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
Sunday, April 22, 2007
Sunday, April 15, 2007
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.
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.
Sunday, April 8, 2007
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.
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.
Sunday, April 1, 2007
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.
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.
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