For a Quick Easy Loan Approval: Have These Items Ready When You Apply For a Loan

Income Items
W2 forms for the last two years
Most recent pay stubs covering a 30 day period
Federal tax returns (1040’s) for the last two years, if:
you are self-employed
earn regular income from capital gains
earn sizable interest income, etc.
earn more than 25% of your income from commissions or bonuses
own rental property
or are in a career where you are likely to take non-reimbursed business expenses).
Year-to-Date Profit and Loss Statement (for self employed)
Corporate or Partnership tax returns (if you own more than 25% of the business)
Pension Award letter (for retired individuals)
Social Security Award letters (for those on Social Security)
Asset Items
Bank statements for previous two months (sometimes three) on all accounts. All pages, even if you don't think them important.
Statements for two months on all stocks, mutual funds, bonds, etcetera
Copy of latest 401K statement (or other retirement assets because they can count as reserves)
Explanations for any large deposits and source of those funds
Copy of HUD1 Settlement Statement on recent sales of homes
Copy of Estimated HUD1 Settlement Statement if a previous home is for sale, but not yet closed
Gift letter (if some of the funds come as a gift from a family member - the lender will supply a blank form)
Gifts can also require:
Verification of donor’s ability to make the gift (bank statement)
Copy of the check used to make the gift
Copy of the deposit receipt showing the funds deposited into bank account or escrow
Note: many get their statements of various kinds over the internet and these are not always acceptable to lenders, especially when the printed version does not contain the borrower's name, account number, and the name of the institution.
Credit Items
Landlord’s name, address, and phone number (if you rent - for verification of rental)
Explanations for any of the following items which may appear on your credit report:
Late payments
Credit inquiries in the last 90 days
Charge-offs
Collections
Judgments
Liens
Copy of bankruptcy papers if you have filed bankruptcy within the last seven years
Other
Copy of purchase agreement (if you have already made an offer)
To document receipt of child support (if you desire to show it as income)
Copy of Divorce Settlement (to show the amount)
Copies of twelve months canceled checks to document actual receipt of funds
FHA Loans
Copy of Social Security Card (or other documentation of social security number)
Copy of Driver’s license
VA Loans
Copy of DD214
Refinances
Copy of your most recent monthly mortgage bill
The following cannot hurt to have ready, but are not as necessary as they once were:
Copy of Note on existing loan
Copy of HUD1 Settlement Statement on existing loan

Finding the Cheapest Loan

How do you find the cheapest loan? Through a combination of factors that include understanding your credit score, determining the best type of loan for your purposes, and shopping around. Settling for the first offer for which you are approved is one of the worst ways to save money on a loan.

On the flip side, applying for numerous loans can damage your credit score (such as applying for a wide range of credit cards, even if you cancel the ones you are not interested in). Carefully conduct research prior to applying before making the decision to go forward with the application process.

If a lender is unclear about your potential payments, move on to a different provider. Some lenders will only be upfront with you if you agree to go through with the application process.
The type of loan will obviously have a bearing on the payments and terms. Many long-term loans, such as secured loans, have penalties for closing early. If you find a lower interest rate option later on, you may not be able to switch without losing money. So carefully consider these factors before being locked into a loan program.
Be wary of various add-on sales. Purchase protection programs are tag-on offers and usually cost more directly from the lender. Using an independent program will usually cost less.
Changing credit card debt to a card with a zero percent introductory rate or one that offers a very low rate on transferred balances can save on the overall debt. However, this only works if you don't incur more debt on the card. In addition, if you frequently change credit cards, this could ultimately make your credit rating worse. Each time your credit is reviewed for a loan, you score takes a hit. Too many of these, even if you regularly make payments, can lower your score and creates an image of instability.
Shop around. Competition among lenders can work to your advantage, particularly if you have good credit. Secured loans are likely to have lower interest rates but are also more likely to carry penalties for closing early. If you are able to obtain a low rate, a fixed-rate loan is often better than a variable rate. Of course, if things change and rates drop, you're stuck with your fixed rate. However, the security of knowing what your payments will be may be worth it and easier to budget for.
Consider the purpose of the loan. Is it worth risking your home for plastic surgery? Your mortgage is one thing, but risking your home or vehicle for other purposes may not be the wisest choices. However, conducting research on a variety of secured and unsecured loans to best suit your purposes can help you save money over the long term and minimize risks.
Know exactly what you can handle for payments. The lowest rate and best terms will not save much if the result is your being unable to make payments, assessing penalties, or declaring bankruptcy.

Take finance at your easier terms at UK Home Equity Loan

Your home is an effective instrument for availing finance. You can simply take loan against home or take it against the equity in the home. The later option is considered as more benefiting in terms of availing loan at further lower interest rate

and easier terms and conditions. UK home equity loan is one such financial product aimed at offering loan at easier rate of interest and low cost. A borrower of UK home equity loan can utilize it for whichever purpose like home renovations, paying for different expenses or urgencies like medical treatments, enjoying holiday trip, buying vehicle. The loan is useful in clearing previous debts and lightening your debt burden.

Equity in home is equal to the difference of current market value of the property that is home and the amount owed on it. The borrower will get UK home equity loan at least to the amount of equity.

To avail the home equity loan borrower has to place the home as collateral with the lender. Thus the loan is well secured as in case of payment default the lender is free to sell the property to recover the loan. It is now clear that with the rise of market value of home, its equity rises.

One of the advantages of UK home equity loan is that it is offered at lower possible interest rate. This is because this loan is more secured then other secured loans. The interest rate is even lower then the rate on credit card. You can choose from fixed or variable interest rates. While fixed rate will remain the same throughout the loan period, variable rate though is generally lower initially but may escalates later as per the market rate.

The loan amount depends on the equity. Normally people opt for the home equity loan when they need smaller loan for a shorter duration but larger loan is also offered at lower interest rate. The loan in most of the cases is repaid in 5 to 15 years.

UK home equity loan goes by another name of home equity line of credit in which your home is pledge as collateral. This type of the loan works as credit card as each month the payment is made on the basis of outstanding balance. This results in gradual rise in available credit.

Prefer applying online for UK home equity loan as this way number of lenders offer you their loan packages which enables in choosing suitable one containing easier terms and conditions. Moreover, online lenders charge no fee on giving details of the loan or processing the application.

UK home equity loan makes available low cost finance to the borrowers as the loan is more secured through the equity in home. The loan is offered at easier terms and conditions without hassle. You can use the loan for variety of purposes including debt consolidation.

Online Loans - How Popular and Safe Are They?

With the development in technology allowing for safer online transactions coupled with high-speed Internet connections, many people are conducting loan research from the comfort of home. The use of online loan applications is becoming more and more popular.

One study indicates that online purchases of financial services will continue to increase in 2005; this follows a rise of more than 208 percent over the past year or so. Changes in legislation also contribute to the rise in online loan applications. Consumers are now able to apply online without having to return signed paper copies; this small bit of convenience could have a big impact on online financial services. (Hard copy letters will still be sent if any charges for missed payments are incurred or if the loan is canceled.) This convenience also means that consumers can shop around more extensively, which saves both lenders and purchasers time and resources.
Who shops online for loans?

Some research shows that almost a quarter of adults say they would search online for a loan. This is a seventy percent increase over the previous year's response. Almost half of those surveyed in the eighteen to twenty-four age group would search online for a loan, and men are more likely to use the Internet to apply for a loan than women are. Three out of ten men would find a loan online, while only two out of ten women would. Those over age fifty-five are the least likely group to shop and apply for a loan online.
Are Online Loan Applications Safe?

Consumers of online loans are still protected with "traditional" benefits. For example, a "cooling off" period is in effect for online credit agreements for fourteen days, in which time a consumer may change his or her mind without penalty. Consumers are also feeling more comfortable about the safety of online banking. Lenders are working to make online banking safe, and consumers are being more conscientious about keeping passwords and personal information safe. One in five people feel that the safety of online banking has improved significantly over the past five years.
Are Online Loans Just As Good?

The primary difference, when dealing with a traditional lender, between applying in person and applying online is the method; the loans are the same (although the savvy consumer will be wary of potential loan scams and choose a well-known provider). However, because of the convenience and time savings, some banks offer special loan rates that are exclusive to online customers. This is good news for the consumer. Not only will banks use these incentives to promote online banking, but also, understanding the convenience and the competition, other lenders will compete.

Are there any US Federal consolidation loan programs

Loan consolidation can be arranged through two ways – either through commercial lenders via the Federal Loan Consolidation program or directly with the federal government using the U.S. Department of Education Direct Federal Loan Consolidation program.

The Direct Federal Loan Consolidation program offers a special income-contingent option to students who have borrowed at a heavy level. This income contingent loan consolidation option is available to all borrowers whether they have taken a Federal Stafford Loan or a Federal Direct Loan. Under this program, all loan obligations are brought together into a new consolidated loan with a monthly payment structure determined according to income level. Thus, students with lower incomes have lower monthly payments for them, and the payments increase when the income increases. The repayment period will last as long as it takes to pay the loan off under this program, but if the borrower is unable to pay off after 25 years, the rest of the loan amount is paid by the government. However, there would be a tax liability assessed for the portion that was paid off by the government. This consolidation program involves high amount of interest that must be paid due to the long repayment period. Thus, the income-contingent repayment option is not recommended unless the student clearly cannot make payment in any other way.

If you have borrowed from more than one source to fund your education expenses and find the total amount borrowed to be burdensome, you have the opportunity of consolidating your loans into a single new loan under the Federal Consolidation Loan program. When you consolidate you may get convenient repayment arrangements such as lower monthly payments, extended length of loan repayments, etc.

The following loans may be included in a Federal Consolidation Loan:
Stafford Loan, subsidized and unsubsidized (or Guaranteed Student Loans)
Perkins Loan (or NDSL)
Supplemental Loan for Students (SLS)
PLUS Loan (in the student's name)
Federal Insured Student Loan
Health Professions Student Loan

The variable rate Stafford loans are often converted to fixed rate loans under loan consolidation program to avail the benefit in times when variable rates descend to a low point.

Syndicated loan

A syndicated loan (or "syndicated bank facility") is a large loan in which a group of banks work together to provide funds for a borrower. There is usually one lead bank (the "Arranger" or "Agent") that takes a percentage of the loan and syndicates the rest to other banks. A syndicated loan is the opposite of a bilateral loan, which only involves one borrower and one lender (often a bank or financial institution.)

Reasons for syndicated lending

Like insurance, a loan is an assumption of risk. For a certain class of loan, with certain rules, the bank might believe that it is likely that 5% of all borrowers may go bankrupt. If the banks cost of funds is a hypothetical 5%, it needs to charge more than 10% interest on the loan to make a profit. In general, banks and the financial markets use risk-based pricing, charging an interest rate depending on the risk of the loan product in general or the risk of the specific borrower. The problem with larger businesses loans however, is that there are fewer of them. So if the bank only has one large business loan, if that business happens to be one of the 5% that defaults, then the bank loses all its money. For this reason, it is in the best interest of all banks to split, or "syndicate" their large loans with each other, so each get a representative sample in their loan portfolios.

A second, often criticized reason for syndicating loans is that it avoids large or surprising losses and instead usually provides small and more predictable losses. Smaller and more predictable losses are favored by many management teams because of the general perception that companies with "smoother", or more steady earnings are awarded a higher stock price relative to their earnings (benefiting management who is often paid primarily by stock). Critics such as Warren Buffett, however, say that many times this practice is irrational. If the bank could still get a representative sample by not syndicating, and if syndication would reduce their profit margins, then over the long term a bank should make more money by not syndicating. This same dynamic plays out in the investment banking and insurance fields, where syndication also takes place.

To avoid that the borrower has to deal with all syndicate banks individually, one of the syndicate banks usually acts as an Agent for all syndicate members and acts as the focal point between them and the borrower.

Deciding on a Loan

What is the one thing that all financial advisors tell their clients before committing to any financial agreement?

It is the most basic rule of all commerce; do you homework and shop around. While it may not be the most fun pass time in the world, getting familiar with the different lenders in the market, and the loans they offer, is vital when you are shopping for a loan.

This does not mean that you have to read in detail, all the fine print on every loan agreement you come across, but at least be broadly aware of what’s on the market and look carefully at any loans that you are seriously considering signing up for.

Also, as well as knowing the lender, it is vital that you know yourself and your reasons for borrowing the money. Different types of loans should be used for different purposes.

If it is to buy something that you will enjoy for a long time into the future, such as a car or your home, then a long term loan may be very appropriate. But if you are simply taking your annual vacation, then it is probably unwise to be using a loan that spreads out for more than a year.

Also, regarding the issue of security, while it is reasonable to use a mortgage secured over your home to buy or extend your house, or to conduct improvements, or secure your car loan over your car, it is not always so wise to secure credit card debt and other short term debts in this way. The bottom line, is that the characteristics of the loan should generally match the purpose of the loan.

You should also remember that all of these factors will also be effecting the price of the loan also. Basically speaking, the longer the life of the loan, the more expensive it will be overall, although your monthly repayments will be lower. Also, while you may not wish to secure short term borrowing over your home, doing so is also likely to reduce the cost of the loan considerably.

Once you know the type of loan you are looking for, you will be in a far better position to judge which kind of loans you will be looking for. This makes shopping around that much easier as you can look directly at the types of loans you need. You should also be aware of loan rip offs and stick to the basic rule of thumb that if something seems too good to be true, it probably is.

Consider getting a home equity line of credit with your home loan.

Credit cards can be a good thing, but a home equity credit line is a better way to use your home equity to finance big ticket items—home improvements, paying off high-interest debt, financing a car, or paying for college tuition.

A credit card is a revolving line of credit that you use when you need it, and make payments only if you use it. But credit cards can charge very high interest rates.

Like a credit card, a home equity line of credit (HELOC) is also a revolving line of credit. You draw from it again and again as you need and make payments only if you use it. But, unlike most credit cards, you get a much lower interest rate with a home equity line of credit.

Using a home equity line of credit is a way of turning “bad debt” into “good debt”. In other words, the interest on the debt on your high-interest credit card cannot be deducted from your taxes. But the interest on your HELOC is usually tax-deductible*.

You can also get some flexibility with home equity loans that you wouldn’t get for say, with an auto loan. There are different home equity programs that have an interest-only option. From month to month with an interest-only loan, you choose to pay only the interest for a pre-determined amount of time or pay interest plus as much principal as you want. You can’t do that with an auto loan. Most lenders offer home equity lines of credit for up to $100,000. But Quicken Loans offers a line of credit for up to $500,000! This is a great option to have if you’re thinking of buying your dream vacation home.

It’s fairly easy to get a home equity line of credit—that’s one of the best things about it! Nowadays, many companies allow you to apply online and close within a very short period of time, typically 7-10 days. There’s less paperwork to deal with, the closing costs are less expensive and the process is just as easy as applying for a credit card. If you get a home equity line of credit at the same time as your first mortgage with the same lender, you only have one closing to go to for both loans.

General Loan Advice For Managing Debt

Debt is a really easy thing to get stuck in. Even if you are not extravagant monthly costs can spiral out of control, especially if you take your eye off the ball. So what can you do to avoid getting too far into debt and if you are there already how can you get out of it?
Income Verses Expenditure

How does somebody get into debt? Few do it intentionally, but many of us find ourselves unable to pay off the loans and credit cards we have run up. Credit cards are usually the worst, because they allow us such easy access to money.

To avoid debt in the first place, always work out exactly how much you are spending each month and what you are spending it on. That includes all the cash withdrawals that you make. One thing is for sure when you first list out your expenditure you will be surprised at just how much you spend and what it goes on!
Think Twice Before Spending

Work out from your monthly income exactly how much you have got coming in. Very few people have any spare and this is why things called “savings” are also very rare. But that is what you want to aim for: to run your finances in the best way possible you want to aim to have a little to put away in a savings account each month.

Once you’ve got over the shock of how much you spend, you will need to go through the next month making another list this time write down exactly what you spend your money on as you spend it. This is a useful exercise as it will vary from the list you made when you were simply thinking about what you spend that money on.
Saving Advice -- Advice on your savings from a resource that your can trust, the UK government
Getting Familiar With Your Habits

Now that you’ve become a bit more familiar with your spending habits and you can see where you money is going you can start to work out ways to cut back on your outgoings.

If you are having trouble actually covering all your current debt repayments then a debt consolidation loan may be the answer. This will tidy up your debt repayments into one and if you take out the loan over a long enough period you should be able to substantially reduce your monthly spend on your debt each month.
Cost

Clearly a debt consolidation loan may cost you more in the long run, but this is an exercise in debt management, not saving money. If you are really struggling then you may have to talk to the companies that you owe money to and come clean about the fact that you are in trouble. You can then agree a figure with them that you can pay each month perhaps a little lower than their standard minimum repayment figure.
Take the debt test - from the new FSA site, money laid bare
Don’t Lose Your Rag

Don’t be scared about talking to these companies, the person you will talk to won’t be overjoyed that you are having the conversation but they won’t shout at you and neither will they insult you. It is their job to speak to people that are having financial trouble and they do so everyday. It is also their job to make sure that something, no matter how small, is paid to the company they work for. Above all, don’t lose your temper out of frustration when speaking with them: that is only a sign of your despair and not helpful to anyone.

The Light and the Tunnel

There is always light at the end of the tunnel no matter how far away it might seem. If you are really unable to cope with managing your debt problem on your own then speak to one of the debt management companies that you can either find in Yellow Pages or online. They will charge you a fee, but they make all the calls to your debtors and you will at least feel that somebody is on your side.

Discard your bad credit worries with bad credit secured loan

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Discard your bad credit worries with bad credit secured loan
By Andrew Baker

Borrowers having bad credit get problems in availing loan from lender easily. Incurring bad credit, simply, decreases the reliability of borrower for any further loan borrowing. Lenders deny such borrowers who have been unable to manage their finances in the past. Saving borrowers from the grumbling of lenders, bad credit secured loan comes in great use for borrower having bad credit.

Bad credit secured loan
helps borrowers meeting all their financial needs even if they suffer from bad credit. Lenders get here no reason to feel any risk, as borrower has to put his house or other property as collateral against the loan amount. It enables borrowers to access this loan easily. As collateral is present here, it allows borrowers to borrow even large amount. Repayment period is also long, and thus, borrower can repay the amount in flexible and smaller monthly installment.

For borrowers, the risk of facing legal action and losing their collateral might be a matter of concern. But, it is only when borrower fails to repay the amount on time, and according to terms and conditions of the lenders. Before the several privileges given by bad credit secured loan, such trivial issue carry no value to borrower, who has got bad credit, and is in dire need of money.

Secured form of bad credit secured loan lets the borrower take money at lower rate of interest.
Moreover, a borrower having bad credit can improve his credit score by availing this loan. If, he repays back the money timely, and on the terms and conditions of the lenders, he gets his credit score automatically improved. The amount of the loan can be used to fulfill all the various purposes. It can be used for debt consolidation, car purchasing, holiday packages, home improvement, and etc.

In order to find the best bad credit secured loan deal, first, you ought to locate the best lenders available in market. Searching a variety of financial websites can help you in getting several lenders in your area providing loans at suitable terms. Borrower can also avail loan online. Besides, these websites offer borrower various tools, such as, loan calculators, and loan quotes, which come in great use in comparing various loans and choosing the best one suiting your need.

Offering a large number of benefits, such as, lower interest rate, long repayment period, flexible monthly installment option, and chance of improving credit score, bad credit secured loan is the best possible loan option available for borrower with bad credit. This loan helps borrowers fulfilling all his financial goals by borrowing a loan which offers them loan at easy terms after ignoring their bad credit history.

Summary:

Bad credit secured loans are boon like for borrowers suffering from bad credit, and looking for a loan to meet their financial requirement. Borrowers are benefited in several ways, such as, in being charged lower interest rate, paying in long repayment period, and getting an opportunity to improve their credit history.