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Learning Financing Terms

Nontraditional Paperwork To Present For A Mortgage Approval

Posted by on Oct 21, 2015 in Uncategorized | Comments Off on Nontraditional Paperwork To Present For A Mortgage Approval

Getting a mortgage is typically the same traditional process, no matter who your lender is. You will present your proof of income in the form of tax returns or pay stubs. You will also have to bring bank account information regarding your down payment and credit information. Though you will need the traditional paperwork there are some supporting documents that may actually help you get a mortgage. Here is some nontraditional paperwork that you can present to a broker in order to get a mortgage. 401k or Roth IRA info When you will retire is up to you, as long as you have the money to cover all of your debts for life. For this reason, a 401k or a Roth IRA with a large amount of funding can be a major positive in your side when applying for a mortgage. If you are nearing retirement age, or if you have managed to squirrel away a large sum for your golden years, bringing proof of this asset to your mortgage lenders office can slide you into home base for an approval. A check and letter from the family If you are lucky enough to have family help with a mortgage, you may not know how to go about it other than using the money during the down payment phase. What a lot of new mortgage applicants may not know is that you will need to present proof of a monetary gift in order to qualify for the mortgage. If your family will be giving you money to help pay for your mortgage, gather the exact sum in a bank account and get a letter from each family member stating where the money came from and that it is a gift. Your future lender will feel better knowing that the money is not a loan, thereby taking up your debt to income ratio. Proper paper trails While the typical borrower will have standard pay from an employer, some borrowers choose to work for themselves. While tax returns may be requested, you can bring deposits and information from your bank account that show you have the money to pay your mortgage. Along with the deposits, make sure you have a paper trail, detailing exactly where each came from. Keeping a ledger book is one of the best ways to keep up with precise information on deposit. Random deposits that make up a good monthly income can help you score that stable mortgage that you always...

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3 Things You Will Need to Prove to Qualify for a Small Business Start-Up Loan

Posted by on Sep 14, 2015 in Uncategorized | Comments Off on 3 Things You Will Need to Prove to Qualify for a Small Business Start-Up Loan

Trying to get a new business up and running can be difficult, especially if you do not have enough cash to get it going. Poor cash flow is one of the top reasons small businesses fail, which is why you should make sure you start your business off right in terms of cash. If you do not have access to cash, a good option is to apply for a small business loan. In order to qualify with a lender, you will have to prove several different things, including the following three. There is a demand for your product or service Getting a loan for your new business is not always easy, primarily because your new business has no track record. Lenders are cautious about handing out money to new companies because of this, and your lender may want proof that your business will be able to repay the money you borrow. One type of proof the lender may ask for involves the demand for your product or service. You will most likely need to create a business plan before you can prove this. This plan will demonstrate a lot of things, including evidence that proves there is a high demand for the products or services your new business will be offering. You can use evidence such as recent articles about trends in this field and information from studies and polls you have completed. You can also include research that illustrates that people want you will sell, and you can explain who your target market is. You have an adequate amount of assets The second thing the lender may want to see is the total value and listing of the assets your company does own. If you need certain machines to offer your products or services and you already own these, the lender may look favorably on this. Lenders have to protect themselves when giving loans. If you already have the assets your business needs, it will look better on your application. You have a strong marketing plan in place Small businesses that do not market themselves online have a greater chance of failure, which is why your lender will ask you about your current marketing plan strategy. You might have the best idea for a business, but without the proper marketing efforts, your business may go nowhere. You will need to clearly write out your entire marketing plan to submit it to the lender when you apply for the loan. Getting a small business loan may not be easy, but you can do it with the right steps, research, and information. To learn more about getting a business loan, contact a lender in your...

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Double Dipping: Using A Home Equity Loan To Purchase A Home

Posted by on Jul 14, 2015 in Uncategorized | Comments Off on Double Dipping: Using A Home Equity Loan To Purchase A Home

Whether you made a great investment or you have paid off a large portion of your mortgage, having home equity now means that have a prized asset on hand. Once you have equity, you quality for a home equity loan, to be used in any way that you desire. One of the ways that you can use a home equity loan is to purchase another property. Here are some was that you can go about utilizing a home equity line of credit in real estate. Secure a loan approval The approval amount on your home equity line of credit will be determined by the equity that you have in your home and your current credit score. You should want for the official approval before looking for homes, as your loan amount may be more or less than you were expecting. Once you secure the loan, looking for and bidding on properties will be an easier experience. You are also likely to receive a discount, with your ability to pay off properties in cash. Decide on retirement or investment There are two main reasons that you can purchase a new home. One is as an investment and the other is for living quarters of your own. If you are looking to retirement, you may be interested in purchasing a retirement home. Even if you are a few decades away from retirement, having a home already paid for will give you peace of mind when it comes to your golden years. If you would rather create a new stream of income that will generate monthly money, purchasing a small house or condo in your town will provide you with a great start on a real estate venture. It will also help you pay off the equity loan, while providing you with a retirement house in the future.  Purchase your own home If, since the purchase of your home, your financial situation and credit score have gotten better, purchasing your own home may be a good idea. You can pay off home loans with a home equity loan. With a better credit score, you may get a better interest rate and better loan terms, which will make this loan lower in cost than your mortgage. A home equity line of credit can provide financial freedom. With the infusion of cash from the loan, you can re-invest in real estate to create a better financial future for yourself. Consider ways to create a better future with a home equity line of credit. For more information, talk to a lender like MCS...

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The Fees And Expenses Associated With An FHA Loan

Posted by on Jun 10, 2015 in Uncategorized | Comments Off on The Fees And Expenses Associated With An FHA Loan

For prospective homebuyers with a less-than-stellar credit history or limited funds, an FHA mortgage is a fantastic option. FHA loans require a credit score of at least 580 and have a higher maximum debt-to-income ratio than traditional mortgages. Though FHA mortgages are considered an affordable loan, it is still vital for prospective applicants to understand the associated fees and expenses so they can budget accordingly. The Down Payment When using an FHA mortgage, you need to have a down payment amount equal to 3.5 percent of the home’s purchase price. For a home that sells for $200,000, 3.5 percent of this amount is $7,000. Considering that conventional mortgages usually demand a down payment of 5 to 20 percent of the loan amount, this makes an FHA loan extremely affordable. Borrowers generally must use their own money to pay the down payment, but grants from approved programs and gifts from relatives may also be used. Upfront Mortgage Insurance Premium The upfront mortgage insurance premium must be paid when the borrower closes on the mortgage. It applies when borrowers have a down payment that is less than 20 percent of the home’s purchase price. Upfront mortgage insurance is 1.75 percent of the amount of the mortgage. A mortgage amount of $200,000 has an upfront mortgage insurance premium of $3,500. Borrowers are able to roll the full amount of the upfront mortgage insurance premium into their loan, or they can pay it using their own cash. The ability to finance this insurance premium is a terrific feature for individuals with limited cash assets. Annual Mortgage Insurance Premium In addition to the upfront mortgage insurance premium, FHA loans have an annual insurance premium for homes bought with a down payment under 20 percent. The annual mortgage insurance premium is variable; factors that influence the premium are the mortgage length, the mortgage’s loan-to-value ratio, and the size of the mortgage. Borrowers pay a portion of this insurance each month when they make their mortgage payment. Closing Costs Every home transaction includes closing costs. These expenses are associated with both the mortgage and with transferring ownership of the property. Closing costs when buying a home vary from 2 to 5 percent of the home’s selling price. A home that sells for $200,000 would have closing costs that vary from $4,000 to $10,000. FHA mortgage guidelines permit the seller of a home to pay the buyer’s closing costs as a part of the terms for selling the home. FHA mortgages help make home ownership possible for individuals who otherwise would not be approved for a loan or would not be able to afford the expenses of a traditional mortgage. Researching the costs associated with an FHA loan is an excellent way for prospective homeowners to understand the financial resources needed to purchase a home. You can get more information about FHA loans by contacting a company like Western Ohio...

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5 Ways You Can Benefit From Quick Loans

Posted by on Jun 4, 2015 in Uncategorized | Comments Off on 5 Ways You Can Benefit From Quick Loans

In a perfect world, money wouldn’t be an issue; but there comes a time in everyone’s life where things can get a bit tough financially. Thankfully, there are plenty of services out there to help lighten your financial burdens. Getting cash now with quick loans is an easy process that won’t take up too much of your time and will help you get your back on your feet. So, keep reading below to find out about the benefits of choosing a cash advance loan over other services. Apply Online – Thanks to the wonderful invention that is the internet, applying for quick loans can be done all online. All you have to do is find the loan that will work best for you, give your personal information, fill out your current employment history, and you’ll be ready to submit and get paid. Instant Qualification Based On Income – Keeping with the fast times, getting qualified is instant as well. The greatest strength of these types of loans is the fact that you’ll only be limited to borrowing money based on your verifiable income. This means you can’t dig yourself into a hole by borrowing more money than you can afford to safely pay back. Convenient Hours – Not everyone is comfortable sharing private information online, and that’s totally fine. Most institutions are open past the typical banking business hours so you’ll be safe stopping by after work or even in the case of emergencies. Customer Protected Interests – If you need to extend the length of your loan, you don’t have to worry about paying exorbitant interest fees. Thanks to state legislation, most states now have caps on the amount of interest loan companies are allowed to charge you. It’s Your Money, Use It How You Want – In case you haven’t figured it out yet, the strongest argument for quick loans is convenience. Unlike most loans, you’re able to use the cash you’re loaned immediately and on anything you want, whether it’s for emergencies, impending deadlines, or anything else. If you ever find yourself in the need for some fast cash then there isn’t any reason to hesitate calling a reputable company and inquiring about how they can help you out. It doesn’t matter if it’s to buy some groceries to hold over until next payday or if you’re trying to deflect any late fees you might incur from late payments. Cash advance loans are quick and easy. If you need cash now, contact a local quick loan...

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