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Debt

How To Get Approved For A Mortgage

If you are sick and tired of paying rent, knowing that you are practically throwing away your money month by month, here are a few things you should know about before you go and get a mortgage preapproval from your local financial institution

Access To Credit

Before a financial institution will lend you money they will want to know how much access to credit you have. For example, they will ask you about your limits on your credit cards, lines of credit, overdraft protection on your bank accounts, as well as on any loans you may have. Even if you are not carrying a balance on your credit products, the lending institution will still have to take your limits into account. The lending institution may ask you to decrease or get rid of some of your credit products in order to approve you for a mortgage.

July 4, 2012

Debt

How To Manage Your Expenses And Still Be Fashionable

The fashion world today is moving so fast that not everyone can keep up with its pace. We often see celebs changing their wardrobe every season and we get envious of their lifestyle. There is no problem with that if you have enough money to pay off your credit card bills when they arrive. What if you are on a budget? Budgeting doesn’t mean that you have to sacrifice your love for fashion, you just have to balance things out. Here’s how.

Credit Limit

There is no doubt that shopping with your credit card is pleasurable. But when the bill arrives, do you enjoy it too? Or have you exceeded your limit? Knowing what your credit limit is will help you avoid exceeding it. You should always stay below it by at least 20%. Doing this will give you good points on your credit report. There’ll also be less worrying about credit debt and balances.

The Basics

When it comes to fashion, there are basic pieces that never go out of style; and there are statement pieces that easily become so-last-season. If you want to keep your expenses on a low down, opt for the basic pieces so that you won’t have to change your wardrobe all the time. You will save a lot of money in the long run.

June 27, 2012

Debt

What You Need To Know About The Total Debt Service Ratio

What is a Total Debt Service Ratio?

Total Debt Servicing Ratio, or TDSR for short, is a measurement that tells you the percentage of gross annual income required to cover the annual costs associated with housing and all other debts you may have such as loans, lines of credit, credit cards, etc.

Why is TDSR Important?

This is how a lending institution will determine how much they can lend you when you apply for a mortgage or other type of credit product such as a home equity loan. The lending institution wants to ensure that you will be able to afford to repay them if they lend you money. TDSR is a way of showing your credibility, so to speak.

June 25, 2012

Debt

How To Avoid CMHC Insurance When You Buy A Home

What is CMHC?

CMHC stands for Canada Mortgage and Housing Corporation. CMHC protects lending institutions from mortgage default by providing mortgage loan insurance.

When do I have to pay CMHC insurance?

If you purchase a home and make a down payment that is less than 20% you will be subject to paying CMHC insurance premiums. You may also need to pay CMHC if the home you want to purchase poses other risks to the lender such as a poor location, etc.

May 28, 2012

Debt

Learn More About Payday Loans – They Are Simpler Than You Think

A payday loan is a loan given to the borrower by the lender with the next paycheck of the borrower as collateral. They are short term loans and the most widely used time span is 2 weeks. They can be rolled over as well if the borrower cannot pay the money on time.

Why do people use payday loans?

Most people use payday loans to meet an immediate monetary crisis. If someone needs cash at hand instantly, say for medical expenses or some unforeseen expense that he or she has to meet, then a payday loan can be useful Payday loans are available in all parts of the United States and the normal interest charged is $ 15 to $ 20 on every $100 lent.

May 25, 2012

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