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Many of todays loan mortgage problems facing the consumer have been caused by having a clear understanding of the type of mortgage program they were placed into by their lender. As a consumer we must be responsible for are decisions. However, most of us unfamiliar with the entire process when acquiring a mortgage loan. Since purchasing a residence is a major step and will become the cornerstone of the consumers assets. Therefore, it is extremely important that the consumer be aware of all the ins and outs of this process.

VA StreVA Streamlinef the key elements of the consumers responsible is to be prepared with all financial information, have a budget and ask questions of your lender. A good lender will take the time to exam your financial information and explain all the various programs open to them. Their needs to be good communication between the parties and the consumer must never feel uneasy to ask for an explanation. Remember do not be pushed into something you do not understand.

So how should a consumer prepared for a meeting with a lender? The consumer should bring the following:

• Complete copy of last 2 years personal tax returns on all borrowers with W-2s
• A copy of the borrowers most recent pay stub
• Complete copy of last 2 months bank\brokerage statements
• If a business owner, provide last 2 years of business tax returns
• Have a list of other outstanding debt with balances and monthly payment amount

By having this information the experienced lender can do a preliminary review of your finances. In addition, the lender can assist the consumer is preparing the consumer loan application. It is important that the consumer be truthful on this form. Do not let anyone put information on this form that is not true. This has been one of the biggest issues within the housing market and is the main reason for some many mortgage failures. Because this application is what the lender uses to determine the type of loan program that will fit the consumers budget and will assist in giving an idea of the consumers debt to loan ratio. The debt to loan ratio is what the consumer will owe and how much cash they will have available monthly. The ideal ratio is below 47%.

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Whether you are planning to purchase a new residence or want to refinance your current residence the same information above applies. Before you purchase your new residence, it is always best to discuss your financial present with an experienced lender.

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According to a recent article in the Los Angeles Times, mortgage interest rates are at their lowest levels in five weeks, and not surprisingly more people are seeking home loans. However, the increases had been driven by the refinance market and not necessarily by new purchases. This is can be seen as a positive sign that the value in homes are increasing slightly instead of homeowners being upside down on their mortgages.

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This is both a positive and a negative for some homeowners. On the positive side, this means they are able to refinance their homes at a lower rate and take advantage of equity in their homes. But on the negative side, this assumes that the borrowers who are purchasing new homes still have good credit, can make at least a 20% down payment on residences with value of no more than $417,000.

Having indicated the above, it should be noted that there are loan programs available to the consumer whether refinancing or purchasing a new residence. An example of a lower down payment program is the FHA financing.

FHA loans are guaranteed by the government and offer more flexible guidelines than traditional mortgages. Some of these features are:

• Down payment of 3.5%
• Allows for lower credit scores
• Cash out refinance transactions up to 85% of loan to value
• No minimum or maximum income limits

Two important keys to this type of program:

• Loan amount available up to the maximum JUMBO FHA limit in your area
• FHA financing is for Everyone and not limited to first time homebuyers

When considering to refinance or purchase, a new property, the consumer must be prepared to present a complete financial package to their lender. By having all the financial information available, this will allow your loan expert to find the correct loan program to fit your financial requirements.

Todays consumer is looking to find ways to reduce their current home loan mortgage or to purchase a new home. There are a variety of loan products available even in todays economic climate.

PhoenPhoenix Mortgage key for the consumer is to understand what loan product will best serve their needs for now and in the future. The problem in the past has been consumers have been placed into programs that were not compactable with their cash flow or their future plans.

One product for the consumer to consider is FHA Financing. FHA loans are guaranteed by the government and for the new home buyer offer low down payment options that are in some cases have more flexible guidelines than the normal traditional mortgages.

Some of the features to this type of product are but not limited to depending upon the consumers situation are as follows:

• Down payment of 3.5%
• Allows for lower credit scores
• Cash out refinance transactions up to 85% loan to value
• Loan amount available up to the maximum Jumbo FHA limit in your area
• No minimum or maximum income limits

One of the keys to this program is that FHA financing is available to all consumers and not just limited to the first time homebuyers.

As a consumer if you are considering a refinance or a new purchase, you need to have all of your financial information available. By having all the information available, the lender will be able to assist you and explain to you all your various options whether under a FHA financing program or another loan program.

It is important for the consumer to present the following items which visiting with a lender:

• Complete copy of last 2 years personal tax returns for all borrowers
• Copy of most recent paystub for all borrowers
• Complete copy of last 2 months bank statement on all types of accounts

Some programs may not require this type of financial information. However, the more information provided to the lender allows for a smoother the transaction for the consumer. In addition, it allows the lender to have a frank discuss with the borrower on the types of programs that will meet their financial requirements.

Today’s consumer is still looking to either purchase a new residence or refinance their current mortgage.  However this process is still very scary for the consumer.  They have heard so much negative information about mortgages and various programs they are not sure were to turn to for assistance.

One way a consumer can assist themselves is to be prepared when meeting with a lender.  A face to face appointment is always better than a telephone interview with a lender.  The actual meeting allows you to present your financial information and discuss the pro’s and con’s for your transaction.

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When meeting with the lender, the consumer must be do the following:

• Always be truthful to the lender
• Have complete copies of last two (2) federal tax returns including all W-2’s on all borrowers
• Have copy of most recent paystub for all borrowers on the transaction
• Have a copy of last two (2) months bank statements on all accounts and any stock/investment accounts
• If refinancing, have a copy of most recent mortgage statement
• If refinancing, bring copies of original documents in regard to mortgage
• Prepare a list of all assets, including names of banks, average balances along with a list of all liabilities, i.e., auto loans, credit cards, 2^nd home mortgages.  Note the lender can receive this information via a copy of your credit report.  But having the information available at the meeting is important.

At this meeting, the lender will be able to approximate, what your debt to income ratio. The final ratio is determined by credit underwriting.

By having this information available, the lender should be able to discuss with the consumer various types of loan programs, which will meet the consumer’s financial position.  If you are a new home buyer, it is important that you have money available for a down payment.  A new home buyer should not be pushed into any program or loan that is at more than 80 percent of the lendable value of the home.  The behind this important fact is that today’s meltdown in the housing market has been caused by lending more than the normal 80 percent loan to value on a residence.  When the financial crisis hit the consumer, they were overwhelmed by two mortgages and higher than expected loan mortgage increases.

As a consumer, you must have a clear understanding of the program you are selecting. Do not let any lender give you answers to questions that are not clear or you do not understand.  It is the consumer’s responsibility to understand exactly what their monthly mortgage payment will be and if this payment includes property taxes.  The consumer needs to select a program what meets their financial requirements.

Today’s consumer is finding out that one of their most important assets is a good credit rating or credit score.  A good credit rating is one of the keys to financial freedom in today’s economic climate.  

Some consumers have been facing financial hardship such as the lost of a job, reduced salary, divorce, death or a medical emergency. During these time loans, bills and credit cards can quickly pile up and destroy the consumer’s ability to repay their financial obligations. Not only are these obligations weighting heavily on the consumer, the various credit card lenders are increasing the interest rates and fees on the consumer’s credit cards.  

So what is the consumer to do about this situation?  Some of the solutions make sound simply, in a normal economic such as: 

• Borrow only what you need
• Pay all bills promptly and more than the required monthly minimum payment
• Understand your credit report
• Recognize financial situations
• Understand the type of loan you are requesting, is it an open credit, revolving or installment loan.  Know the terms and repayment requirements. 

However in this uncertain financial climate, the consumer may not have the luxury of taking the above steps. The consumer needs to try to at least to rein in their spending and establish some type of budget to mean their monthly obligations. One way to reorganize their financial situation is to:  

• Call their mortgage lender to discuss a loan modification – This will achieve lower monthly payments
• Order a credit report – The consumer needs to know their credit score and identify any errors.
• If the consumer currently has a good credit score, call the credit card companies to obtain a lower interest rate 

If the above does not fit your current financial situation then the consumer needs to look for other alternatives. One of the other alternatives is a debt settlement program.  This type of program is designed to assist those consumer’s who are having financial difficulty. Basically, the consumer sets aside a certain dollar amount each month into a “trust/escrow” account and when there is enough monies available equal to approximately half of your lowest credit card balance. The debt settlement company will start to negotiate with the lender on your behalf.  

So call for a free consultant today with your debt settlement expert.

According a USA Today article, banks are indicating that consumers are catching up on their debt payments.  

As a consumer, do you feel like the roller coaster ride is over and that you are making progress in reestablishing your financial footing? According to Brian Foley, an analyst at Goldman Sachs, says “that a slowing in the unemployment rate holds the key to stabilization.” “As new jobless claims start to slow, there will be fewer people with payment issues,” he says.  

It is for this reason the lenders are more willing to accept a negotiated settlement on outstanding credit card debt. If as a consumer, you still are faced with financial hardship and unsecured debt of more than $10,000 it may be time to consider a debt settlement program.  

A debt settlement program is a third party company which deals directly with your credit card lender.  This program is not a quick fix or an overnight resolution to the consumer’s problems.  The program can take been 12 to 48 months to complete depending upon the amount of debt and number of credit cards.  However, the monthly monies set aside are normally less than the combined monthly minimum payments due on the debt.  

It was been a wild past several years for the consumers.  They have struggled to maintain their residence and their live style.  This burden has taken a large emotional toll on the consumer and their family.  Yes, things seem to be improving within the economic climate but in some cases the consumer is still facing both emotional and financial hardship.  

So now is the time to call your debt settlement expert.  This expert will explain to you the proceeds and this free consultant may give you a piece of mind.  So call today.

As a consumer, it is important to understand the meaning of credit and the affect it has both in the short term and long term on our lives.  

First, credit means money loaned to the consumer either by secured or unsecured method. Secured lending is the mortgage on your personal residence or your car while unsecured lending is the consumer’s credit cards. The lender’s who issue credit cards establish an initial credit limit to the consumer.  As the consumer uses the card in a responsible manner and over time, the limit is automatically increased by the lender.  

A good credit rating is important because it affects every major financial decision the consumer makes. The better your credit rating normally, the lower your interest rate on your mortgage or car loans because you are better credit risk than someone with a lower credit score.  In other words, if you have a positive credit history, meaning you repay your loans on time then you have a good credit.  If you have a bad credit history, which means you are late on payments you have bad credit.  

The three major credit bureaus are: Equifax, Experian and TransUnion. These companies use a scoring system that rates your credit by giving it a numerical number.  This numerical number is considered your score and can range from 300 to 850 depending upon the credit bureau. On average, the majority of consumers should have a score in the mid 700 range to be considered a good borrower.  Anyone with a lower then 650 is considered to be a poor risk by lenders.  

Having indicted that lower than 650 is a poor risk.  Credit card companies continue to issue cards to these borrowers but the rate is much higher than a consumer with a higher credit score.  So how does a consumer improve their score? 

Here are a few ways to improve your score:  

• Make a list of all bills and their due date
• Make a family budget
• Enroll in an automatic or direct payment program – in same cases, you can get a lower rate by using these programs
• Monitor your credit report quarterly for errors
• Consider credit counseling to get tips on how to improve your spending habits
• If divorced, close all joint accounts after divorce. Start to rebuild credit in your own name
• Take responsible for your spending habits 

As a consumer, we need to work on improving our credit score.  However sometimes he might face a financial hardship and need assistance in paying off our unsecured debts. If you are in need of assistance, call your debt settlement expert to discuss how a debt settlement program can help you and your family today.

Today’s consumer is looking for a path to financial freedom during this difficult economic climate.  Even if the consumer has not been impacted with a financial hardship such as a lost of job, reduced salary, divorce, death or medical emergency, they are looking for ways to safeguard their reputation.  

The consumer knows that loans, bills, mortgages and credit card charges can increase very quickly, in particular the credit cards used for day to day expenses, it is a challenge to maintain the monthly payments.  So in order to safeguard the consumer’s reputation and credit score rating, they need to review and relearn ways to protect themselves.  

Some of the things the consumer needs to revisit are the following key ideas:  

• Am I borrowing wisely and paying back promptly?
• Have I identified, avoided and recovered from various financial pitfalls?
• Have a gotten a recent copy of my credit report and do I understand it?
• Does my family have a financial plan for the future  

Every consumer has applied for some type of credit, whether it be for a auto, boat, RV loan, a home mortgage or a credit card.  The consumer has normally been approved for a loan based upon their ability to repay the loan, cash flow and their credit score.  

The key to being a good credit risk is based upon the consumer’s credit score.  This score is a numerical number assigned to the consumer based upon their credit history. This history is based upon number of opened and closed accounts, payment history, including late or missing payments and collection referral, original credit limit, current balances, etc. The higher your credit score is the better your ability to borrow at more favorable interest rates.  The lower the score the consumer is charged a higher interest rate or decline altogether.  

Basically, the consumer needs to obtain a copy of their credit report from one of the following three credit bureaus: Equifax, Experian or TransUnion.  These companies’ reports will explain where the consumer stands when compared to other borrowers along with explaining their financial score.  

Once you have this report, the consumer needs to set down and review this report for accurate information.  Then the consumer needs to revisit if they have enough money to continue maintaining their current score. This means that payments are on time and they are using their credit wisely.

Today’s consumer is being overwhelmed with information of how to get out of debt.  Some consumers are facing financial hardships that they never would have expected in their live time.  These hardships range from lost of job, reduced salary, divorce, death or medical emergency. So the question is “What is the consumer to do?”  

There are several methods available to the consumer to consider when trying to get out of debt.  These methods are: 

• Try and manage their current debt themselves – in other words tighten their belt and spending habits.
• Debt consolidation loan – this would combine all outstanding unsecured debt into a single payment loan. The problem is can the consumer qualify for a new loan with no job or financial hardship issue.
• Refinance or Home Equity loan – This might work, if the consumer has enough equity in their home, however the repayment may be an issue.
• Credit counseling service – This program acts like a debt consolidation loan. The consumer pays a third party company who in turns pays a small or set percent each month to the lenders until all the balances are pay off. In addition, there is credit counseling for the debtor and this will also have an affect on your credit score.
• Bankruptcy – This is the most serious and the final step that a consumer should consider.  The consumer needs to discuss with an attorney all facets of bankruptcy since it will cover all debts, both secured and unsecured.
• Debt settlement – This is a program by which a third party negotiates with the lender in order to reduce the outstanding balances on unsecured credit cards.  

Here is a brief overview of the debt settlement process:

The consumer needs to have a full and complete understanding of the process. The debt settlement company needs to explain all the in’s and out’s of the program.

• A “trust/escrow” account is established an a set amount in place in the account. Normally, this is less than the combined minimum monthly payments.
• After at least half of the lowest outstanding credit card balance is in the account then the debt settlement company begins to negotiate with the lender.  The debt may be reduced by up to 40 to 50 percent. In most cases, the lender would rather have at least a partial payment at one time than receive nothing if the consumer files bankruptcy.
• This process is repeated until all debts are negotiated. This process can take between 12 to 48 months.  It’s not a quick or easy fix however it will assist the consumer.

The question of the day is? “How am I going to continue making my monthly minimum payments?” As a consumer I am now faced with some unusual financial situations.  I might have lost my job, had my salary reduced, got divorced, or had a medical emergency. Because of one of these financial hardships, I am barely able to maintain my monthly mortgage and car payments along my other monthly obligations. 

The consumer is about to get hit with another increase on their monthly minimum credit card payments.  In the past, the consumer has been paying the 2 percent minimum monthly payment, it would take years to just payoff their current balances. So at the direction of the federal government, most credit-card companies are increasing the amount of the consumer minimum payment from 2 percent to 4 to 5 percent.  The good news is in a good economic or without financial hardship by paying a higher monthly payment you’ll pay off your debt more quickly. The bad news: Your now have the additional burden of coming up with more money each month. 

Faced with every increasing pressure to get out of debt, the consumer is now more willing to consider a debt settlement program.  The average consumer wants to pay off their credit card obligations, but the lenders are not willing to work with the consumer by either reducing the interest or establishing some type of revised lower repayment plan.  

Therefore, the consumer is let with no choice but to consider either bankruptcy or a debt settlement program.  Yes, there are other options available, a home equity loan or a debt consolidation loan from a lender.  However, because of consumer’s financial situation these options might not be available.  

The debt settlement program is a better option than bankruptcy for most consumers.  If a consumer is considering bankruptcy they should consult an attorney before taking this step. Whereas a debt settlement program will allow a third party to negotiate on behalf of the consumer for a settlement of up to 50 percent off their current outstanding balances.  

This is not a quick fix or easy step for the consumer. This program can take been 12 to 48 months depending on the consumer’s obligations. Basically, the program requires the consumer to place a set dollar amount aside each month into a “trust/escrow” account.  Once there is at least half of your lowest credit card balance, then the debt settlement expert will start to negotiate with your lender. The key to this program is that the lenders are more likely to accept some monies from the consumer than receiving nothing from the consumer if they file bankruptcy.  Under bankruptcy, normally the secured lenders receive their monies first and in most cases the unsecured lenders receive up to little or nothing.  By receiving nothing, the lenders have to write this off as a loss or bad debt on their financial statements.