Archive for the ‘Mortgages and Loans’ Category

Useful Tips in Getting Home Loans

Thursday, August 6th, 2015

Make sure to make your mind up on the loan limit. Determine your budget and payment capacity for monthly repayment. Be sensible with your budget. Add a buffer of five percent so you will not be short in amortization. There is a mortgage repayment calculator that helps borrowers make out the amount you can afford. Consider likely upfront fees at the same time.

Your economic position must be stable. This is essential to secure approval for a home loan. Lenders will check if you have a permanent occupation along with constant rental history. Refrain from transferring to another company if you wish to be approved for a loan. Understand your credit standing since credit history is also a big factor to be considered by the lending agency. Unpaid debts can lead to disapproval. Look at your credit file by visiting reputable sites in Australia.

Prove that you can subsist comfortably within your earnings. If you own a credit card, bring down your limits. Avoid using multiple cards. Remember every $100 of credit limit that you possess, reduces your borrowing capability by nearly $500. Personal loans are also a big factor. Less debt means a higher approval rate.

Your bank accounts should be in order. Bank statements must be in order to show a positive impression to lenders. Late payments or overdrawn accounts will not help in your bid to get a home loan. Majority of credit institutions will ask for the latest (three to six months) of bank statements. Self-employed persons should have updated tax payments prior to applying for any home loan. If possible, seek the professional assistance of mortgage brokers. This service provider can help you deal with the approval procedures and provide you with a short list of potential lenders. Trusted brokers will see to it that you are given the most reasonable deal.

One primary reason for not being granted a home loan is your credit record. Excessive applications and defaults can result in automatic refusal. Almost all lenders are tentative if the prospective borrower has numerous credit issues in the past. Failure to divulge concerns like possession of credit cards and wrong information about employment can also lead to disapproval for a home loan. Any lapses, whether unintentional or not, calls for extra checks by the lender.

Kabbage is an online financing corporation that provides working capital to small businesses. The online application process only takes minutes, making it quick and convenient. Loan amounts range from $500-$100,000 with 24 hour access to your funds.

Releasing Equity From Your Second Home

Tuesday, July 21st, 2015

Funds can be released from up to five different properties which can offer you even more financial freedom than ever. If you intend on applying for an equity release against your second home, you should be aware of all of the advantages, disadvantages and prerequisites.

When you are planning on applying for an equity release plan against any additional property, you or one of the applicants will need to fulfil the set age requirements. Additionally, the property may also need to have a certain minimum value. If your property is not of a high enough value, the equity release provider will not be able to offer you any kind of substantial lump sum. In addition, if you are applying against an additional property, you should not be residing in that property.

These are just a handful of the set criteria that homeowners need to fulfil, and if you wish to release equity from multiple properties, each property will need to fulfil these requirements individually. The amount of funds you will be able to release from your second home and any other properties will largely depend on a number of factors. These include, but are not limited to, your age and the value of the property. The greater the value of the property, the larger the amount you can release. Likewise, the older the homeowner, the greater the amount you can release.

If you would like to gain a more informed understanding of the amount of money you will be able to release against your second home, you can use an online equity release calculator. These calculators will give you a very good idea of what to expect before meeting with any professionals. Once you do decide to set up a meeting with an advisor, it is important to meet with an independent financial advisor. In fact, you should meet with more than one in order to gain as much information before signing on the dotted line. Independent financial advisors are best since they do not have any ties to financial institutions that may sway their advice. They will be unbiased and offer neutral advice on various products from various equity release providers. Once you have all of the offers and terms presented to you, you can make the choice that best suits your personal needs.