DIFFERENT TYPES OF MORTGAGE, FIXED AND ADJUSTABLE RATE

DIFFERENT TYPES OF MORTGAGE, FIXED AND ADJUSTABLE RATE

The fixed rate mortgage: Fixed rate mortgage is among the commonly used type of mortgage. Many prefer this because the interest rate is predetermined and it remains the same throughout the life of the mortgage. This makes it predictable. Thus, … Continue reading

TEST YOUR CREDIT SCORE KNOWLEDGE

What is a credit score?

All credit active people have a profile. This is a summary of your history with every credit provider you’ve ever dealt with, and serves as a record of how well you’ve managed your accounts like loan repayments, overdue debts, how often you’ve asked for credit and the kinds of loans or credit you’ve applied for, and the frequency of your applications.

How it works?

Credit reporting providers summarize your profile into something called a credit score. The score is between 300 to 850, where the higher the number, the more likely you are to be able to repay a loan. Lenders look at your credit profile and score to find out about your credit history and behavior, and assess if you are able to take on a new loan. This information reassures lenders that you’re good at paying money back to those you’ve borrowed from.

A good score not only makes you more likely to get approval on your home loan application – but it also means you’ll qualify for a better interest rate. Of course, the other side of the coin is that if you have a poor score, you will be less likely to qualify for any new loans. This protects the lender and those with low scores from taking out additional loans and overextending themselves and getting into more debt. In short, you’ll need to have a good credit score rating for your home loan application to be approved.

It’s therefore a good idea to first find out what your credit score is before applying for a loan, and to give yourself time to improve it before approaching a lender.

How to improve your score?

Improving your credit score starts with looking at your current financial situation and ways to improve it. Getting into a good credit position before you apply for a loan can help increase the likelihood of you getting approved.

You can improve your score by:

  • lowering your credit card limits
  • consolidating multiple personal loans and/or credit cards
  • limiting your credit enquiries
  • paying your rent and bills on time
  • paying your mortgage and other loans on time
  • paying your credit card off in full each month

To avoid any surprises, be prepared and know your credit score.

Written by Lisa S. Brought to you by EzineArticles.

SAVING UP FOR A DOWN PAYMENT ON YOUR NEW HOME

SAVING UP FOR A DOWN PAYMENT ON YOUR NEW HOME

If you have decided that you want to purchase a new home, your first step is to save up for a down payment. This can be a particularly overwhelming thought. But with motivation and some hard work, you can have that … Continue reading

MORTGAGE BASICS FOR THE FIRST TIME BUYER

MORTGAGE BASICS FOR THE FIRST TIME BUYER

Understanding the concept Mortgages are what a lot of people use to buy their home. Mortgages have been instrumental in helping many people, by making that unaffordable house affordable. Some real estate investors make use of mortgages for buying properties. However, … Continue reading