and are well under 4 percent. A cheap rate can make a big difference over time. “At the end of 30 years you can save thousands upon thousands of dollars in total interest,” says Pat Esswein of Kiplinger’s Personal Finance. Refinancing usually makes sense “if you will stay in your home long enough to recoup the closing costs that you have to pay to do the re-fi.” To calculate re-financing costs and long term savings, Esswein says “go to an online mortgage payment calculator and see what you can save by reducing your interest rate.” The rumble in re-financed mortgages is projected to continue this year.

 The fresh system seek out a middle ground by protecting consumers from bad loans while giving banks the legal assurances they need to increase lending. Teaser rates that adjust upwards and large "balloon payments" that must be made at the end of the loan period are rules bound features. Lenders will be obliged to confirm and check borrowers' financial records. They generally will be prohibited from saddling borrowers with loan payments totaling 43 percent of the person's annual income.

 Balloon payments would be allowed for certain small lenders that operate in rural or underserved communities, because other loans may not be available in those areas

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.