Woman wanted to euthanize her. When ACCT refused, she abandoned the dog in the parking lot

Getting Mortgage Loans With Bad Credit: How to Secure Fast Approval

When starting out in the hunt for a new home, bad credit borrowers face an uphill task. The reason? Most lenders are hesitant to grant such large sums to individuals with a poor credit history. But getting a mortgage loan with bad credit is not quite as difficult as people expect.

Traditional lenders, like banks, are known for their conservative attitudes towards lending, but the growing presence of online lenders has led to a greater number of mortgage financing packages becoming available. And because these packages are designed to suit bad credit borrowers, securing loan approval has become somewhat more straightforward too.

So, for most applicants, the chances of getting the mortgage loan they thought was out of reach are increased significantly. But, nonetheless, it is important to address a number of issues to maximize the likelihood of being approved.

Know What is Affordable

There is little point in submitting an application for a mortgage loan with bad credit if the loan repayments are completely unaffordable. If the applicant has an income of $30,000 annually, then there is no chance of buying a $500,000 home. So, calculating an affordable budget is hugely important.

The calculation involves listing the typical monthly outgoings already being paid, and drawing that against the monthly income. The excess balance each month gives a picture of what kind of mortgage is within reach. Securing loan approval also becomes more plausible.

However, remember when calculating the maximum mortgage loan attainable, it is necessary to include the debt-to-income ratio. If the amount of existing debt is high, then it means the pressure on meeting repayments is also high. With a maximum 40% of income permitted to repay loans, failure to stay within that limit guarantees rejection.

Use a Down Payment

A down payment has a major benefit to any application for a mortgage loan with bad credit. The reason is that, with the down payment made, the size of the required mortgage is lowered. If the mortgage is lower, and repayments are lower, the debt is therefore lower, making the whole transaction ultimately more affordable.

Imagine a typical down payment of 5% on a home worth $100,000. It leaves a balance of $95,000 to complete the purchase, and this is the value of the mortgage required. If the payment is higher, say 20%, it lowers the required mortgage to $80,000, lowering the debt even further, so securing loan approval becomes easier still.

Still, with homes of $250,000 or so, the commitment required to save even 5% of the value is significant. But if it is achieved, then lenders are all the more impressed, and are more likely to grant the mortgage loan.

Finding a Lender

Of course, the lender is as crucial an element in putting together a successful application for a mortgage loan with bad credit as anything else. This is because it is their lending policy that dictates the interest rate charged, the late fees and penalties, and the repayment structures too. They also need to be approachable so that rescheduling can occur if there are repayment problems in the future.

Generally speaking, online lenders are the most approachable, with more competitive terms and lower interest rates. They are ideal for applicants with poor credit histories, so securing loan approval is more likely with them than with traditional lenders.

However, regardless of the reputation of a mortgage lender, it is important to take time to examine any mortgage loan deal before signing up to it. There may be hidden charges in the small print, or a penalty scheme that makes the whole deal more expensive than it first seemed.

Sarah Dinkins is a financial advisor who writes about Guaranteed Unsecured Credit Cards and 100% Guaranteed Bad Credit Loans.

This is 7 year old Hope. Her owner brought her to acct last night. She wanted to euthanize her. Basically her new husband did not want her to return home with the dog. Acct refused and she was encouraged to make an appointment to surrender. She was angry and left. An hour later Hope was spotted in the parking lot.

Three people at acct tried to get her and she ran into traffic on Hunting Park Ave (on a busy Sat. Night) She was almost hit by a car and then jumped into a delivery truck that apparently smelled like food. She’s now at acct and will be looking for rescue or adoption. She’s an adorable, grey muzzled, senior gal. She’s a little shy and seems confused as to where her owner went.

Fidonation, if you or someone you know is interested in rescue please contact Anne Koszalka

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Getting a Home Loan With Bad Credit: The Key to Application Success

When bad credit borrowers are looking to buy a new home, the chances of getting the mortgage they need are much lower than for good credit applicants. That is only to be expected, but the good news is that getting home loans with bad credit is far from being an impossibility. While perfect terms can be ruled out, the opportunity for funding is welcome.

It is common knowledge that securing mortgage approval from traditional lenders, like banks, is difficult but with so many online lenders to choose from, a competitive alternative can be easily sourced. They are also more affordable, with interest rates that are more competitive and more flexible repayment terms.

The fact is that low credit rating is not the deciding factor in any loan application, so getting a home loan comes down to other factors. If these are in good order, then the chances of approval are improved greatly.

What are the Key Areas?

With bad credit ruled out, the areas that are key to the success of an application for a home loan with bad credit are the budget of the applicant, whether a down payment can be made (and how large it is), and the specific terms of the mortgage deal being offered.

Working out the budget is the first step for any applicant, since it will reveal what repayments are affordable, which in turn, directly affects the size of the mortgage affordable. So, securing mortgage approval effectively starts by calculating the size of the existing debt, and comparing it to income.

Once the amount of the excess income is known, an affordable repayment can be calculated, thus revealing the size of the home loan most likely to be secure. What is more, if existing debts are high, there is time to reduce them by before submitting an application.

The Role of the Down Payment

Few people stop to think that a down payment is more significant to a mortgage deal than simply being used to formalize the sale agreement. The fact is that the size of a down payment directly affects the size of the mortgage required. So, if it is large enough then getting a home loan with bad credit is easier.

Basically, if a 5% down payment is made on a home costing $150,000, the size of the required mortgage falls to $142,500, but with a 10% payment just $135,000 is needed. The resulting difference in monthly repayments may only be $50 or so, but that alone can make securing mortgage approval easier. After all, over 30 years, that saving amounts to $18,000.

Lenders also like the idea of applicants pledging larger down payments because the financial discipline requires saving that cash is high. That kind of commitment is impressive when it comes to considering granting a home loan.

Get the Right Lender

Finally, the significance of the lender is huge when applying for a home loan with bad credit. This is because the specific terms, fees and late penalties can make the mortgage deal less affordable than was first thought. In fact, the policies set by the lenders often are what swing the deal, so getting the right one is very important.

To that end, approaching online lenders is usually the best way of securing mortgage approval, and the fact they are known to charge more competitive interest rates means they offer the most affordable home loan options - as long as the criteria and conditions are met, of course.

Still, always check the reputation of an online lender in the Better Business Bureau website before signing any loan contract.

Joycelyn Crawford is an expert in Easy Loans for Bad Credit and Easy Home Loans.

2 Responses to "Woman wanted to euthanize her. When ACCT refused, she abandoned the dog in the parking lot"

  1. No comments or reactions that's a sad reflection of society. Shame on the owner. I hope this poor dog finds a happy ever-after.

    ReplyDelete
  2. Her owner should rot in hell and I hope she and her new husband have a miserable marriage. I'm sharing on FB.

    ReplyDelete

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