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5 Of The Best Home Loan Approval Tips to Ensure Your Success

When it comes to obtaining a home loan, there are quite a few things that you need to keep in mind. Above all else, you need to know which home loan approval tips are best to follow. When you know what you are doing, down to every last detail, it is much easier to make decisions that are going to benefit you now and in the long run. There are a lot of approval tips, but only some are actually worth getting involved with.

1. Shop around to ensure that you get the best deal. You may not get approved with one bank but this does not mean that this is going to hold true with the rest of them. You need to know that you are making a good decision, so be sure to compare quite a few options. You will be glad that you did in the end.

2. Have all the information that you need on hand. This is something you definitely need to keep in mind when it comes to home loan approval tips. You should always be able to supply the lender with the information that they need. This will go a long way in helping you get approved while also speeding up the process.

3. Improve your credit before applying. Anything you can do to improve your credit score and history before you apply is something you definitely want to consider. There is nothing better than raising your score so you cannot only get a loan but also save money on interest. What more could you want?

4. Talk with a live representative. While there is nothing wrong with starting the process online, at some point you want to compare home loans with the help of a live rep. This will ensure that you get the right information, down to every last detail.

5. Don’t stop until you get what you want. One of the biggest mistakes you can make is shopping for a home loan and stopping when things get tough. You don’t want to fall into this trap. Instead, you should continue to search around until you find the loan that is best for you and the home you are interested in buying. Remember, there is a lender out there that is willing to do business with you. You just have to find them.

These are five of the best home loan approval tips that you can follow. Of course, there are many others that you should keep in mind. When you get approved for a home loan, you will realize soon enough that you are well on your way to great success in the future.

Now that you know more, it is time to get moving in the right direction. Start by finding home loan lenders that you are comfortable with. From there, begin your search for a loan that you are going to be happy with for a long time.

When you follow these home loan approval tips, you are on the path to success.

Home Loan Modification For HSBC – Tips to Approach & Successfully Modify A HSBC Home Loan

A loan modification is a permanent change in terms of mortgage loan which results in a lower payment that is affordable by the homeowners. HSBC is making options to be availed by borrowers by freezing the current rate and allowing them to pay a lower rate.

Features of HSBC Home Loan Modification:

1. Waived late fees
2. Converting adjustable rate to fixed rate
3. Lowering principal balance
4. Forgiveness of missed payments

Effective Tips to Modify HSBC home loan

Many homeowners are trying to get their loan modified. It is necessary to collect the information about HSBC before customer applies for the home loan modification.

· The first thing is to follow the guidelines made by HSBC. This will save your time to fill the form properly and lender will have no chance to reject it.

· The information you provide should not be fake. Incorrect information may lead to denial of your loan application.

· You must make sure that the information you provide should be complete to reach on the next level of modifying your home loan.

· There are thousand of applications that a lender has to check in a day. So, you should keep on calling to the lender of HSBC to check your status of application to avoid delay in your work.

· You must prepare a file of documents containing all necessary information such as: bank statements, employment history and credit history. This file must be arranged properly to avoid confusion.

· Prepare a financial statement properly including all your expenses and incomes in it. As HSBC will have all the information of your statements, you should not leave anything that may result in denial of your loan application.

· You must prepare a convincing hardship letter including all the information for your lender. This letter must describe all situations that you have gone through and the steps you have taken to improve it. This must be real with their proofs.

Homeowner Loans, Are they The Same As Mortgage Loans?

It is surprising how simple it is to take a name for granted and believe it means something it actually doesn’t. In these lines we will state the differences very clearly.

It’s Very Simple

A Mortgage loan is a loan granted to the borrower so that he or she can buy the property, using the house that is purchased as collateral, or security towards the repayment of the borrowed sum. The typical borrowers are tenants who wish to purchase their first home. It can also be the case of people who want to buy property when they already have their primary residence and want to affect the purchase to business or rent.

Homeowner Loans

A homeowner loan, on the other hand, is a loan granted to someone who is already a homeowner and wishes to purchase an item other than real estate. This is a secured loan, using the equity in the home to back up the borrowed amount, obtaining similar interest rates and conditions to a home equity loan or a mortgage loan.

There is no definite interest rate for each type of loan and these may fluctuate, depending on the area of the country and the nature of the loan, between 5 and 10 percent. The repayment plans are generally shorter than mortgages, and the fees are similar. There will be an appraisal of the home to establish the value and discount any mortgages or other pending homeowner loans to establish the free equity.

Secured Loan

Being a secured loan, it has a very low risk for the lender, if any at all. The only loss would be the hassle of repossession, should this be necessary, since every other cost is covered by the product of the sales. This means that the amount of the loan is determined taking these aspects into account.

Growing Equity

Let us suppose that a loan has been granted with a payback period of three years. After one year, there has been an important increase in the price, due to market circumstances. This means that you have repaid one third of the loan, releasing the corresponding equity, and also the total value of the property has increased in the year elapsed, adding even more equity. Even if you used up all the equity at the time you took the loan, after a year or two you will be able to use the same property to request a loan using the new equity.

Some Benefits

Homeowner loans can give the borrower some additional benefits, such as payment vacation or prepayment, as well as the possibility of raising an important amount of cash in spite of having bad credit.

As examples of what one can do with this kind of loan, we can mention buying a brand new car, paying for an important vacation or redecorating the house. In other words, we don’t need to inform the lender what use we will give to the loan, since it does not affect the outcome at all.