Part of getting a loan is having everything you need together and ready before you apply. This article covers some points to keep in mind the next time you apply for a loan.

Getting Approved for a Loan – Preparation is the Key

By Sergio Haros

As with many tasks in life, preparation and hard work go a long way to securing success. If you intend to apply for financing for a home, preparation is definitely the key and it does not require much work.

Assume you are going to sit for your college entrance exams. Obviously, getting the best score possible on them is crucial. You want to go the best possible institution of higher learning. Given this fact, are you just going to waltz in and take the exam or are you going to prepare yourself as much as possible? Unless you are Stephan Hawking, you are probably going to put a lot of time and effort into preparing yourself for the big test.

Applying for a home loan is a test of sorts. A lender is evaluating a number of factors to see if you “pass” the basic requirements for approval. These factors can include everything from your employment history to credit score. Buying a house is an important moment in your life. Are you going to apply for the lender test without preparing for it? You are taking a huge risk if you do. Just like college entrance exams, preparing for your home loan application will help you get approved with the best rates.

The first thing you should do before applying for a loan is order your credit report from the credit agencies. The big three are Equifax, Trans Union and Experian. Given their important role, you might be surprised to find out they offer incredibly poor service. It is estimated that up to 50 percent of all credit reports may contain incorrect information. The agencies cannot even get their act together on basic things. For instance, they were fined a total of 2.5 million dollars in 2000 for failing to provide phone numbers where the public could reach them.

Once you get the credit reports, read them closely. You will probably find all types of listings that are not yours. Challenge these immediately per the information provided on the reports. Your credit score is a significant part of the evaluation process for your application. Upgrading your credit by challenging errors can move your credit score enough to get you better interest rates and save you tens of thousands of dollars.

Beyond your credit score, you should look at your overall assets. Make sure you identify where all of your assets are [stocks, bank accounts, mutual funds, etc.] and get documentation to support the fact they exist and for how much. Also, get copies of all your tax returns, state and federal, for the last three years. If you are self-employed, you should also gather all tax returns for any business entity you work under.

When you make the decision to apply for a home loan, don’t just run out and apply. Take the time to get your credit report in good shape and get together the documentation you will need. Once you are prepared, go take the test.

Sergio Haros is with Great Western Mortgage – providing home loans to borrowers.

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Here are the credit card rules explained. There have been some questions about what the new rules will mean to credit card holders and I thought this article did a good job of explaining what the credit card companies can do.

Remember to read the fine print before getting a credit card and know that you are responsible for charges made.

New credit card rules add accountability New credit card rules add accountability

Vast changes in credit regulation coupled with a souring economy turned 2009 into a turbulent credit year, with a record number of rate hikes, consumer cancellations and changes in fees, terms and credit limits. Experts say there’s more in store for 2010.

“2010 is going to be the year of accountability,” said Adam Levin, chairman and co-founder of Credit.com, a credit-shopping Web site.

To recap, Congress passed the CARD Act — short for the Credit Card Accountability, Responsibility and Disclosure Act of 2009 — in May. Legislators gave banks time to acclimate to the new rules by putting in three effective dates — August 2009, February 2010 and August 2010, which affects gift cards.

Last August,credit-card issuers were required to give consumers 45 days’ notice of rate hikes and bill people at least 21 days before their payments were due.

In addition, consumers got the ability to “opt out” of a rate hike. The catch is the bank can close your account and double your minimum monthly payment, Levin said.

But most significant changes go into effect early next year.

As of Feb. 22, if you have a consistent history of paying on time your rates cannot be increased on outstanding balances except when a “teaser” rate expires or when you have a variable-rate credit card.

If a credit card company hikes rates on a fixed-rate card, it is only allowed to charge the higher rate on new charges.

Your rate can be increased if you’ve been irresponsible about your credit use, though. If your payment is more than 60 days late, the issuer can charge a higher penalty rate that can be applied to an existing balance. However, the credit card company must reinstate the lower rate if you make at least six months of on-time payments.    –more

Related credit card articles

• $50 Billion in New Credit Card Fees? Lenders React to CARD Act (dailyfinance.com)
• MICHELLE SINGLETARY: Ring in the New Year With Consumer Power (kitsapsun.com)

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When you are looking for quick cash be extra careful of very high interest rates.  Here is one example of a credit card company taking advantage of people.  Always consider the interest rate and the fees before you get the money to make sure it is worth it and you can pay it back.

New credit card has 79.9% interest rate

NEW YORK | It’s no mistake. This credit card’s interest rate is 79.9 percent.

The bloated APR is how First Premier Bank, a subprime credit card issuer, is skirting new regulations intended to curb abusive practices in the industry. It’s a strategy other subprime card issuers could start adopting to get around the new rules.

Typically, the First Premier card comes with a minimum of $256 in fees in the first year for a credit line of $250. Starting in February, however, a new law will cap such fees at 25 percent of a card’s credit line.

In a recent mailing for a preapproved card, First Premier lowers fees to just that limit — $75 in the first year for a credit line of $300. But the new law doesn’t set a cap on interest rates. Hence the 79.9 APR, up from the previous 9.9 percent.    –more

Related Interest rate articles

• To lower interest rates, Citi customers must spend (sfgate.com)
• Consumers Want Credit Card Rules to Kick in Soon (abcnews.go.com)
• Holiday shopping credit card tips (money.cnn.com)

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Loan modifications have been in the news a lot lately.  Not everyone can qualify for a loan modification and in some cases the home owner is worse off after the modification than before.

These articles shed some light on loan modifications.

Questions About Loan Modifications

Many people are confused about the loan modification process. Because different banks all have their own procedures and qualifications, this is understandable. When adding in the guidelines provided by the Making Homes Affordable (MHA) program and the Home Affordable Modification Program (HAMP), figuring out how to go about negotiating a successful loan modification can be a nightmare. As a result, many homeowners turn to third party Attorneys to help them with their loan modification.

Below are a few questions many homeowners may have about loan modifications and the loan modification process. It is important to keep in mind that while the Attorney is there to help their client, certain laws and regulations on the loan modification business prevent them from predicting or estimating the loan modification results. Additionally, Attorneys will generally shy away from advising their clients on when to make their payments or whether they should make them at all.   –more

Loan Modification Program – The Tips One Must Learn

In the conditions of today’s economy more and more people are facing terrible financial problems. There are a lot of those who live from one salary to the other because they have no opportunity to pay their bills and to live decently. The reasons for that are various. Some have lost their jobs; the others had some health problems and had to spend a lot of money on the remedies. The reasons are multiple and completely different but if it was not for the loan modification millions of people would become bankrupt.

That is why if you are about to become a defaulter it is better to look for the ways out of the difficult situation you are in than to cry over your difficult situation. If you face foreclosure you still have chance to apply for the loan modification program, but it is better no to linger as in such a situation there are all chances that you will lose everything. In order to get loan modification you need to have good expertise in the subject as in such a way you will be able to cope with the difficulties and to prevent misunderstandings which will cause refusal in loan modification.   –more

Related loan modification articles

• Homeowners With Good Credit Are More Likely To Strategically Default [Mortgages] (consumerist.com)
• With All the Obama Legislation and Talk About Loan Modifications, it’s a Wonder if Anyone Even Knows the US Loan Modification Laws (prweb.com)
• John Suthers, Colorado Attorney General, Announces Actions Against Foreclosure Companies (huffingtonpost.com)

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When should you get an instant cash loan and when shouldn’t you.  That is the dilemma you may be facing. These articles cover some points that should be considered before making a decision.

Bad Credit Cash Advances

I’m certain that you have heard all those commercials about getting pay-day loans to cover unexpected expenses. You see the commercials you hear all the hype about them. The truth is they could be a awfully good thing, but you’ve got to perform a little research of your own before doing. There are many rules and conditions with these pay-day loans.

Everyone knows the pay-day loans are used to cover unexpected costs with a very temporary advance, often until their next payday. They’re often called a payday or paycheck advance. The pay day Loans US rules usually terribly from one state to another. Different states have different laws too. Most states have boundaries on the amount that you can borrow. They also have the legal right to charge any APR. The bank has the right to pick what it’s going to be. Most states impose very little restraints on what the APR can be set at.

As you research these loans, you will find the secured and non- secured loans are opposite in some areas other than needing or not needing assets to obtain the loan. You’ll find payday loans for the jobless are offered at higher interest rates. Although, with some work, you need to be in a position to find companies that are providing more competitive rates than others. The amount of money that one is able to borrow is mostly less with a non- secured loan, and the repayment time is shorter. You must weigh the benefits and disadvantages with each option and selected the one that fits your situation. –more

Instant Cash Advances – Are You Suitable?

Your daughter needs a new pair of backpack, your son needs new cleats for football, and your gas tank in your car is very low.

You’ve heard of instant cash advance loans, but how do you know if you’re eligible and what information will they need to approve you?

Most instant cash advance loans are based upon three main things; your income, an open bank account and your social security number. So, basically, if you have a job, an open and active checking account and a valid social security card, you’re able to be approved for a cash loan.   –more

Related instant cash loan articles

• How To Find a Legal Loan Shark (howcast.com)
• On Poverty, Interest Rates, and Payday Loans (meganmcardle.theatlantic.com)
• Providing credit to the poor (blogs.reuters.com)

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Hard money is an alternative to bank financing.  If you have a project or something similar that requires funds, hard money is a viable option to consider. The articles I posted go into a little more detail as to what hard money is all about.

Hard Money Financing | How To Find Hard Money The Easy Way

Since banks and other lending institutions do not deal with hard money loans because of the high risks involved, it can be quite hard to find a hard money lender. Thorough research is needed when finding the right lender who will attend to your needs.

Have as much options as you can. Compare rates with other lenders and choose the most reasonable and suited to your needs. It is important to look through the interest rates put by the lenders. Since the rates do not follow the standards of traditional lenders, it varies from lender to lender.

Choose the best offer that fits you. However, you should always have other offers reserved because you might not know when your chosen lender might have unexpected demands. Be sure to have a backup plan when this happens.   –more

The Process of Hard Money Lending

Hard money lending is an industry that often gets overlooked. When you think about borrowing money, most of the time, you think about banks and traditional mortgage lenders. However, hard money lenders present another option to get the money you need. Because it is out of the spotlight, many people have no idea how the process of hard money lending works.

Who are Hard Money Lenders?

In order to fully understand how hard money lending works, you need to understand who hard money lenders are. Hard money lenders are not banks or traditional mortgage lenders. In most cases, they are individuals who have some extra money to lend.   –more

Related hard money articles

• Money Changes Everything (freakonomics.blogs.nytimes.com)
• Real Estate Wholesalers Create Cheap Real Estate Deals and Income Producing Property for Denver Real Estate Investors (prweb.com)
• Consumers Turn to Bad Credit Loans to Help Ease Pain (prweb.com)