Facts About Home Loans

May 30, 2008

Prospective homeowners should explore their options prior to signing on the dotted line of a mortgage agreement. Probably the most critical thing to know and understand when acquiring a home loan is to know what the various terms mean. This can be accomplished easily by asking a lot of questions and asking your realtor to explain everything to you. Plus, some online browsing can turn up the answers to most of the questions that you might have.

It is important to look at the different types of home loans that are available and to understand the differences among them. From a fixed rate to an adjustable rate to an interest only to a balloon mortgage, the choices are many and the differences among them are very large. If you do not understand what a particular type of loan means in terms of monthly payments as well as the duration of the payments, then you should not be signing on the dotted line.

Potential buyers should also understand the various terms or words that are employed when dealing with real estate. Some of these include points, closing fees, recording fee, escrow account, and origination fee.

If the loan that you are getting is a first time loan, then it is the primary loan and the primary lienholder. This means that the lender of this specific loan holds the first claim against the property for repayment of the loan holders debt.

Home loans can be obtained at banks, savings and loans, credit unions, and financial lenders. Each lender assesses their own schedule of fees, offers their own range of interest rates, and their own selection of loan packages.

In order to qualify for a home loan, potential borrowers will need to go through a pre-qualification screening. During this stage, each borrower is expected to bring a number of financial documents to verify their information. Once they pass that stage, they will continue with the application process. Additional paperwork is completed and processed.

In order to receive approval for a home loan, the potential borrower needs to provide the following pieces of information: terms of employment, income level, level of debt, age of the applicants, and the type of home that is the intended object of purchase. Plus, the current interest rate and the size of the down payment can all influence whether or not the potential borrower is approved for the loan. The appraised value of the home will also come into play as well.

When buying a home, it is important not to bite off more than you can chew. If a homeowner fails to pay on his home loan, the lender can repossess the home and the homeowner is left with nothing, except maybe bad credit.

Zulika van Heerden is an expert on mortgage financing and provides free information on her site for homeowners. To read more tips and techniques like the ones in this article go to: http://www.globalproperty.co.za

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Bad Credit Cards For Better Consolidation

May 29, 2008

Unsecured methods of debt consolidation are among some of the most available debt consolidation options out there because they do not require you to secure the debt against anything.This is in contrast to secured loans such as mortgages which require you to put something up as collateral or security.  However, unsecured loans have a major qualification in the form of a good credit rating.

 

 

 

You got to have a healthy credit score before you can even consider getting a credit card with a decent interest rate. If your credit score is bad enough that you cannot get a good credit card anymore, there is a fix available for your situation. The solution comes, as ironic as it might sound, as a bad credit card.

 

 

 

Why Bad Credit Cards?

 

 

 

Now, do not take the term the wrong way. Bad credit cards are not bad per se or detrimental to your credit score. In fact, they could be just the opposite when used correctly. Bad credit cards are just called that way because they are specifically targeted for people who have bad credit histories or a bad credit rating. As you might expect, they do not require much besides an application form.

 

 

 

You can easily acquire a bad credit card and many banks and financial institutions offer them. The only drawback with bad credit cards is that they have a higher APR than the usual credit cards. That means you will have to make prompt and regular payments for your credit cards. But besides saving yourself from the interest, there is another important reason for you to make prompt payments, as you will see later on in this article.

 

 

 

Being Bad to Be Good

 

 

 

Because they have few requirements, bad credit cards are the easiest (and perhaps the only) available option for you. And getting one could hold the key to a better credit score.

 

 

 

Get yourself a bad credit card and then do some light spending on it. Pay a couple of utility bills, buy yourself an inexpensive outfit, just do anything to use up a little of the credit extended to you. Then when the bills come, pay them as quickly as possible; don not let the deadline dawn without your having paid your dues. Repeat this process every month. What this does is it establishes you as a debtor who pays promptly. Your credit card company will notice the pattern and, pretty soon, so will other creditors.

 

 

 

By using up just a little of your credit line, you make sure that the costs are still easily payable at the end of every month and that you do not get hurt by the higher-than-average APR. Using this technique would not improve your credit score overnight, that is for sure. You would not get any noticeable effects for about six months and it could take about a year for the paying pattern to nurse your credit rating back to health.

 

 

 

If your loan- or debt-related needs are not immediate or very urgent, taking this course of action is well worth the effort for its benefits on your credit score. That same credit score will be key in getting better terms on your next credit card or, indeed, just about any other method of debt consolidation available.

 

 

 

Zulika van Heerden provides valuable information on her site on how to live a debt free life.
To read more tips and techniques like the ones in this article go to: http://www.globalproperty.co.za


Which Bills To Pay First

May 27, 2008

When prioritizing post-consolidation payments, your debts and your taxes must be at the very top of the things that you have to pay.

 

In a situation where you are in debt both to creditors for their loans and to the government for your taxes, both of them have the priority and the power to foreclose on your properties or seize things that you own.

 

There are already laws and structures in place to make it easier and faster for the banks, the lending institutions and, of course, the government to seize assets. It’s basically for this reason that you should put payments to them at the top spots on your list.

 

If you skip out on payments to them for too long, you not only have to deal with the process of seizure or foreclosure. You also have to deal with recovering your solid assets – your house and your car, for example – which could have served as a backup plan in a financial emergency.

 

Make an Agreement

 

Of course, there are other debts that you’ll also have to pay.

 

Credit card debts and accounts with merchants are very common examples of these. In terms of payments, the very big difference between these kinds of debts and the debts that you owe to banks and the government is that the repayment schedule can be discussed.

 

Debt problems are very real and very widespread so it’s not uncommon for these creditors to hear about debtors who can’t pay due to other debt obligations. If you have debts to creditors like those, try calling or writing them and then asking for new payment terms. Make sure to explain your circumstances because they’ll need you to give a really good reason for not giving them their money on time.

 

These kinds of debts are low on priority not only because arrangements can be made regarding their repayment, but also because it will be very hard for credit cards and merchants to seize your home or your car.

 

After you’ve arranged your debts and consolidated some of them, it’s very important to know not only how to pay debts but how to pay them effectively. There are some debts that will take a higher priority because your creditors in those debts can take faster and more drastic measures to seize your assets as payment.

 

When planning a debt recovery scheme, identify the type of each debt clearly and list them in order of priority. That should help you stick to a good payment schedule and gradually whittle away at your problem of debt.

 

For more debt and mortgage related articles, go to :  www.globalproperty.co.za


Debt Consolidation can Save Your Credit Record

May 26, 2008

 
An important feature of consolidating bills is that it helps your credit record.
As you accumulate more and more debt, you damage your credit record. If you have missed payments or carry excessive credit card debt, your credit score suffers.
When you consolidate your accounts and pay off your outstanding debts, you stop the damage being done to your credit. You show accounts that are paid off which helps with repairing your credit.
So how does that benefit you?
A better credit score means lower interest rates in the future for things like a mortgage, car loan or home refinancing. In the long run, it can save you thousands (maybe tens of thousands) of Rands

 

 

 


Debt Consolidation can Save Your Credit Record

May 26, 2008

An important feature of consolidating bills is that it helps your credit record.

 

As you accumulate more and more debt, you damage your credit record. If you have missed payments or carry excessive credit card debt, your credit score suffers.

 

When you consolidate your accounts and pay off your outstanding debts, you stop the damage being done to your credit. You show accounts that are paid off which helps with repairing your credit.

 

So how does that benefit you? A better credit score means lower interest rates in the future for things like a mortgage, car loan or home refinancing. In the long run, it can save you thousands (maybe tens of thousands) of Rands


What is the Key for Getting out of Debt?

May 23, 2008

Always make a monthly budget for yourself, if possible do it weekly or even daily; being financially organized is the key to success.

You must include details in your budget. Add foods, bills, entertainment, transportation, shopping, miscellaneous and other and this way you will see how much you really need to spend and which is higher in priority… If you can make changes to your way of life and save some money, do so. Use that money to pay back debts and in the meantime you should stop adding to your borrowing by surviving only on cash or debit cards.

Are you a student? An employee? Bring everything with you to school/university or to work. Have your lunch, snacks and even your drink. It is better then buying from machine.

You will save even with small amount but you are SAVING.

Instead of saying that something only costs R8 for example, say if I don’t buy it that is R8 that I can put away for a rainy day or put toward debt.

 

Look at your monthly income based on the net amount. Deduct taxes, medical, UIF etc… and you will have the net income.If you are in debt, it is a given that you are spending more money than you make. You are in the red. There is no way to play games about it.

 

 

Live within your means. If you can’t afford to pay cash, you can’t afford to have it.

 

For more information on Debt Consolidation and Mortgages, go to www.globalproperty.co.za


What is a Credit Card Debt Consolidation Loan?

May 22, 2008

Credit card debt consolidation is regarded as the first step towards getting rid of credit card debt.  A debt consolidation loan is one of the ways of consolidating credit card debt.

 

Credit card debt consolidation loan is a low interest loan that you apply for with a bank in order to pay off your high interest credit card debt. A credit card debt consolidation loan too is based on same principle as balance transfers i.e. moving from one or more high interest debts to a low interest one.

 

A Credit card debt consolidation loan is an unsecured loan. In other words you do not have to give security or something that has value to qualify for such a loan the loan is based on your income, credit worthiness etc.

 

Although balance transfers and credit card debt consolidation loans have the same objective behind them, the credit card debt consolidation loans are sometimes considered better because you end up closing most of your credit card accounts which have been the cause of you ending up in financial difficulties.

 

However, balance transfers have their own advantages which are not available with credit card debt consolidation loans. Choosing between credit card debt consolidation loan and balance transfer is really a matter of personal choice.

 

For more on debt consolidation, mortgages and other related articles, go to www.globalproperty.co.za/credit-card-debt.html