Category Archives: Home Loan

Tips to Help Save Interest on Your Home Loan

Here are some tips on to save on interest by paying your home loan faster.

1. Check all the Financial and pay off terms to make sure the loan is not totally onerous for the borrower. Calculate the total payments you have to pay and choose a term that you can easily pay off in a monthly or quarterly period.

2. Always make the home loan payment a priority when it comes to budgeting. When the family income comes in, the borrower should always deduct that amount needed to pay off the home loan payment to make sure it is not spent on other expenses.

3. Ask the loan provider if a rebate is given for early or on time payments. Some lenders give a rebate every time the payment is paid on or before the cut off date. The savings you will get from paying early can be given to the lender as an advance home payment. The amount may be meager but it will add up and will later lessen the paying period.

4. Allot a percentage or better yet, apply all the bonuses and other financial gains to the home loan payment. This will be considered as an advanced payment and will get you a breather in case there is an emergency and the money for the home loan is used for a more important expense like health emergencies.

5. Encourage family members to take on extra work or projects to add to the family income. The benefits of owning a home will redound to the whole family so it is important to make the members aware that pitching in home loan payment will always work for the benefit of the whole family. Each member who gets and extra income can allot a portion of that income to paying off the home loan. No matter how meager that extra income may be, it will add up and will help in paying off the home loan the soonest possible time.

Pre-approved Home Loan in California

While purchasing & investing money in residential, most people do not have ready cash to purchase the property. In such scenarios a buyer can secure a loan from bank or broker against the value of the property that need to be purchased, this is call as pre-approved loans. pre-approved loans are basically a process of checking the financial position and credit rating of the borrower in detail.

In-order to get pre-approval loan a borrowers may contact lenders and compare rates to select the best one to match with the financial requirements. Borrowers may examine credit, verify employment and annual salary, and they also check the borrower’s outstanding debts prior to pre-approvad. Borrowers’ assets are also checked before the approval of loan, to determine how much money borrowers may pay towards down payment. There are time when lenders wants to ensure that  that borrowers are financially strong so they may also ask for the federal tax returns at the time of loan process.

Process of pre-approval takes about one week but it is suggested that borrowers should get pre approval well in advance. If borrowers get pre approval then borrower can get better services from sales agents.

Bad Credit Home Loan California

Getting home loan for good credit owners is easy job, if compare to bad credit owners. As bad credit holder are always in a risk of not getting loan from anywhere. But California offers a good news for the bad credit holders residing in California. There are some key factors that one should keep in mind while purchasing a bad credit home loan in California. There are time that you will notice that the interest rate is higher for bad credit holder as compared to good credit holders. Some of the lenders also offers a poor credit home loan at lower rates if compare to another lender as the do not offer the same rates always. The fees is also higher and the terms are also strict in bad credit home loan scenarios, so it is better to check many loan providers to see the one who can offer in the way that benefits the borrower.

It is also very essential for a  borrower to always check the loan type &  all sorts of doubts about the loan before signing of the contract. And most of all the interest rates should be checked thoroughly before considering a loan. Owning a house with a bad credit loan has become more easier in California nowadays. Now with the help of California, bad credit home loan it is easier to own a house or refinance an existing loan even while having a bad credit.

3 Important Things to Raise Your Credit Score For Home Loans In California

1.Check Your Credit Report – One should always check his credit score report more frequently in-order to repair his/her credit rating. If you haven’t  check your rating then you should request for a free copy of your credit report today and check it for errors. As a credit report contains a complete data which is used to calculate your credit score and there are chances that it may contain some errors. It is recommend to check the credit report  in-order to make sure that there is no wrong entry present in the report such as account late entry or any kind of penalty charges that may devalue the credit rating while applying for a home loan in California. If you find errors on any of your reports, dispute them with the credit bureau and reporting agency.

2.Setup Payment Reminders – Credit payment on time is one of the  biggest contributing factors to your credit score. As today every bank offers payment reminder facility with the help of their online banking portals which automatic sends system generated reminder via email & text messages to a customer reminding about the payment due. With the advancement in the technology one can also  consider enrolling in automatic payments options to have payments automatically debited from your bank account. But still there are some drawback with this process as this will only clear a minimum due amount and will still not help in the money management.

3.Reduce the Amount of Debt You Owe – Reducing the amount you owe, it cannot be considered as an easy task but if its done then it can be satisfying achievement in-order to improve your credit score.

This can be achieved by following the below mentioned point:

• The first thing you need to do is stop using your credit cards.
• Use your credit report to make a list of all of your accounts
• Go online or check recent statements to determine how much you owe on each account and what interest rate they are charging you.
• Come up with a payment plan that puts most of your available budget for debt payments towards the highest interest cards first, while maintaining minimum payments on your other accounts.

These are some of the basic tips & tricks that can help you to raise your credit score either if you planning for a home loan in California.