Five Reasons A Mortgage May Be Declined By A Lender

Preparing and filing all of the required paperwork in an effort to get a mortgage for your family’s new home is an enormous task, only to wait for some banker to call you to inform that the financial institution has decided to turn you down. It might seem flat out unfair and difficult to understand why you’ve been denied. As time has passed by, financial institutions seem to have become increasingly strict on who they are willing to lend their money to. Because of this, consumers need to be prepared. You need to understand how the lending process works and how you can best put yourself in a position to be approved for your mortgage. Here are five tips how.

1) Too much credit already used

It’s important to understand how financial institutions view existing consumer debt when considering a mortgage. A general rule of thumb is that an individual’s housing costs should account for no more than 33% of their gross income. Consumer debt should account for no more than 5% on top of that. When an individual’s consumer debt exceeds the 5% figure, it cuts into the 33% that is allowed on housing costs. For example, if your consumer debt accounts for 9% of your gross income, a financial institution may only approve a mortgage that account for no more than 29% of your gross income. So what does this all mean? Keep your credit cards under control to keep that consumer debt down.

2) Change of Employment

Changing jobs can increase the difficulty in getting your mortgage approved. The reason for this is that financial institutions are looking for consistency in your earnings. Specifically, they would like to see 2+ years of financial consistency. There are exceptions to this, however, such as individuals who are moving to higher paying positions in the same or a very similar field. Perhaps the most fatal job change mistake people can make during the mortgage process is transitioning from a salaried position to self employment as they now have zero financial consistency to offer on the loan application. Not surprisingly, the self-employed and those who work sales based jobs that rely heavily on commission are those who find it the most difficult to get accepted for a mortgage.

3) Your credit score is fluctuating

Because of the length of time is can take while shopping the housing market, it may be a matter of several months between filling out your credit application and finalizing the loan. Because of this it’s natural to expect that the financial institution may perform several checks on your credit. You want to be sure nothing happens that might cause it to go down during the process, causing you stress and complications. Make sure all of your payments are made on time during the application time period and also avoid opening any further lines of credit. For good measure, also be sure to request your credit report from all of the refutable agencies and check for any inaccuracies before beginning the mortgage process.

4) Mortgage payments are missed

To piggy back off of reason 3 a bit, it is extremely crucial that you do not miss any of your significant payments while applying for your new mortgage. The last thing you want to do is make the financial institutions start viewing you as a credit risk. If you have a current mortgage it is imperative that you pay it on time. If you are having issues paying your current mortgage you should discuss options with the mortgage holder to have it amended.

5) Missing the obvious

Lastly, be sure not to miss the obvious. When going through the application process be sure you read every form intently and understand what you are filling out. Make sure all of your information is accurate and complete. Double check and then triple check your work. This is an extremely important process so you will need to pay extra attention to detail.

Bio

This author of this guest post is Andrew Potter who is the director of My Online Estate Agent. My Online Estate Agent is a UK based low cost estate agent which allows sellers to advertise on Rightmove, Zoopla, Primelocation and Find a Property.

The Best Student Credit Cards Reviewed & Tips For Using Them Right

A students first credit card is not something to be taken lightly by a student or their parents. Students need to realize that credit cards are a form of money and you should not spend money you don't have. 

There is a place for credit cards in peoples lives but being responsible with them is the most important thing. The number one rule when being responsibly with credit cards is only spending what you have the ability to pay back, every month. 

Rule number two is never carry a balance. If you don't know if you can do that, then stay away from credit cards, your headed for trouble.

Here are a few credit card tips:

• Simply, don't use a credit card if you don't have the cash to pay it off when the bill is due. If your at the gas station and spend $20, when the bill comes in and you only make the the minimum payment, that $20 for gas can turn into $60 in the long run. DUMB. If you must use a credit card pay it off the same month and bank the rewards. 
• Never carry a balance. Your a student with little or no income. You have to be very careful with money. That balance will grow and grow over time. That $100 balance will work its way up to $1,000's before you know it. 
• Remember you have a credit limit. If you go over your limit you will be charged a large fee. Also remember your ability to pay off your monthly bill is in direct relation to your monthly income. 
• Annual fees are a no-no. It's very import to not pay a annual fee. It's also not necessary. There are many credit cards that have no annual fee. Stay away from them. 
• Avoid extra fees. Making a late payment or going over your credit limit will earn you a nice penalty fee. These are unnecessary costs you have to pay. It may be a sign your not ready for the responsibilities of credit cards. 
• Get the best deal on credit card offers. Today there are many companies offering credit cards. Shop around and compare their rates and reward points.

Some Student Credit Cards Available

The best of the bunch is the Discover Student card. It has some good cash back rewards and has no annual fee. The rewards are up to 5% in categories that change like travel, department stores, gas, restaurants, groceries, and more. There is a o% APR for the first 9 months. Also a 1% unlimited cashback bonus on everything else.

Another good choice in credit cards is the Citi Forward Card for College Students it offers all the cashback enticements of the mtvU card (5% at restaurants, movies, books) and 1% on everything else. You earn ThankYou Points with every purchase. Also you can earn an extra 10 points per month for staying under your credit limit and paying on time.

Are You Planning For Your Retirement Or Are You A Retirement Ostrich?

Image by Ginger Me via FlickrIn an age of faltering retirement plans and a Social Security system that is becoming insolvent, American are waking up to a new paradigm. In the old days, your savings, Social Security, and a part time job was all you needed. Today, some Americans don't give their retirement a lot of thought. They are dependent on Social Security and don't worry. They don't pay attention to their retirement because they think Social Security will always be there to take care of them.

When you feel someone is going to take care of you, you lose the ability or need to take care of yourself. A survey sponsored by ING, reveals that 55% of Americans do not know how to achieve their retirement goal.

Americans are realizing the fact that they are responsible and accountable for providing for their retirement. The stakes are higher today, retirees are facing a perfect storm of a faltering retirement systems, rising prices, a world recession, and global instability. We can no longer bury are heads in the sand any more.

According to a survey by HSBC, there are four categories of financial preparedness:

• Disengaged non-planners (35 per cent of the population) who are doing nothing, with the primary reason being a belief that they lack the necessary income.
• Advice-seeking non-planners (25 per cent) do not have a plan but do take occasional financial advice.
• Self-guided planners (13 per cent) have a plan in place but do not seek professional advice. Tend to be younger, mid to high income and internet savvy.
• Advice-seeking planners (26 per cent) have a plan and take professional advice to help manage their finances.

The worse off and most in need of help is the "Disengaged non-planners". They definitely believe they lack the money to prepare for retirement. They live paycheck to paycheck and are on a collision course with their retirement years. For them most of their working life is concerned for the present day. By choice or lack of money they will never attain a comfortable retirement.

The "Advice-seeking non-planners" are a lot better off. They are doing something for their retirement and do take financial advice. They have retirement accounts, though smaller than needed, it is still a good start. This group is able to improve their situation and address their future needs.

The "Self-guided planners" have a plan but do things on their own without professional advice. They are more aware of their future retirement needs and are taking action. They do their own investment planning and educate themselves to the financial world.

The "Advice-seeking planners" have a plan and seek professional help to help implement it. This group is the best of the 4 groups because they have the money, knowledge, and professional help to succeed.

If you are one of those that know they need to plan and save for retirement, yet are not turning this knowledge into action, you are part of the "Ostrich Generation". People need to look around and take stock of what they need to do; they can no longer rely on the state or their employers to provide for them. It's all part of taking resposibility for yourself.

The ING survey also reveals that 48% of non-planners associate retirement with financial hardship. While 23% of planners say this is a concern. Peace of mind is a side effect of proper retirement planning

Debit Cards Vs. Credit Cards - How do They Compare?

Image by MoneyBlogNewz via FlickrGetting and staying out of debt requires you to stop using your credit cards. You are so determined to avoid credit card debt, you have cut up your credit cards and have gone to exclusively using a debit card instead. You feel good about not using the credit card anymore. All is well.

But wait are there any downsides to using your debit card as your exclusive plastic? It's time to find out what's the difference between a credit card and a debit card.

Lets say your debit card number is used for some fraudulent transactions. A bad guy buys himself a nice new Rolex with your debit card number. This transaction wipes out your bank account. Your checks bounce because there isn't enough money in your checking account. By the time you find out about the illegal charges your money is gone, you have over draft fees, your bills have late fees now because the checks bounced, and your money is gone.

What can you do about all this. Does your bank take off these extra charges.? Will they put your money back into your account? How long will all this take for your account to be put back in order? What are the responsibilities of the bank? Whats the time frame for the money being put back?

Here are a few Debit card facts:

•  With a credit card, your maximum liability guaranteed under federal law in case of fraud or errors is limited to $50 if you notify the card issuer within 60 days after the statement listing the transaction is mailed. With a debit card, the $50 liability limit expires two days after the fraud, and then your liability goes up to $500. And you don't necessarily have protection against errors.
• Banks' "zero liability" promises are voluntary and squishy; they're not the law and they're not immediate.
• If you use a debit card and a fraudulent charge or a billing error causes other payments to bounce (like your mortgage or cell phone payment), you will be hit with hefty overdraft fees and will probably have difficulty getting the fees refunded.
• Credit cards offer protection under the federal Fair Credit Billing Act, meaning you can refuse to pay for products or services that you didn't get or are defective. There's no such protection with a debit card.
• Debit card authorizations can tie up your money. A merchant such as a gas station or hotel may put a three-day hold on more money than you're spending. You won't be able to use that money until the hold ends. That could cause other payments to bounce even though you have enough money in your account.
• If you buy something with a credit card and the merchant makes a mistake, say by billing you twice, the bank will fix it.
• With a debit card, however, banks are really sketchy about what protection they offer if the merchant goofs. You're protected against "unauthorized use," but many banks don't consider errors to be "unauthorized use." They say because you authorized the merchant to debit your checking account, the matter is a "billing dispute" that you need to work out with the merchant.
• If you do have a problem with a credit card transaction, you don't have to pay the amount in dispute while it's being investigated. With a debit card, the money is already gone.

If money is stolen from your checking account by the use a stolen debit card number it can take up to 2 weeks to be put back. This is frustrating for the consumer and this would not happen with a credit card.

But if it is your choice to use a debit card and not a credit card. To be on the safe side it's not smart to have a debit card linked with an account that has a lot of money in it. Or get just an ATM card with no charge card features.

Memorial Day - The Day We Remember Our Fallen Soldiers

Image via Wikipedia

Today, Memorial Day, we take time to remember the soldiers that gave the ultimate sacrifice in American wars. Millions of families will gather together to eat a meal and spend some time together. Yet many families will have an empty chair at their table because their loved one sacrificed for our country. We can 't ever forget these men and women who left friends and family behind and never returned. Let's also keep in our hearts and prayers the families that must go on in anguish because of their loss.


Here are 10 facts about the last Monday in May.

10. Memorial Day was originally known as Decoration Day.

9. It was first widely observed on May 30, 1868.

8. Originally, the day was to honor soldiers killed in the Civil War.

7. After World War I, people began to observe and honor those who were killed in all of America's wars.

6. The day was declared a national holiday by Congress in 1971.

5. The birthplace of Memorial Day is Waterloo, New York. The town first celebrated the day on May 5, 1866, by closing businesses, and residents decorated soldiers' graves with flowers.

4. Waterloo was declared Memorial Day's birthplace by President Lyndon Johnson.

3. About 5,000 people attend the Memorial Day ceremony every year at Arlington National Cemetery.

2. Some southern states set aside a special day for honoring the Confederate dead. It's known as (surprise) Confederate Memorial Day.

1. On Memorial Day, a wreath is typically laid at the Tomb of the Unknown Soldier by the president or vice president.


A video tribute to the fallen heroes:

Today we will be enjoying the freedom that has been paid for in the blood of our fallen sons and daughters. Let's remember them today and everyday.

A Flood Of Financial Risk For Homeowners

A guest post by Mike Bowman of TheQuarterRoll.com

When you review your monthly budget you may be putting money aside for items such as groceries, rent, clothing, and your gym membership, but have you ever listed flood damage on your budget? According to a spring 2010 edition of the Western Pennsylvania AAA Motorist magazine, flooding is the most prevalent natural disaster and you are 3 times more likely to be affected by flooding then fire. We certainly hear about the overwhelming flooding troubles in Tennessee, Kentucky, and Mississippi, but flooding comes in all sorts of intensities.

Except for vehicles with "comprehensive" insurance in their policy, flood damage is not part of any typical insurance coverage, and everyone is at some level of risk of financial loss due to flood damage. You can be the most financially conservative person, but one flash flood could severely harm you, financially speaking, when you consider that the average flood damage claim is $33,000.00. Most people will not have that much money set aside, even before a natural disaster hits. Also, nearly all disaster relief money is considered a loan and must be paid back to the issuing authority. Flood insurance, purchased through the National Flood Insurance Program is one of the best ways to insure yourself against the financial risk that flooding presents.

Why should you be concerned about flooding? Here are facts found from FEMA's and the CDC's websites:

-Only flood insurance will cover flood damage.

-25% of all flooding claims come from moderate to low risk areas.

-You do not need to be next to a body of water for flooding to occur on your property.

-Melting snow / poor drainage / deteriorating natural or man-made barriers are just a few of the least expected sources of flooding.

-All 50 states have been affected by flooding.

-While risks vary, we all live in a flood zone, according to www.FloodSmart.gov.


Considering buying flood insurance? Keep an eye on what is going on with this program. Flood insurance is issued by the National Flood Insurance Program and funding must be approved by Congress. Currently, funding for the National Flood Insurance Program is scheduled to stop in September 2011.

From the Insurance Information Institute

In the absence of any legislative agreement between the House and the Senate on funding the program for the long term, the NFIP was reauthorized for short periods of time under a series of continuing resolutions that extended funding for many different programs. After allowing the program to lapse four times, during which new policies could not be issued, leaving homeowners without the option of buying coverage and delaying thousands of real estate closing per day in flood-prone regions, in September 2010, as the last extension was close to its expiration date, both the House and the Senate extended the program for one year to September 30, 2011. Insurers hope that during this longer extension period Congress will take time to make significant and long-term changes in the program. http://www.iii.org/issues_updates/flood-insurance.html

About The Quarter Roll

Mike Bowman writes for TheQuarterRoll.com, whose website and magazine help readers get a quarter more for every dollar by providing personal finance tips, advice, and stories in an easy to understand and entertaining format. The tips and stories found in TheQuarterRoll.com are designed to give readers the ability to earn more, save more, and get more value for their money.