What Can Hurt Your Credit Score

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Your credit score, a three-digit number that is ranging from 300 to 850 points, assumes a significant part in our everyday life It gives potential loan specialists how well we a chance to can deal with our finances. The following are what hurts your credit score, Please give careful consideration to it.

Asking for Too Many Loan Rate Quotes Online 

Getting a credit rate cite online is quite simple. You can get a quote on your auto credit, individual advance, understudy advance, or mortgage advance in seconds.

Missed payments 

Assuming your bills is much worse than paying late. Decide not to put your head in the sand and exacerbated things than it as of now is. After around six missed payments moneylenders, typically charge your record off. This record status is one of the worst items on your credit report.

Late payments 

Your installment history has a tendency to be important in the calculation of your credit score. If you don’t fulfill your financial obligations on time, you may lose 100-200 points. It is important to make timely payments to maintain a positive rating.

Overwhelming debt 

Credit authorities figure the ratio between your equalization and available credit. If you borrow a ton of assets, the rate of debt/available credit (additionally called utilization ratio) goes up. It will hurt your credit score. Continuously attempt to keep your debt lower than 30% of your spending limit.

Collection agencies 

If you don’t eliminate your debt, moneylenders can hire third-party agencies to gather installment from you. The name of the collection office and the measure of cash you owe will be listed in the report. Avoid these call at whatever point you can.

It will show that you are a high-risk client.

Timid away from loans or debts 

While it is great to have no debts, it likewise implies you don’t have a credit history. This will bring about a lower score for you. The thing is that loan specialists need to see that you can handle credit and the only way they can tell is you exhibit this ability by having some form of credit previously.

Canceling old accounts 

15% of your credit score is determined by the length of your credit history. If you close your old accounts, you shorten your credit history.

Closing cards with available credit 

When you scratch off your card, the measure of available credit lessens, however your debt remains the same. Along these lines you increase your utilization ratio. That is bad for your credit score.

Declaring bankruptcy

Bankruptcy can put your credit score down into the least ranking. You will need to work hard to re-establish great rating. Search for alternative solutions to eliminate your debt. You can counsel with a credit counselor or a debt relief office.

Various inquiries 

Applying a few credit card applications within a short period will harm your credit score. The creditors can recommend that you are in a serious financial inconvenience. Try not to apply for any plastic that catches your attention!

Having credit cards only 

Your credit report reflects what sorts of credit you have had: credit cards, charge cards, retail accounts, and installment loans. It is advisable to have a sound mix of credit to make your credit score higher.

Reverse Mortgage Scams: What They Are and How to Avoid Them

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A reverse mortgage scam occurs when perpetrators blatantly mislead a senior to take out a lump sum payment on a home’s equity to pay for a bunch of fictional items, costly repairs they don’t need, reverse mortgage counseling fees, attractive insurance policies and investments and feeder fee annuities from their fraudulent company and later these fraudsters disappear with the money and the senior is left with no cash or equity in their home. This results to various challenges such as eviction and poverty due to unpaid loan recovery and much more.

The two most common reverse mortgage scams are the equity theft and foreclosure rescue. In an equity scam , the fraudster purchases a house that is in a foreclosure or distressed/abandoned, sells it to a senior citizen who takes out a reverse mortgage after occupying the property for sixty days and once the transaction goes through perpetrator disappears with the proceeds. In the foreclosure rescue scam, the perpetrator identifies seniors who are at a risk of losing their homes due to foreclosure, convince them to obtain a reverse mortgage to save the property but will then inform the senior that he /she does not qualify. They encourage him to take a traditional mortgage at which point the property and its equity will be transferred to the fraudster.

 

However it is possible for a person to be able to avoid being a victim of reverse mortgage scams and misfortunes. This is possible through a number of ways listed below .these are:

 

  1. Every person should not wait until they are desperate for a mortgage that means you should avoid making financial decisions under stress as this limits the options that you would have to choose from.
  2. Always compare the offers in the market to be on the safer side and check the reputation of those offering them with the Better business bureau.
  3. Avoid those lenders who offer both a mortgage and investments too but rather choose a financial planner, financial officer or an asset manager for investments and in every uncertain investment apply the rule of thumb.
  4. Always consult more than one lender to clarify if a repair suggested by any one lender really exist or it’s just a fraud.
  5. Always consult a third party before signing papers offered to you if you do not know why you are signing them.
  6. Attend the closing of any deal in person to avoid any unknown changes to you on the terms and conditions.
  7. Always be suspicious of anyone telling you that you can own a house without a down payment.
  8. Do not accept payment from individuals for home you did not purchase.
  9. Do not respond to unsolicited advertisements.

 

In case it has happened or happens to you it’s always good to come out and report to the authorities who may help you recover the personal loses and you may be in a position to save other seniors from suffering the same fate and help them avoid reverse mortgage scams.

 

What to Do After Your Mortgage Application Has Been Denied

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When you make a mortgage application and it is denied, you should know the procedure to follow when you want to fix it. However, this is always a simple process that you can do yourself. Here is a guide on what to do if mortgage declined:

  1. Read the rejection reason

When a financial institution rejects your mortgage application, they often give reasons why they think you are not suitable for the given mortgage. You should ensure that you read the reasons why your application has rejected to enable you learn on what you need to fix before they can adjust it for approval. In addition, when you lack ability to comprehend on what might be the problem, you can get help from financial experts who will guide you on the reasons for rejection thus helping you make corrections for approval.

  1. Fix the Problem

Once you know the set of problems that you need to fix before getting a mortgage loan, you should go ahead and do it. By contacting your creditors, you will explain to you the conditions to meet such as having a poor credit history as well as things that you must fulfill if you were to get your loan to be approved. In addition, they will suggest a set of financial changes you have to make in your mortgage application before it is approved.

After you have fulfilled the given conditions, you can reapply again from the financial institution to see whether they will approve your loan. If you do them right, you will always be certain that you will get the mortgage loan that you will need.

  1. Apply with Other Lenders

Just because one financial institution or lender refuse your loan request doesn’t mean that the next lender will. How do you do this? You can go ahead by checking with other lenders within your area. From your research, you will always have online companies or institutions who are ready to give you loans from the available credit history. However, you must do your research well in the market before deciding on what will actually work for you especially when looking for mortgage loans from the financial market. In the end, you will get a financial institution or lender who will be ready to approve your mortgage.

In conclusion, the above is a guide on what to do if mortgage declined if you need to get the best rates when looking for the mortgage loans.

Using Down Payment Assistance in Acquiring a New Home

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Often, people who are looking for a new home find the ideal candidate for their purchase. At first, people might be excited, but then, the bad news comes around: the same property demands a 20% down payment. For many individuals, couples or families, these 20% end up being a very hefty sum which they cannot easily acquire. When they are met with this problem, a substantial number of potential buyers would simply give up. But, this does not have to be the case. With down payment assistance program, the same real estate can be in their reach. Currently, there are almost 2,300 programs that are designed to provide support in the domain of down payment. For these, requirements of eligibility are in places which are connected with a person’s credit, occupation and income, but many do not even know that the same programs exist. Here are the most important facts about these programs.

How Much Will Down Payment Assistance Help?

Recently, a study found out that these programs save, on average, over $17,000. Out of this sum, about $6,000 represent the savings in the down payment stage. A further $11,000 is saved through the monthly payments that take place over the loan’s lifetime. But, when all of these are combined, it is clear that the savings represent a very valuable opportunity. In fact, the savings are so big that for many homes, they represent a big chunk of the entire price of the property.

Who is Eligible for the Programs?

Most often, down payment assistance programs are designed to help out low-income buyers who are looking to buy property. But, there are a lot of programs which do this for the middle-income buyers as well. Here, the problem is that middle-income buyers are regularly completely uninformed about the availability or even the existence of these programs, especially those offered by the federal government, but also the counties and the local communities. Additionally, homes that are included in the Neighborhood Stabilization Program regularly qualify, as well as firefighters, teacher and others who work as civic employees. There are also programs that offer assistance to first-time home buyers, which can be anyone who has not owned their own home in the previous three years.

Finding Down Payment Assistance

The most important place where everyone should start looking for this type of assistance is the readily available online resources that specialize in this domain. Here, many useful tools are available, along with a calculator which will point out which programs are accessible. Other options include using state lists of payment assistance programs, but the DHUD (Department of Housing and Urban Development) website is also a great resource. Finally, any offer should be checked in relation to the county in which the property should be purchased, because conditions and terms often vary.

With all of this, anyone will be able to attain the best possible down payment assistance program. For more information and the best possible advice in the same domain, mortgage broker Jerry Stiles and his website on http://www.jerrystiles.com/ will clear up any dilemma and help people make a substantial savings.