Home Loan Modification – A Means of Advice For Those in Need

The loan modification plans have been around for a while and are a sustainable answer to financial challenges. However, they are becoming more prominently known at the moment thanks to the Making Home Affordable Act, an initiative by President Obama. In addition, new guidelines and regulations have made the process simpler and more favourable and have enabled more borrowers to qualify. It’s well worth taking a close look at your options in regard to Home Loan Modification Hardship Assistance.

Putting off doing something about your current financial troubles will achieve nothing. The best thing you can do is to make an appointment to see a specialist financial counsellor, who will assess your personal circumstances. Doing so before the problems spiral out of control assures you the most options. There are a number of loan advisors now who are not charging for an initial consultation (although of course, some do still charge a fee for this). HUD-Approved non profit organisations are another option, from where you can attain financial advice without paying a single dollar. By means of supply and demand, there are now more loan modification companies than ever.

There are positive and negatives to both free services and the premium paid ones too. You may find that you require legal services at some point and so it is worth considering this when you select your service. If there is an option to select a service with an attorney, this could be hugely helpful in attaining your loan modification.

Any premium service for which you pay comes with risks. Opportunist scammers are active in this arena, having seen just how many people are seeking out this type of service. Research various services, check their standing with the Better Business Bureau as well as their company history and reputation.

Start at the beginning! By this I mean arrange to see the advisor and ensure that you take all relevant financial documentation with you. The professional will be able to advise you this way according to your own circumstances, on the best steps to take.

If he or she advises that you may be best suited to the loan modification plan, the next step will be to write a Loan Modification Hardship Letter. Again, your advisor will be able to give you more information and guidance on this, but in essence this letter should explain to your lender why you are facing the problems you are facing, whether it be sudden unemployment, a family bereavement, medical bills etc. Be straightforward in your wording with the letter. Do not withhold any necessary information and ensure that you supply documents to verify what your letter states. A loan modification company should guide you gradually through the process of writing the letter and will forward it to your lender, as well as assisting where any problems or questions arise.

Factors You Need to Consider When Applying For a Home Loan

There are a few things you can do before you start applying for a home loan that can make the process a lot quicker and easier for you.

Although every bank is different, and they have their own internal policies and processes, they also operate under some similar guidelines and, apart from a few quirks, will be asking you to supply basically the same information.

Let’s look at a basic outline of the things you will need to provide to the bank when you apply for a home loan.

Personal history

The bank will want to know not just your name and address but also where you have been living for the past three years. If you have moved around a lot you’ll need to have an accurate record of where you were and how long you were at each address. You will also have to supply some forms of identification. This will include driver’s licence, passport or birth certificate. If you have photocopies of these with you when you apply it will make things a little easier.

Employment history

You will need to have records of your employment history and this means copies of your PAYG summaries for the last two financial years as well as a copy of your most recent pay slip from your employer. The banks will use this information to determine that you have been in steady employment over a period of time.

If you are self-employed you will need to provide full tax returns and financials for both your company or business and your personal tax returns for the last two financial years plus BAS returns for the current year.

Assets and liabilities

Every bank will have its own way off recording this information but basically what they are looking to see is what you own and what you owe. Assets will include things like houses, cars, shares, superannuation and household contents etc.

Liabilities will include credit cards, existing home or personal loans, HECS debts and any loans for which you are a guarantor.

Credit History

The bank will be asking you questions when applying for a home loan about your credit history to see whether you have had any problems in the past. This means that if you have failed to make a repayment on a loan, or have had defaults on loans or court judgements issued against you, they will want an explanation from you. In any case the bank will be doing a credit check on you, and all of these facts will emerge, so if you have had any problems in the past it is best to mention them at the outset.

As you read the above list, it may appear to be a daunting task. But generally you will probably have this information close at hand anyway and be able to package things together fairly quickly. If you have things well organised before you speak to a bank and can provide everything upfront, then it will speed up the process and you will be well on your way to obtaining an approval in the shortest time possible.

How to Get the Best Secured Home Loan Quote

Just because a lender is telling you they are giving you the best secured home loan quote, doesn’t mean it’s true. It is really up to you to research and compare different home loan offers so you can choose the right one for you. This means you need to be able to easily find a number of good offers and evaluate their different characteristics.

It isn’t easy, however, for a lay person to do this. One loan might look better than another but when you compare the actual details, you may not be comparing “apples to apples”. One way to be sure you are getting the best secured home loan quote is to use the services of a loan comparison website.

These specialist loan sites have already done a lot of the hard work for you. Instead of having to discover and compare a range of home loans on your own, specialist loan sites have done the job for you. Moreover, they usually provide easy to read comparisons that make it possible to quickly compare the same loan characteristics. The terms and conditions of the loans you are considering are very important. For example, annual fees, ongoing fees and charges, and early pay out penalties can make a big difference to the cost of your loan and should be taken into account along with the annual interest rate.

Loan comparison websites usually offer informative articles to help you manage personal finances and improve your financial position. They also tend to have online loan calculators onsite so that you can work out the amount you can afford to borrow at different interest rates. This makes it easier to apply for the best secured home loan quote because you will already have a fair idea of costs based on your own calculations. Any variations between your figures and the quote you receive will be because of fees and charges.

Once you have compared loans and know which lender has given you the best secured home loan quote, you will be able to apply for the loan directly on most loan comparison websites. This makes the whole process from beginning to end possible by just having a home computer and an internet connection. You don’t have to worry about taking time off work to see loans officers or cope with heavy handed sales people who are trying to get you to transfer your mortgage; by researching, comparing and applying on line for your home loan you can feel in control of your financial decisions and destiny.

There are variations on comparison sites. Once recent variant is an all-in-one online service where you fill in your application form just once and it is sent to lots of different lenders and brokers who are experts in their field. Then you just sit back and wait for the best quote and accept it. This new type of service came about when people started clicking through from the comparison sites to the actual lenders and found that the deal was quite a bit different to what was being shown on the front page.

There is no doubt that if you take the time to obtain the best secured home loan quote and apply for that loan instead of paying more interest and higher charges than you need to, that you will put yourself in the best possible financial position. Over the term of a home loan, most people can save tens of thousands by just taking the time to get a good deal. It’s the very least you can do for yourself and your family.