Choosing Bill Consolidation Loans

When considering bill consolidation, don’t just jump in and swim, so to speak. Many factors should be considered when choosing. Remember that dealing with money is, and will always be, tricky. It is quite easy to be tricked, especially when you are dealing with another party.  Since you are already in a big financial mess with all the debts piling up and creditors banging on your door for payment, you need a company to help you.

Know how much you need to pay for their services. You already owe money, so as much as possible the company helping you should not be unreasonable in the fees asked of you. Talking about fees, the company should also be able to re-negotiate your loan and get lower rates.  Remember that since you will be merging your bills to one new bill make sure that you get lower rates compared to what you have now.

In terms of terms of loan payment, always go for short term. The least amount of payment is what you need to pay off your bills, but if you do the math, it would actually cost more to pay because interest rates are added to longer terms.

Do your homework. The internet is basically your best friend in finding the best company who could help you. As always, get as many quotes as you can. Look for the best deal you can get, but make sure you don’t choose a ‘fly by night’ type of company, just because they have given you a quote that is, by far, the lowest. Ask around, and know that in this type of business, experience would at all times, mark higher in terms of banking and finance.



Free Credit Score Report – Questions & Answers

What is a free credit report?

It is a drafted document (saved in data systems made up of the following details on the subject of a person’s individual credit merit as well as credit debt reimbursement background.

• Identification – by persons name, street address, spouses name, date of birth, Social Security number, telephone number, where you work, mother’s maiden name, and so forth.

• Credit score queries – every single instance a prospective subscriber (lending issuer) performs a credit rating review on the client, a file about the document request is produced. It will continue to be within the report in almost all states for 1 or possibly 2 years. This is certainly of significance to banking institutions for the reason that the item unveils current credit history action.

• Open Public Records – facts in open public data and collection records are usually likewise gathered by (or perhaps noted) to these types of companies. Open files normally include courthouse data, bankruptcies, judgments, law suits, criminal arrest data, and so on.

• Credit background – that features the company name and also Identification number associated with every single subscriber who generates a record on a person’s credit/debt reimbursement history. Additionally incorporated will be the date a particular charge account has been established, credit limits, the latest balance, regular monthly payment total along with payment frequency within the previous 12-24 calendar months. Files tend to be dated with every single request of perusal. Additional info involves, yet is not constrained to, buyer disputes, criminal convictions, personal liability or shared liability of debts, co-maker or guarantor of settlement concerning particular charge, collateralized debts and also charge offs (each time a financial institution has noted an delinquent account balance as a loss).

• Consumer statements – a report, not to ever exceed One hundred words, regarding a particular bill(s) a person might prefer to more precisely and entirely describe, generally extremely valuable to credit ratings judgements.

When generally is a credit rating record produced?

Typically whenever you render a request to get a loan product or a charge card or whenever a person whom gave funding produces a statement to their own credit reporting bureau concerning your debt reimbursement.

What individuals can legally evaluate ones credit ratings record?

Credit score reporting agency members comprised of banking institutions, other loan companies, merchants extending consumer credit, insurance providers, businesses on employment applications, leasing, security clearance, and so forth. might not get a person’s consumer credit report unless disclosure is created that a credit report is going to be asked for and in a lot of circumstances will have to get authorization from the individual. This particular agreement is actually common practice should you put your name on an application with regard to all of the previously mentioned dealings. Study the small print concerning the applications for extra information.

Precisely how frequently is it advised that You evaluate your consumer credit statement?

In the event that you’re actively utilizing credit, making use of 1 or even more credit cards that require monthly or bimonthly charge actions, have got installment loans(s), car lease, and so on, analyze your consumer credit record approximately every nine to 12 calendar months, apart from this just about every Fifteen months is usually satisfactory.

Suppose You want assistance?

There are a lot of credit score restoration agencies on the market. Merely perform a small amount of exploration and you can be positive to discover one which could assist you to take back your beneficial consumer credit standing.



Commercial Mortgage Loans

Commercial mortgage loans are provided by lenders for purchasing properties and equipment, or for meeting operating costs for commercial or business purposes. These loans usually have lower interest rates (6% to 13%) than residential loans. Thus, commercial mortgage loans are considered as useful tools for establishing and improving a business. The main beneficiaries of commercial mortgage loans are real estate businessmen engaged in construction, acquisition and refinancing of properties.

Commercial mortgage loans are secured loans, that is, you must provide a security, property or business asset, for getting these loans. Like home mortgages, you have to repay these loans within a specified period of time. Usually, a 2% arrangement fee is charged for these loans. Commercial mortgage loans may be fixed or adjustable rate mortgages. The term of these loans can vary from 10 to 30 years.

Commercial mortgage loans offer more flexible repayment options than traditional loans. You can pay on a biweekly, monthly, quarterly or annual basis. Many lenders offer a fixed interest only period. You can repay commercial mortgage loans by generating additional funds from assets you purchased using the loan.

Qualifying for commercial mortgage loans can be a little difficult. The loan provider will look at the resale value of the property, the income generated from the property, your company’s credit history and income resources, and also the worthiness of the guarantor. The minimum loan amount available for commercial mortgage loans varies with the lender – it usually falls somewhere between $100,000 and $250,000. The maximum amount available is usually unlimited, but it solely depends on the value of the security. Most lenders provide 70% to 90% value of the property as maximum loan amount.

Many online mortgage providers offer commercial mortgage loans. These include conduit lenders, portfolio lenders including banks, credit companies and life insurance companies, government sponsored enterprise (GSE) and non-bank lenders. Generally, conduit companies and credit and life insurance companies offer long term loans.

The terms of interest, interest rate and the minimum loan amount available defer with the lender. There are many sites on the Internet that provide comparison of interest rates of different providers.



Basic Information on FHA Loan Programs

FHA loan programs are a big help to those who really need it right now. However, everyone needs to have a guide to help them through the process of getting the loan. There are many unforeseen twists and turns that one must be aware of in order to successfully go through the process of getting an FHA loan. This article will serve as a guide to those who need it.

The first thing is that one needs to be aware of the FHA principles. First of all, asses the price that is affordable to you and your family at this moment. Then look up all the buying programs that you can avail. Then finally, you must survey for a good FHA accredited lender.

Remember that the FHA is of course, federally insured and this is why banks give people more room when they apply for this kind of loan. It is like getting a mortgage loan for the first time. People with moderate to low   credit  scores can avail this  loan  and the down payment is considerably lower than the usual amount if one is to make a non FHA loan mortgage. FHA has a higher debt to income ratio and this empowers the borrower to get a bit more from their loan.

What exactly is an FHA Loan?

In truth, the FHA is not the one giving out loans. They only cover insurance for the loan that their accredited lenders give out. This insurance makes the loan less risky for the lenders in the event that the debtor chooses to default. This federally covered  loan  insurance is also the reason why this kind of  loan  is available for almost anyone despite their  credit  rating. The down payment for this loan can go for as low as three percent of the entire loan. This means that any borrower will be able to get a house on loan quickly enough even though he or she does not have that much money on hand as of the moment. Usually, traditional loans require that the debtor pay up to ten percent of the total amount on hand as a down payment.

Another great feature in an FHA insured loan is in terms of buying a house that still needs some repair; this is called the 203k loan. With this kind of loan, one combines the cost of the repairs as well as the cost of the house itself into one loan only. This saves a lot of time and processing. Thus, the repairs can be faster. One will not have to save up a lot of money first before the house is in livable condition.

Remember also, that you can buy condo units and manufactured homes using FHA loan programs.

Finally, going through the process is relatively easy after you have determined that you are qualified. It is all basically the same with getting traditional loans. You will be assessed, you will need to submit supporting documentations, and you will pay the down payment. The main difference is in the calculation of your credit qualifications. Your gross income will determine the amount of your monthly payments.



Now Is The Time To Fix Your Bad Credit Score

Most people been in a situation where we need to get some form of financial assistance from lending institutions such as banks. We may have to get a car loan or maybe a home loan. We may even want apply for loans to cover during emergency situations. However, when you go to these lending institutions to get some financial help, they first need to do a   credit  check before granting you a  loan . Of course, these institutions are usually private companies who don’t want to risk losing their money to somebody with a bad credit score.

 Credit  reports contain all your  loan  transactions. If you have had previous  loans  that you were not able to pay, then they will contribute to giving you a bad  credit  scor or rating, which will consequentially require you to fix your bad credit score. All your  loan  transactions are summarized and rated which gives you your  credit  score.

The higher your credit score, the better. That means you’ve been a responsible loan payer. A lower  credit  score may mean that you don’t have enough  credit  history yet, or that you were not able to pay off a majority of your  loans . With a bad credit score, it will definitely be hard for you to obtain new credit, thus you need to fix your bad credit score immediately.

The financial market favors those with high credit score. If your credit score is bad, there are a lot of benefits that may not be available for you. For example, low interest  loans  are offered to those with high  credit  scores. They’re also offered better deals on mortgages.

Even if you don’t think you’ll need a  loan  in the near future, you should start taking steps to fix your  credit  score. Nobody exactly knows when a loan can come in handy. Usually, financial shortages cannot be predicted. It’s always better to be ready for that unexpected moment when you need to apply for a loan.

The first thing that you need to do to fix your bad credit score will be to obtain a credit report. It’s highly recommended to get a copy of your credit reports from the three major credit reporting bureaus, namely: Experian, TransUnion and Equifax. Although these three bureaus may follow the same rules in computing for your score, there may some discrepancies in the data that they were able to gather.

To be able to fix your credit score, you need to know what your credit score is and all the things that are written on your credit report. Although it happens rarely, but it does happen that there maybe some information written on them that you don’t have any idea about. For example, it may reflect a loan that you don’t remember applying for. Or maybe a paid loan that still shows to be unpaid.

When these errors occur, what you need to do is to contact the creditor responsible and explain your side. You shouldn’t have a difficult time in doing this since most creditors will gladly help you out to fix a bad credit rating.

It is really important to check your credit reports regularly. The government knows this, thus, every US consumer is entitled to one free credit report every year. Take advantage of this to check for any mistakes on your credit report. You can also use this to ensure that you haven’t fallen victim to an identity theft.

It can actually take several weeks for your credit score to be corrected. Aside from contacting your creditors, you may have to fill out a credit dispute form from the credit reporting agency. To minimize all the hassles, you can actually go online and request a copy of this form.

When you have checked that your credit score report is error free, then you need to start working on any negative remarks in the report. If you haven’t paid your  loans  on time, most creditors may leave negative comments in your  credit  report. You might want to try to talk it out with the creditor.

There are actually several credit repair agencies that promise to fix your bad credit score. Before you sign up for any of them, make sure that they’re not just one of the bogus credit repairmen that will just run off with your hard earned money. If you can’t ensure their reliability, then the best option left is for you to fix your bad credit score yourself.



Backing Up Your Loan With Property

Yes. Most lenders will require you to give them a contact address. But let’s ignore that for now. If you actually happen to own your home then clearly you are unlikely to up sticks and leave with your creditor trying to work out where you, and more importantly to them: their money, have gone to. If you are wanting to get an affordable loan, the secured loan would be the best way to go. Not only does it mean to the creditor that you are easy to contact, it also shows that you are far more likely to be a responsible borrower of money. Bearing in mind that most homeowners either have or did have a mortgage at some stage, they will likely have had to make monthly (or otherwise) repayments in the past, so it gives the creditor a sense of comfort that, based on past results, you’re more likely to be a trustworthy borrower.

But what if you are not a homeowner? How would your loan securing chances be affected? Given that you’re living somewhere relatively permanent, but don’t actually own the property yourself, you may find that you lack much to secure your loan on. What’s the problem with this? Well, let us say that you do not own any property. What this shows is that your financial standing is a lot lower than that of somebody who does. This means that, should you end up – despite your best efforts and intentions – getting further and further in to debt so that you’re unable to pay back the loan, you have little to act as a buffer (like your property) with which the creditor can start looking at. The lender will regard you as being a high risk candidate if you do not own property. So how do they make up for that?

What they do is that they charge you a significantly higher level of interest. And later, should things start going wrong, they will probably be a lot less understanding. So, inversely, if you actually happen to be in the position of owning a home, you are a far more stable and likely candidate for the creditor’s best loan deals.

And what if your home is owned by your partners? In that case, it can sway the balance just enough if your credit record isn’t without its patchy areas. If that’s the case, you have two simple options to taking out a loan to make the most of that fact. Ensure that the creditor is aware of whom you happen to live with (and that they own the home, not you); or simply ask them to take out the loan for you. The latter might be a good idea even if you could get the loan on your own steam. After all, your partner could get a better deal.

In the long run, it’s all down to who’s willing to sign on the line and what they have available to back up their   loan  with (combined with their  credit  history). Bear that in mind when trying to find quotes for relatively small loans in future. There are many ways in which you can get hold of a cheaper loan. Stay open to various options.



Getting Debt Consolidation Loans With Bad Credit

Many people worry about the fact that their  credit  is damaged when they start thinking about obtaining a debt consolidation  loan . The fact is though, if you were not struggling with your bills, hence the bad credit, then you would not be in need of such a service. While there are always going to be some companies out there that require top-notch credit, you do not have to worry, as these would not be the companies you would want to work with anyways. Those companies would not understand your fears, your concerns, and your needs as the right company would.

It is important to make sure that you are going with a company that truly understands your sensitive situation and that caters to your needs. You want to make sure that you are going with an experienced company in order to make sure that you are getting the very best deal that you possibly can. The better you are treated and the better the company understands your situation the more money you will be able to save on a monthly basis. This means vacations, a new couch, or even a bigger savings account for your children and for yourself.

Since you are looking at probably saving a couple hundred dollars a month, it is important that you get started and begin looking for a suitable company to work with. Find one that works with those with bad credit and you will be off to a good start. In the end you will find that you are much happier with a lot less stress to deal with. And that is a feeling that just about anyone out there could appreciate.

By the way, by researching and comparing the best debt consolidation companies in the market, you will be able to determine the one that meet your specific financial situation, plus the cheaper interest rates offered. Nonetheless, it is advisable going with a trusted and reputable debt counselor before making any decision, this way you will save time through specialized advise coming from a seasoned debt advisor and money by getting better results in a shorter span of time.



Bad Credit Home Loans: Three Factors to Help You Get the Loan You Want

Owning a home is an essential element of the American Dream. In many ways, by financing a home that you can call your own you are able to call yourself a success. However, those with bad credit often feel that this goal is impossible for them to achieve. However, that is simply not the case. Bad credit home loans do exist and you can get one if you know what to do and where to look.

The Benefits of Bad Credit Home Loans

Many people may assume that a bad credit home loan is simply a scam. Isn’t credit the number one element that is used to assess someone’s ability to finance such a large loan as a home mortgage?

Well, the answer is yes and no. While having a good credit score is certainly an advantage when it comes to getting a mortgage, it is by no means the only qualification. Having bad credit does not mean that finding a home loan is impossible, since there are other factors that come into play.

FACTOR #1: Down Payment

Any time that you want to purchase something where the price is subject to negotiation there is a saying: “Cash is King.” By offering more money upfront you can accomplish two goals.

First, with enough cash at hand you can lower the overall sale price. This is because sellers will not have to deal with your lender for some of the money, which makes it easier to access and put the sale through.

Second, by saving a large amount of cash (10% or more of the purchase price) you show lenders that you know how to save money and properly budget. This will give them confidence in your ability to pay for your mortgage despite your bad credit in the past.

FACTOR #2: Negotiate Price

The housing market is in dire straits at the moment, which gives you a lot of power as a buyer. In order to convince a lender to help you finance a new home, it is a really good idea to look at buying something that is priced to sell, that is, a short sale or foreclosure that is worth far more than what you will pay for it.

If you pay more for a house than you can reasonably expect on a resale in the future, you accumulate what is called negative equity. By paying less than what a house is worth you accumulate positive equity. Lenders will like the idea that you know how to negotiate and spot a good deal. It will also ensure them that on resale of the home you will be able to repay them all of what you owe.

FACTOR #3: Keep Your Options Open

Even though you have bad credit, you are not doomed to only find one lender willing to serve you. In fact, there are many lenders available online who will specialize in granting bad credit home loans. Therefore, it is essential for you to look at many options in terms of interest rates and other loan packages. By doing your own research on the lending market and your position in it, you are far more likely to find a deal that you can afford.

Home Ownership is Possible

Despite bad credit, the dream of owning your own home is within your reach. In many cases, all you need to do is know your options and be prepared. Bad credit home loans are given to people every day, there is no reason that one of those people can’t be you.



Home Mortgage Loan Mistakes Most Homebuyers Make

MISTAKE #1: Over shopping your loan

Your credit score is based on the perceived risk associated with extending you credit. Over the years, the credit reporting agencies have determined that a borrower who seeks credit from many different lenders is riskier than others. Therefore, they decrease your credit score each time a lender pulls your credit report.

Each time you call a lender seeking the best possible rate and terms for your home mortgage, he has to pull your credit report. This is factored into your credit score, and a lower score decreases your likelihood of getting the best rate and terms.

While some consumers are ONLY focused on rates, you should seek the guidance of a National Association of Responsible Loan Officers member that is willing to speak with you about your loan options. There are literally hundreds of loan products available and every borrower has a different financial situation and financial goal. We highly recommend having a consultation with your loan officer so they can tailor a program to meet your individual needs instead of focusing exclusively on rates and points. You may likely find a better product than the one you were shopping for.

MISTAKE #2: Trying to hide past financial difficulties

One of the important services a responsible loan officer offers is helping you overcome past financial difficulties that may hinder your ability to have your loan approved. Your loan officer is on your side.

Supply the information that will help your   loan  officer provide you with the best possible rate and terms and minimize the impact of your past  credit  history. The fact that you have recovered from past financial problems makes you a better risk than others who haven’t yet faced challenges. Overcoming past financial difficulty proves that you honor your commitments and don’t give up.

MISTAKE #3: Allowing a loan officer to put misleading or untruthful information about your income, expense or cash available for down payments on a loan application in order to get a loan

Providing untruthful information on a loan application is fraud. Mortgage fraud is prosecuted by federal authorities, and they will find out about the fraudulent information. Do not allow yourself to become an accomplice of a loan officer’s fraudulent loan application.

Even if a loan officer fills in the information for you, if you do not believe the loan application is 100% truthful, you should refuse to sign it until the loan officer corrects the application. While many loan officers try to “help” borrowers by misstating the facts, the truth is that they are simply getting themselves and their borrowers into a lot of trouble.

MISTAKE #4: Borrowing more than you can repay

All of us understand that we may have to stretch our monthly budgets a bit to afford the homes we want. However, you will put your entire financial health in jeopardy by buying a home you simply cannot afford.

If you buy an expensive home and find you cannot make the monthly payments, you could face a huge loss when you have to sell that home quickly to get out from under your mortgage. Or worse, you could be forced into foreclosure or bankruptcy.

It is much better to be patient, buy a home you can comfortably afford, make payments, build equity and then transition into a larger home after a couple of years. Yes, the larger home will cost more then, but the home you purchased will also have appreciated during that time. Most importantly, you will have built a successful financial foundation that allows you to experience all of your dreams, including that dream home.

MISTAKE #5: Relying on interest rate advertising

Some loan officers use interest rates to get your attention; however, they may actually end up costing you more. Such rates are often derived by using a 30-year mortgage coupled with an accelerated payment plan.

You may decide you like that option, but you cannot directly compare the interest rate on that mortgage to other opportunities. This loan could cost more than other mortgages with seemingly higher interest rates.

It is critical to find a loan officer you can trust to review the options available to you and the best possible rates for your financial situation. Only a responsible loan officer can give you all of your options in an understandable way.



A Credit Tenant Lease (CTL) or Conventional (Bank) Loan – Which Is Best for My NNN Deal?

Many good quality, single tenant, net leased properties qualify for both credit tenant lease (CTL) financing and conventional commercial mortgage lending. Net lease property investors should consider the pros and cons of each before deciding which type of loan to commit to.

CTL lending is generally best for the long term income investor who wants permanent, high leverage, fixed rate, fully amortized financing and desires speed and certainty of execution. Bank lending has a lower initial (but not overall) cost and can offer a larger variety of terms and conditions. Banks are best for investors who need options, don’t need maximum leverage (have large down-payment available), and who are not sure if they will hold a property for the long run.

The Difference

CTL lending combines aspects of commercial mortgage lending with specialized investment banking in-order-to close deals. A CTL banker issues and sells private placement corporate bonds that are secured by the lease on the real estate. The proceeds of the bond sales are used to fund a commercial mortgage loan for the borrower. The loan is administered by a third party Trustee throughout the life of the deal.

Traditional commercial mortgages are standard loans secured by mortgage liens against the real estate, the income the property produces and the credit of the borrower. Banking institutions originate a loan and fund the deal either by selling the loan to an investor (private or Government) or by lending its own funds and holding the loan in its portfolio.

Leverage

The ongoing credit crunch has forced banks to tighten up their lending criteria. It is highly unlikely that a commercial bank will offer any more than 75% loan-to-value (LTV) on any deal today. Banks have no incentive to take unnecessary risk; they can borrow money from the Fed (Federal Reserve Bank) at 0% percent and buy 10 year Treasury Bonds at 2% earning 2 points risk free. They will pass on high leverage loans and only lend where they have large amounts of protective equity.

CTL lenders will lend up to 100% LTV (lease fee valuation) on a non-recourse basis. They are in the business of loaning the full, current cash value of a lease (against the guaranteed future income). CTL bankers, without question, make the highest loan offers in the commercial real estate finance industry.

Speed and Certainty of Execution

CTL loans can close in about 1/3rd of the time it takes to close a conventional commercial mortgage. CTL deals have been known to be completed, from-start-to-finish, in as-little-as 45 days (unheard of in the world of commercial banking) but generally take 60.

Bank loans take at least 60 days, sometimes 180 or more. Also, because CTL deals either qualify or doesn’t, a banker can give a borrower a solid yes or no very quickly. There are a thousand ways a bank loan can fall through but, once a CTL banker commits to a deal and a borrower signs off, there is a near 100% certainty of execution.

Recourse

CTL loans are all non-recourse loans secured by the income that the lease produces.

Bank loans are usually, though not always, standard, credit driven, full recourse loans with liens against the borrower as well as the real estate.

Cost

A CTL loan will have higher initial costs because of the investment banking aspect to the deal and the fact that a third party Trustee must be involved. However, over the life cycle of a property, CTL tends to be less expensive because you never have to refinance. At the end of a CTL loan the borrower owns the property free and clear.

Bank loans must be recapitalized or paid off at the end of each term, usually 3, 5, 7 or 10 years. Having to refinance so often results in higher overall cost of capital.

Flexibility

CTL lending is somewhat less flexible than standard bank lending. The bonds sold by CTL bankers are regulated by the securities industries and the insurance industries. CTL lenders must adhere to very strict criteria and are not allowed to deviate from the standards. A deal qualifies for CTL or it does not; there is no leeway.

Banks generally have many lending platforms available to them; they are able to tailor a loan to a particular situation or a particular property.

Terms

Banks can offer self amortizing loans but generally issue mortgages with 3,5,7 or 10 year maturities amortized over 10-25 years with balloon payments due at the end of each term. Banks can also offer either fixed or adjustable rates.

CTL loans are all fully amortized, fixed rate, long term loans with terms coterminous with the lease.

In Summary

Banks offer a larger variety of loan products and can loan against more types of properties and tenants. Bank lending also tends to be less expensive in the short-run.

On the downside, banks are not inclined to offer high LTV loans and will generally require the borrower to guarantee a loan. Further, bank loans are notorious for falling through and failing to close for any number or reasons (or no reason at-all).

CTL loans are rigid in their qualification standards but close with near 100% certainty. They close faster and are less expensive over the life of a deal. CTL bankers place no restrictions on LTV or LTC (loan-to-cost) and are non-recourse loans. Also, it must be noted that CTL loans are administered by a third party Trustee throughout the entire life of a loan. The trustee will collect the rent, pay the mortgage and distribute the income to the borrower every month.

CTL loans are best for buy and hold investors who want to lock in today’s low rate for the long term. They are also appropriate for investors who need high leverage financing or who are looking to close as-soon-as-possible.

Bank loans are best for investors with deals that need some flexibility in the underwriting process. Bank loans will cost less up-front and more deals will qualify. Banks offer more loan choices to qualified borrowers.

Single tenant, net lease real estate investors who understand their options will be well equipped to make the best financing decisions for themselves and their businesses.