Personal loan, debt consolidation, refinancing

Top Tips for First Time Mortgage Applications

 Credit Cards, Debt, Insurance, Money, Mortgage  Comments Off
Nov 122012
 

If you are applying for a mortgage for the first time, then the first thing you will note is just how much information you are required to hand over, and how much information you are expected to know off the bat. Rather than find all of this out the long way, we have decided to shortcut your journey by giving you some of our top tips for first time mortgage applications.

1.)   Know the Value of the House and How Much you Can Borrow

Shocking as it may seem, many people start house hunting and checking out rooms before they even know what they are able to afford. Rather than seek out a home only to get rejected at the application, use a mortgage calculator to work out what kind of mortgage you are likely to be lent, so that when it does come to your application, you are actually able to borrow what you need. No use applying for a mortgage that you know will get rejected before you even start!

2.)   Get your Paperwork in Order

Mortgage lenders will want to know your household incomings and outgoings. That means information about your income for the last three to six months, the cost of your bills, any existing debts in the form of credit cards or overdrafts how much you spend per week or month on food: everything. This is to make sure that you will be able to pay back what you owe, and survive at the same time. In order to make the process as painless as possible, have all of this information ready to hand, and calculate everything before you apply, so that you can breeze through the process without having to stop every three minutes to have a good long think about how much you spend on petrol and how much you spend on food.

3.)   Be Honest

Although there is a massive temptation to under guess what your expenses are, hide debts or say that you earn more than you do: don’t! These questions are there as guidelines and the bank is not there to judge you personally, but rather to give you something that you can afford, which will be better for you in the long run. As tempting as it is to fudge the numbers to make it look like you have more free cash than you really do, this will only hurt you later on down the line when you have a monthly mortgage bill that you can no longer pay.

4.)   Search for Insurance

Most mortgages will require some kind of guarantee that your debt will be paid in the event of your demise, and insurance of some form that will cover the mortgage will be required. Rather than being placed in a situation where you impulse buy an insurance solution at the mortgage lenders desk,  find a good insurance package beforehand, so that not only do you have a happy lender on your hands, but you also have an insurance package that suits you and that you can afford. 

Ben is a property expert who writes for www.livingroom.gg. He loves to give property and mortgage advice online.

Savings Accounts that Work for You

 Business, Credit, Credit Cards, Debt, Financial, Investing, Jobs, Money, Savings  Comments Off
Nov 112012
 

Savings accounts are vital, especially in today’s world where unemployment is on the rise and employees as well as business owners face uncertain futures.  If you lose your job tomorrow, how will you pay your bills?  Do you have a safety net in place that will allow you to cover your monthly living expenses, your home, your healthcare, etc.?  If you do not have any savings in place to last you at least a few months if you end up losing your job and your income, you will face being foreclosed, being evicted, and getting into credit card debt.  Savings accounts are also necessary in the event that your checking account runs of out of enough funds and you need to transfer money from one account to another in order to pay off your credit card bills.

Standard Savings Accounts

Standard savings accounts are available at every bank, whether it is a brick and mortar bank or a strictly online bank.  Interest rates often accompany savings accounts, which means that, each month, you will earn a percentage of earnings on the amount of money you have invested into that savings account.

Most basic savings accounts do not offer very high interest rates, especially these days when interest rates have sunk so low that many banks do not even offer a full 1% on regular savings accounts.  You may, however, find a bank, such as a community bank rather than a big bank, which is able to provide you with higher interest earnings.

Also, some banks offer interest rates that go up as the balance in the account increases.  In this way, you are rewarded for investing in that bank, and as you continue adding to savings, you are increasing your interest rate at the same time, which means more monthly earnings.  This translates to your money growing with ease.

Certificates of Deposit

Certificates of deposit, or “CDs” for short, are able to offer you higher interest rates than standard savings accounts, but you need to be prepared to lock your money into that account for a specified amount of time, such as 3 months, 6 months, 9 months, or even a year or more.  Depending on how long you lock in your money, you will earn different interest rates, so it is entirely up to you to decide what you feel comfortable with.  If you feel that you will not need to access the money for a long time, then go for a longer term plan if it offers a higher interest rate that makes sense to you.  If, however, you are worried that you may need to access that money at some point, and you want to rest assured that it will be available to you sooner than later, go for the shortest possible term.  The reason for this is because you will pay a penalty fee if you need to take out the money before the CD has expired, or come to term.

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When you are ready to get a credit card, just remember that a line of credit comes with a lot of responsibility, so be sure to save up enough money in an emergency savings account, budget appropriately so that you do not end up overspending and so you do not end up in debt because you are unable to pay off those credit card bills.

Where to Go when Banks Do not Want to Lend You Money?

 Credit Cards, Debt, Loans, Money, Mortgage  Comments Off
Oct 192012
 

Have you experienced filing a loan application with a bank? You may agree that it is a tedious and long process. There is no assurance that the lender will approve your loan and provide you with the amount. These days, banks have become more stringent to protect their interests. If you have a bad credit history, do not expect to get the bank loan.

What should you do if your bank loan was disapproved? You do not need to wallow. Move on and try to find many other avenues where you can obtain the loan you need. Here are some ideas that can serve as your guide.

Non-traditional lenders

Non-traditional lenders are now giving banks a run for their money. As banks become stricter in approving loans and providing loan amounts, numerous borrowers are turning to non-conventional loan providers, which are believed to be already more popular now. Those are less stringent in terms of approving and providing loans.

Consumers can also rave about the fact that non-traditional lenders have become more creative and resourceful. Those lenders come up with new, interesting, and non-conventional loan products to give consumers more options to explore. One of the most popular loans from those lenders are payday or salary loans, which are provided in the short term. Loan applications can be approved and provided in as fast as an hour or a day. Repayments are debited to the borrower’s next pay check.

If you need conventional loans, non-traditional lenders may also offer those. You can apply for and obtain mortgages, business loans, or car loans from them. What’s more? It is now not hard to find and locate non-traditional loan providers. Many of those can even be found and accessed online.

Credit cards

If you do not get approval for a bank loan, you can also explore the use of your credit cards. You can swipe your plastic card to directly make an important or expensive purchase, which may be the reason you are applying for a bank loan. There is also an option for a cash advance facility. You may withdraw any amount within your limits from any of the authorised or recommended ATMs.

However, it is not advisable to rely much on credit cards. It is a common knowledge that plastic cards are convenient and easy to use. But you will have to pay an expensive price. Credit cards often come with hefty interest rates on top of many fees and penalties that can possibly be imposed on your credit card bills. If you can help it, try not to resort to using your cards.

Lastly, how about borrowing money from your family or close friends? They will surely understand your need for financing. Just do not bear grudges if you are declined and try to understand that they, too, may be in need of cash. Also try to offer interest on the borrowed amount as a consolation. As people say often, there is no such thing as free lunch.

Andrew is financial blogger at ALC. Andrew has been writting about loans and debt management. For more information on Andrew’s work, please feel free to click here

4 Ways You Can Stay Closer with Family in the Phillipines

 Credit Cards, Debt, Money, Social Media  Comments Off
Oct 062012
 

If you have moved overseas, you know how difficult it can be to keep up with family members in the Philippines and stay feeling close or connected once they are thousands of miles away. While the Internet has made communications easier, through e-mail, social networking and video calls, it can still feel as though there are barriers when it comes time to sending a gift or anything through snail mail. These barriers are inhibiting, making the distance, and you, seem farther away.

However, with new services from companies such as 24/7 card, this has been made easier. By using the power of a prepaid debit card to remit money to people in the Philippines, you can bridge the geographic distance easier. Here are 4 ways how.

1. Send birthday money.

When it comes time for a person to celebrate their birthday, while you may not be there in person or have the ability to purchase them a physical gift, give those cash instead so that they have the ability to buy something special just from you. You can show them that you remember their birthday and still give them something special from you quickly and easily.

2. Send a gift for a major life event.

When a family member or friend gets married or has a baby, you may not be able to make it back to the Philippines to be a part of the event. But don’t let that stop you from showing them that you care. Send cash as a gift to help get their new lives started on the right foot.

3. Start a fund to visit.

If one of your family members has dreamt of coming to see your new abode, set up a fund that each of you can contribute to in an effort to purchase a plane ticket and give them a way to make it to visit you in the United States. Easily send small amounts of money to consistently contribute until there are enough funds to make the trip happen.

4. Support a relative in college.

As your family grows up, children will likely be headed off to college. Help them out by sending some support money their way to make their college experience easier.

The distance does not have to feel overwhelming. When you have a way to send gifts and funds to show you care, you help bridge the geographic barriers and stay in closer connection with your loved ones.

Samantha really enjoys writing and one of her favorite things to write about happens to be finance. If you’d like to learn more about 24/7 Card, please visit https://www.247card.com/

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