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10 things you didn’t know about mortgage loans

Buying a house is a daunting task. There are many things you will need to organize before you plan to buy your house. Huge investment is involved in this task and you should take each step carefully so that you don’t get into any trouble. The first thing you need to worry about is getting a mortgage loan. Various banks offer different kinds of mortgage loans. The terms and interest rates of these loans vary. You should be well educated about mortgage loans before you apply for one. Most people only have a basic idea about this loan. They only think of it as a long-term loan that you pay over 25 to 30 years at a specific interest rate. While this is true, there are some other details that you should know about as well. Here are some of the things you didn’t know about mortgage loans.

You mostly pay the interest at the beginning

When you get a loan, there is a principal amount and interest amount. When you start repaying your loan, you mostly pay the interest amount first and then the principal amount. So, it is highly recommended that you give extra repayments at the beginning so that your interest amount is paid off fast. This way you will be paying less interest overall.

You can shop around without affecting your credit score

It is perfectly fine to visit multiple lenders and see your chances of getting a mortgage loan at a preferable interest rate. It is a misconception that your credit score will be affected if the lenders keep on checking your credit score. You can have maximum five credit checks without affecting your credit score negatively. It is a smart decision to compare the mortgage rates of different lenders before applying for one.

Mortgage rates are not constant

Mortgage rates don’t stay constant; not even for a day. The rates fluctuate and it can drop or spike any time. The lenders use a ‘lock-in’ option whereby the buyers can get the interest rate they see at the time of the application. You should also know that the rates and fees vary among lenders.

There is room for negotiation

The rate that a lender offers isn’t fixed. You can negotiate and bring the rate down. You will need to have good knowledge about the market so that you can convince the lender to give you a loan at a lower rate. You should check out what the other lenders are offering. You can also negotiate the terms of the loan.

It is not mandatory to work with realtor recommended by your mortgage broker

The mortgage broker and realtors have a good business relationship. Your mortgage broker may recommend you a realtor that you might work with to buy a house. But it is not a rule. You might choose someone from your own connection rather than that recommended by your mortgage broker. It won’t affect your loan application or the home buying process.

Even with a poor credit score you can get a loan for buying home

If you have low credit score then it’s likely that you will be turned down by many lenders. But this doesn’t mean that you won’t be able to buy a house. There are different programs offered by the government and other organizations that offer free don payment. You can get Federal Housing Administration (FHA) loans.

You might need to pay Private Mortgage Insurance (PMI)

As a rule of thumb, you are required to pay 20% down payment for your house. However, if your down payment is less than 20% then you need to get a PMI, otherwise, your mortgage application won’t be approved. One trick is that you can take to mortgages to avoid getting a PMI.

You have the right to protect your privacy

The lenders are not allowed to share your information with third parties. But you should inform them that you don’t want any of your private information to be outsourced. Otherwise, they might do so and increase the risk of identity theft.

Huge down payment is not a prerequisite for getting mortgage

The general rule is to pay down payment worth 20% of the home’s selling price before you can get a mortgage. However, you can still get a mortgage even if your down payment is a lot less than this amount. Your mortgage application will be accepted with as little as 3% down payment. But you need to shop around and find out which lenders are willing to offer you such low rate of down payment.

Self-employed buyers find it difficult to get a mortgage

It is difficult for self-employed buyers to get a mortgage. The income figures on the tax return of self-employed buyers can be misleading as most of them deduct a huge part of their income. The mortgage applications of self-employed buyers are more carefully scrutinized to see if they can be qualified for a mortgage.

One thing you must ensure that your credit score doesn’t get lower before your loan closes.Before you apply for a mortgage loan, your lender will look at your credit report. They will do so again before the loan closes. So, you should make sure that there is no significant change on your credit report. Even applying for a new credit card will affect your score. So, you should avoid such thing. Mortgage application process is very complicated. Most people have very poor knowledge about it. Mortgage is a loan that you will have to pay for a long time. You should be aware of all the little things about it so that you can make a sound decision. Learning more about mortgage will save you a lot of money and you will be able to buy your home without much hassle.

Importance of Credit Repair Education

A number of online and offline institutions offer a number of credit repair education and training courses specially designed for the people working in various finance related fields. They educate the people working in real estate, mortgage, finance and auto businesses along with attorneys, entrepreneurs and CPAs. Learning about credit repair services here at http://aaacreditguide.com/credit-repair-companies/ enable people not only to repair their own credit record but also help others in repairing their credit score as credit repair professionals. Many certified professionals are entering into the credit repair business these days and growing rapidly all over the world since last few years.

Certification courses in credit repair education and training

Most institutions providing credit repair education offer various types of training and certification courses from which you can choose as per your requirement. Some of the course offered by them may include basic to advanced legal courses of credit repair, business sales, development and marketing, legal and ethic scaling of business issues along with worthy practical training to implement them. After these courses and training you can repair your own credit score as well as adopt as profession to help others in repairing their credit record as seasoned credit repair professional.

Helping others as credit repair professional

Negotiate with the creditors: As a credit repair professional you can use your knowledge gained during credit repair education and training for helping your clients who need you for improving their credit trustworthiness in the finance market. You can use your knowledge and practice in negotiating with the creditors and lenders on their behalf to lower down their debt to an easily manageable position.

Take away negativities from the credit report: The credit reports submitted by the creditors to the three credit bureaus usually contain credit balance, credit limit, collection schedule, late payments, defaults, charge-offs, bankruptcy and various other negativities which can affect the credit score of your client adversely. Credit repair education helps you in understanding the ways of removing these errors and responding to the complaints competently to improve the credit score of your clients.

Check the requirements of local insurance and licensing: The credit repair education enables you to understand the requirements of local insurance and licensing so that you can help your clients in fulfilling these formalities. You should be aware of the legal requirements of each area so as they usually differ in each locality.

So, credit repair education and training can be greatly helpful to you if you are planning to start your career as credit repair professional.

 

 

Take Back Control of Your Money

Imagine this you’ve been living the college life for the last 4 years, and you’ve just scored a $50,000 job. All the money in the world, right? You could live the high life and still have plenty of money left over other things, right? Unfortunately for us, life has a way of interfering with our dreams. Your rent rises. Your car breaks down. You miss a payment and your credit rating drops. Slowly, we lose control over our own finances.

The solution: Track your finances


It really comes down to that If you know exactly where you spend your money, figuring out where things are going wrong is simple, and then you can save more money and clear your debts much faster than you thought possible. Building a calendar to track your finances is not a new concept, and there are dozens of apps and a whole website dedicated to the art. Here are some of the simplest ways to do it:

1. Mint.com is an app designed to give you all the tools you need to manage income, spending, savings, and budgets. It syncs with all your financial accounts, from your bank to mutual funds. It shows a history of transactions and cash flow in real time and works great if your purchases are all through cards, but also works with cash if you enter the amounts manually.

2. Mvelopes: Mvelopes is an iOS and Android app that takes a a new path in tracking finances. When you create an account, the app asks you to fill out a quick form describing your income and your budget. You can then split your budget across 25 envelopes (categories). This lets you plan out our spending based on your budget, and track your progress along each envelope and the budget overall when you connect it to your bank accounts.

3. Pocketsmith: This is another app in the vein of Mvelopes, but looks somewhat nicer. It gives you a nice way to search for past transactions and forecasts your expected finances. You can even run little simulations on the forecasts, so now you can know how much you really would save if you switched to espresso in the morning. Google Calendar/Excel lf you need more fine grain control than what these apps can offer, the simplest way is to enter all your data in an Excel spreadsheet or in a separate Google Calendar. Excel formulas can really useful for analyzing expenses, and Google Calendar has reminders and such, which are great for bills.

You also get the benefit of tracking other data alongside it, like the amount of alcohol you consumed on that day. No matter what you choose, a budget can help you save thousands of dollars and protect you from things like overspending and missing payments. Go start saving.

Five Best Reward Credit Cards

Many credit cards have great offers and perks to choose from. Deciding on the one with the best reward program can be difficult. However, that depends on your personal and business lifestyle. If you travel a lot, a credit card that offers the best airline miles and hotel rewards will suit you best. Nonetheless, here are five best reward credit cards based on consumer value.

Here is our picks for the Top 5 Reward Credit Cards


1. Chase Sapphire Preferred Cards.

With this card you earn 2X points on travel and dining. You also earn 1 point on every dollar you spend. They have great discount perks (up to 20%) for travel bookings done using the credit cards. Additionally, Chase Sapphire Preferred cards give bonus points for purchases that exceed $4,000 within the first 90 days of opening an account with them. Account opening is $0 within the first year but $ 95 after the first year despite these benefits, the card has a few draw back but still remains the best travel card in the market with its strong flexibility in points transfer and redemption. Their reward is currently the highest valued in the market.

2. Chase Freedom Card

Chase Freedom is the best reward credit card for giving bonuses. With this card you get 5% cash back on one rotating category. This benefit applies when you spend up to $1,500. Th card also gives $150 bonus for your purchases after spending $500 within the first 90 days of account opening. The rewards applies to your normal spending such as gas, commuter transportation, grocery stores, restaurant, and holiday shopping.

3. Capital One Venture Reward Credit Card

With a reward program valued at $1,061, Venture Reward Credit Card offers the best flat rate travel reward. For every purchase you make with the card, you earn 2 miles. It also comes with a one time bonus of 40,000 miles on condition that you spend $3,000 within the first 90 days of account opening.

4. Barclaycard Arrival Plus World Elite MasterCard

This card also offers the best flat rate travel reward. It comes with a one time bonus of 40,000 miles on condition that you spend $3,000 within the first 90 days of account opening. It is unique in the sense that one gets to earn 2X points on every purchase with a 5% miles return once the points have been redeemed.

5. Blue Cash Preferred Card for American Express

This card is best for everyday spending with its $150 cash back for purchases worth $1,000 within the first 3 months of opening an account. There is also a 5% cash back of groceries worth $6,000 per year

Feel free to drop us a line if you have any questions on picking the best rewards card for you.

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