How to Prepare An Acceptable Exit Strategy for Your Home Loan?

What is an Exit Strategy?

It is a plan for what will happen with your home loan when you retire. The lender/credit provider will need to see that you will be able to afford the repayments without having to sell your property.

You will have to show the lender/credit provider how you can repay your home loan when you hit retirement. The reason you may be required to show the lender/credit provider of an acceptable exit strategy is best illustrated with the following example. The example assumes:

>> You are 52 years of age

>> You want to buy an owner occupied property

>> You want to apply for a $300,000 home loan, and

>> You have $300,000 in superannuation

From the example above, you might include in your home loan application that:

>> You have $300,000 in superannuation

>> You plan to work full-time until 65 years of age, and

>> After you turn 65 years of age, you plan to work part-time for 5 years

What do Lenders/Credit Providers consider as Acceptable Exit Strategies?

Some examples of an acceptable exit strategy include:

>> Sale of your investment property or other assets

>> Your income or payout from superannuation

>> Downsize your property (if possible)

>> Types of investment or other income that you will continue to receive in your retirement

How do I show in my Home Loan Application that I have an Acceptable Exit Strategy?

Here are a number of ways that you can show that you have an exit strategy. State in your home loan application that:

>> You have assets (e.g. superannuation or shares)

>> You have equity in another property or properties

>> You are planning to move from full-time work to part-time work

>> You are planning to retire completely

>> You might be receiving an inheritance later (this may be acceptable to some lenders/credit providers)

>> You are willing to take out a Reverse Mortgage on retirement

You must keep in mind that the overall financial position of borrowers is coming into play a lot more for Australians aged 50 years and over who are looking to borrow to buy their own home or an investment property. This means that a lender/credit provider has to document the asset and liabilities position of each client to show how their home loans will be paid out once the client retires or on the death of a client. So, it is important for you to provide an accurate and acceptable exit strategy.

Can anyone help me in preparing an Exit Strategy?

You can speak to professionally qualified and experienced finance brokers. They are well versed in what the lenders/credit providers want to see in your application and they will:

>> Advise you on how to secure extra finances during retirement, and

>> Help you to get the comfortable level of surplus funds that you need to pay out your home loan debt

They have thorough knowledge of home loan exit strategies and can assist you with preparing a suitable exit strategy (if required) because:

>> They understand how vital it is to present all the required information in the best possible way to give the best chance of having the loan approved

>> They will be in your corner as they understand how the lenders/credit providers work,

>> They can do all the legwork for you in putting together a quality home loan application

So, don’t worry about finding an exit strategy that’s acceptable to lenders/credit providers. A qualified finance broker will make sure that you obtain the home loan easily and without any tension.

Home Loans With Bad Credit: Find Success With These Three Strategies

Homebuyers who are looking to get a home loan with bad credit often feel like they are fighting a losing battle. Agreeing to take on a home mortgage is a major undertaking for most people and will constitute the largest loan every extended for 99% of the population. Therefore, the problems that one encounters when searching for such a home loan with bad credit should not be diminished. However, that is not to say that success is impossible.

In fact, there are three simple strategies that you can employ starting today that will greatly increase your chances of receiving a home loan with bad credit. If you take the time to employ these strategies, you will be able to purchase a home and afford your monthly payments.

Bad Credit Carries Penalties

Before you begin your search for a home loan with bad credit it is important to understand one simple fact: bad credit carries penalties. That is to say that although you can get a home loan with bad credit, you will need to come to terms with the fact that, in doing so you will be forced to accept the terms that come along with such loans. Namely, this means accepting a higher interest rate on your home loan and greater penalties should you fail to meet your payment obligations. Your bad credit is a black mark on your loan application and there is no way to come away from that black mark scratch free.

Three Strategies to Successfully Get a Loan

So now that you are aware of the problems that your bad credit score creates, you are ready to employ the strategies necessary to get the loan you need. These three strategies are simple to start today and will help you boost the appearance of your application in order to generate loan offers, despite your bad credit.

Strategy One: Know Your Score

This should seem self-evident, but you would be surprised at how many people go into the mortgage process with no clear idea of where they stand in terms of credit score. There is a huge range of FICO scores (numbers from 300-800) and therefore many degrees of “bad” and “good” numbers. You need to know exactly what your score is, what that means to lenders and why you score is as low (or high) as it is. This way you will be ready for any questions that lenders may have and may be able to make small changes today that can help improve your score quickly over time.

Strategy Two: Shop Around

Like any major purchase, finding a home loan is not as simple as walking into the first place that sells them and signing up. You need to shop around and talk to several lenders in order to compare the amount of money they will offer, the interest rates attached to that money and other details that will vary from lender to lender. You may also consider talking to a mortgage broker who, for a small fee, can generate several quotes for you.

Strategy Three: Save that Down Payment

There are really two factors that go into deciding who gets a home loan and who doesn’t. First is your credit score. The second is the amount of down payment you have to offer. If you are lacking in one area, you need to make up for it in the other. Therefore, the key to getting a home loan with bad credit is in having a large down payment. Think, 20% of the purchase price minimum!

Getting a Loan

As you can see there are clearly ways that you can get a home loan with bad credit. Which strategies you use, and to what degree, will largely depend on your individual circumstances. This is why working with a lending professional is the key to success.

Strategies On Selling Home Repair Loans

Selling a product to consumers is one of the challenges for businesses as they need to really get the attention of their target customers and at the same time convince the consumers that they need that kind of product. There are several strategies on getting and convincing consumers to buy products and the very obvious one is advertising. Advertising has many forms and utilize different media so that they could reach their target audiences.

The same way works with home repair loans as this is often called as a financial product. As the name implies, home repair loans are financial access to homeowners who wish to do upgrades or improvements in their existing living spaces. But selling a financial product nowadays is quite hard due to the tough economic situation that the global economy is facing.

Business is never a business without an up-and-down trends and this is normal. Whether it is a falling or rising trend, products still need to be sold in order to generate profits. The key to this is efficient and cost effective marketing strategies. The same can be applied when selling this type of loan that is specified in this article. Since this is a product, a basic marketing strategy could be applied just like any other product.

Listed below are several marketing strategies that could be employed by lending firms who sell loan products such as home repair loans:

Do not forget basic advertising strategies – advertising has its basic roots on how people can be informed about a product. Advertising started as print posters and flyers in the industrial days. The same can still be employed and it is much cheaper and at the same time effective as you can deliver your message to your target audience.
Use the internet to your advantage – most people are online, the way to reach to them is to employ the use of internet ads which can be posted anywhere you like. You can also use ads services in social media sites as most people today are connected through social media. Also, internet ads can be controlled to properly target your desired audience by setting certain demographic settings which are available on the ads.
Go mobile on your marketing strategy – statistics have shown that mobile device usage would overtake desktop computer usage in the next 3-5 years and most people today are using hand held devices to access the internet. With this, it is advisable that marketing strategies be employed to take advantage of mobile technologies such as having a mobile device-friendly website and SMS marketing strategies.
Be short but be specific – since people today are almost on the move, a few but specific words to get the attention of consumers is one of the best strategy. The shorter but memorable advertising lines are very efficient on getting and convincing to consumers.

There are other methods that could be employed, but the one mentioned above are the most doable and one of the cost-effective ways that could be employed so the home repair loans can be sold. Moreover, different marketing strategies maybe needed as the behavior or perception of loan products vary from place to place. Having different and efficient marketing strategies under your loan business could really boost your sales. In the end, the more you sell this type of loan product, the more it is profitable for the business and at the same time helpful to consumers when it comes to improving their lives.

Rachel Schwartz is the Marketing Manager of BHM Financial – one of the most trusted names in the bad credit [] loan industry. This company may be able to help you reach your financial goals. Please visit our Bad Credit Loan website or our Blog and find out today.

Mortgage Refinancing Loan – Strategies to Help You in a Mortgage Refinancing Loan

Is your credit rating a little shaky?

You have a credit score of 620 or lower
You have missed two or more 30 day mortgage payments in the past year
Or you have had at least one 60 day delinquency in the past two years
You are struggling to meet your monthly expenses

If this describes your current situation don’t panic, you’re not doomed. You may well qualify for a bad credit mortgage refinance. In addition to the above facts, lenders take into consideration your home collateral and your ability to repay the loan. So, if your house is worth more than the money left owing on it and you can make your payments then you are probably a good candidate.

Believe it or not, there are even some positives to mortgage refinancing with bad credit.

A bad credit home loan may help you to avoid declaring bankruptcy
You may be able to free up some cash for home improvements
It gives you a fresh chance to repair your credit
It may be possible for you to consolidate your bills into one monthly payment
Mostly, it can relieve the feeling of burden and pressure

Once you’ve decided to go ahead and refinance your home, don’t just start applying haphazardly. Repeated credit applications and credit checks can actually hurt your chances at getting a bad credit mortgage refinance loan. Before approaching any lender, do your homework.

The first thing that you need to do is get a copy of your credit report. You can get it from one of the three main reporting bureaus: Equifax, Experian, Transunion. Check the report over to make sure all the information is accurate. If you spot any mistakes, get them cleared up before applying for your loan. After you’ve done that, you’ll have a realistic picture of your credit situation. It is copies of the final, accurate report that you need to give to the lenders when shopping for your bad credit mortgage refinancing loan. Do not let anyone do a new credit check on you until you’ve decided which lender you’re going to work with.

Just because you’re looking for a mortgage refinancing loan for bad credit does not mean that you should not use caution. Search out reputable lenders online and request information. Be sure that they’re licensed.

Once you’ve chosen a lender who offers you an acceptable rate, get the quote in writing. That will lock in the numbers so they can’t change if interest rates do before you finish the application process. The only thing that can influence your pro-offered rate is if your credit score has changed from what it was on the copy that you submitted for the quote.

As soon as everything is finalized, you’ll have your mortgage refinancing with bad credit. It really is not that hard and the benefits can make your life easier.

A Restaurant Loan Strategy For People With Bad Credit

This article is primarily directed toward people who own, or are considering getting into the restaurant business. I myself used to own a restaurant several years ago. It is tough work I know, but it can be very lucrative if you work hard, make wise decisions and with a little luck.

So often, we get so caught up in the day to day struggle that we forget to step back and take a look at the big picture. Think for a moment of what you could do if you had an extra 10, 20 or 50 thousand dollars to invest into your business. What would you do with the money? I don’t know about you, but I can think of many things that I would use the money for;

Remodel the dining room
Remodel the kitchen
Expand the seating area
Purchase new equipment
Spend money on advertising
Buy out a business partner
Open a new location

These are just a few ideas. I am sure that you can come up with a few of your own ideas.

I tried to get a loan but I got turned down because of bad credit

You are not alone. Believe me; this economy has wreaked havoc on many business owners credit. To make matters worse; the banks are barely loaning money to anyone, regardless of their credit history. If you credit has taken a few hit over the past few months; you can pretty much kiss the idea of getting a business loan goodbye.

Thankfully there is something called a business cash advance

A business cash advance (also called a merchant cash advance or credit card advance) is a business loan alternative that has been proven to be extremely beneficial to restaurant owners. The cash advance is based upon your sales history instead of your credit history. If your restaurant is sustainable and you do a consistent business; then chances are you will qualify for a business cash advance.

Thousands of restaurant owners all over the country have used this type of funding, and 70% of them come back for another. If you invest your money wisely, you will have it paid off with a minimal amount of strain on your business. Once it is paid off, you will reap the benefits of your investment for years to come.

I invite you to learn more about how a BUSINESS CASH ADVANCE can help your business. While you are there you can use the advance calculator to see how much your restaurant qualifies for, or sign up for a free quote.

How to Repair Credit – Secret Do it Yourself Passbook Loan Strategies

One little advertised strategy you should use when learning how to repair credit is applying for a passbook loan. This technique will give you great results when you choose to do it yourself. Basically all you have to do is deposit money into a blocked CD or savings account where you can’t have access to the funds. You also surrender your passbook to the bank and waive any ATM privileges.

Not all banks offer this type of loan. You may have to spend some time trying to locate a nearby bank that offers one. Banks don’t actively advertise this type of loan to people with financial issues on their record. If you can’t find a local bank willing to offer one, a personal loan will accomplish the same thing. However, you may be required to secure a co-signer or provide some sort of collateral for the loan (but don’t use your house).

When you find the right loan, be sure to go over these important features:

1) Be Sure It Reports To The Three Major Agencies

Make sure the lender supplies your payment history to the three bureaus. After all, this is the main reason you’re taking out the loan. If you find the bank doesn’t work with the three bureaus, move on to the next bank.

2) Find Out The Minimum Deposit

Ask the bank what the minimum deposit requirement is to open a passbook loan. Deposits can range anywhere from as little as $50 to as much as several thousand dollars. You need to find one that you can afford. When teaching my readers how to repair credit, I recommend a minimum passport loan of $1,000 if you can afford it. This amount is high enough to have a healthy impact on your FICO score when you do it yourself.

3) High High Is The Interest Rate?

With these type of loans, don’t expect the interest rate to be low when you have a record of financial problems. You should also expect the interest earned on the account to be less than the rate you pay on the loan. That’s how the bank profits from your loan. You may question whether it’s worth spending the extra money just to take out the loan, but let me assure you the benefits to your score make it well worth it.

4) What Are The Terms

You’ll find most passbook loan terms to last anywhere from one to five years. For the best effect on your score, I recommend you take a minimum term of 12 months. This provides a long enough time to make a positive impact on your score. You also save on the interest payments.

5) What Is Your Borrowing Limit?

Banks won’t lend up to the full amount of your deposit. You’ll find they typically lend up to 80-95% of your deposit amount..

Though a passport loan isn’t widely advertised to people with financial problems, it’s a great tool to use as you learn how to repair credit and do it yourself.

Personal Loans for Those With Bad Credit Are Effective Rescue Options

No one will argue with the fact that the good times have been put in storage, with the high life something that only very few of us can still enjoy. The economic situation all around the world is such that many find themselves looking for a way out of financially perilous situations. Thankfully, personal loans for those with bad credit have proven to be a highly effective mode of escape.

It might seem illogical that borrowing is a way out of debt, but the sad reality is that an injection of funds is often the only way to alleviate the pressure. Finding a lender that is willing to grant personal loan approval, despite bad credit ratings is not easy, but is possible.

There are always risks, but lenders recognize that since so many with low credit scores are eager to improve their ratings, the risks are not quite as severe as thought. Therefore, loans with poor credit for personal use are available.

There is No Mystery

Logic might well dictate that the money spent on repaying another loan could best be used to clear existing debts, but is not quite how it works. The fact is that personal loans for those with bad credit can be used to clear existing debts, and in doing so reduce the monthly loan repayment cost.

Loans with poor credit are offered at a higher rate of interest, as dictated by low credit scores, in order to cover the perceived greater degree of risk that the lender is under. To this end, personal loan approval, despite bad credit, is actually good business for a lender, as well as providing the borrower with a route out of their tight spot.

However, loans with poor credit for personal use are usually available only in small amounts, of perhaps no more than $5,000. In this way, the borrower has funds to alleviate their immediate debt, while their repayments are low enough not to put them under severe pressure (perhaps just $500 per month over 12 months).

Loan Strategies to Consider

Of course, personal loans for those with bad credit are not completely straight forward. As already mentioned, the interest rates are high and the loan limits are low. But for those who need substantially more than just $5,000, there are ways around these hurdles.

It is not unusual for a borrower to be $50,000 or more in debt when they seek help. In this case, collateral can be enough to secure personal loan approval despite bad credit. Unfortunately, not everyone has an item or property worth that amount of money. In this case, getting a cosigner can do the trick.

A cosigner is a person who agrees to back the applicant for a loan, by agreeing to make the payments should the applicant fail to. Of course, the cosigner needs to have a good credit rating to be accepted by the lender, and have a reliable source of income that covers the repayments.

Where to Find One

A personal loan, for those with poor credit, can be the saving grace and stop a poor financial situation from spiraling downwards. But it is not enough to simply sign up to the first offer that a lender makes. The best terms are usually found online, so before seeking personal loan approval despite bad credit, a detailed online search should be carried out.

It is best to make a shortlist of 3 to 5 lenders and their offers, check out their backgrounds and then, when satisfied, apply for a loan. Taking the time to do this before signing up will benefit the borrower in the long run, making the personal loan, for those with bad credit, a genuine rescue package.

Approved Home Loans With Bad Credit Made Easier Through 3 Simple Steps

Having a bad credit rating can be something of a hindrance when it comes to seeking a large loan. So, when it comes to seeking a home loan with bad credit, it is only to be expected that lenders would hesitate.

However, as with all financial arrangements, so long as the necessary criteria are met, and an ability to repay is confirmed, the chances of approval are high.

The good news is that securing loan approval is much more straightforward than many expect, and that by taking some simple steps the chances of enjoying a successful application is increased considerably. These steps range from the applicant getting an accurate impression of their actual credit status, to taking the time to locate the home loan with the best terms.

Knowing the True Financial Status

Examining the true state of their financial status helps applicants to work out their best options when it comes to making an application. When looking for a home loan with bad credit, convincing lenders that their investment is safe can come down to the smallest details. And so an accurate credit score can mean the difference of several thousand dollars per year in interest repayments.

It is always worth getting the credit score that is quoted reviewed. This is because it is always possible that past loan repayments or a recent loan that was cleared can sometimes slip through the net. This brings the score down, increasing the rate of interest to be charged, and thereby making the overall cost too much to afford. Securing loan approval is dependent on proving that repayments are affordable.

An accurate credit report can also be a sound basis on which to develop a loan strategy. Home loans are huge undertakings, so some pre-planning may need to be done to prepare the way before plunging into that level of debt.

Search for the Right Deals

Of course, finding the right lender with the right deal is all important too. Because of the reluctance that many lenders have in approving applications for home loans with bad credit, choosing the most receptive lender reduces the chances of rejection.

It is also worthwhile when the real terms are often hidden from view, and a variety of costs and fees are often found in the small print. Taking the time to search for the right lender is hugely beneficial, and the most productive way is to go on the internet. The range of offers that online lenders have can save significant amounts, which only improves the chances of securing loan approval.

However, when good deals are found, it is advisable to check out the lenders with the Better Business Bureau. There is always a chance of being caught out with home loans offered by unscrupulous lenders.

Consider a Larger Down Payment

A down payment can be very influential when it comes to convincing lenders to approve a home loan with bad credit. Since most lenders offer a maximum 90% mortgage, it means that 10% of the purchase price must come from elsewhere. This usually means a lot of saving in the build-up to making the application.

But the more that is saved the better the chances of securing loan approval. After all, a 20% down payment means that 80% of the purchase price is required as a mortgage, and with the sum to borrow reduced, managing the debt becomes easier too.

This has an overall positive effect on the lender, who know that borrowing $180,000 instead of $200,000 makes for savings of $200 – $400 per month, depending on the terms of the home loan. This can greatly decrease the risk of missing repayments.

Bad Credit Debt Consolidation Loan: Knocks Your Debt

Is debt sending a shiver down your spine?

You are looking out to merge your debts together into a consolidated loan in order to get a single bill, and easily manage your loan repayments. Be aware of few vital things before deciding on a particular debt consolidation loan and a bad credit debt consolidation loan company.

If you are looking out for debt loans, then you are in serious debt trap. You now need funds to clear your debts or want to consolidate your credit card or other personal debts. Your credit history might have been badly affected. You are now in need of an online debt consolidation lender. Wait! Are you now muddled up with the choice of bad credit loan lenders online? Don’t know which secured debt consolidation loan company to bank on for your debt relief. Here is a bird’s eye view of what the debt consolidation loan for people with bad credit companies offer online.

Bird’s eye view of credit card debt consolidation online services

Debt consolidation secured loans are offered by the lenders if you have a home or property to back up a consolidation loan. You can use your equity to secure a loan and finance your need. If you are the one without any collateral to pledge you can opt for unsecured debt consolidation loan for tenant with bad credit and put no security of yours at stake. Just pool together different debts such as credit card, store card or any other debt into one and battle your multiple loan payments.

You can seek help from the lender without actually going in for another loan. Debt management can help merge your multiple debts and restructure your repayments without applying for another consolidation debt loan.

Heave a sigh of relief: Bad Credit Debt Consolidation
can help!

Debt consolidation bad credit loan experts negotiate with all your creditors to offer you a lower monthly consolidated single bill. They either try to reduce or freeze out your interest rates completely. Such debt loan strategies enable you to save your hard earned money and start paying down your principal amount on your outstanding balance instead of high interest rate. Whatever payment you make will be towards your principal amount rather than your interest rates. You can breathe easy!

Care should be taken while choosing a credit card debt consolidation loan company to ensure that you are not in wrong hands. Opt for a legitimate online bad credit debt consolidation lender and find out if he has any hidden charges involved in the loans or his services. Choose out a reliable and legitimate loan lender who offers you a breathing space and mental peace by getting you out of debt. Knock out your debt on time before they knock you out. Bank on a debt consolidation loan with bad credit and knock out your bad debts off your life and avoid it completely in future as well.

Is a Bill Consolidation Loan for You?

If you are like most of us you’ve probably noticed the huge increase in the number of debt consolidation loan advertisements on the television. While watching the ads, you can get the mistaken belief that these companies are interested in helping you and have your best interest at heart. It’s critical that you understand the difference between advertisement marketing and something that will truly benefit you and your situation.

Just because these ads promise to make things better for you doesn’t mean that they actually will. The ads are focused on what they believe are your emotional buttons that can draw you in to their offer. These emotional buttons may include:

1. Lowering your monthly payments

2. Giving you extra money at the end of the month to spend on yourself, a vacation, or other reward

Understand that these may be benefits, but are not reasons by themselves to contact the lender. Giving yourself a reward simply doesn’t make sense, because you’re still deeply in debt. While it’s true that your monthly payment outgo may be lowered, the number of months or years that you’re required to pay will definitely go up. Paying even more interest, even for lower payments for a much longer period of time may not be the best approach to handle your bills.

A bill consolidation loan however can make a lot of sense if you’re committed to lowering the total debt or amount you owe. This means that you need to take drastic action to lower the amount of debt that you are carrying. It’s possible to use a consolidation loan to lower your overall monthly payments. The key to a successful debt consolidation loan strategy however is what you do with the extra money that’s no longer going to the bills.

If you follow the television advertisements and go on vacation or simply spend it, you end up worse off with the consolidation loan. Instead, if you take the extra money and make larger than minimum payments on the consolidation loan itself, you will not only get out of debt much faster but pay substantially less interest on the loan.

This is really the best of both worlds. Should an emergency arise and you need the extra cash, the minimum payment is still an option. The majority of months you will be able to pay a much larger payment. The good news is that the extra over and above the minimum payment will go directly to your debt, paying it off that much faster.