There are many ads on the radio, television or on the internet that say “guaranteed loan approval” in just less than twenty four hours. Is there any kind of catch? Is there anyway you can get a better term on your home refinance loan from one of these lending institutions. If these companies are guaranteeing the sign up process, then there should be no let downs or dead ends in the search of a loan, right??!!
Your credit dictates the terms of the loan – the true fact is that the terms of the loan will be delivered on the basis of your credit scores and that is “guaranteed”. If you have a good credit rating, then you will get the best terms from the mortgage lenders and if you are having a poor credit history, then the terms will be designed accordingly. However, putting up the kind of assets as collateral will also decide whether you are getting approved. Most lending agencies will prefer a real property in collateral so that they can take the risk by lending you the loan.
Your credit report – The mortgage loan companies will most certainly approve your loan application on the basis of your credit ratings. If you have a good credit score, then you will get the loans at lowest interest rates. However, if you have a poor credit history, then they will lay down the worst terms possible and you might lose everything that you own if you default in their monthly payments. Not to forget, they will be charging you the highest interest rates until that time shapes up. Every loan company will review your credit report and see how you have been handling your past accounts. They want to check from your credit report and analyze how good it will be to offer you new loan with less risks involved.
Pull your latest credit report from the three credit reporting agencies – As per the federal laws, you are entitled to get a free copy of your credit report at least once a year from the three national credit reporting agencies. Check each item on the credit report from the three national credit reporting agencies because the credit grantors are not obligated to report the same information to all the credit reporting agencies. Make sure that you have checked for any negative items on your credit report and if they have surpassed the seven years reporting time frame, then they should be immediately removed from your file. You should also check for any inaccurate negative items because they will be hurting your credit scores tremendously.
Gather your documents and get organized – make sure that you organize all the documents related to the past and present accounts on your credit report and put it in a folder that is easily accessible to you. You should have a complete track of your tax returns, pay stubs, bank statements, property deeds and anything else you can think of. These documents will be needed anytime when you are applying for some kind of a loan or a mortgage.
This entry was posted on Monday, November 3rd, 2008 at 5:33 pm and is filed under Loan, Mortgage. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.