Poor Credit Mortgage - Overcoming Financial Slumber

Poor Credit Mortgage - Overcoming Financial Slumber

By Natasha Anderson

There is a huge market for homeowners who have credit issues like - poor credit, sub prime loan borrowers. Some years ago what was seen as a sure sign of frustrated mortgage attempt is now opening a new variety of mortgage called poor credit mortgage.

There are loan lenders who specialize in giving poor credit mortgage and helping the larger population who suffers from the drawbacks of poor credit. It doesn’t matter what kind of poor credit you have, you can get a mortgage.

A little hard work with poor credit will make it easier to find mortgage with your kind of interest rates. Usually mortgage borrowers are totally clueless about their credit score and suddenly realize that they are labeled as “poor credit”. Poor credit rating cannot, in principle, prevent you from having a mortgage. However, it will surely have impact on the mortgage interest rate which is fundamental.

You would be applying for poor credit mortgage if you have any of these things on your credit report.

•Bankruptcy will undoubtedly result in poor credit this is what most people know. But a chapter 7 bankruptcy will have more negative effect on your poor credit mortgage application than chapter 13 bankruptcy. In a chapter 7 bankruptcy all you debts are discharged, while chapter 13 bankruptcy you pay some of your debts before being discharged.

•A foreclosure lawsuit can result in poor credit and can affect harmful consequences on your mortgage application. Keeping regular on mortgage payment is the best way to avoid a poor credit.

•A debt sent to debt collection agency will result in poor credit and reflect on your mortgage application.

•Any judgment against you will result in poor credit. Any thirty day late payment will mark as poor credit on mortgage application.

•Every time a credit check is done, it reports on your credit report. A few credit checks are fine but many credit checks will result in poor credit.

Whether you have poor credit or not is determined by credit score. While applying for poor credit mortgage you must know beforehand your credit score. Being aware of poor credit score would place you in a strong position when you make a mortgage claim. Lenders and mortgage brokers might take advantage of your ignorance and charge you more for poor credit than applicable.

The ABC of credit extends from A to E. These grades are used by loan lenders to estimate poor credit. However, some lenders may have some exceptions and can have different course of action accordingly.

Credit grade A+ to A- would mean credit score of 660 to 670 or above. This means excellent credit. No credit problems from 2 to 5 years and no bankruptcy for the last 2-10years.
A credit grade B+ to B- would mean a credit score of 620. This means no sixty day mortgage late and 24-48 months since bankruptcy discharge.

Credit grade of C+ to C- is credit score of 580. This means late payments, any late payment within 30-90 day range. This will include 12-24 months since bankruptcy discharge.

Credit grade D+ to D- would imply a credit score of 550. Lots of missed payments. 12 months since bankruptcy discharge.

Credit grade E is a credit score of 520 or lower. This score is for a possible current bankrupt with poor payment record of many 30, 60 or 90 days late.

A loan lender has the right to determine whether he wants to offer you mortgage with poor credit. Loan amount is crucial for poor credit mortgage. To neutralize poor credit, you need to have stable income which is above the minimum requirement. If you have good capital - that is the money in your bank, stock and house – poor credit mortgage will be easily approved. The down payment for poor credit mortgage can be anywhere between 10%-20% or more.

Poor credit mortgage approval is also dependent on your ability to make timely payments. Since you have poor credit this possibility has already exhausted. Taking select steps will prove positive for poor credit. Close all the present unused accounts. Reducing credit card balances to 75%. Start making regular payments for any current debt. Also if there is wrong information about your credit in your report, get it corrected.

Poor credit is easy to catch. Sometimes during hard times like job loss, divorce, illness, death you can’t keep up with your payments – which leads to poor credit. It is not a bad situation. Mortgage borrowers themselves are not sure if they can get it. There is a separate space for bad credit mortgage online. In essence poor credit mortgage is not very different from the usual mortgage. Neither is finding it.

After having herself gone through the ordeal of loan borrowing, Natasha Anderson understands the need for good quality loan advice. Her articles endeavor to provide you the wise counsel in the most elementary way for the benefit of the readers. She hopes that this will help them to locate the loan that beseems their expectations. She works for the UK secured loan web site UK finance world. To find a Secured or unsecured loan that best suits your needs visit http://www.ukfinanceworld.co.uk

Getting Your Best Deal On A Consolidation Loan

Getting Your Best Deal On A Consolidation Loan

By John Mussi

If you find yourself having to make too many payments a month, you might consider getting a consolidation loan.

Used for a variety of purposes, a consolidation loan can take multiple loans (such as personal loans and auto loans) and combine them into a single payment, or it can provide money to pay off a variety of bills and debts and consolidate them into a lower monthly payment.
People of all credit levels can apply for a consolidation loan for different reasons, and the loans can be secured or unsecured.

Secured loans and unsecured loans

In most cases, a consolidation loan is a secured loan… meaning that some property of value is used as collateral, or a guarantee that the loan will be repaid.

If the borrower doesn't repay the loan, then the lender can legally take possession of the property (most often an automobile or real estate) and sell it to regain the money that they lost through the loan.

Occasionally, though, a consolidation loan will be unsecured… meaning that no collateral is needed. If a consolidation loan is unsecured, then it is usually being used to consolidate other loans held at the same bank or finance company and is being issued to a regular customer or to a customer with a very good credit rating.

On very rare occasions, loans that are being used to consolidate debts may be unsecured, though they are often for much smaller amounts than typical loans of this type.

Unsecured loans are charged a higher interest rate than secured loans due to the lack of collateral as a guarantee of repayment.

Shopping around for a consolidation loan

Unless a consolidation loan is being used to combine other loans at a single bank or finance company (or unless the borrower has a lot of business with a particular bank or lender), it's a good idea to shop and compare loan rates among several institutions to find the best interest rates and lending terms.

When comparing the rates and terms of several lenders, you should always use the same collateral (if any is being used) and request the same amount at each so that you can get quotes for the same loan at the different locations.

Go to the lenders that you've had positive experiences with in the past first, as they're likely to give you the best rates, and then check a few banks or finance companies that you've never dealt with to see if their rates are any better.

Once you've obtained several quotes, compare both the interest rates and the repayment terms among all of them… you'll be looking for the lowest interest rate and the most flexible terms.

When you find the lowest interest rate with terms that you like, go back to that lender and apply for your loan, making sure that you get the same rate and terms that you were quoted.

Getting the Most Out Of Consolidation Loans Uk

Getting the Most Out Of Consolidation Loans Uk

By John Mussi

Before letting too much debt or too many payments get the better of you, consider applying for consolidation loans UK.

If you're wondering what they are, consolidation loans UK are loans that are designed to “consolidate” debts of various kinds… paying them off with the amount of the loan, leaving the one loan payment in the place of the multiple payments you were having to make before.
The end result is fewer debts hanging over your head, fewer cheques to write, and an easier time keeping your all of your finances under control.

A variety of options exist for consolidation loans UK… secured loans, unsecured loans, and a variety of interest rates and terms.

Some consolidation loans UK are designed for people who have debts beyond their ability to reasonably repay, and others were created so that people with multiple loans with the same bank or finance company (perhaps an automotive loan, a boat loan, and a personal loan) can combine their loans and refinance them at a lower interest rate.

A matter of collateral

The difference between secured and unsecured consolidation loans UK is collateral, or property that has some value which is used to guarantee or provide security for a loan.

A secured loan is one in which collateral is provided, with the collateral acting as a guarantee that the lender will get their money back no matter what happens. When the loan is taken out, a lien (which is a legal claim to the property) is placed on the property… once the loan is repaid, the lien is removed.

Should the borrower fail to repay the loan, then the lender can exercise their legal right and take possession of the property in order to sell it and get their money back.

This repossession can be expensive for the lender, however, so most banks and finance companies would much rather receive the money for their consolidation loans UK from the borrowers than from selling repossessed property.

Unsecured loans are those consolidation loans UK that do not require collateral to guarantee the loan. These are much less common than the secured loans, and almost always have higher interest rates.

The increased interest rates are due to the increased risk of these loans… without the collateral as security, there is no guarantee that the lender will get their money back should the borrower default (or not pay) on their loan obligation.

These types of consolidation loans UK are usually only offered to borrowers who are consolidating multiple loans with a single lender or to those who have exceptionally good credit.
The risk of unsecured loans is often too great to allow them to be granted to people with poor or bad credit.