real estate – Templo Do Conhecimento http://templodoconhecimento.com/ Tue, 19 Apr 2022 11:03:25 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://templodoconhecimento.com/wp-content/uploads/2021/04/cropped-icon-32x32.png real estate – Templo Do Conhecimento http://templodoconhecimento.com/ 32 32 A surprising thing could be asked of you when applying for a personal loan https://templodoconhecimento.com/a-surprising-thing-could-be-asked-of-you-when-applying-for-a-personal-loan/ Fri, 11 Mar 2022 11:09:00 +0000 https://templodoconhecimento.com/a-surprising-thing-could-be-asked-of-you-when-applying-for-a-personal-loan/

Wondering how to get a personal loan? These 5 steps are important to follow before even applying.

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Admittedly, gathering everything you need to apply for a loan can be tedious, but on the other hand, personal loans are often one of the quickest loans to get because you can sometimes get the money in a matter of seconds. days. (You can see the personal loan rates you may qualify for here.) That said, you’ll be much better off if you have the necessary documentation for a personal loan and know other key things you’ll want to do before you officially apply. (Also, read this guide first to determine who a personal loan might or might not be right for.) Here’s how to make sure you’re properly armed with everything you need to make the application process as smooth as possible.

1. Gather documentation that a personal lender might require

The specifics needed to determine loan eligibility will vary from lender to lender, but most will ask:

  1. The loan request (this typically asks for information such as name, address, date of birth, social security, and other personal information, as well as how much you want to borrow and why);

  2. Identity proof (this may include a passport or driver’s license);

  3. Proof of employer and income (this may include a W2, pay stubs, bank statements, 1099 forms or tax returns); and

  4. Proof of address (this may include utility bills or a lease or mortgage statement, proof of insurance on your home, voter registration card or property tax receipt).

This is only a preliminary list, so be prepared to provide further information. It could even include your educational background, says Annie Millerbernd, personal loan expert at NerdWallet, who explains that if a lender asks about it or what you studied in school, they may be trying to figure it out. earning potential. “Your level of education is unlikely to trump income or credit,” says Millerbernd.

2. Pull your credit score in advance and improve it before applying if necessary

Before applying for a personal loan, check your credit score because credit is, like most loans, a big factor in determining the rate you will get or even if you get the loan. The best personal loan terms typically go to people with credit scores in the mid-700s and above, says Ted Rossman, senior industry analyst at Bankrate. “You can potentially get a personal loan with a lower credit score, but especially when you drop below 700 on the FICO scale, your odds are going to get noticeably worse and your interest rate should be significantly higher,” says Rossman. According to Bobby Ritterbeck, president of personal loans for Best Egg, the minimum credit score you’ll likely need to qualify for a personal loan is around 610 to 640. (You can see the personal loan rates you may qualify for here.)

“Banks generally prefer good or excellent credit over a personal loan application, while a credit union may look more at your overall financial situation than your credit score alone. Online lenders tailor their loans to borrowers in different situations, so there are good and bad credit online loans,” says Millerbernd.

As with any loan, the higher your credit score, the better the terms of your personal loan. “If you have strong credit, you can get a loan with a single-digit APR. However, if you have poor credit, the APR could reach 30% or more, well beyond what you would pay with a typical credit card,” says Matt Schulz, chief credit analyst at LendingTree.

3. Understand the other factors that personal lenders are looking for and improve on them too

“Your credit score isn’t the only thing lenders will consider. The length of your credit history and your debt-to-equity ratio can also affect your ability to get a personal loan,” says Ritterbeck. To find your DTI, add up your recurring monthly debt, including credit cards, mortgage, car loan, student loan, and more, and divide by your total gross monthly income, which is the amount you earn before taxes, withholdings and expenses. Typically, lenders like to see a DTI of 43% or less. If you can pay off some debt or increase your income, that’s a good way to improve that number. (You can see the personal loan rates you may qualify for here.)

4. Know if you get a secured or unsecured personal loan

Because unsecured personal loans are exactly that – unsecured debt – you don’t have to put assets such as your home or car as collateral. Secured personal loans, however, will require valuable assets including investment accounts, real estate, and collectibles to use as collateral, should you default on the loan. If you get a secured personal loan, you’ll need to show proof of property you own, such as a paid-off vehicle, jewelry, savings accounts, investments, art, and more.

5. Understand if a personal loan is right for you and how you will repay it

Personal loans aren’t for everyone: While they can be effective tools for debt consolidation or essential projects where you need money fast, they aren’t suitable for discretionary spending. And if you decide to take out a personal loan, make sure you have a solid plan to pay it off in full and on time.

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How to get a home improvement loan that’s right for you in 5 steps https://templodoconhecimento.com/how-to-get-a-home-improvement-loan-thats-right-for-you-in-5-steps/ Mon, 28 Feb 2022 23:02:42 +0000 https://templodoconhecimento.com/how-to-get-a-home-improvement-loan-thats-right-for-you-in-5-steps/

Photo: istockphoto.com

Finding the right home improvement loan or home improvement loan can seem like a daunting prospect. It is essential to understand all parts of the loan, such as loan repayment terms and how interest rates can affect your payment. Without this information, owners could end up incurring debts that they may struggle to repay. Read on to find out how to get a home improvement loan to secure a loan deal you can afford to repay with confidence.

Before you start…

How to Get a Home Improvement Loan

Photo: istockphoto.com

A home improvement loan is money that homeowners borrow specifically for a home improvement project. This money can come from a home’s equity, or a homeowner can get the loan amount themselves separately. A homeowner would repay this money on a fixed schedule, plus associated interest and fees.

First, a homeowner can make sure he really needs the loan. For example, if the project is not essential at the moment, such as a luxury addition, someone might think about saving money from their monthly budget for a while to pay for the project directly. If you’re in a place where you’re comfortable taking out a loan, read the steps below to get a home improvement loan right.

STEP 1: Assess your finances.

The first step is to assess your financial situation and determine how much you can spend each month. Create a realistic monthly budget, which includes all outgoing expenses for each month, such as mortgage payments, utilities, food, entertainment, credit card payments, savings goals, and any other obligations. Then subtract that total from the amount of money you bring in as a household. This difference should reveal how much money you have to spare for a home improvement loan payment. You can also check your credit score, as this will affect the type of interest rate you might get. Lower credit scores often mean higher interest rates. You can get your credit score in several ways: you can get it through your credit card lender, use a service like Credit Karma, or even just get the credit score through the lender you you may be considering opting out. These methods tend to be free and won’t hurt your credit score. You can also get a free copy of your credit report once a year from each of the three major credit bureaus (TransUnion, Equifax, and Experian).

Many home improvement loans also use your home itself as collateral for the loan, such as home equity loans or home equity lines of credit (HELOC). Using your home as collateral means that if you can’t repay the loan, the lender can repossess your home to make up for the money you haven’t repaid. But these loans allow you to borrow money based on the equity in your home. If you’re considering these options, you can also talk to your mortgage lender about your current home equity and how much they recommend borrowing. Typically, a new mortgage has a payment that goes mostly toward interest, not principal, and you may not yet have enough equity to borrow.

How to Get a Home Improvement Loan

Photo: istockphoto.com

STEP 2: Learn about your home improvement loan options and their costs.

In general, there are six types of loans people can access to help with home improvement costs, all of which work differently. As mentioned above, two types are home equity loans and home equity lines of credit (HELOC). You repay the borrowed amount, usually as a monthly payment over a set period of time. You’ll also have fees and interest built into your monthly payment; the amount of interest depends on home improvement loan rates. The difference between a home equity loan and a home equity line of credit is how the loan is disbursed: the loan is a lump sum with a home equity loan, and the HELOC is a revolving loan amount that you can use according to your needs.

How to get a renovation loan without equity? A personal loan can be an option: It is simply a loan of a certain amount of money. Homeowners who choose a personal loan can repay the loan amount gradually on a monthly schedule, plus any interest and fees. An advantage of this type of loan is that you are not using your home as collateral like with a home equity loan or HELOC. Likewise, you can also consider using credit cards if the project is smaller. However, credit cards are not the best option if the amount needed is large; you may end up pushing your credit limits too high. But if you only need a few hundred to a few thousand dollars for materials because you’re the do-it-yourself type, you might consider using credit cards.

Two other options are cash refinancing and an FHA 203(k) rehabilitation loan. Cash-out refinancing means that you take money out of your home equity and then refinance your mortgage to pay off that amount plus the loan balance. The FHA 203(k) Rehab Loan is offered by the US Department of Housing and Urban Development (HUD) and is intended for repairs to older homes that need upgrading. A lesser-known route is also to seek home repair grants through the US Department of Agriculture.

STEP 3: Decide which type of home improvement loan is best for you and your project.

All of the different types of home improvement loans work for very specific situations. For example, a home equity loan would be best if you have significant equity in your home or have even paid off the house. If you have a lot of wiggle room in your monthly budget and have a good chance of repaying that loan, a home equity loan may be a good option. It is also a good choice for people who need a large amount of money for a huge project because the loan is in one amount. For a HELOC, similar advice applies, but the revolving line of credit means you can use as much money as you need when you need it, making it better for smaller or ongoing projects. . Plus, you only pay interest on the amount of money used, not the total amount you have.

For people who do not have significant equity in their home, or those who are uncomfortable with the idea of ​​using their home as collateral against the loan, personal loans or credit cards will the best option. Consider a personal loan for larger projects, as you often get a lump sum as part of the loan. Similarly, cash-out refinance and the FHA 203(k) rehab loan work in specific situations, such as if you’re looking to refinance your mortgage or have a repairman on your hands. Consider using a home improvement loan calculator to help determine payments.

How to Get a Home Improvement Loan

Photo: istockphoto.com

STEP 4: Talk to potential lenders and compare your options.

Finally, look at the loans themselves. For home equity loans and HELOCs, your current lender is a reference. You can see what they offer for home improvement loans, and since you are already borrowing through them, they might offer you an offer on fees and interest rates. However, you can check with other lenders for their terms. Online lending companies, physical lending companies, banks, and credit unions are all options to consider. Financing your real estate project with credit cards is the easiest option, as there are a variety of well-known credit cards to consider. To get cash refinance, you need to go to banks, credit unions, or loan companies, often those that specialize in mortgages. The FHA 203(k) rehabilitation loan is offered by the US Department of Housing and Urban Development (HUD), but you will work with an FHA-approved lender to apply for this type of loan. How to get a home improvement loan with bad credit? If this is your case, you can discuss your situation with individual lenders. Some even specialize in working with people who have bad credit.

STEP 5: Apply for your loan.

Once you’ve decided what type of loan is right for you and where the home improvement loan is coming from, it’s time to start the application process. Is it hard to get a home improvement loan? This process varies greatly, depending on which home improvement loan you choose. Work closely with the lender to ensure they provide all the information you need. Lenders also need information, and it’s common for lenders to require personal information about you, especially during the application process and sometimes before. They may require pay stubs from the past 30 days, W-2 forms, signed federal tax returns, documents from other sources of income, bank statements, social security numbers, proof of identity, and possibly other documents. Make sure your information is accurate and complete, as incorrect information could result in the application being refused. Your personal situation may even affect the documents you need to provide, for example if you are self-employed, have irregular income or have non-wage income.

By following these steps on how to get a home improvement loan, you can enter the loan application process more informed, prepared and confident. Ultimately, it pays to know the types of legitimate loans and the types of lenders to work with. Knowing which home improvement loans are best for your plans and finances can also save you from a situation where you take on an unnecessary burden on your budget.

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Key Lending Information: Facts You Should Know https://templodoconhecimento.com/key-lending-information-facts-you-should-know/ Wed, 16 Feb 2022 10:56:33 +0000 https://templodoconhecimento.com/key-lending-information-facts-you-should-know/

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Can I cancel my credit insurance? How do people with bad credit history get credit? Can I prepay installment loans? We’ve rounded up ten popular credit questions users ask online.

Average US Credit Card Debt

The US debt situation is getting worse every year. The average American’s credit card debt in 2003 was:

  • Credit card debt $693 billion;
  • TOTAL debt of $7.38 trillion.

By 2021, the average American’s credit card debt reached:

  • Credit card debt $787 billion.
  • Total debt $14.96 trillion.

The trend continues to worsen. The data source: Federal Reserve Bank of New York (2021). Debt statistics are from the second quarter of each year.

  1. You can get a loan even if you don’t have a formal job

It turns out that some banks give loans without proof of income, but one should not count on a large amount and low interest rates in such a situation. It is best to go to the bank where you have a debit card. Often, banks form special offers for their customers with more loyal requirements. This is particularly true for online loans for bad credit.

But in any case, the borrower must have an income, even unofficial. If you have a source of income no need to take out loans, you have to live within your means. If you have no source of income you don’t have to take out loans, you’re just sinking into a hole. Look for a better source of income.

2. What unofficial income documents can I submit for a loan?

Some banks grant credits, requiring the simplified set of documents, where income can be proven by the free statement, under the bank form, by the account statement, or even without proof of income. The total family income is also taken into account. Co-borrowers or mortgages will increase the chances of approval and allow you to take out credit on more favorable terms.

3. You can get rid of credit insurance

You just need to write a request and send it to the insurance company. In addition, you must enclose a copy of the insurance contract with the request.

The company will return the money within 10 working days. If you want the money to be sent to a certain account, you need to specify its details in the request. Keep in mind that if the contract has already started, the money will be refunded after deducting the services already rendered.

4. Insurance can be returned for prepayment of credit

To begin, you must obtain a certificate from your bank stating that you have no debt. This document must be attached to the request for reimbursement of the amount of insurance. But the possibility of restitution of the insurance premium by the bank depends on the conditions of the credit agreement and the insurance contract. One of three situations is possible:

  • in the first case, you will be entitled to reimbursement of the total amount of the insurance premium paid without commissions or deductions;
  • in the second case, the bank will make a partial refund, i.e. the amount proportional to the duration of use of the insurance services;
  • in the third case, the insurance amount is not reimbursed at all. This situation is possible if the insurance contract stipulates that in the event of early repayment of the credit to the customer, the amount of the insurance premium paid is not returned. In this case, the customer has the full right to go to court.

5. You can take out a loan against the pledge of real estate held by proxy

It all depends on the powers that the owner has given to a person to dispose of his property.

If there is a right to dispose of the property in the form of its pledge to the creditor in the power of attorney, you have the right to count on obtaining a loan on the security of real estate, the owner of which is not not. It should be understood that the more precisely the cases of power of attorney are described for which the owner gives you the right to pledge his property, the fewer questions the lender may have.

Don’t forget to get your spouse’s consent and permission to put the property into receivership.

6. It is possible to refinance a recent loan

Yes, but it is a very specialized offer on the market. The majority of them require the borrower to make at least 3/6 payments on the existing loan. But the main requirement for the refinancing of all banks is the absence of late payments on current obligations.

7. Repay the installment sooner

A deposit received from a bank is a credit. The bank cooperates with the store. And the store gives the customer a discount on the goods in the amount of accrued interest on the credit.

8. You can get a loan even if you have a bad credit history

Borrowers with a bad credit history have the best chance of getting a credit card. So if you want to catch up on past mistakes and improve your credit history, it may be worth trying to get a card from a bank with a fair risk strategy first and use it carefully. for some years. A new on-time payment history will help improve your reputation in the eyes of potential lenders and increase your chances of getting a bigger loan.

9. What should I do if a debt collector calls and threatens?

If the collection company violates the law, the debtor must first collect as much evidence of the violation as possible call details, audio recordings of conversations, photos of messages. Also, it is worth contacting the prosecutor’s office.

The borrower can also signify his refusal to communicate with the creditor and his representative by registered mail with a list to the legal address of the creditor.

Corn! If your only home is a mortgage, it is excluded from the list of properties that the lender is not allowed to seize. Therefore, if the bailiffs are trying to put your apartment up for sale, and it is not included in the mortgage, do not hesitate to write an application for cancellation of the bailiff’s decision on the sale of your apartment. The same goes for those who are or are considering declaring bankruptcy. Write a petition to the court to exclude the property from the bankruptcy estate.

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Suze Orman’s 3 steps to getting the right mortgage https://templodoconhecimento.com/suze-ormans-3-steps-to-getting-the-right-mortgage/ Mon, 14 Feb 2022 14:22:44 +0000 https://templodoconhecimento.com/suze-ormans-3-steps-to-getting-the-right-mortgage/

Image source: Getty Images

Getting a mortgage that’s right for you takes some effort.


Key points

  • Mortgages are usually repaid over 15 to 30 years, so borrowers have to pay off their loans over a long period of time.
  • Finance expert Suze Orman has some tips for getting the right mortgage.
  • She advises knowing your budget, shopping around for lenders, and choosing a lender who can work quickly.

It is important to research the best loan rates and terms before borrowing. But it’s especially important that you try to find a loan on the best terms when you take out a home loan. That’s because chances are you’ll borrow a lot of money and pay it back over decades.

Unfortunately, finding the perfect mortgage can be easier said than done, as there are so many lenders and loan types to choose from. The good news is that identifying the right loan is easier if you follow finance expert Suze Orman’s three-step process.

Here are the steps Orman says you should follow when looking for a home loan.

1. Don’t let the lender set your budget

The first step Orman suggests taking is to decide for yourself how much of a mortgage loan fits your budget.

She warns you that you should make your own decisions about how much to borrow rather than being fooled by mortgage lenders who may offer you a bigger loan than you want.

Mortgage lenders generally want to give you the highest loan they think you can afford, as this maximizes their profit. While it’s tempting to take the extra cash and buy a more expensive home, the fact is that a large mortgage payment could interfere with other financial goals you have.

If you take the time to decide what fits into your budget – while doing other tasks, such as saving for retirement – ​​you are much less likely to have to borrow a large sum of money that you leave poor.

2. Shop around for different financial institutions

Orman cautions against assuming that your current bank will always provide the best deal on a mortgage.

Instead of sticking with the status quo and simply applying for your home loan with the financial institution you already do business with, Orman suggests applying with at least three different lenders. She also advises you to look to community banks and credit unions.

This is one of his most important tips, as rates and terms can vary widely from mortgage lender to mortgage lender. Even a small increase in your mortgage rate could mean tens of thousands in additional interest over the life of the loan. You don’t want to settle for a bad deal on a mortgage just because you don’t realize you could do better.

3. Work with a lender who can close the deal

Finally, Orman suggests looking at the effectiveness of different lenders at closing loans when deciding which mortgage to apply for.

As she explains, many lenders can be slow to get a loan through to closing. This can sometimes end up costing you a home if the seller is looking for a quick sale or if you miss the time frame for obtaining financing based on your purchase agreement.

Orman suggests asking real estate agents which lenders tend to be efficient — and trouble-free — during the closing process.

By following these three tips, you can hopefully find an affordable loan at a low rate that closes quickly so you’re happy with your home purchase.

A Historic Opportunity to Save Potentially Thousands of Dollars on Your Mortgage

Chances are interest rates won’t stay at multi-decade lows much longer. That’s why it’s crucial to act today, whether you want to refinance and lower your mortgage payments or are ready to pull the trigger on buying a new home.

Ascent’s in-house mortgage expert recommends this company find a low rate – and in fact, he’s used them himself to refi (twice!). Click here to learn more and see your rate. While this does not influence our product opinions, we do receive compensation from partners whose offers appear here. We are by your side, always. See The Ascent’s full announcer disclosure here.

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7 common mistakes people make when they are about to close on a home https://templodoconhecimento.com/7-common-mistakes-people-make-when-they-are-about-to-close-on-a-home/ Fri, 04 Feb 2022 14:17:04 +0000 https://templodoconhecimento.com/7-common-mistakes-people-make-when-they-are-about-to-close-on-a-home/
  • Buyers closing on a home may be tempted to buy new appliances or furniture right away.
  • Realtors say overspending, opening new lines of credit, or co-signing someone else’s loan can keep you from closing.
  • Also avoid quitting or changing jobs, as this sets off red flags for the underwriter.
  • Read more stories from Personal Finance Insider.

Once you’ve made an offer on your dream home, the weeks spent waiting for closing can be brutal.

When deciding whether or not to give you a mortgage, lenders scrutinize your accounts and credit history with a fine-toothed comb. You might be tempted to celebrate early by buying new furniture or splurging on an I-just-bought-a-new-home celebration purchase, but real estate agents recommend waiting until you actually close the house to do something big.

Here are seven common mistakes homebuyers make during the closing process that hurt their chances of getting their dream home.

1. Open a new line of credit

Realtor Cedric Stewart at Surroundings RG in Washington, DC, says homebuyers generally have more access to credit before buying a home because they’ve likely spent time paying off debt and cleaning up their credit history as much as possible.

It can be tempting to open a new credit card, but Stewart says, “If [the lender] sees you reaching out for more credit, it could trigger questions about your financial situation that reduce your chances of owning your dream home. »

2. Buy new appliances or furniture

Stewart also says buying new furniture or appliances, like an HVAC for a home that needs fixing, can also hurt your chances of closing a home. “A $10,000 bill for beds and sofas can make underwriters angry and upset your debt profile,” he explains, adding, “It’s the right thing to do for your home, just in the wrong moment.”

3. Buy or rent a car

Similar to opening new lines of credit or making major expenses for furniture and appliances, buying or leasing a car during the closing process can alert lenders and hurt your business closing process. ‘a house.

4. Co-sign someone else’s loans

Stewart shares a story with Insider about a client who had to walk away from a deal because he co-signed a friend’s car loan a few months ago.

“We were at the settlement table and the loan officer said there was a problem,” Steward said. “The client ruined his chances of becoming a first-time home buyer because he wanted to help a friend with bad credit.” Do not co-sign anyone else’s loans or designate anyone as an authorized user of your credit card during this time.

5. Quit your job or move to a new job

“The lender has equated your job and your ability to repay the loan based on your current job,” Realtor Chantay-Clark Bridges at eXp Realty of California, Inc. tells Insider. Any sudden change in your job can attract the attention of the lender and hurt your chances of closing the house.

6. Listen to your friends instead of your real estate agent

“Instead of trusting their real estate agent who has years and years of experience closing houses, they listen to their cousin or the colleague in the cubicle next to them – who in turn have given very bad advice,” Bridges says.

For example, a family member might tell you to play hardball with closing costs regardless of your neighborhood’s competitiveness, and their advice might cost you the house. While your cousin or colleague might have done something to get their own mortgage, the same exact advice might not work for your own process.

7. Pay off student loans or other large debts

Real estate agent Kate Ziegler at Arborview Realty in Boston, MA and Coldwell Banker Lifestyles in New London, NH says you should avoid “what might otherwise appear to be positive credit changes,” such as paying off your student loans all at once.

She continues, “Unless your lender specifically advises you of this course of action, credit changes combined with a drop in your savings can be a red flag for underwriters when they do a final check just before closing. .

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TONY HETHERINGTON: I lost my purse, now I could lose my dream house https://templodoconhecimento.com/tony-hetherington-i-lost-my-purse-now-i-could-lose-my-dream-house/ Sat, 22 Jan 2022 21:51:03 +0000 https://templodoconhecimento.com/tony-hetherington-i-lost-my-purse-now-i-could-lose-my-dream-house/

Tony Hetherington is the Financial Mail on Sunday’s investigator, battling readers’ corners, exposing the truth behind closed doors and winning victories for those who have been left behind. Find out how to contact him below.

Mrs. CW writes: Please help me – you are my last hope before I possibly lose my first real estate purchase. In 2019, I lost my wallet containing bank cards and my driver’s license.

A few months later I found out that a loan had been taken out in my name with Hillingdon Credit Union, and after much correspondence it was cancelled. Recently I found my dream home, but when I applied for a mortgage, NatWest told me that my credit report was unacceptable.

A loan of £750 was taken out in my name with Thamesbank Credit Union which gave me a bad credit rating as the loan was not repaid.

Debt: Graham Tomlin suggested repaying fraudulent Thamesbank loan

Tony Hetherington replies: Sometimes the issues and complaints from readers that land on my desk aren’t as bad as they seem. Yours turned out to be much worse, with the Thamesbank Credit Union throwing up obstacles at every turn, rather than treating you like a victim of identity theft.

Incredibly, when you told Thamesbank you weren’t the real borrower of the missing £750, you were told: ‘A simple solution would of course be to pay off the debt’. This, you were assured, would “immediately fix your credit history.”

Thamesbank is fully authorized and regulated by the Financial Conduct Authority, but they suggest that a victim of identity theft takes responsibility for a fraudulently obtained loan, and Thamesbank will in turn clean their credit agency file. Blackmail? Or bloody stupidity?

The suggestion to pay came from Graham Tomlin. He’s not even a Thamesbank boss. He runs a company called Credit Union Solutions, which provides administrative support to a number of credit unions.

But the real directors of Thamesbank gave him so much power that he felt he could do whatever he wanted.

In November, he told you twice that Thamesbank was far too busy to deal with your problem, because Thamesbank members were his priority. He even told you that deleting the bad credit report would involve seeking a county court judgment.

This is rubbish, because a CCJ against your name would be even worse than not repaying a loan. However, a court case would have at least allowed you to file a defence, so you asked if Thamesbank would go that route. Tomlin replied, “We didn’t ask for CCJ as it tended to be too expensive for such a small loan.” Reading this I wondered how much it would cost them if you sued Tomlin and Thamesbank for libel!

One hurdle that Tomlin put up for you and me was his demand that you report the loan fraud to the police. You did, but the head of Action Fraud told you very correctly that the report had to come from Thamesbank, which had lost money. Of course, you had only lost your good name, which is not a crime.

Did Tomlin and Thamesbank report the fraud to the police? Do they the heck. And yet, the proof is in their files. You were told the loan involved the use of a Virgin Money account, proof of payment from an engineering company and a national insurance number.

All were clues to the true identity of the borrower, but it was easier to blame yourself. Thamesbank’s complaints procedure is sloppy. You complained on November 1, but Thamesbank learned of my complaint on December 24. Tomlin kept her in the dark.

The man most in the dark was Paul Oppe, the director of the Thamesbank responsible for investigating complaints. He took just over a fortnight to decide on January 12 to apologize and ask the credit agencies to remove the debt warning from your file. Last Wednesday, your credit rating was upgraded to “Excellent”.

So is it a happy ending? Maybe not. Oppe brought to my attention the “coincidence” that you had “misplaced ID twice resulting in a fraudulent loan application from a credit union.” He also told me that his board is “confident that Graham Tomlin and CUS (Credit Union Solutions) are fulfilling their operational roles.”

But wait. Why did Oppe think you lost your ID twice, each time followed by a fraudulent loan application? He said: ‘CUS discovered it during investigations, and it seems unusual.’

The implication is clear and Tomlin insisted on this point, telling me: “I contacted the Association of British Credit Unions, who shared my suspicions. I am on the executive of the London region of the association and I will share this experience with them.

I think Tomlin lost the plot. It seems to treat the original Hillingdon Credit Union fake loan as if it resulted from another loss of ID, not that a scammer simply used your ID twice. This means that he has reported you as a suspect to his national organization. It could come back to bite you.

Fears over funeral money

Ms TP writes: My partner was diagnosed with advanced lung cancer and died two months later. He had paid £3,239 to Rest Assured Funeral Plans Limited.

However, the hospice arranged for a local funeral home to collect and store her body. They told me that the RAFP had said there was not enough money in the plan to pay for the funeral.

RAFP contributed £1100 but I cannot see how the balance was spent.

Concern: Ms TP's partner had paid £3,239 to Rest Assured Funeral Plans Limited

Concern: Ms TP’s partner had paid £3,239 to Rest Assured Funeral Plans Limited

Tony Hetherington replies: Funeral plans can be tricky. The Financial Conduct Authority will regulate the industry from July, but funeral plans are now only overseen by an industry body providing voluntary rules. That said, your partner’s plan with the RAFP seems flawless.

Knowing he was dying, he wanted to spare you his funeral expenses, and despite the short time he had left, the RAFP helped him, even offering a £360 discount.

The £1,100 was just part of the funeral bill, covering third-party payments for the service and cremation. The local funeral company used by the hospice billed RAFP directly for the remainder, and in total the plan paid out £2,900.

If you believe you have been the victim of financial wrongdoing, write to Tony Hetherington at the Financial Mail, 2 Derry Street, London W8 5TS or email tony.hetherington@mailonsunday.co.uk. Due to the high volume of inquiries, no personal response can be given. Please only send copies of the original documents, which we regret cannot return.

Some links in this article may be affiliate links. If you click on it, we may earn a small commission. This helps us fund This Is Money and keep it free to use. We do not write articles to promote products. We do not allow any business relationship to affect our editorial independence.

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Long-term commercial loan options for small businesses https://templodoconhecimento.com/long-term-commercial-loan-options-for-small-businesses/ Fri, 07 Jan 2022 22:51:23 +0000 https://templodoconhecimento.com/long-term-commercial-loan-options-for-small-businesses/

Smart business owners know they can do more with a little extra working capital. And when they don’t have the extra money available, they take out small business loans.

Sounds simple, doesn’t it? There are actually many types of business loans out there, so finding the one that’s right for you requires doing your homework.

Let’s start this journey by understanding a little more about long term business loans.

What is a long term business loan?

Business loans have different repayment terms. Some must be repaid in a few months. But long-term commercial loans usually have longer repayment periods, sometimes up to 25 years.

The interest rates for these types of loans may be lower than for short term loans, depending on your qualifications and the lender’s approval criteria.

How Do Long Term Business Loans Work?

Once you are approved for a long term loan, you are presented with the loan amount and repayment terms. You will be told the period of time you have to repay the loan. Typically, you are able to pay off the loan sooner, but beware of prepayment penalties as some lenders charge them.

What types of business loans are long term?

Now let’s see what types of loans are considered long term.

Bank loans

Many banks and credit unions offer long-term business loans at low interest rates. To be eligible, your business must have been established for at least two years and have good personal credit scores.

Business line of credit

If you don’t want a large amount of money at the same time, a line of credit is a good option for long-term loans. You pay back what you borrow over the line and can continually borrow and repay over time.

Note that sometimes the line of credit needs to be paid off within a few months, but the line is open indefinitely, so we include it in the long term loan options.

SBA loans

The US Small Business Administration offers many long-term loan programs such as SBA 7 (a), microloans, and 504 loans. Some have repayment periods as long as 25 years.

Commercial real estate

If you need to buy real estate like an office building or commercial property, you should know that a loan won’t need to be repaid anytime soon. This makes getting a loan of, say, $ 1 million more feasible if you have decades to pay it off.

The best financing options for long-term business loans

Now that you have a better idea of ​​what type of loan might be right for you, let’s take a look at some of the commercial lenders that offer great loan options for the best long term business financing.

Intermediate term loan options

If you want a loan of more than a few months but less than 25 years, Kapitus has a five-year medium-term loan of up to $ 5 million. Credibility capital loans up to $ 500,000 with repayment periods of one to five years.

Line of credit options

On the bridge, Fund of funds, and cabbage offer lines of credit.

OnDeck offers lines of credit from $ 6,000 to $ 100,000, with one-year repayment terms.

Fundbox offers financing options up to $ 150,000 with 12 or 24 week repayment terms. You can borrow the funds again after they are repaid.

Kabbage has lines of credit between $ 1,000 and $ 150,000. Each draw must be repaid in six, 12 or 18 months and can be re-borrowed.

Long term loan options

You have a few options in this category including On the bridge and Newtek. With OnDeck, you can borrow from $ 5,000 to $ 250,000 and pay it back over two years. Newtek offers long-term loans of $ 1,000 to $ 15 million, with terms of seven to 25 years.

SBA loan options

Smartbiz is a great option for SBA 7 (a) loans. You can borrow anywhere from $ 500,000 to $ 5 million with a 25 year repayment period.

Long-term or short-term business loans

So, in the long run, is a long term loan better for you?

Here’s something important to note: Long-term loans may have lower interest rates, but you can still pay more interest overall, since you’re paying them over years, not over years. months.

If you’ve borrowed $ 1 million at 3%, with a 25-year repayment, you’ll pay that 3% over the life of the loan. If you borrow $ 10,000 and pay it back within two years at an interest rate of 10%, while the interest rate is higher, you may end up paying less interest overall because it is a much shorter term.

The truth is, if you have bad credit, you cannot qualify for long term bank loans or SBA loans. Your only option may be to take out shorter term loans from other lenders at higher interest rates. Keep in mind that some online lenders charge a set-up fee as well, which can increase your expenses.

Sometimes a shorter period is better, such as when purchasing equipment. Since equipment has a limited lifespan, equipment financing tends to have payback periods of a few years.

If you don’t qualify for a longer repayment period, perhaps because you’re running a new startup and haven’t built your credit yet, consider loans that have a minimum credit score requirement or that take into account other factors, such as your annual income. . You may also be eligible for business credit cards.

Otherwise, you can take the time to build up your credit in order to qualify for long-term business loans with low interest rates.

What is the longest term for a business loan?

Borrowers need to know how long they will have to make their monthly payments before contract a loan. Each type of loan can have different terms. In the short term, you might only have a year to pay off a loan.

In contrast, some loans can be repaid over 25 years. These are usually larger loans, such as real estate or SBA loans.

How To Qualify For Long Term Business Loans

Before you begin the application process, find out about the requirements of a lender to approve you for a loan. Is there a business or personal credit score requirement? Do you need a certain amount of annual income? How long have you been in business?

Established businesses that have a proven track record of financial stability may find it easier to secure lower interest rates, so examine your qualifications to understand what type of rate you might qualify for.

Before applying, see what documents you will need to provide. Bank and SBA loans may require more financial information, such as tax returns, financial statements, and bank statements. They can also review your credit history, so take a look for yourself before you apply to see what you’re working with.

How to choose the right long-term business loan

The type of financing your business needs is unique and like no other. If you are looking for long term financing, explore options with traditional banks, credit unions, and online lenders.

Before you apply, have a plan on how you will use the loan proceeds. Are you looking to grow your business or just maintain a stable cash flow? Can you afford to make repayments every month? How will the money help you grow your business?

Small business owners need to keep an eye on the future of their business, and long-term business loans are a great tool to help them.

This article was originally written on January 7, 2022.

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How to buy a house with bad credit https://templodoconhecimento.com/how-to-buy-a-house-with-bad-credit/ Mon, 03 Jan 2022 22:36:39 +0000 https://templodoconhecimento.com/how-to-buy-a-house-with-bad-credit/

Buying a home is very possible with bad credit, but it’s more difficult and more expensive than buying a home with great credit. Before you begin the home buying process, you need to ask yourself why you want to own a home. Homeownership comes with many unforeseen and significant costs that can be difficult to cover if your financial situation is unstable. Continuing to rent indefinitely or until your credit improves may be the best financial choice for you.

Key points to remember

  • Try to improve your credit score as much as possible before shopping
  • Consider all of the upfront and long-term costs of an FHA loan before taking out one.
  • Try to improve your overall financial situation as much as possible in order to improve your chances of getting approved for a conventional loan.

FHA Loans — Your Bad Credit Loan Option

Federal Housing Administration (FHA) loans are FHA insured loans, but are actually issued by any FHA approved lender. FHA loans were created to help low and moderate income borrowers become homeowners. If individuals cannot get approved for conventional mortgages, FHA loans are the remaining option for hopeful homebuyers with bad credit.

FHA loan requirements

  • Credit score as low as 500 with 10% decline or as low as 580 with 3.5% decline.
  • Debt-to-income ratio of 43% or less
  • Verifiable income for more than 2 years

Improve Your Credit Score

Taking a few steps to improve your credit score before making any home purchases will improve your home buying experience exponentially. In today’s buzzing real estate market, many home sellers are less likely to choose deals with low down payments that will force them through the rigorous FHA appraisal process. Improving your credit score can allow you to secure a conventional mortgage and make stronger offers on homes that are more likely to be accepted.

  1. Take your credit report to see why your credit is low and check for errors. This is free once a year with Experian, Equifax and TransUnion at AnnualCreditReport.com.
  2. Pay off all revolving lines of credit to improve your credit utilization percentage. This usually results in an immediate jump in the score.
  3. Get all errors removed from your credit report, especially late payments
  4. Consider consulting a credit repair service to see if your score can be improved enough to save you the cost of their fees in terms of reduced mortgage rates.

Why You Should Improve Your Credit Score Before You Buy

Even improving your credit score a few points before you buy can still save you thousands of dollars. If increasing your score allows you to be approved for a conventional mortgage instead of an FHA loan, you will save the initial mortgage insurance premium of 1.75% of the loan amount. Additionally, conventional loans tend to have lower closing costs and interest rates than FHA loans.

While FHA loans and conventional loans will require monthly mortgage insurance if you put less than 20%, an FHA loan includes monthly mortgage insurance for the life of the loan which you can only get rid of by refinancing and paying the fees. closing on a new loan. For a conventional mortgage loan, private mortgage insurance ends as soon as your loan balance equals 80% of the value of the property.

Optimize the rest of your borrower profile

Your credit score is not the only factor that goes into approving a loan. You can increase your chances of being approved for a loan on favorable terms even with bad credit by optimizing other parts of your borrower profile.

Putting more money on your mortgage essentially means putting more of your own collateral into the loan and the lender sees you as less likely to default and a low risk borrower. If you’re struggling to find the money for your down payment, there are many unique ways to increase your funds. Some regions even have down payment assistance programs.

Improving your debt-to-income ratio (DTI) can also help you get approved for a mortgage with bad credit. If you can pay off or get rid of some of your monthly debt, like a car loan, your DTI will improve. Increasing your income by finding a second job will also improve your DTI. The easiest way to improve your DTI is to buy homes at the lower end of your budget. If you determine that you can afford a home up to $ 300,000, but your credit score is still lower than you would like, you can increase your chances of being approved for a mortgage if you choose a home. which costs $ 250,000.

Loan options for unique populations

If you meet certain criteria, you may be eligible for a VA loan or a USDA loan. Both of these loan types allow you to put 0% down without paying private mortgage insurance and do not require a minimum credit score, making them a much cheaper option than FHA loans.

VA loans

You generally must be a veteran who served for certain periods or under specific circumstances, or be the surviving spouse of a veteran in specific circumstances. VA loans are issued by private lenders but backed by the VA. You must have a certificate of eligibility from the VA to get a VA loan.

USDA loans

These loans are typically made in areas designated as rural by the USDA, and borrowers must meet income eligibility limits based on their county’s median income and household size.

Is it harder to get a mortgage with bad credit?

Yes. Bad credit makes it harder to get a mortgage. Fewer lenders offer FHA loans than conventional lenders.

Can I get a conventional mortgage if I don’t have a 20% down payment?

Yes. You can get a conventional mortgage with as little as 3% down, as long as you meet the lender’s other credit rating, income history, and debt-to-income ratio requirements.

Do I have to pay for credit repair before shopping at home?

Try to get an estimate from the credit repair service of how many points they can improve your score and how much their service will cost in total. If they can improve your score enough to qualify for a non-FHA mortgage, you’ll save 1.75% on initial mortgage insurance premiums ($ 1,750 per $ 100,000 of home), which will likely offset the cost. of credit repair service. You may be able to improve your credit score on your own, so do your due diligence.

The bottom line

While it is possible to buy a home with bad credit, it might not be the best choice. FHA loans are a great tool for borrowers, but changes to the program after the subprime mortgage crisis make it a very expensive loan product. Prospective borrowers should do some math to see how improving their credit and having more money to put aside could save them before rushing through the home buying process. .


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3 reasons not to pay off your mortgage sooner https://templodoconhecimento.com/3-reasons-not-to-pay-off-your-mortgage-sooner/ Fri, 31 Dec 2021 12:47:00 +0000 https://templodoconhecimento.com/3-reasons-not-to-pay-off-your-mortgage-sooner/

Prepaying a mortgage loan can free up cash and save a lot of money on interest payments. But investors shouldn’t be looking at their mortgages in a vacuum. Putting extra money into a mortgage can be seen as part of an overall investment plan.

While there are reasons why prepaying your mortgage makes sense in some cases, many investors are better off paying the minimum each month. Here are three reasons why.

Image source: Getty Images.

1. Real interest rates are negative right now

Inflation pushed prices up almost 7% year-on-year last month, and it may still be some time before inflation returns to the Federal Reserve’s target of around 2% . Several economists believe that inflation will remain above 3% throughout 2022. Even Fed policymakers have raised their forecasts to 2.6% inflation in 2022.

At the same time, average mortgage rates over 30 years remain close to 3%. Those who have good credit or are willing to redeem the rate can get a loan for less than 3%.

With high inflation and mortgage interest rates nearing record lows, the real interest rate for the next few years could very well remain negative. It’s a bit like getting paid to go into debt. Every dollar you borrow against your home can increase your purchasing power if the inflation rate stays higher than the loan interest rate.

When real interest rates are negative, you should take on as much long-term, low-interest debt as possible (up to your comfort level).

2. You can get better long-term returns elsewhere

When you pay off your mortgage, you actually get a return on your investment roughly equal to the interest rate on the loan. Paying off your mortgage early means that you are effectively using cash that you could have invested elsewhere for the remaining term of the mortgage, up to 30 years. With rates so low, you should be able to find better long-term returns with other investments.

The stock market, for example, is expected to produce returns in the range of 7% to 8% over the long term. Morningstar analysts expect a well-diversified equity portfolio to produce an average annual return of 8% going forward.

But above all, this return is accompanied by greater volatility. The standard deviation of Morningstar’s forecast is 17%, which means that annual returns will vary between -9% and 25% about two-thirds of the time. Over the long term, however, investors should expect their investment portfolio to exceed their mortgage rate.

The counter-argument here is that most investors would not borrow against their home in order to raise investment capital. This is suboptimal from an economist’s point of view, but it may be optimal from a “I like to sleep at night” point of view. In today’s environment of high real estate values ​​and low mortgage rates, capital is readily available for those looking to take on more debt, but it can be found outside your personal comfort zone.

3. Paying off early means increased streak of return risk

Paying off your mortgage sooner means giving up adding more to your investment portfolio today. The effect is that most of your investments are compressed into a shorter time frame – the post-mortgage repayment – which increases your exposure to return streak risk.

Return sequence risk is the potential for a few years in the stock market to have a disproportionate impact on your investment portfolio. If the stock market has had a few bad years in a row after you’ve invested most of your money, the impact is significant. Likewise, if the market collapses for a few years and you have hardly invested anything, you will have missed out on a significant portion of the returns offered by the market.

Since stocks are more volatile than other assets, the real advantage of the asset class – higher expected returns – is often seen over long periods of time. But if you have a shorter investment horizon, you could face several years of poor performance at the most inopportune time. This risk is mitigated with more time invested in the stock market, which means spreading your investments over as much time as possible.

Debt can be good

Some people are very averse to debt, but some debt can improve your financial well-being and provide additional flexibility while lowering the risks posed by inflation and volatile stock market returns. A real estate mortgage is a prime example of this type of debt, and the decision to pay it off sooner should take into account the three considerations above.


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Geopolitics, Taliban, and food security are resetting power equations in Asia, writes KC Singh https://templodoconhecimento.com/geopolitics-taliban-and-food-security-are-resetting-power-equations-in-asia-writes-kc-singh/ Sat, 25 Dec 2021 03:01:39 +0000 https://templodoconhecimento.com/geopolitics-taliban-and-food-security-are-resetting-power-equations-in-asia-writes-kc-singh/

On a short trip to meet the grandchildren in Dubai, escaping New York on Christmas, one notices the total disconnect between the festive atmosphere here and the looming Omicron and the geopolitical dangers around the world. The success of this 21st century Beirut is based on creating an oasis of high quality life and entertainment, disconnected from reality.

Even at the turn of the century, despite 9/11, Dubai used the US military presence in Iraq and Afghanistan to do what Thailand did during the US-Vietnam War. It has become a haven of peace for rest and recreation. He relaxed the investment rules for expats to invest money in real estate. The Dubai Expo, delayed for a year because of the Covid-19, is now in full swing; and a beachside branch of a famous Mykonos restaurant, Namos, would put the original to shame.

But reality cannot be banished, only ignored. A motorist from Peshawar inquired about Navjot Sidhu, a former cricketer and current congressman from Pradesh to Punjab. He is, he said, a friend of Pakistani Prime Minister Imran Khan. Sidhu can be criticized in India for claiming that Imran is like an older brother, especially after the recent bombing in a court in Ludhiana, but popular mythology can shape public perceptions.

The reality is that Pakistan is struggling to manage new militant organizations at home and gain legitimacy for the Taliban government in Afghanistan. In addition, the relentless humanitarian crisis in that country receives little attention from the international community. At the recent Organization of Islamic Countries (OIC) special meeting, only Saudis graciously opened their purses. The likely exit of refugees from Afghanistan that would result could increase instability in the region. Pakistan may be beginning to realize that its success in convincing the Taliban, its close ally, to seize power in Kabul may be a poisonous chalice. Pakistan allowing Indian food aid to go overland into Afghanistan may be recognition that a future with India excluded from that country is impractical. But this is far from restoring the normality of Indo-Pakistani relations.

The reasons are not difficult to decipher. One is the BJP’s pre-election attempt to community-bias the votes in Uttar Pradesh and even Punjab. The other is the Jammu and Kashmir (J&K) demarcation exercise, which reserves more seats for the Jammu region. Maybe the BJP wants to restore the state only after rebalancing electoral arithmetic in J&K. But that can only be after the results of the national elections in March. Meanwhile, more terrorist acts in Punjab and J&K may poison the regional atmosphere.

As if that weren’t complicated enough, the Chinese did not halt their advance against India along the Real Line of Control (LAC), notably by installing small groups of people along their lines of. claim, often in the space claimed by India. But China faces a slowing economy and perhaps more serious danger from Omicron, as Chinese vaccines are of questionable use against it. This is likely to make the Chinese regime more precarious and therefore more assertive on national security issues. Meanwhile, there is some interesting data on China’s emerging food grains as the Indian government ends its standoff with Indian farmers in grain-producing states. China spent $ 98.1 billion importing food last year. According to Nikkei Asia, over the past five years, Chinese imports of soybeans, corn and wheat have doubled with purchases from the United States, Brazil, etc. Some of these purchases were made through private companies. The reason is that the prices of food globally have increased. The Food and Agriculture Organization (FAO) food price index is 30% higher than the previous year. Apparently, China’s hoarding is a major reason for this. Chinese production of wheat and other food crops peaked in 2015.

Thus, food security could once again become a major problem after decades of high agricultural productivity following the green revolution of the 1960s. India will have to rethink its agricultural strategy. The hastily passed farm laws and their equally swift repeal have shown that reform requires patience and consensus building. This does not mean that reform is not achievable. It also shows how domestic politics and diplomacy in Asia are intertwined with the rise of India and China. Historically, two rising powers with opposing perceptions and unresolved differences have tended to go to war with each other rather than develop peacefully. When pandemics, food scarcity and climate change are thrown into the pack, it becomes even more complex and dangerous.

India has just changed emissary in Beijing. As great a Sinologist as the next nominee may be, diplomats can simply iron out the conflict between two nations. They cannot change national imperatives, especially if, as in India, national electoral cycles push a government towards hyper-nationalism. Also if, as in China, the internal pact of constant economic growth in exchange for political rights and freedoms is endangered. 4

The world, in particular Asia, is thus going through a period of redistribution of power. These phases reset the overall power equations. Wisdom and restraint are the prerequisites for this to happen peacefully, despite frequent conflicts of interest. For every Pathan Taxi Driver, you need one in India and China with a similar empathy for the citizens of a neighboring country. Hopefully 2022 will spread such humanism

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Posted on: Saturday December 25, 2021 8:31 am IST


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