Selecting a house is already a daunting task, but finding the finances to buy the house you want can lead to additional stress. As a first-time homebuyer, you need to know the important elements involved in buying a house, such as acquiring financial assistance. As you may already know, buying a house is a huge and expensive investment. For this reason, you will need the assistance of a lender to finance such investment- unless you can pay the full price of the house upfront.

With that said, you need to acquire a mortgage loan from a trusted mortgage provider. Choosing a mortgage is the first step towards owning the house you’ve always wanted. This process can become frustrating and stressful, especially if you are not well prepared. To help you understand what happens when you apply for a mortgage loan, here is a four-step guide to help you with your application.

Step 1: Examine Your Finances

You must first come up with a good estimate of how much mortgage you can afford. There are a number of lenders who are very eager to make your home application very enticing to help you qualify for a higher mortgage rate. Unfortunately, they might offer you a deal that is more than what you can afford. For this reason, it is best to have a budget.

You can come up with your budget by evaluating your income, expenses, and your monthly payments. After subtracting your expenses and monthly payments from your income, the amount left is how much mortgage you are capable of paying every month. Aside from the monthly mortgage, you must also take into account other expenses, such as insurance, taxes, and homeowner association dues.

Step 2: Correct And Improve Your Credit Score

Your credit score is one of the factors that a lender must evaluate. A high credit score will allow you to borrow money at a lower mortgage rate. To help you achieve a good deal, you must check your credit score. You can do this by getting your full credit report.

If your credit score is low, you must take the time to correct it. For instance, you can spend a couple of months paying your debts on time. You must also check for any errors or inaccuracies in your credit report. If you found any errors, you must immediately make the necessary corrections. Remember that you cannot immediately achieve a high credit score overnight; thus, you must take your time and exert your effort in preparing your credit score.

Step 3: Shop For A Loan

After you have done the first two steps, it is time to shop for a loan. You can look into the mortgage rates offered by banks, mortgage brokers, and online mortgage providers.

• Banks: They offer a traditional form of mortgage funding. They are also more trustworthy and reliable since banks have recognizable brand names, and their fees are very competitive against lenders. Unfortunately, some banks lack a broad range of loan programs, which may translate to higher interest rates and fees.
• Mortgage brokers: They can offer a wide variety of loans; thus, they can tender low interest rates. Additionally, individuals with a not-so-impressive credit rating can still apply. The downside is that mortgage brokers are usually more expensive than other funding options.
• Online mortgage providers: This mortgage option also offers a wide variety of loans. The biggest disadvantage is that they do not offer face-to-face services.

Step 4: Loan Application

Applying for a loan is one of the easiest procedures, especially if you have gathered all the necessary financial documents to prove your claims. You must first fill out an application form with a loan officer. The application form might ask the following details:

• Name
• Social Security Number
• Birth Date
• Present address and address history
• Details of current employment and employment history
• Income, Assets, and Liabilities

After filling out the application form, the loan officer will then run your credit report and check your FICO scores. Additionally, you need to provide proof and other documents, such as paycheck stubs, bank account, tax returns, and investment earnings reports. If the loan officer believes that you are capable of paying the mortgage loan, they will employ a professional appraiser to ensure that the value of the home you want to buy is worth the purchase price.

Contributed by : Hayden Homes is a reputable home building company that offers their readers simple tips and advice on how to get a mortgage loan.

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No matter the reason that a person obtains a payday loan, it is always important to make sure that any borrowed funds can be paid back by their due date. This helps to ensure that a person does not become trapped in the unfortunate payday cycle that many consumers find their selves stuck in.

Overview of Payday Loans
Everyone knows that life is unpredictable. From unforeseen medical bills to unexpected automobile expenses, it never fails that something always happens; this is what makes payday loans so advantageous. When it comes to payday loans and cash advances, there is no denying that they have their advantages and drawbacks. By knowing the ins-and-outs of payday loans, consumers can become better aware of their cash options which proves beneficial when hard times strike.

What is a Payday Loan?
When a person obtains a cash loan from a business instead of a bank, this is known as a payday loan. This type of loan is generally referred to as a payday loan because the borrower is usually required to pay back the borrowed funds from the next paycheck that he or she receives. People who provide payday loans will many times take postdated checks as a form of collateral. One of the most negative aspects of these types of loans is that they come accompanied with large fees. In fact, some of the loans have interest rates as high as 400%.

Paying Back a Payday Loan
Many times, people go about getting payday loans with good intentions; however, when it comes to paying them back, along with paying their monthly bills, the payback becomes too financially burdensome. This often causes borrowers to become dependant on payday businesses; so dependant that borrowers often take out loans from several payday lenders so that they can pay off ones they have already borrowed from. Needless to say, borrowing from payday lenders often becomes a vicious cycle that borrowers find their selves stuck in.

Alternatives to Payday Loans
For most consumers, it is best to avoid payday loans unless they become an absolute necessity. There are other ways to go about obtaining cash advances including borrowing money from a bank, and banks tend to accompany their loans with lower interest rates than payday lenders. If a person has already found him or herself trapped in the vicious cycle of taking out payday loans, it is best to stop immediately, and try to pay back the borrowed funds as quickly as possible.

Benefits of Payday Loans
On the other hand, for people who know that they have the ability to pay back the funds borrowed from a payday loan, this type of cash advance is one with many benefits. For starters, it provides a great way to access cash in a small amount of time. In fact, many payday lenders can provide cash to a borrower within 24 hours of the borrower’s payday application being approved. By being able to access cash in such a short amount of time, borrowers do not have to fret about their bills being overdue. This also helps borrowers from enduring late fees on their bills.

Acacia Black knows how sometimes life gets in the way, and you dont have enough money to get you till the next paycheque. She had a family to take care of, and that is why she trusted Zaplo for her payday advance. They offer a variety of affordable, and reasonable payday loans. Visit their website to learn more.

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How to Cut Down Your Utilities Bill

Now that it seems likely we’ll be facing a double-dip recession most of us will be looking at more ways to tighten the belt whilst the fat-cats carry on stuffing their faces with cake and Champaign – ok – that’s enough politics – there are serious matters at hand here, so let’s take a look at how we can help ourselves instead of just crying about it!

Below are some splendid energy saving tips that should help you save quite a bit of coinage in the coming year – remember you might not have the time or energy to put all of these into action but even one or two of them could have a notable impact on your finances.

No Investment Required

Wash smart – taking a shower uses around 50% less water than a bath, which means you’ll be saving up to 10% on your overall heating bill – and if you have a water meter you’ll also be saving on water rates too.

Wash smart #2 – make sure you only run your washing machine with a full load or ensure you set it to a low energy/eco-friendly setting to make sure you’re not wasting hot water and therefore money.

Cook smarter – when you’re boiling water in a pan make sure you always keep the lid on as the water will boil much faster and  will waste less energy. Also don’t put too much water in the kettle, just use as much as you need for your tea. If we all followed this simple rule for a whole year the UK could save enough electricity to power half the county’s street lights for the next year!

Minimal Outlay

Have a Light Bulb Moment – energy saving bulbs have now dropped in price and they’re now so efficient they use up to 80% less electricity than a traditional bulb and can last up to 10 times longer. In their average lifespan an energy saving bulb should save you around £45.

Get suited and booted – well – not a real suit, just a jacket, and for your boiler not for you. This is relatively easy going in terms of effort and cost; buying a 75mm jacket for your boiler should save you around £40-£50 a year so the boiler-jacket will pay itself off in just 3-4 months.

Radiation Measures – if your radiator is on an external wall you could be losing as much as 20% of your heat through the walls. Instead purchase radiator panels and place them behind these radiators to help reflect heat back indoors. This could save around £60 a year for the average family.

Higher Cost Options

Feed from the Sun – sadly for us locals the UK is not the sunniest spot in the world – but it should still be worth considering solar panels. Costs vary widely from supplier to supplier but the average UK household could generate around 40% of their total electricity bill year on year so it should be fairly easy to calculate if it’s a cost effective solution for your home.

Double Glaze to Feel the Blaze – this is one of the more expensive options but in the long run it’s as simple as this – twice as much glass equals half the heat loss. Double glazing also cuts down noise pollution so your home will be more of a relaxing and tranquil environment. Installation costs vary widely but with savings of around £150 a year compared to a non-double-glazed home this is an investment which will slowly but surely pay for itself with dividends.

Insulate don’t Hesitate – many homes in the UK don’t have adequate or any loft and cavity-wall insulation. If you live in an old building you’re probably losing around 30% of your heat through the roof. Insulating an average family home’s loft costs around £200-£300 but should save you around £150 a year so it would have paid for itself in just 3 years. The same can be said for wall insulation which also has roughly the same cost/benefit ratio.

With this list of potential money saving options you should be ready to face 2013 with a lighter heart when it comes to worrying about your energy bills.

I am a copywriter and poet with a bachelor’s degree in English Language and Creative Writing. I have worked in various marketing & creative roles since 2001. My aim is to publish at least one novel before I die – so far I have had 2 poems published internationally in print as well as some online. In my professional capacity I currently work for an advertising agency in London.

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Some of us work hard, pay our dues, but are still flat broke at the end of the month. Then there are those who seem to cruise through life and they are always doing the things we cannot afford to, despite the fact that they have a worse job and yet still drive a more expensive car than that which we drive. It is okay to feel aggrieved, but when you realise those people are bouncing from one loan to another and are rapidly reducing their spending power, it is also okay to feel a little happier. The problem is that those kinds of people always seem to manage to scrape their way out of a financial mess right at the last minute, but is that any way to live your life.

What is a Good Reason?

We all know the answer, nobody wants to dread letters coming through the door because they don’t know if they are going to be able to pay them or not, that’s why it’s important to make sure we use loans responsibly. That doesn’t mean we shouldn’t get ridiculously in debt for a family holiday to Cancun, it just means we shouldn’t do it twice in a year, although many people do just that. On a less serious note, some people have come up with some crazy reasons for loans that are definitely worth sharing.

Top Five Mad Loan Reasons

1. I want to buy a pet snake, Spider, Monkey or other exotic animal

Fair enough, exotic animals need the correct environment and a great deal of care. Bills at the vets are liable to run into thousands if animals lack proper care, but borrowing a few thousand pounds to kit out a spare room like a Brazilian rainforest is a little eccentric. It’s a little more worrying when there is not spare room and the person states that they live in a one-bedroom flat.

2. A loan for a Friend

One sure way to lose friends is to lend them money. Well, that’s not strictly true. Lending the money is fine; it’s asking them to make repayments that often cause the arguments. If someone cannot get a loan, it’s usually for a reason so you are well advised to leave them to deal with their own problems. Things come to a head when repayments are late and the friend is out on the town every weekend.

3. Borrowing to Invest

In all fairness, most businesses borrow to invest, but that is a lot different from someone taking out a personal loan to invest in a business venture or worse, the stock market. There is no safe investment out there that provides a better income than the cost of a loan; otherwise, the loan companies would put their money into those investments instead of risking it with customers.

4. A loan to pay off  a loan

This is not to be confused with a debt consolidation loan, which in certain circumstances is very useful. The type of loan that is not useful is the kind that people use to cover missed payments, late payments or any other short-term problem. People are far better off when they speak to the company they have a loan with and explain the situation.

5. A loan for Cosmetic Surgery

This is a new one, but both men and women are becoming so conscious of their appearance, they are prepared to take out huge loans to achieve a certain look. The problem is they are rarely satisfied even after spending thousands and of course, the cost rises even higher when interest is on top. Most plastic surgeons offer finance solutions to customers and this is nice little side earner for the practice who already rakes it in with the surgery costs.

Most people are not silly enough to get themselves in a great deal of debt because of something as stupid as the five reasons here, but we are all guilty of putting the odd thing on a credit card when we know it’s not a necessary purchase. The important thing to do is make sure you stay within your means. In other words, live the life you can afford to live and avoid plastic surgery, exotic pets and high maintenance friends if you want to protect your credit record.

William Bancs is a writer who enjoys blogging about his financial experiences and often writes interesting articles to offer advice to help loan companies communicate better with customers.

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When you begin the search for a good UK credit card, you are likely to encounter a vast amount of information. A lot of this information can be conflicting, as well as confusing, and you might feel that you will never be able to root out the best credit card deal to suit your circumstances.

The way to find the best credit card for you is to cut through all the waffle and jargon and simply focus on what you need from a credit card. Once you know this, you can narrow down your options so that there are only a small number of deals to compare and to choose from.

What type of credit card is best for you?

To get the best credit card deal, you need to understand your spending patterns and to have a good grip on your finances. This will help you find a card that you can afford and that suits your needs. Here are a few examples of credit card types along with who they are best suited to:

• Credit cards with low interest rates (low APRs) – these may attract your attention, but they are not for everyone. These are best if you want a card to use only occasionally and that you can afford to pay off in full each month. If you want a credit card for a specific purpose, this is not the option for you.

• 0% balance transfer credit cards – these cards, which give you 0% for a limited period (i.e. 12 months) are designed for people who already have debt and who will be able to pay off that debt by the expiry of the 0% period. They allow you to transfer the balance (debt) to the 0% card so that you get a better deal and can more easily manage your debts.

• Cash back credit cards offer you money back on everyday purchases on everyday purchases, which is very beneficial but only worth it if you can your balance off in full (or very nearly) every month.

• Low-rate life of balance credit cards – similarly to balance transfer offers, these cards allow you to switch existing debt over to a new card. The difference is that these cards give you a guarantee that the interest rate on the debt won’t increase as long as you can make minimum payments each month. These cards are best for people who can’t afford to completely clear their debts before 0% offer periods run out (usually within 12-18 months).

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