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Marty Trevino

What Is A Reverse Mortgage And How Does It Work - 0 views

how does a reverse mortgage work do mortgages they

started by Marty Trevino on 02 Mar 12
  • Marty Trevino
     
    Applying for a Loan? Five Steps to Increase the Odds of Your Acceptance

    Anyone with a source of income and okay credit history could land a loan in the past, but things have changed significantly. The days of getting approved for a house or car loan in one session are over. If you do not have great credit and a sizable down payment, the loan application process is not going to be fun. Lenders are simply no longer willing to bear the weight of big risks. This makes it difficult to be accepted for a loan, but it does not make it impossible.

    Regardless of what you need to secure loans to purchase, there are ways to make yourself look stable and trustworthy in the application process. Not only do you want to get accepted for loans, but you want reasonable loans with favorable terms. No one can promise that you will be accepted for an immediate loan, but there are five things you can do to improve your chances.

    Clear Up Your Credit

    You have to check your credit report before you start applying for loans. There are three different credit bureaus, so make sure you order a copy of all three reports. Some creditors send information to all bureaus, but many only report to one or two that they prefer. It is common for all three of the different credit reports to vary in some manner. Even more important, this means your FICO score could vary with all three credit bureaus.

    When considering your application for loans, banks and lending firms will consider all information and all available FICO scores. Your scores should be as high as possible, but in the best situation they will be above 700. When you sink below 700 even for one score, you appear to be a much higher risk for lenders.

    Look over all of your reports and dispute any misrepresented information. Try to pay off any smaller debts listed on your credit right away. If the credit reporting agencies cannot be updated fast enough, ask for something in writing stating the debt has been paid in full. Those letters of validation can be shown to lenders as evidence you have paid it off.

    Get Rid of Outstanding Debt

    To maximize your chances of approval, start paying off credit card debt already established. In the ideal world, you should have more uncharged or free credit than maxed out credit cards. The best credit histories feature credit lines that are not maxed out, and which have unused credit. You must maintain those open lines of credit, but you must also pay off the balances.

    Never cancel your accounts! You may need to make occasional purchases on some accounts to keep credit lines open, but you must pay them right back off to carry a low balance. Open credit is a signal that you have been trusted by other lenders, and that you are responsible enough to handle that trust. High balances reveal the opposite, by signaling that you are spending beyond your means or are not being responsible with your credit.

    Pass Up Credit Opportunities

    Every time you apply for credit, it shows as an inquiry on your credit report. They can see the other inquiries to your credit and recognize you are shopping for credit lines. You typically will not be approved for all of those credit cards, but it doesn't do anything to make lenders trust you. Do not fill out new applications so you do not hurt your chances of securing loans from the lender giving out the most favorable agreements.

    Keep Your Consistent Job

    How does a reverse mortgage work is a very common question these days. With times being a little tougher lately, seniors are seeking a way to extend every dollar. If you are in a place that is feeling tight, and you could use a little financial aid, check out a reverse mortgage and discover if it fits the needs you have.



    The longer you have been at the same job, the better off you are going to be applying for loans. Lenders will put more trust in an applicant who has a consistent, stable work history than someone who has switched jobs a lot or has just started working after a long period out of work. Be ready to field questions about your employment status, since lenders want to make sure you are able to make good on the loan in the long run.

    Save for Your Down Payment

    If possible, multiply your down payment for this purchase. Lenders tend to back away when you want them to pay up without putting your own money into the bargain. If this is not worth the investment to you, then why would a lender see it as worth investing in?

    Most people require some time to get all of these five points together. This slows down the process of getting your loan, but so does facing a denial because these things are not in order! How you look on paper is important, so take the time to get your finances in shape. The worst thing you could do is appear to be high risk to lenders.


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