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August 27, 2013

5 Tips for Saving a Home Loan Deposit – Fast!

for home loansSaving your home loan deposit can seem like a difficult task, especially if you are a first home buyer. Luckily, there are a range of things you can do that will help to make it happen sooner than you might think. Here are 5 top tips for saving a home loan deposit efficiently and effectively.

Cut Your Unnecessary Spending

The first step to boosting your savings is to immediately start cutting down on your unnecessary spending. If you want to get a home loan deposit together as fast as possible, it’s worthwhile scaling back what you spend on other things. Every little bit counts, and it can be as small as bringing your own coffee to work, eating at home instead of dinner out, and cutting out impulse spending on luxury items.

Analyse Your Budget

Now that you’ve made a start, it’s time to take a good look at your budget. Analysing your income and expenses will help you to ascertain where your money is going, and how it can be optimised to create a more effective savings plan. Ensure that your budget is clear and comprehensive, and use it to help you maximise your income.

Dedicated Savings

To get the best results, consider opening a new savings account specifically dedicated to your home loan deposit. Look for something that is high interest with low fees to ensure that your savings continue to grow. Divert a set amount of your weekly wage directly into this account, and be sure to add extra contributions whenever you can afford it.

Consider a Professional’s Input

If you feel like you have tried all of the above and still haven’t seen a great boost to your savings, it might be time to call in some expert assistance. Talking to a financial professional can give you new ideas and strategies on the smartest ways to save, helping you to own your dream home sooner. You may even be able to get great advice from a lender, particularly those with a history of helping people to achieve their financial goals. Agencies such as Fox Symes are famous for their quality debt solutions, and have also become specialised in offering great value home loans. By choosing a lender like this, you are truly getting the best of both worlds, and will have all the help you need to effectively save your deposit, fast!

Stick to It!

Now that you have a great savings plan in place and your finances are working efficiently, it’s essential that you focus on the long term. It’s easy to feel discouraged if you get caught up in day to day expenses, and the trick to success is to have a positive attitude and always remember your end goal. Never forget that all of your hard work now is allowing you to achieve the incredible goal of owning your dream home in the future.

With these top tips, you will be able to start a quality savings strategy to help you buy your own home sooner than you might think. Time is of the essence, and when you’re looking at saving a home loan deposit fast, every day counts. Get started today and enjoy the reward of seeing your savings grow!

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August 8, 2013

6 Reasons an FHA Mortgage May Be The Better Choice

FHA mortgage for allThe Federal Housing Administration, also known as FHA, has been insuring mortgages since the 1930s. From the time of the Great Depression, the agency has assisted low to middle income consumers in their quest to purchase a home that, otherwise, they may not be able to afford. While FHA mortgages have a reputation of being more costly for the consumer, FHA also offers other perks that make these loans attractive. Here are 6 reasons an FHA mortgage may be the better choice:

1. Credit

When using an FHA loan, the borrower is subjected to less stringent credit requirements. For automated underwriting approval, an FHA mortgage requires that a borrower have a minimum credit score of 620 and a maximum debt to income ratio of 43%. However, manual underwriting can take into consideration additional compensating factors that are used to strengthen a loan approval. In addition, FHA will also consider non-traditional sources of credit, such as cell phone and utility bills and payments.

2. Down Payment

FHA offers one of the lowest down payment mortgage programs available to consumers. With a down payment of 3.5%, an individual with a credit middle score of at least 620 and a debt to income ratio of no more than 43% can purchase a home.

3. Gift Funds or other sources

FHA mortgages allow the borrower to use gift funds that meet approval to help fund the loan. Gifts may come from a variety of sources, such as family, friends and employers. Many borrowers will also combine an FHA mortgage with funds from state or local housing initiatives that come in the form of low interest loans or bonds.

4. FHA Refinance

FHA mortgages offer an existing borrower an easy way to refinance through its FHA streamline refinance program with no cash out. With the streamline program, a borrower is not required to submit any documentation, a credit history is not required and an appraisal is not needed. FHA relies on the borrower’s current mortgage payment history which must be satisfactory. In addition, there must be a “net tangible benefit” when refinancing with the streamline. This means that the borrower must save a certain amount of money each month through the approved refinance. However, other situations could be considered a benefit, such as moving from an adjustable rate mortgage to a fixed rate mortgage.

5. Assumable

FHA mortgages are assumable, something that is not available with conventional loans. An assumable mortgage is one that a buyer can assume from the seller at the interest rate that the seller currently has. There are some stipulations that must also be met and the borrower must be approved in order for the assumed mortgage to be accepted. However, this is a definite perk for a home seller who holds an FHA mortgage.

6. Multiple Mortgage Programs

There are many different types of FHA mortgage programs available to home buyers. The FHA 203(k) is a type of mortgage that is used when there are repairs or maintenance issues that must be addressed when purchasing a home. FHA also offers sweat equity loans for home buyers who are interested in using their sweat equity towards their down payment. Manufactured housing loans are also available through FHA. Today, FHA’s energy efficient loans are also becoming a popular choice.

The type of loan that a home buyer chooses will always depend upon their needs and their goals. It is an individual decision that requires a home buyer to become educated about what is available to them. By doing so, a home buyer can become a successful homeowner for the long term.

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April 22, 2012

Do You Need a Financial Makeover?

There’s no one among us who would turn down more money. We could all use a little extra cash. Even though we’re all the same in that respect, what we’d do with any extra money would be radically different. All of us have different spending habits and personal finances, and not all of us are very smart with our money. Everyone needs to examine their finances from time to time and look for ways to improve, but some of us need more help than others.

The following are five essential questions you need to ask yourself. If you answer no to all of them, you are in dire need of a financial makeover.

Are you happy with your spending habits?

The first clue that you need a financial makeover is if you’re unhappy with the state of your finances. You might not be able to instantly increase your monthly income, but you can do something about your monthly spending habits. If you’re not satisfied with how you’re spending, it’s time to do something about it by taking a very close look at where your money is going.

Do you have a six-month emergency fund?

One of the best things you can do for yourself financially is keep a six-month emergency fund. This fund should have enough money to pay all your bills and cover your entire cost of living for six months, just in case anything was to happen and you lose your income. If you don’t have your emergency fund yet, or if you’re tapping into it now, you probably need to make over your finances.

Are you putting away some savings every month?

Even if you don’t have a six-month emergency fund yet, you should be working toward it regularly. After everything is paid for, do you have money left over? If you do, what do you do with the leftover money? If you aren’t saving any of it, you’re going to have to start. While you should be treating yourself and enjoying your money, at least some of it should get put aside every month.

Do you have a budget?

When your paycheck comes in, do you know where it’s all going? Do you have target dollar amounts for your spending in all categories, like food, clothing, and restaurants? If you don’t, the single best thing you can do for your finances is create a budget. You’ll need to really evaluate your spending habits. When you write everything down, it will be easier to find problem areas, and it will be easier to reach your financial goals.

Are you paying off your debt?

If you have debt, you should be working to pay off a portion of it every month. Hopefully you can afford to pay more than just the minimum payment, too. If your debt is growing, you are in desperate need of a financial makeover. It is possible for you to begin paying off your debt if you make doing so one of your financial priorities as soon as possible.

Alexander Wilson is a small business owner and freelance writer who loves to travel when he can afford it. After saving for a long while he is looking to book himself a trip at one of several hotels in Maldives. His fiance has a love for island resorts and if things go well on this journey he may consider a honeymoon in the Maldives one day.

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December 6, 2011

Payday loan lenders offer options for bad credit

Despite the fact that payday loans are one of the more unfamiliar types of loan products to many people, payday loan lenders may offer more loan opportunities for borrowers with bad credit than other types of traditional lender.

Payday loans are often given to borrowers with bad credit, with amounts often up to £80-£1000.

Payday loan basics

Often referred to as cash advance loans, or cash advances, this loan product is intended as a very brief cash fix when you are in an emergency situation. If an unexpected veterinary or repair bill comes about, or you fail to plan enough cash for your holiday, payday loans may be a way to cover yourself efficiently.

These lenders are sometimes more sympathetic to the needs of bad credit borrowers because the cash advance amounts are smaller and they are more concerned with your ability to repay the funds (plus any interest and fees) on your next payday.

Payday loan uses

Credit preservation may be one of the main motivations for people using cash advances in order to preserve their credit score, whether that have a less than perfect credit history or not. Delaying payment on unexpected bills beyond the payment deadline can lead to negative marks on your credit score. If the numbers all add up, it may be worth considering paying a cash advance fee and interest for quick cash versus being charged a late payment fee and getting marks against your credit history.

Application process

Applying for a cash advance loan is often relatively simple. You can complete an online application, get a quick review, and, if accepted, get your cash advance funded within a few hours. This efficiency is part of the nature of the payday loan. Its primary purpose is to help you in quick cash emergencies. Tedious and drawn out application processes do not work as well in this loan sector as they do in other traditional loan areas.

Getting a decision on your cash advance request is often fairly quick. Payday loan lenders will generally want to know that you have income to cover your loan and interest and any fees, so being in regular employment with a regular income will usually be essential. Funding may be dispersed to your bank account, giving you quick access.

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