Tips for Getting Your Home Loan Approved

Home Loan Tip #1 Pay Your Bills
It is very important that you always pay your bills on time and never miss a payment. When you have this type of history paying bills your mortgage lender will believe you will be just as responsible with your home loan. If you want to be approved for a home loan, be sure you are current on all your payments and have been making them regularly for some time before you apply for a home loan.

Home Loan Tip #2 Employment History
In general, when an individual has been employed in the same job for at least two years, or at least the same type of job for that amount of time, a home loan approval is more likely. So, if you have been in your same job for a year and a half and are considering quitting or changing jobs, but are also looking at buying a house, wait until your home loan is approved before you make any changes. Once you have your home loan, you can make any changes.

Home Loan Tip #3 Pay Debt Down
Your debt to income ratio is considered when you apply for a home loan. If you really want to be approved for a home loan then you need to make sure you pay off as many debts as possible in order to look favorable to the home loan lenders. A home loan is approved for individuals who have a low debt to income ratio.

Home Loan Tip #4 Savings
Before applying for a home loan, make sure you have saved at least 20% of the down payment and also have enough money to cover several months of your home loan payment. When you have enough money in savings to cover you if you experience financial difficulty one month or even two or three then the lender will be more likely to approve your home loan.

The Benefits of a Debt Consolidation Home Loan

What is a debt consolidation home loan?

A debt consolidation home loan is a low-cost loan which is secured against your home. It works by using the spare capital in your home (also called “equity”) to pay off your debt. This is made possible by the rising house prices which have been experienced over the last five years in the UK. By choosing a debt consolidation home loan to solve your debt problems you will be able to pay off all your debt, regardless of how many different lenders you owe money to. A debt consolidation home loan could reduce your interest costs which you currently have on the outstanding debt and reduce the monthly repayments which you currently have to make.

A debt consolidation home loan can be the best way to wipe your debt slate clean and start your financial situation all over again. A debt consolidation home loan not only takes the pressure off, which lenders may currently putting you under, but can offer you the situation whereby you are only making one monthly repayment. In brief, it offers those in a seemingly hopeless situation that there is “life after debt”.

Who a debt consolidation home loan suitable for?
A debt consolidation home loan is suitable for a wide variety of people who are in financial difficulties and often owe many different creditors money.

What are the benefits of a debt consolidation home loan?

The benefits of a debt consolidation home loan are significant and should not be overlooked. They include:

•Home Improvements - A debt consolidation home loan is one of the best ways of raising cash for home improvements.

•Low Interest Rate – The interest rates for a debt consolidation home loan can be extremely low as the loan is secured against your home.

•Pay Off Debt – The most beneficial part of a debt consolidation home loan is the fact that it will help you pay off your debts quickly.

•Credit Rating – A debt consolidation home loan can actually improve your credit rating or prevent it from any further damage.

If you are struggling to repay the money which you owe then a debt consolidation home loan might just be the answer for you. A professional financial adviser will be able to talk you through the range of debt consolidation home loan products on the market and advise which one is most suitable for your individual circumstances.

Refinance Your Home Loan

Refinance home loan lenders are eager to lend money to any individual regardless of credit as long as the homeowner has a fair amount of equity in the home and the home itself is in a condition that can be resold. Refinance home loans are different than a second mortgage or line of credit in that the proceeds from the loan disbursement first pay off the original mortgage loan. The remainder of the refinance home loan proceeds leaves the homeowner to spend the money as they wish. Typically, refinance home loans carry lower interest rates than purchase mortgages.

For a homeowner to obtain a refinance home loan, it is in their best interest to get a loan with an interest rate lower than the loan they already posses. Some borrowers prefer to re-extend their payment length back to 30 years, others prefer to use refinance home loans for the existing time left on their original loan. In order to determine the best deal throughout the life of both loans, in depth calculations will have to be done. Many Internet websites have interest calculators to make it easier for homeowners to determine how much interest is going to the lender before deciding if a refinance home loan is the most beneficial option.

Once a decision has been made to apply for a refinance home loan, the borrower must provide the lender with their social security number for a credit check. A credit report score directly determines the interest rate. It is recommended that before applying for various refinance home loans, the borrower receives a copy of his/her credit report from each of the three credit reporting agencies. If the credit score is low, then expect the interest rate on the refinance home loan to be high. If the credit score is high, then expect the interest rate on the refinance home loan to be low. Sometimes, easy measures can be taken to lift the credit scores. A credit report can look drastically different in only 30 days.

Refinance home loans gain extreme popularity when the interest rates drop nationally. It is an opportunity for a homeowner to save thousands of dollars in interest over the life of the loan, and to save hundreds of dollars in interest every month. Some homeowners use the refinance home loan to pay off their existing loan, and pocket the money for college, home improvement, or that vacation they have always wanted to take. The option to refinance a home loan is a great idea if a homeowner can lower an interest rate on such a large loan that extends for such a long period of time. It is no wonder there are many lenders out there that are advertising for individuals to consider getting a refinance home loan.