Good Home Loan Tips: investment loan

Showing posts with label investment loan. Show all posts

Tuesday, September 11, 2012

Is Low Doc Home Loan Fit For You?

Low doc home loans are designed for people who are self employed and who are incapable of proving their revenues by typical means. Generally, it is for people who do not qualify for traditional home loan to purchase a property. This is a type of home loan that can be approved without the regular income verification requirements but is a necessity if you are unable to have recent tax returns or any financial statements. Low documentation needs the application to be made in writing yet you don’t need to provide much paperwork such as that of proof of income, assets and liabilities. This mainly relies on a self-verification method in which you can state your income without any documentation needed.

If you are a person who have some existing equity or a deposit saved or have some trouble presenting a proof of your regular income, then you can benefit from this low doc loans. And basically, this applies to all self employed or casual workers. This can also be applicable to people who hold bad credits. However, the availability of low doc home loans is sometimes abused by people who actually have income but have been removed them when they report to the taxation office. If this offense is caught, they are charged to pay greater than the saving they should be making upon breaking the law.

Low Doc mortgage

In this modern day, low doc home loans have become more flexible than the previous years. Self employed borrowers are required to have a valid ABN that has been active at least for the last two years. However, this should also be registered for GST.

PAYG (pay as you go) are not recommended for anyone who has a stable job. If you have it (PAYG) yet cannot support with their income pay slips, there can be alternatives that will still allow you to borrow without proof of your income.

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Sunday, September 9, 2012

Genuine savings: Assuring Your Lender to Paying Your Home Loan

"A penny saved is a penny earned." –Benjamin Franklin

This kind of saving is not an ordinary money saving. A genuine saving is policy that has been re-introduced by lenders so that you can prove a minimum of five percent savings for over three months in order to qualify for a home loan.

For those who don’t get it that much, here is a brief, precise and basic information of what genuine savings is.

Genuine Savings Explained

So if you think you can buy your home by just slamming a slab of money to your lender, you better think again. Nowadays, not all cash deposits are acceptable for your home application when you deposit below 20% of the purchased price.

Conversely, if you cannot prove that you can save a deposit, you should then consider applying for a no savings home loan which is available up to 95% of the property’s value. And yes, you will still need a deposit and it can come from just about any source.

Now, you question why lenders are being so strict with this policy. The lenders have tightened their belts when it comes to this since the Global Financial Crises which results to the eliminated the full availability of home loans but will be available with a guarantor.

There are other assets that might be considered as genuine savings. Some of this is term deposits, shares, and equity of the property that are held for three months. Moreover, gifts from parents, tax refunds, income bonuses, saved cash and a lot more never qualifies for a genuine saving.

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Wednesday, September 5, 2012

Home Loan Credit Score—Why You Need A Good Score

A credit score can mean the difference between being denied or approved for credit. In addition it is a high or low interest rate. A score that can get you qualified for apartment rentals and/or utilities without being required for a deposit must be a good score.

A credit score is a numerical expression based on statistical analysis of a person’s credit files, to present the “creditworthiness” of that particular person and it is primarily based on credit report information typically sourced from credit bureaus according to Wikipedia.

What's My Credit Score and How Do I Raise It?

If you wanted to improve your credit score in order to qualify for a credit, you have to understand how to improve your credit history. So clear up your jargons and make the most of your credit card.

How Credit Score Is Calculated & How To Improve Your Credit History

There are some vague aspects of credit scoring formula. However, that is not the case, all you needed to know about is your credit score and knowing how to achieve the best of it.

How Can I Achieve The Best Credit Score?

Credit scoring is never limited to banks only. There are a lot of organizations that employ the like techniques such as mobile phone companies, insurance companies, government departments and even your landlords. So get things right by now and enjoy the privileges that a good score can give you.

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