Best 5 reasons Why Mortgage Applications Get Rejected

The mortgage application is rejected by the financial companies due to several reasons. It may be due to insufficient fund in your bank account or high valuation of the property that you wish to finance.

The lender may also reject your application if you do not fulfill the eligibility conditions for the loan. Here are the top five reasons why mortgage application gets rejected:

1. Credit rating: the financial company will first look into your credit history and score. They will reject your application if you have a previous history of bankruptcy or have a poor credit score. They may also reject your application if you have some pending loans. They will look into all the types of loans in your portfolio. This includes the personal loans, car loans, credit card loans etc.
2. Your debt situation: if you owe too much money to different lenders then your application for the mortgage loan may be rejected. All this information is revealed by the crediting agencies. Therefore, if you want your lenders to sanction your loan then clear all your debts before approaching them.
3. Valuation of the property: make sure that the property that you want to finance is evaluated properly. The financial companies reject your application when your property is overvalued or undervalued.The property is appraised according to the location, conditions of the house and the amenities the property provides. Your lender will send their experts to appraise your property. Therefore, find out the correct market value of the property before you place your mortgage application with any financial company.
4. Funds in your account: your lender wants you to have some money in your account for the down payment. They do not sanction the full amount. You are expected to pay about five to twenty five percent of the amount from your wallet.You are also required to pay the fees for the loan application. The company will thus look into your bank account to ascertain that you have sufficient money for all these type of payment. They will sanction the loan amount only if they are sure that you can pay them their fees and sign the down payment cheque.
5. Low income: the financial company will look into your repaying capacity. If you do not have sufficient income or fail to give them the income proof, they will reject your application. This happens if you apply for the loan which is twenty eight percent higher than your income. Look into such conditions before applying for the mortgage loan.

Advantages of Debt Consolidation and Reduction

With debt consolidation you roll up all your debt under one lender. You take the loan from this new lender and use the sum to pay off different lenders. This helps you to lower the monthly installments that you pay to different lenders.

Debt consolidation in fact makes your debt situation much more manageable. You improve your credit score as you don't have to file bankruptcy. You pay all your lenders and clear your dues with debt consolidation and reduction.

The debt consolidation and reduction reduce the worries and stress associated with the debt. You don't have to run to different lenders and make the payments. The repayment agencies are there for you. You deposit the payments and these agencies pay to your lenders. Single monthly payments make the debt management much easier.

You don't have to remember all the deadlines of the loan installments that you have to pay to different lenders. With debt consolidation, you pay regular installments to just one lender. This thus lowers the lenders significantly and thus provide for a better administration and management of the debt.

The plan is structured and customized according to the needs of the individuals. Thus, if you apply for the debt consolidation loan, the agency where you approach for the loan will ask you about the loan that you owe to different lenders, the interest that you pay to different lenders, and the installments that you pay.

They take the information about the mode of payment and the term of the loan. They also ask you all the details of all your expenses and your annual income. With all this information they devise a debt management plan that is practical enough to be followed.

Debt reduction is a part of debt consolidation which either reduces your debt completely or reduces them significantly through different debt consolidation options. The debt settlement helps you to lower the debt by 50% to 80%. In this you approach your lender on your own or through a debt settlement agency and negotiate with your lender.

You explain your lender that you are not in a condition to pay your debts any further and need to settle the pending amount. This way you pay much less than you would actually have paid.

You can also apply for home equity loans to roll up all your debts under one lender. This loan lowers the total interest rate. The interest that you pay is tax deductible. Also the loan comes with the repayment term of 15 years. You can spread the loan installments over the years and lower your monthly installment amount.

Best tips on buying a House at Auction

Investment in real estate is considered as a profitable investment. And if the property is sold in auction, you can manage to get the property at fraction of its original value. Properties are auctioned and the information appears in the newspapers about three to four weeks before the date of the auction.
If you wish to buy a property at auction then you can use the following tips:

1. Read the newspaper. The information about the auctions appears in the local newspapers. This information is also available online.
2. Contact the real estate agent to get you listed in the auctioneer list. Contact the auctioneer and get the auction catalogue form him. This brochure is available for a fee. This catalogue will give you the information about the sales and the condition of the sale.
3. Inspect the property. Visit the property in person and take a view of the location and the property itself. Note down the details. Find out whether it is worth purchasing.
4. Contact the real estate dealers and the neighbors for the advice and information about the home that you plan to buy at the auction.
5. Get all your finances in place. After auction you will get a very short time for all the payments. You will be asked to make about ten percent of the payment on the day of auction and the remaining amount within a month. Therefore, arrange for all the finances that you will require for the payments.
6. Find out the present value of the property. Find out how much the property will cost you and how much you can make on reselling it. Also add to it the fees of the solicitor and other professional fees you will be giving in the whole process. This will give you a broad idea about the profits that you will earn from the auction and sale.
7. Decide the maximum bid that you will make. Stick to this limit. Never get carried away during the auction process.
8. Contact a solicitor who will prepare all the documents for you.
9. Read all the terms carefully. Find out the different charges that the auctioneer can levy on you. Find about the penalties that can be charged in case you back up. Every auction has different terms. Go through these terms to have a clearer picture of the whole process.

Don't be disheartened if you cannot buy the home. The auctions take place often all around the country. Get hold of the information and follow the tips the next time you go for the auction.

Advantages of Online Stock Trading

Online stock trading offers many advantages over traditional method of stock trading. With online stock option you can invest, buy and sell the shares online. You can find all the information online about the share in which you wish to invest your money.

This information is available in the form of charts and graphs. You can find the past as well as the current information about the stock. You can also find the trend charts related to the stocks. You can use these charts to compare the past and the present growth trend of the stock and also predict their future trend.

You can also search for the stock predictions from different experts in the field. All this information proves very beneficial in deciding when and how much you can invest. You can find all the current news about the market movements and the news about the shares.

Online trading gives you the advantage of buying and selling shares automatically. You control your investments and money. You don't have to discuss with your stock broker for how long you will hold your stock and how much you will invest. You take your own decisions.

You get all the information about the accounts, the money you transact, the recent quotes and other related information at the click of the mouse. The method provides you with all the convenience. You manage your money on your own. You can perform the transactions from anywhere and at any time. Whether you are sitting at your home or office, you just need a computer and internet connection.

Thus, the advantages which online trading offers over the traditional stock trading methods can be summed up as convenience, control and efficiency. But clear all your fundamentals before investing your money in the shares by this method. Get your basics clear about the market trends, type of markets and how you can invest. You can opt for either the execution only broker where the broker just follows your demand and does not give you the advice. The other method is to search for the online brokers and open your account with them, deposit the money and start trading.

Now you can trade in futures as well as forex. Choose the option depending upon the risk that you can take. Investing in futures eliminates or lowers the risk associated with such investments. You can also take the advice of online brokers, search for the current news and market trends and then invest your money.

Online trading is a secure way of making investments in shares. The method is simple and once you know what how the market moves, you make money.

Buying a Home after Bankruptcy

You can buy a home after bankruptcy. The financial companies offer home loans for the individuals with bankruptcy. Such loans are also available online. You can apply for bad credit home loans. These are secured loans and are available to the individuals with bad credit history, CCJs and individuals with a history of bankruptcy.

The financial companies look for two things if you have filed for bankruptcy and applying for the loan. First is your income and second is the down payment. The conditions are much different if you apply for the loan after one year of bankruptcy and you apply for loan two years after filing for bankruptcy.

If you intend to apply for the loan within a year or so after filing for bankruptcy then you have to qualify certain conditions. You should have at least three percent to five percent for down payment. Also you should have paid up all your payments in this one year. There should not be any sign of default in your credit after one year of filing bankruptcy.

Things are a lot easier if you are applying for loan after two years of filing bankruptcy. This is because the lenders consider this as a time in which you have build up your credit and now you are reliable enough to pay your installments in time.

To apply for bad credit loan you have to place any of your assets as collateral. This asset can be your new home or any of your property with a value. The bad credit loan can get you an amount in the range of five thousand to seventy five thousand dollars. The repayment term is flexible and you can take the amount with a repayment duration ranging from five years to twenty five years.

To qualify for the bad credit home loan you must have a flawless term of two years after the discharge of bankruptcy. You should have built a good credit record in this term. Besides this, you should have a regular source of income.

The lenders generally ask you to submit your last pay slip from your employer. They also verify that you have made all your payments and have no outstanding loans or debts. If you qualify above criteria then you can also manage to get hundred percent financing for your home.

You can also search for the online options. The loaning process is simple and fast. It is not impossible to buy a home after bankruptcy. All you have to do is weight your options and improve your score so that you can get the loan amount at reasonable rates.

Consolidate All Your Student Loans and Cut-down Your Monthly Payments Substantially

Once you are out of your college with the degree, you have to manage all the bills and monthly installments of different loans you took for your studies. Managing different loans with different repayment installments, different interest rates and different terms gets tough.

The situation becomes worse when you don't have enough money to pay the installments. Debt consolidation in this situation can get you out of the mess. It makes the debt management easier for you. By consolidation you consolidate all your loans into one big loan. You take this loan from a new lender and then pay to different lenders. Now you pay just one monthly installment to the new lender. This makes the management of the debt easier.

Consolidation lowers the monthly installments by fixing them at particular amount that you pay monthly ant fixed rate of interest. There is no application fees, prepayment fees and penalties charged for consolidation loans.

Consolidation also reduces your monthly installments. If you take federal consolidation loan then the interest you pay is an average of all the interest rates under different loans. This weighted average is fixed for the entire loan term and never rises above 8.25%. This proves extremely beneficial if you are paying variable interest in different federal loans.

The fixed interest rate is not affected by the market fluctuation and thus lower the total amount you pay as monthly installments. The interest gets fixed after consolidation and this reduce your monthly installment by about 45%.

If you have a list of private student loans then consolidating it also reduce the monthly installments that you pay to different lenders. The interest rate on private consolidation loan is variable in nature. But there are some financial companies which offer such loans at fixed rate of interest. The financial companies charge one time fees for such loans. But there are lenders who waive off this fee completely. You can search the market and find such companies so that you end up with the best possible deal.

Consolidation also gives you the option to extend your repayment term. So, if you have a repayment term of say about ten years, you can extend it to a maximum of thirty years. This reduce you monthly installment amount and makes the payment of debt easier.

The companies offer you certain discounts and benefits if you make consecutive one time payment. The discount and benefits are given as a break in the interest for one time payment.

Capital gain tax

Capital gain tax is the tax levied on the profits earned from the sale of any non inventory that was purchased at lower price.

What are capital assets?
Any non inventory assets are called capital assets and include stocks, bonds, mutual funds, jewelry or any other property of similar nature. This means every asset you own is a capital asset.

What is capital gain?
Any gain or profit earned due to the sale of capital asset is treated as income and this income is considered under taxable income. Capital gain is classified into two types under the tax code- short term capital gains and long term capital gains. If you purchase any property and sell it within a year then the profits you earn come under short term capital gain. But if there is a gap of more than one year between the purchase of the asset and sale of the asset then the profit you make come under long term capital gain.

There are different tax rules for both the form of capital gain. If you come under 10%-15% of income tax range and you have purchased and sold your property within a gap of one year or more then you are liable to pay 5% on long term capital gain as tax. But if you come under the tax range of above 15% then you will pay 15% tax on capital gain.

How you calculate your capital gain?
You subtract the purchase amount of your asset from the sale amount of your asset. The figure that you receive by this calculation if positive indicates the capital gain or profit that you make. Next you fill this profit amount on the schedule D of IRS.
From 2005 onwards the capital gain tax range from 5%- 28%. But if you have incurred some losses then you can claim for deduction that is up to $3000 per year. If you have loss of more than $3000 then you can claim only $3000 in one financial year and carry forward the remaining loss to the next financial year.

If you have purchased an asset and also sold it within a year then you are liable for short term capital gain tax. Short term capital gains are taxed at normal tax rates. Therefore the amount you pay as taxes for your capital gain depend upon the time for which you hold your asset with you. Holding period starts with the second day after the trade date of the asset and is not calculated from the settlement date.

There are different ways by which you can save the capital gain tax and donating to charity is one of them.

How to file bankruptcy

To file bankruptcy you have two options. You can do this on your own or consult an attorney. If you are filing for bankruptcy on your own just visit the libraries and search for all the information on the websites. Do a lot of research work if you are going on your own.

This is because the rules for bankruptcy filing have changed since 2005 and to complete with the process you should be well aware of those legal terms. There are government forms which you will take from the local court. These forms come with the instruction manual which guides you in filling the form. Although the instruction manual is helpful to a large extent but you still need to know about those legal terms that come across.

For this if possible try to understand them by going through the legal dictionary in the library. Also do some research by consulting some books on filing for bankruptcy. These can be of great help if you are doing things on your own.

The law has changed since 2005 pay attention to the chapters. If you are earning good income then you will have to file chapter 13 and not chapter 7. You are eligible for chapter 7 if you are earning average income or income below the average income earned by the individuals like you in your state.

If your income calculates higher than the average income then you are required to appear for the Mean test. This test is taken so as to ascertain whether you can file under chapter seven. But in case you fail then you will be filing under chapter 13 or so.

Not all debts are discharged under bankruptcy. Such debts include the student loans, child support, tax debt and the debts that you fail to enter in your bankruptcy form. You are also required to attend credit counseling with a government approved credit counseling agency so that they can ascertain whether you really require filing for bankruptcy. This is mandatory for those filing bankruptcy.

Bankruptcy laws are for those individuals who have a large burden of debt and are struggling to pay them off. So to qualify for bankruptcy you have to prove that your total disposable income less your expenses is too less to pay off your debts. There are certain chapters that may confuse you as to keep your property or sell it. As some of such rules are confusing it is better to consult an expert so as to avoid making mistakes in filing bankruptcy.

Amazing Points to Think Before Signing a Finance Agreement

If you are thinking to apply for loan or you have some sort of financial crisis and you are planning for personal loans then you should keep in mind certain facts and points before taking any further step:

1. Compare the rates on the basis of the total amount of interest that you have to pay. The financial companies have different rate of interest and also differ in the interest rate structure and the mode of its payment.
2. If you have completed your research process of searching for all the lenders in the market and comparing their quotes then pay a little attention to the quotes and the payment that are to be made upfront. Make sure that if the quotes differ then the lenders also have same upfront payment.
3. Confirm the end of term title fees of the lender. Make sure that the lender gives you this in written so that you don't have to pay them any residual payment or any type of balloon payment which are generally asked by the lenders once you sign on that dotted line.
4. Keep the documents in written as to when the first and last payments are to be made.
5. Keep all the documents and records with you till you complete the financial agreement.
6. Clear yourself with all the aspects of the agreement.
7. Clarify all the financial and legal terms used in the agreement and understand in full the conditions which may be imposed if you default with the installment.
8. Also find about all the rights and advantages that you have with the financial agreement that you are signing.
9. Consult the broker or an expert in the field. They can guide you with all the procedures. They can also suggest you with the plans and financial compare financial requirements.

If you are a business then

1. You should consider leasing as a method for the equipment rather than purchasing it. This will provide you with the option of using the equipment with latest technology at much lower rates. It also provides you with the tax benefits.
2. Find out the total cost as well as the other cost that your business can have within the financial agreement period.
3. Your responsibilities related to the equipment which you are getting on lease.
4. Find out about all the responsibilities and payments that you will be bearing related to insurance, maintenance and taxes related to the equipment.
5. Clarify about all the payments you will be making after the financial agreement ends.

Student Loan Debt Consolidation

There are debt consolidation loans for the students by which they can consolidate their different loans under one lender. Such educational loans can thus be used by the students who have taken multiple loans from different lenders for their studies and are not able to manage the loan repayment. By taking such loans the students can avoid the conditions of default and prevent themselves from the risk of making their credit history bad.

Merits of loan debt consolidation
The consolidation of your loan can give you many benefits some of them are:

1. It makes your repayment a lot easier.
2. The process gives you the advantage of consolidating you federal as well as private loans under one private bank or financial company.
3. After consolidation you are liable to one lender and so the debt management is easier as you don't have to run to different lenders and pay different lenders at different times in a month or a quarter.
4. The consolidation lowers you interest that you pay.
5. The interest gives you the tax advantage as it is considered tax deductable.
6. The financial companies do not charge any fees for the student loan debt consolidation.
7. The amount that you pay in a month is small.
8. The term of repayment can be adjusted within ten to thirty years according to your financial conditions.

Who are qualified for student loan debt consolidation?

Any facility comes with conditions and this facility to consolidate your debt also requires you to approve to certain conditions. You are qualified for the loan if:

1. You are in the grace period.
2. If you have no previous history of debt consolidation.
3. You are out of the school since three to six months.
4. If you have applied for the deferment period.

There are two options for consolidating your debts:

1. Federal consolidation of the loan
2. Approach private companies to consolidate your debt

If you are looking for federal consolidation loan then you should have at least one outstanding federal loan in the list of your debt loans. If you have such then you are qualified. The loan amount will then be consolidated for you and the interest that you will have to pay them will be calculated by averaging the interest rates of your outstanding debts. The average interest thus is applied to the loan that is sanctioned and it remains fixed for the whole term of loan till you repay the whole of it.
If you are approaching private companies for debt consolidation then the interest on loan will depend on the prevailing rates in the market. The company will also look into your or your parent credit history.

Personal Loans for People with Bad Credit

If you are having a credit score of less than 600 then you will be considered as a bad creditor by the lenders. If you are a self employed and have no income proof, Country court judgment, have a default history of payment, are jobless since years, have piles of debt and have taken loans that you are not able to repay then you come under bad credit rating. Still the personal loans are available for you. They have the same feature like the normal personal loans with a difference of interest rates which are slightly higher as compared to the personal loans for people with good credit score.

The bad credit personal loans are of two types: unsecured bad credit personal loans and secured bad credit personal loans. If you have a property then you can use it as collateral and apply for the secured bad credit personal loan. By doing this you can arrange a loan at slightly lower interest rates besides retaining the ownership of your property and use the loan amount to pay off your debts.

If you don't want to use your property then you can take unsecured bad credit personal loan. But these loans come at slightly higher interest rates as otherwise if you use your property as collateral and ensure the lender of the repayment. The unsecured bad credit personal loans are generally given by lenders for a short term ranging from one year to up to ten years. In contrast to this the secured loans can be taken for a period ranging from five years to twenty five years.

You can use any of your property like car, commercial vehicle, home, jewelry or any document of importance as collateral for the secured personal loan. With bad credit secured personal loans you have to option to spread your repayment amount for years according to your financial conditions. By this you can manage your installment according to your paying capacity and financial conditions and improve on your credit score.

You can use the amount to fulfill any of your financial need like paying off your debts, fees for education, renovation of your home, support wedding expenditure, and pay your medical bills and any such requirement that you cannot carryout due to financial crisis.
Bad credit is not a hurdle if you want loan from the financial companies. All you have to do is accept your condition and find the lender that give you the loan at comparatively lower rates, according to your financial conditions of repayment so that you can repay the loan amount comfortably and improve your credit score.

Information about Realistic Debt Solution

We use credit cards sometimes overusing it; take loans to finance our car or to pay installment for our home. All this and more take us into a sea of debt. The condition gets critical when we have a bad credit history. Here we are in a fix and search for solution to get out of all the mess we are in. the solutions are few. But if followed properly and strictly will take you a long way in getting out of this self created maze.

Realistic solution steps

1. Calculate your debts: this is important so as to find out how much you owe to others.
2. Calculate your earnings: this again is important as you will then be able to calculate how much you can set aside after deducting for your expenses so that you can pay to your lenders.
3. Calculate your credit score: you need to find out your score rating. This will give you the number regarding your reliability to your financers. This is an important step in debt solution because if you are thinking of approaching a financial company for the loans so that you pay your lenders then they will be looking into your credit history, your previous loans that you have taken, the loans that you have cleared and the loans that are still to be paid off, the default history regarding the loan and debt payment and so on. They have the long list with them. So you should be clear with all your history and never try to hide any such details when asked by the financial company.
4. Keep an eye on your expenses: jot down all your expenses no matter how small they are. Trim all those which are unnecessary or which can be avoided. This will help you to save some money which you can use to clear off your debts.
5. Develop your interest: if you have some spare time then develop your interest and turn it into your business that can earn you some money.
6. Search for some fund source: visit the financial market and find out the companies that can help you with some funds. There are different types of loans that you can take and ease yourself off all the lenders. Debt consolidation loans, personal loans and similar type. They are with different interest rate options. Choose the one that best suits your requirements and financial conditions. If you have a bad credit score then also you have some loan options available.
7. Search for the companies that provide debt solution: there are different companies which provide debt solution according to your needs after analyzing your financial situation. Take some advice from them.
8. These simple steps can help you with debt problem and management of the debt situation in a much better way.
   

How to Finance Commercial Vehicle

The vehicles form an important part when it comes to supporting the business. They require a huge amount, and in the conditions of limited personal savings, approaching a financer is the other option available for raising money to buy the vehicle.

The various financial companies provide easy finance for the commercial vehicles. One can approach such companies for the amount required to purchase the vehicle, but, prior to it you should decide the type of vehicle and its usage. Commercial car finance loans differ from the traditional car finance loans in their nature although the process for applying is nearly the same for both.

1. The first step is to look into your requirement and then find out the various companies providing the financing facilities.
2. The companies have their own terms and conditions for lending the amount which you need for your vehicle, but they generally differ slightly and the basic conditions remain same with almost all the financers.
3. The rate of interest differs from one lender to another. Look into the rates offered and the conditions associated. Compare these rates and conditions. The rates depend on the model of the vehicle, their usage and other conditions as well, which differ from one financer to another.
4. The rate of interest on the loan given by the financers is of two types. In the first type the interest remains fixed for the full period of the repayment and this is called as the fixed rate of interest. The second type is the variable interest rate where the rate differs with the market trends. You can choose any of the type of interest depending on your repayment capabilities.
5. Find out the financial institutions offering the e-loan facility and here also make a comparison of the lenders on all aspects of the loans. Find out their reliability and whether they have their contacts in the telephone directory as well as an office to authenticate their presence.
6. Consult a broker or a financial expert who can guide you with the process and can also suggest the financers from whom you can take loans.
7. The financers besides requesting the basic details which include name, mailing address, contact details, your current professions and the likes also look into your credits status.
8. The financers also offer a kind of secured or unsecured loan facilities. In case of secured loans the vehicle is to be kept as a collateral but not so in the case of unsecured loans. Compare this for different financers, analyze your situations and take the type that suits you.

Auto Finance

Going to buy your vehicle and need money for down payment? The financial companies are here to finance. There are many companies with all those loan terms and conditions. So, before applying to them consider certain aspects:

1. The loans are provided with interest rates that you can afford to pay, and are with reasonable terms and conditions.
2. Now first look into your savings. How much you have in your account and how much more you require.
3. Next, find out the financial companies which are giving auto loans.
4. They can give you the option of unsecured or secured loan. In secured loan the financial company or the lender ask for some collateral which can be a property or any such asset which has a value slightly above than the loan amount. In unsecured loans you don't have to place any collateral but the rate of interest is slightly higher than the former. The unsecured loans get a faster approval than the secured ones as the process of evaluation is not involved in it. The auto loans generally are the unsecured loans.
5. Decide the time in which you are comfortable in paying back your loan. Longer the period higher is the rate of interest.
6. The companies have their terms and conditions for the loans. The common one are that you should be eighteen years and above, an employment proof, your residential proof. Minimum amount of salary you should be earning, your credit history. You will be paying more interest if you have a bad credit.
7. There are companies offering the online loans. Search them and compare their quotes. The quotes are given on the basis of the credit score, and it includes fees, mode and the installments which you will pay and so on. Also make sure about their genuine existence and their reliability. The online option is much convenient than the traditional one as the loans are approved within few minutes and you can do so by sitting at your own home.
8. The companies offer certain tempting options. Weight them firmly before opting them at the end as they might prove costly.
9. Think about your repayment installments. It depends upon your own financial ability to pay back. So make sure you choose the one with which you are comfortable.

Also consult an advisor who can explain you the jargons used in the financial field. Financing also include the insurance that you should have for your auto. Finding an insurer also involve the above listed points that you should consider. The funds should be carefully planned and raised so that you save yourself from the financial stress and enjoy your auto ride fully.