A mortgage is an arrangement with a bank or lender that attaches to a loan. The latter is a contract of forbearance between a lender and a borrower while the former is a security clause or contract between a mortgagor/borrower and a mortgagee/creditor that provides for sufficient collateral to answer for repeated defaults on the part of the borrower. This article will discuss how a consumer can get loan approval and the best rates possible thru a mortgage.
When Do You Need the Loan?
Simply put, it the better scenario is that you will apply for a home loan a few months from the time you are reading this article. This way you are able to prepare your finances to get the best rates possible. If you are looking to apply for a loan within 1 to 2 months then your options are limited but proper planning can still mean thousands of dollars saved. Parc Central Residences will offer the homes to the people with a bad credit score. There is a need to get the loan for the paying of the high costs. A variety of options are available to get the home. The spending of the dollars is with the skills of the customers.
If you are on a tight schedule then certain measures go out the window i.e. disputing your credit reports, debt negotiation, debt consolidation, etc. You need to direct your timer and resources to 4 important tactics, namely:
1. Effective credit repair means paying off some debts, preferably those that have been reported the longest and are attached to court processes.
2. Substantial down payment to offset the risk of default or minimize the loaned amount is also a good
idea. The problem is determining which debts to pay off and how much money to keep.
3. Collateral/s play a huge role in increasing the chance of getting loan approval and minimizing interest rates. In most cases this involves the property purchased via a loan. However you can sweeten the pot by adding another security property. However, bear in mind that these properties maybe foreclosed or applied to the debt so only add another collateral property if absolutely necessary.
This means 6 months or more. Of course the above mentioned steps are also applicable but they are preceded by the following measures:
1. Pull out your credit reports, preferably your free annual credit reports. Take the time to go thru the information and ensure that everything included therein is accurate, timely and proper. Any irregularity must be disputed with the erring reporting bureau and verified via personal records and creditor contact.
2. Put up or augment your savings account. This will serve as a lump sum payment or a down payment to minimize the total loanable amount thereby lowering total interest collectible and increasing chances of loan approval.
3. Consolidate and pay off debts. Apply for debt negotiation to lower total debt and then consolidate the remainder into one or two loans. Pay special attention that the interest rates are lower or at least equal to the average interest rates of all the outstanding debts. Make sure to pay in full and on time.
4. Increasing your income will also allow you to increase the income saved and your disposable income.
Simply put, you need to exert your due diligence in finding ways to better your financial position. At the same time you need to utilize financial tools specifically made to aid consumers get out of debt and into a position of financial freedom. This can be achieved by proper research, practical planning, and flawless