Kris Mathews asked:




When it comes to applying for a home mortgage you have many different options that are available. Traditionally, most people get full documentation loans which require you to prove your income, your assets, and provide a list of all your creditors to the lender. This is to ensure that they have a detailed idea of how eligible you are for a mortgage loan. Some non-traditional loans actually offered people a chance to own a home without have to prove their income. These loans are called no doc mortgage loans.

Just like the name suggest, no documentation loans meant that the borrower didn’t have to prove his or her income in the application. These loans were used quite often by people who were self-employed or contractors because they usually found it difficult to gather all the necessary documents for the loans. These loans use the borrower’s credit rating first and foremost when it comes to determine their eligibility for the loan. This flexibility meant that a lot of people who were self-employed were able to get approval for low doc loans.

As mentioned before, the borrower’s credit rating is the most important factors that lenders look at when approving these loans. No doc mortgage loan lenders will ensure that the borrower has no previous default on their record. They will also ensure that the borrower has been making their previous loan payments on time. Another factor that many lenders consider when looking at these loans is the borrower’s debt to income ratio. This ratio helps lenders determine the borrower’s ability to repay the loan.

Dawn

Liz Marsden asked:




Damaged credit ratings can happen so easily and often people have no idea that they’re considered a poor credit risk by loan companies or their bank. The first they know about it is when they check their credit rating file.

Or they become aware of the problem when they apply for a loan, credit card or mortgage and their application is refused. When the refusal is questioned they realise that a previous, apparently minor financial problem has damaged their rating.

Adding to the problem is that the refusal of a credit application will also appear on your file as a negative… It doesn’t seem fair does it? That’s why it’s important that before you apply for credit you check your credit rating file.

When credit conditions were easier, and that’s not too long ago, these minor factors were pretty much ignored by loan companies who were rushing to try and push credit cards and loans onto people. Wow, how times have changed…

So, how do you improve your credit rating? What can you do? Well, you can apply for a credit repair credit card and there are a number of companies supplying these.

Credit repair cards are an ideal way of raising credit. The main benefit is that if you have a poor credit history they will enable you to prove that you can organise your finances and behave responsibly. For example you can show that you can make payments on time, not exceed your credit limit and repay more than the minimum amount each month.

You will only be allowed a reduced level of borrowing with a credit repair card but the idea isn’t to go on a spending spree! In fact the last thing is to be able to get into debt again!

Credit repair cards charge a higher rate of interest than mainstream credit cards, but if you use them carefully and pay off all or most of the balance each month the interest paid will be low.

Once you have proved you can manage your credit repair card you will once more be able to apply for loans, mortgages and regular credit cards.

Craig

Ivan A Cuxeva asked:




Anyone who has experienced problems clearing CCJ debts can apply for a mortgage. The product that may suit your circumstances is sometimes called a CCJ default mortgage. Although there are many products specifically designed for those with a bad credit history, a CCJ default mortgage scheme needs specialist professional advice. If you are incapable of clearing your CCJ debts, then mortgage lenders may see you as a high risk candidate especially when the loan amount is large such as a mortgage. You may find that lenders will apply higher interest rates or special restrictions on you. The easiest method of finding a product that suits your CCJ default mortgage requirements is to speak to a professional mortgage adviser that specializes in bad credit mortgages.

How Can I Get Professional CCJ Default Mortgage Advice?

If you have had any County Court Judgments against you, you are obligated to pay the debt as soon as possible. If you manage to pay the debt before it is registered on your credit rating, then you may circumvent adding the CCJ to your credit history. If you are unable to pay off the debt during this period, the CCJ will stay on your credit history for six years, whether you clear the debt or not. Defaulting on a County court judgment can be harmful to your credit rating, because the CCJ would have been issued for non-payment of debt in the first place. If you then neglect to attend to the CCJ, your credit rating can suffer.

If you are in CCJs default and you want to buy a property, mortgage advice is absolutely essential to your success. There are many specialist mortgage schemes available to CCJ default applicants, and because of the rise in the number of people who have CCJs issued against them the amount of products in the market is growing. It is estimated that every year over a million UK residents have County court judgments issued against them. Due to the increased demand for bad credit mortgage products, lenders have introduced a wider range of schemes for the various types of credit problems that now exist.

The best place to get CCJ default mortgage advice and information is by contacting a specialist bad debt mortgage broker. By law, mortgage brokers have to be professionally qualified, regulated and approved by the Financial Services Authority (FSA). These measures were introduced to protect consumers and all mortgage brokers must follow strict FSA guidelines. If you need a CCJs default mortgage, you should make sure that the mortgage broker you choose has experience of the bad debt mortgage market. These specialist products can be very complex so it is vitally important that the broker understands both your situation and all the schemes available before they recommend any products to you. Signing up for a CCJ default mortgage is a big obligation so you, the broker and the lender must be absolutely sure that you are able to meet the full criteria of the agreement before the loan is agreed.

Are CCJ Default Mortgages More Expensive?

You should be aware of the fact that that a CCJ default mortgage will cost more than a standard residential mortgage loan. From the lenders perspective there is more risk involved in loaning money to someone with a bad credit history than to people who have not had debt problems. However, interest rates and charges for bad credit mortgages are much more competitive than a few years ago, because the market is far more competitive. So although the cost to you will be higher than a standard mortgage, they may not be as high as you might think.

Samuel

katya asked:


I have a good credit rating, and I need to refinance in early 2010 (because my mortgage payment is too high..I ‘d set it for 15 years instead of 30).
I am preparing: In order to clear my credit profile, I am paying off a large amount business debt on credit cards with a personal family loan .
2 questions:. How likely is a bank ( in 6 months time) to ask me how I did that?
2nd: I’ll be paying $ 1250 a month… I ‘m wondering will they see this in my checking account and suspect it is a loan? should I be making monthly payments to my family member with money orders so it doesn’t show
I am 1000% honest and just want to package myself right because if I don’t get this mortgage payment down, I could be headed for trouble.
I was told I do not qualify for mortgage modification because” I’m not in trouble” Seems only if you are in default, they’ll help !.

Lucille

Alan Lim asked:




If you have been one of the thousands victimized by the financial crisis, you and countless others are having a hard time managing the payments of the mortgage of your house. Similar to most people, the house is the biggest asset you possess and probably paying the mortgage could be the biggest expense. Because of the financial crises, thousands of homeowners have been delinquent on their payments, thus making their credit scores low.

To make the management of their debt payment easier, bad credit home refinance packages could be a viable option on their part. Although getting a sub-prime loan is getting out of flavor, there are still companies that are willing to talk to you for a possible refinance deal. What you have to watch out for is the package having favorable terms. Usually, a bad credit home refinance deal carries with it higher interest or higher closing fees. Some will ask for pre-payment penalties. When calculating the risk that you will face, factor in the money that you will save when restructuring to the payments you have to shell out when the refinance is realized.

It could be a good idea to prepare for a more favorable bad credit home refinance by improving your credit score. Just by being diligent in your latest payments will have a large impact on how your credit rating improves.

When finalizing your bad credit home refinance, the lender will look at your equity and the amount you have paid already. If you have been paying your monthly dues for several years already, the value of the house plus your equity and your total loan payment will be factored in to calculate the amount of the second loan that will be used in refinancing your mortgage. A bigger equity and a higher valued home will always result to more generous refinance terms. When you are able to acquire this kind of a deal, aside from paying off the original loan, you might be able to get extra cash which is a nice bonus for you.

However, when foreclosure is high, a good move will be to hire an expert who will look for the appropriate home refinancing for you. Because the consultant knows what are required to secure a bad credit home refinance, his services could mean the difference between saving your home and being one of the homeless. The expert, with his personal contacts as well his deeper knowledge of rates, fees and other costs might be able to secure for you and your house the best bad credit home refinance deal there is.

Randall

Not so looney afterall asked:


Two years ago we lived in California, where our mortgage was ASTRONOMICAL. We sold our house and paid off the loan. We moved to another state and bought our new house with cash. We are now in the process of getting a small mortgage to put toward home improvements. Yesterday, my husband’s credit score came back as 744- yea! But also the report showed two late payments on the old house before we sold it. The mortgage company wants us to contact the old mortgage company and find out why those payments were late. The truth is I know they were late because we had a temporary employment issue- but then we got back on track for several payments before we sold the house- and then paid off the loan anyway. I guess, despite the excellent credit rating, this might affect our interest rate on the new loan. Please advise how I should approach the old mortgage company so we can get the best rate on the new loan. Thanks!

Terri

Julian Lim asked:




Looking for the right mortgage lender 

 

The first step on how to get a new home mortgage loan is finding the right lender. When looking for one, you must be prepared by knowing which brick-and-mortar companies to go to and shop around. You can ask for recommendations from family members, friends and associates of established companies that can offer you the right home mortgage loan. It is better and more convenient if you choose your lender the online way. You will have thousands of lenders to choose from; just make sure that you have thoroughly checked and scrutinized each lender on your short list – do this and the probability of you getting the best home mortgage loan in the end will be realized.  

 

Dealing with the new home mortgage loan paperwork 

 

To arrive at the appropriate home mortgage loan, your mortgage lender will have to look at the different aspects of your life such as your job, the income bracket you belong to, home history as well as credit rating. On your part, you might be obliged to show sound financial status as well as a responsible nature by preparing and producing the necessary documents on or before the time of submission. 

 

What are the documents that are necessary for new home mortgage loan application? 

1.    W-2

2.    Income tax

3.    Landlord information (phone numbers and addresses)

4.    Pay stubs

5.    Bank account information

 

You will also have to produce documents that will show your identification such as social security number, driver’s license and birth certificate. It is advisable to have these documents ready for checking and verification of your identify. Remember, some lenders can be very strict with regards to these documents. They only process applications if you are able to present the complete required documents.

 

Proper actions to do during mortgage Loan Process 

 

We must avoid committing mistakes when trying to secure a new home mortgage loan. Sometimes, mistakes can be serious that it jeopardizes your getting a loan.  The best action to do while in the process of getting a mortgage loan is to make sure you are getting only the best new home mortgage loan possible.  This can be done by trying your best to exhaust all possible means of landing a competent and established lender, one which is willing to offer you the appropriate new mortgage loan that suits your needs. 

 

Here are safe actions to while in the process of securing mortgage loan.

l     Make only small credit purchase before your loan application

l     Do not attempt to borrow large amounts of money

l     Plan for closing costs

l     Do not pay junk fees

l     Try your best to fix your credit rating before the application

l     Deal only with established and first rate mortgage company

 



Ethel

defyance24 asked:


I want to start improving my credit rating so I can buy a house. I won’t have a problem making the mortgage payments, but my credit is not very good. What should I do? Are there any home loans out there for people how’s credit isn’t so great?

Jay