People who have bad credit are fully aware that applying and getting approved for a mortgage loan can be daunting. Bad credit causes a person to have to work harder to be approved for the financing need to buy a house or to refinance their existing mortgage loan at a reasonable interest rate.

The majority of mortgage brokers will say that if they’re not able to help you out, there’s no one else who can do it, either. But don’t fall for it! Each individual mortgage lender or broker accesses very different programs for loans, and a loan program that could be completely undoable for one particular broker could be easy as pie for another one. A few mortgage brokers even have available loan companies that focus specifically on mortgage loans for customers with shaky credit ratings, and these companies maintain their niche by having looser restrictions for qualifying than most of the competition.

Most mortgage brokers will tell you that if they can?t help you, no one can. That is simply not true, because every mortgage broker or mortgage lender do not have access to the same lending programs. Programs differ as well as the lenders? access to the programs. A lender may not have knowledge of a program or access to it, while another lender is knowledgeable and participates in the program. Some mortgage brokers have access to lending companies that specialize in home mortgage loans for people with less than perfect credit and the loans will have more lenient qualifications than other sub-prime lenders do. Persistence is the key for getting approved in spite of the negative credit.

Make applications with brokers on the internet who will in turn send the applications to several different lenders, saving you time and legwork. Usually these kinds of companies will give out your application to dozens or even hundreds of lenders that are all eager to help you out with refinancing, purchasing, and so forth, and then narrow it down to the top four. Services online for mortgage brokering are active almost everywhere in the United States.

A credit report will not be pulled until the lending process is initiated. This is good because little risk is involved and too many inquiries into your credit will have a negative impact on your credit score. A low credit score does not need to go any lower.

To further minimize the inquiries into your credit report, have a single mortgage loan broker pull your credit and then have him/her tell you what your credit score is. Then, go to your other prospective lenders and discuss with them your overall financial situation, including your credit score, income, down payment information and whatever else may be needed. The lenders will thus have the information they need to give you some initial quotes before they even pull your credit.

As mentioned earlier, persistence is the key to you successfully obtaining a loan in spite of your bad credit. It is possible to boost your credit score; however, do not let your poor credit deter you from your quest for home ownership. You should be persistent in your search by talking to as many lenders and companies as possible. Finally, the online application is easy, fast method to apply and receive quick responses.

Susan Reynolds is the webmaster for a leading South African bond origination portal. For more information visit:

During hard times, when debt builds up and becomes overwhelming, it can be very difficult to keep up with bills. If you fall behind on bond payments, however, the results can be devastating. It is very likely you will lose your property. However, there is hope for people who find themselves caught in this predicament.

If you fall behind on bond payments though, the results can be catastrophic. In fact, you will probably lose your property. However, people who find themselves caught in such a situation can find help.

One way of doing that is with Debt Counseling. This program was developed to help consumers who simply could not meet their credit agreements and the fundamental living expenses. With this type of program, a debt counselor will negotiate with your creditors, and get reduced monthly payments. Creditors can no longer take legal action once a debt counselor has contacted them. The counselor, working on your behalf, will negotiate with your creditors. They work out monthly payments and usually get interest rates reduced. Debt counselors often charge a fee for their services.

Another option now available is debt settlement. With this program, negotiating with creditors and credit card companies takes place. The goal is to settle on a specific amount of money that will suffice in meeting outstanding debts. Most creditors will settle, as it is better to get something than nothing, and if you are forced into bankruptcy, they get nothing.

Debt consolidation is another way you might go. This would involve taking out a loan to pay off several debts. Usually, you can get this loan at a lower interest rate, and you end up with just one monthly payment.

Debt consolidation is something you might consider. With this option you would take out a loan to pay off several debts that have been consolidated. Usually, the loan comes at a lower interest rate, and you end up with just one monthly payment.

Bankruptcy is a last resort. When you declare bankruptcy, your credit rating is going to bottom out, and the harm will be long term. With bankruptcy, you will have to liquidate everything, and whatever money is collected, is given to creditors as token payment for debt.

Repossession is the real concern, if you are in bond arrears. An illness or layoff can put you behind in bond payments, and that can mean you lose the property when the bank forecloses. You could sell your property to investors, which prevents it from going through repossession. In today’s economical climate, it really is very important to be prepared for emergencies.

One way to protect yourself is to get a Bond Payment Protection Plan. This type of policy protects and covers your bond payment, in the event of an unforeseen problem. So, if you are unable to make your payment because of illness or unemployment, the insurance company assumes the payment. If you make use of this option, check pertinent provisions in your policy. You will want to make sure you understand exactly what is covered, and under what conditions.

Susan Reynolds is the webmaster for a leading South African bond originator. For more information visit:

A new type of bond has emerged in recent years. It’s called an access bond, and you can find it at almost any bank. An access bond actually treats your home loan very much like a savings account. In addition, it establishes a savings account that is equal to the equity you have in your home.

Really, access loans and traditional home loans are very similar. The big difference is that access accounts have a savings account component. The balance of that savings account reflects the equity you have in your home. Basically, all that means is the more your home is worth, the more money you will have in your access savings account. It’s important to understand though, that if you take the money out of this savings account, you are actually taking it out as a loan against the equity in your home.

In many respects, this offers consumers a unique type of money management opportunity. If you pay money into your home loan, on top of your normal installment, it not only allows you to pay off the home more quickly, but it also establishes a surplus that can be used for short-term loans. However, don’t forget that these funds must be paid back. You will pay them back at the same interest rate you have on your home loan. Really, the key thing to keep in mind is to only borrow what you can pay off in a comparatively short amount of time.

Access bonds offer the advantage of being able to access the equity in your home. It can be done at any time, and the money is yours to use however you see fit. These monies can be used for short-term debt, a holiday, home improvements, or even a new automobile. In fact, many people do use these funds for car loans. The reason is that car loans usually have a higher interest rate than home loans. The home loan will come in lower than the prime lending rate, but a car loan would be higher. Thus, you can save money.

Student loans is something else people generally use these monies for. Once again, the home loan interest rate will be lower than the prime lending rate. Student loans are also set up so they milk out a larger interest charge. You cannot pay anything but interest until the student graduates. That can add up,. So, if you use these access bond account funds for a student loan, you can save a good deal of money over the long run.

Just like with all loans, access bonds have some advantages and some disadvantages. It’s true they do have a lower interest rate, but they also have a briefer payback condition. If you fail to pay the money back, in the given period, you could end up paying far more in interest than you would have with a traditional loan. However, the most important thing to remember is that you are borrowing against your home. If you fail to repay your loan, the bank repossess your property.

Susan Reynolds is the webmaster for a leading South African bond originator. For more information visit:

The recent rate hikes on home loans have negatively impacted many homeowners. While some people struggle to make their bond repayments, others struggle to make ends meet. In the end, there are a few that are forced to sell their homes. Selling your home when you’re having financial difficulties is not really the answer. Due to high interest rates and the large deposits banks require, people are simply not looking to buy anything. Homeowners who struggle with meeting their bond payment, are often trapped with a property they cannot afford; these are the kinds of situations that generally lead to repossession.

Banks do not have many options when a bondholder cannot meet their financial obligations. After missing several payments, they are given a pre-foreclosure grace period. Sometimes that can last a few weeks, and sometimes a few months. Regardless, however, if payments are not brought up to date, the bank will try to cut its losses. They reclaim the property.

There is almost no risk for buyers looking to purchase repossessed property. The purchaser does not pay the transfer duty, and most often, the bank will pay any other outstanding debts, like property taxes or monies owed to the IRS. By doing this, they can sell the house with a clear title. Normally, property that has been repossessed is sold at a discount. Furthermore, because the bank is anxious to find a buyer, they may be willing to loosen up their lending criteria, making loans for repossessed houses much more assessable.

The steps involved in purchasing a repossessed property are much as they would be to buy a regular piece of property. If you are going to finance the home, you simply apply at any bank for a bond. Dealing with the bank directly is a good choice, as you may need a bond to purchase the property.

Ask to see the property. Do not allow the inexpensive price to eclipse common sense. Remember, when you purchase a repossessed home, they are sold as is. It’s smart to secure the services of an expert, and have them inspect the home and give you an estimate on repair costs. Then, figure in what you will need to make those repairs when you settle on your purchase bond. Look at the location, too. It’s a smart idea to check things like crime rate and school systems.

Once you have made your decision, and you want to purchase the repossessed property, complete an offer to purchase. Then you simply submit it to your bank. Now you are ready to apply for a home loan or bond, and you can do that at the bank of your choice. Once the bank accepts the offer, and once the financing is approved, the transfer of property will be quite normal. It is very much like any other property purchase.

Susan Reynolds is a content coordinator for a leading South African bond originator. For more information visit:

A bond is actually a debt security. It is basically, a formal contract to repay borrowed money, with interest of course, and at fixed intervals. So, in effect, a bond is similar to a loan. They supply a borrower with outside funds, which can then be used for long-term investments. Credit institutions generally issue bonds, and the most common process is through underwriting. Large financial institutions go through an underwriting process to assess the eligibility of a consumer in receiving their services.

The type of bond or loan you apply for will decide the time needed for processing and completion. Different types of loans are going to require different kinds of documentation. Paperwork for bond issues and loans can be staggering, but the basic documents required by all lenders are pretty consistent.

It all starts with verification of income. You will need earnings statements, which would be your W-2 forms, pay stubs and tax returns. For those who are self-employed, make sure to have profit and loss statements and tax returns. If you have additional income, for example, social security, bonuses, commissions, interest and such, have that documentation available as well.

Checking and savings account numbers, along with your bank contact information and statements will need to be supplied. In addition, provide documentation for any savings bonds, stocks or investments, and make copies of titles you may have on any vehicles that have been paid off. A copy of the ratified purchase contract for the property in question, will need to be supplied, along with your cancelled check for the down payment.

Debt records must be presented as well. This includes things like credit card bills, car loans and student loans. In fact, any installment loans much be accounted for, along with creditor contact information. Do not forget child support and/or alimony documentation, too.

You will want to verify your credit history by supplying canceled checks for rent, utilities and other recurring obligations. This establishes some kind of payment history, as well as the amount of your revolving debt.

When all the proper documentation is in place, the bond goes to a processor. Their job is to verify and validate all the information you supplied. Verification requests will be sent to your employers, mortgage holder, landlord, and lending institutions.

Securing a loan or bond will depend on your prior financial habits; in other words, your credit report. Lenders want to know what the risk factor is, before they step out on a limb and extend credit. Find out what is in your credit report prior to applying for a loan or bond.

If there is an error, take the needed steps to correct it. Almost 50% of all credit reports have errors that are important enough to cause a loan or bond to be denied. When all the information is collected, and verified your file is sent to an underwriter.

Susan Reynolds is a content coordinator a leading South African bond origination portal. For more information visit:

If you purchase a bond that is paying out interest rates higher than the markets interest rate a bond premium will be included in the purchase price. The market uses the bond premium to adjust the price of a bond that has too high of an interest rate.

Dealing with bond premiums can make record keeping difficult. It is recommended to repay the sum of the premium over the lifetime of the bond so you can allocate the premium over the years that the bond pays interest. This will greatly reduce the interest of the bond. Whenever adjusting the bonds interest rate ensure that you are doing so with an effective interest rate allowing the bonds annual interest to be recorded the same at yield as it is at maturity.

To earn higher profits and to avoid complex record keeping you can simply ignore the bond premium. When ignoring bond premiums you are able to overstate the interest that was earned over the life of bond and show you are paying higher income tax on the bonds interest over that period. Once the bond matures it will show a capital loss that should be equal to the bonds premium amount that you have but never recorded.

By ignoring the bond premiums until their maturity and simply recording the premium as a loss or even a final year adjustment on the bonds interest will ease the pain of record keeping throughout the year.

The strategy is legal; the IRS allows U.S. taxpayers to ignore bond premiums until end of year for calculating. The method simply allows you to overstate the amount of interest you earned with the investment of the bond.

Bonds that pay a lower interest rate than that of the markets will be allowed to use the bond discount. You will handle a bond discount in almost the same fashion as you would a bond premium.

Purchasing a bond for a discount dictates that you are required to allocate the discount over the lifetime of the bond treating it as additional bond interest. This means a $500 bond that will return $600 upon maturity will earn you $100 profit that you count as the interest amount in the similar fashion as the zero coupon bond.

The accrued interest should be counted anytime you use a bond discount. Make accrued interest amount equal to the bond discount amount which was allocated for that year. A bond discounts accrued interest is referred to as the amortization.

The IRS does dictate that every U.S. tax payer amortizes their bond discounts, unless you know about the loop hole. If you use this strategy to your advantage you will save record keeping time and money. If a bond discount has a very small adjustment in the effective interest rate that was paid generally you can omit the record keeping on amortization for the bond discount. Speak to a tax advisor if you are uncertain about what records should be kept and what strategies will earn you the most.

Susan Reynolds is a content coordinator a leading South African bond origination portal. For more information visit:

In many instances home owners take out second bonds for upgrading or repairing their property. You do not have to make improvements on the property with your 2nd bond; it can be used as you wish. There are several home owners who will take out the 2nd bond for reducing high interest debts or for paying for a child’s education.

Second bonds are based solely on the properties equity. Be careful about removing home equity for the wrong reasons. You have to keep in mind that you will be paying interest on this money you have accumulated. If you are planning to make improvements on the home or to do some needed repairs then you will be increasing the home equity. If you use the loan for any other reason you are simply losing the equity you built and will leave yourself no easy way to build new equity.

A second bond creates a new loan against the property. This will have to be paid off at the time of selling the property just as with the primary mortgage. Be sure you understand that if you use all the homes equity and do not create more then when you sell the property you will be coming out empty handed from closing.

You primary mortgage company is not your only choice. You can shop around for the best rates from many banks, credit unions, or even other mortgage companies. Just like your primary bond the 2nd bond will have terms and other features to the quote you need to have specified by the lender.

You may expect to pay a slightly higher interest rate on the second bond. Only a portion of the homes equity will be able to be taken out for the second bond. Some companies will offer 100% equity lending but the majority stay around 85% or lower.

The lender will require an appraiser to come out to evaluate the property first hand. The lender then uses the information gathered from the appraiser to figure out what the actual homes value is and what is available for lending through its equity.

The appraiser will look at the homes over all quality as well as surrounding homes that are similar. You need to make sure that you have the home in the best possible shape you can in order to gain the highest appraisal. If the appraiser walks up to your home and finds a deck that is falling apart or gutters that are hanging you will lose hundreds of dollars of the homes equity amount.

In order for your home to be assessed properly be sure to inform the lenders and the appraisers of the improvements that are going to be made. Having a permit and a blueprint of the improvements will help a great deal in gaining the equity points for your 2nd bond.

Susan Reynolds is the webmaster for a leading South African bond origination portal. For more information visit: