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Home Mortgage Loan Approval

Not everyone knows the most important things that he or she should keep in mind when applying for a mortgage loan. At times, they go to buy a home when they see that the interest rates and the prices of homes are coming down. However, it's important to know that the process of applying for a home loan is different from the process of renting an apartment or applying for a car loan. It's important that you educate yourself. Given below are 6 tips that may help you get approval for your home mortgage loan.

1. Review Your Credit Rating

Some people don't review their credit history prior to applying for a home loan. Actually, they assume that their credit rating is already high enough, which is not the case in some cases. A lower credit rating is a big hurdle when it comes to the approval of a mortgage application. So, it's important that you check your credit history and fix errors before the submission date.

2. Get Some Cash

Often, the requirements for a home mortgage loan change. If you are going to apply for a loan, make sure you have enough cash in your pocket. If you have no cash, your application will be rejected. You need to make a down payment. The minimum amount of down payment can be different based on a lot of factors like the type of lender and the type of loan.

3. Don't quit your job

It's important that you keep your job while you are going through the process. Actually, changes to your income status or job may have a negative impact on the home mortgage process.

Most lenders grant approval on the basis of the information given in the loan application. During the process, if you quit your existing job, the lender may have to evaluate your finances once again to ensure you still qualify.

4. Get rid of your debt

Having a balance on your credit card won't stop you from getting a mortgage loan, but it's better to have no debts to pay. Actually, your debts is a large factor that can help the lender find out if you should get a mortgage. The amount of loan you can get also depends upon this factor.

Generally, it's a good idea to avoid making big purchases unless your application has been approved. What this means is that you shouldn't use your credit card to finance a car or buy expensive home appliances.

5. Consider Your Budget

You should consider your budget when it comes to a mortgage loan. You shouldn't make this decision based on the dictation of your lender. Typically, lenders figure out the pre-approval amount on the basis of your credit report and income. They don't care about how much someone spends on fuel, groceries, insurance or daycare. So, it's better that you stay within your budget limits.

The Takeaway

You may not want to lose heart if you don't qualify for a mortgage loan. Instead, you should work on your finances and credit rating. You should put together a realistic plan and work accordingly.

As far as the home mortgage goes, make sure you take all the steps that can help you get approval.

Home Loan Transfer, also known as home loan refinancing, is the procedure of transferring your current home loan account to another bank or any non-banking financial company to avail better services along with a lower interest. If you are not satisfied with your high-cost home loan, do not lose hope, as now you have the option of moving your loan from your existing bank to a new bank to save on interest besides availing a higher amount of loan.

The procedure of home loan transfer is quite simple and hassle-free. Here is a simplified elucidation of how home loan transfer works-

You can initiate the process of transfer by writing a bank transfer request letter to your existing bank. On receiving your request, your existing bank will review your application and issue an NOC along with your payment history.

On receiving the above-mentioned documents, you need to submit them to your new lender. The documents are then thoroughly verified by your new bank to ensure your capability of repaying the loan.

Once the verification is done, the new bank prepares for the closure of your account by sanctioning your loan amount to your former lender. As soon as the transaction is completed, your property documents are handed over to your new lender.

Since your home loan will be treated as a fresh loan by your new lender, you have to undergo the procedures of technical verification and legal verification of your property documents once again, along with credit appraisals conducted by your new lender.

Once you move your loan account to the new bank, you are required to pay a home loan processing fee to your new lender.

This is how the process of refinancing works. However, you should keep certain factors in mind before transferring your home loan:

Before moving your housing loan, make sure you study all the terms and conditions carefully including the legal charges, processing fees, stamp duty, and other costs which you may have to pay to your new lender.

Try switching your housing loan in the initial years of the loan. Transferring your loan after two-three years of loan repayment will not reduce your interest burden since you will be done repaying a major portion of the interest amount by that time.

If you have a fixed interest rate for your housing loan, transferring the loan will not be beneficial as it carries a pre-payment penalty, thus, making home refinancing a costly affair. Switching the loan can be advantageous only if your loan is on high floating interest rate.

Last but not least, it is advisable to clarify all your queries and doubts before moving your loan to a new lender.

Before opting for a loan switch, compare the interest rates offered by different lenders so that you can go for the best rates. At the same time, before finalising the decision of transferring your home loan account to a new bank, try negotiating with your current lender to reduce your interest rate. Ideally, you should decide to transfer your loan only if it leads to significant long-term benefits.

RESCUE IN PROGRESS****WARNING GRAPHIC***

Do you believe that animals can heal you? I know they can and I know we can heal them too....

This is a picture of a damaged animal who is raw, crusted in dry brown blood and in desperate need of medical care. The NYACC called us to urgently help little Bibi Smalls the 4 year old Chihuahua after his owner had taken him to a local vet to euthanize him. Bibi Smalls is in a lot of discomfort and the acc has done their best to keep him comfortable but he needs major medical intervention now. We have taken Bibi Smalls into our rescue to get him his life saving care. At this time we do not know what caused Bibi to look this way but he deserves specialty care not to be given up on. His intake notes said he is very very friendly and everyone thinks this little one deserves the opportunity to live.

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What Insurances Can I Have With My Mortgage?

Life Cover

Life Cover provides a lump sum if you die during the policy term. This can be used to pay off your mortgage so your family do not have to worry about making any further repayments.

Critical Illness Cover

Critical Illness Cover is designed to insure against critical illnesses which could have a severe impact on your ability to earn a living. It should pay out if you are diagnosed with one of the critical illnesses or disabilities listed on the policy. You could then use the lump sum to repay your mortgage or help pay expensive medical costs. Some policies pay out on death during the period of cover if you are eligible to claim.

Accident, Sickness & Unemployment Cover

Accident, Sickness & Unemployment Cover is a short-term income-protection policy. It pays you a tax-free monthly sum for up to 12 months if you are unable to work due to an accident or sickness or if you become unemployed through no fault of your own. Policies are available that protect you against all of these events or just cover you for accident and sickness only, or unemployment only.

This type of insurance is expensive so to reduce the cost you can choose to have a 'deferred period'. Then, in the event of a claim, you will not receive any benefit for a period of time at the beginning. This deferment could be for 30, 60 or 90 days for all three types of claims. You can also have a longer deferred period of 180 days for accident and sickness cover. To help you decide which deferred period is best you should take into consideration such things as any savings you may have and any sick pay you get from your employer.

You can choose the amount of monthly benefit you wish to receive up to 65% of your gross monthly income. Gross income is your wages before deductions have been taken such as income tax and National Insurance contributions. Of course the higher the benefit you require the higher the cost of the insurance. Cover provided by some companies may be limited due to individual circumstances.

Just as an example, Accident, Sickness and Unemployment Cover typically costs £4.71 a month for every £100 of monthly benefit. This is based on a 36-year-old customer choosing £850 of accident, sickness and unemployment monthly benefit with claims paid after a 30-day deferred period.

The cost of this insurance depends on a number of factors including your age, your occupation and where you live.

A number of companies offer short-term income protection and other products designed to protect you against loss of income.

Buildings Insurance

This covers the structure of the home such as the roof, walls, windows and permanent fittings.

Contents Insurance

This covers household goods, personal possessions and valuables within the home.

Loan rejection often exasperates home owners. There are a number of factors that lead to online mortgage loan application rejection. It's quite common among borrowers who apply for a mortgage loan. However, what you need to remember is that rejection is not the end of your dreams. You should always re-attempt the process when you're ready. However, before re-applying, you should learn what went wrong. Identify the errors in detail and make the necessary changes.

Here are 6 steps you should take after your online mortgage application gets rejected:

1. Review Your Refusal Letter
There are a number of factors that can lead to rejection of your loan application. Contemplate what went wrong from your end. This step will help you in making the right decisions, without repeating the same mistakes, so that your loan application may get accepted in the future.

2. Ask Where You Failed
The most frequent reason for mortgage loan application rejection is either insufficient income or bad credit. To avoid these types of rejection in future, it's important for borrowers to understand where they are actually lacking, either from mortgage lenders or banks. This is a very helpful step if you're considering re-application in the future.

3. Understand and Fix Your Problems
Once you list your problems, take the necessary steps to make it right. Ensure that your credit history and monthly income is up to the eligibility criteria. If you haven't found any issues with your application process, then you might want to consider the next step.

4. Contact Other Mortgage Lenders
Different lenders follow different kinds of rules and standards. If you're ever in doubt, you can always contact a different mortgage lender for a solution. They might suggest better loan programs that can more accurately fit your financial requirements.

5. Ask About Different Loan Programs
Not all homeowners fit the same kind of loan programs. Depending on your home's size and area, your financial requirements might require a different fit. Borrowers should always look for more options, including financial assistance. In these such cases, you can always look for more suitable mortgage loan programs that can fit your financial goals.

6. Re-Apply for the Mortgage
After you've corrected your errors, you can prepare yourself to begin re-application process. We also recommend seeking the help of the best mortgage lenders in your area when you re-apply for the mortgage loan. That said, when you finally do re-apply, you shouldn't just look for a mortgage lender. You should look for expert mortgage consultants who can easily guide you through the entire loan process.

Fortunately, there's one mortgage company in MA that fits both of these roles.

Drew Mortgage Associates is a leading mortgage lender company in Boston that is both a direct lender and an experienced mortgage consultant. The experts at Drew Mortgage can explain the different loan programs available to you in plain English. Due to our high loan volume and thorough application process, we may be able to help borrowers who were unable to close with other lenders. As a mortgage company in MA, we've helped families and communities get approved for over 20 years.