Creating Proud New Home Owners... One Tenant At A Time!
Training Module # 1 of 3
Debt and Income Ratios Explained
By: Ben Afzal
Lenders basically measure you at a basic level with two factors:
-your income
-your debt load
Your income can be analyzed by looking at your past two years' income. This is so the lender can see how stable your income has been.
A sudden increase in your compensation last month may give you a higher current income, but the lender may discount this a little. Also, if you are on commission the lender will need to see how your commission income has been over time.
Your debt load is a projection of your current debt plus the future mortgage expense. This debt load includes recurring monthly debt expenses - credit card debt, car payments, mandatory child support, etc. The lender may not include some of your monthly debt if it is about to be paid off. For example, a lender may regard ignore your current car payment if you will pay it off completely in two months.
The debt load the lender factors in can also exclude debt that will be paid off in a refinance. For example, if your refinance will pay of $30,000 in credit card debt and $10,000 in a car loan, then those monthly payments will not be factored in because they will be paid off as part of the refinance. Keep in mind that many times the checks to your creditors to pay off your debt are created as part of the transaction and you may have no choice but to pay some debt off. If you co-signed on someone else's loan and the lender wants to pay it off, you may want to go to another lender.
Debt to income ratios are a measure of the ratio of your monthly debt payments to your monthly pretax income. If your total monthly payments are $3,000 per month and your pretax income is $10,000 then your debt to income ratio is 30%.
Many lenders use a combination of two measures of your debt - with and without the mortgage. There is a maximum level of overall debt, and a subset of this is the maximum level of mortgage debt.
Debt and Income Ratios - How To Work This
Different lenders have different guidelines. Some will allow a debt to income ratio of 55%. Some will only allow a debt to income ratio of 38%. Each lender is different.
If you want a larger loan than one lender is willing to provide, use another lender that allows for a higher debt to income ratio.
Keep in mind that many loans are "stated loans" where you only have to state your income, not prove it. Your "stated income" should mesh with your job title. If you are a gardener claiming a $25,000 per month in income, the lender may not believe this. What one lender will allow you to state as your income is very different than what another lender will allow. Just because one lender rejects your application based on your stated income does not mean another lender will.
Article Source: http://EzineArticles.com/?expert=Ben_Afzal
Get Free Debt Relief information and Free Resources to Increase Your Income From Home - They are Free, And Could Save or Make You A Bundle!
Training Module # 2 of 3
Debt Relief Companies and Their Network of Help
By David Cunningham
Debt relief companies have become as popular and common as companies that extend loans. Debt relief companies exist to provide assistance to the people who seek help to reduce or pay off the loans that they owe. They also offer their expertise in providing a detailed plan to move toward a debt free life. They work with you to develop a strategy concerning how to save money and repay debts; sometimes they also assist by obtaining money to help pay off larger debts or consolidate your debts to one monthly payment. In some ways, they are more like normal lenders.
The debt relief business has gained significant popularity during the past two decades. This business barely existed prior. And as you might expect, seldom do these companies experience a problem locating clients today.
Since the need for debt relief companies has increased exponentially, there are thousands of them operating around the world. The good news is the degree to which they are becoming interconnected with one another for better, more effective service in their debt relief programs.
The information network for debt relief companies improves almost daily. Debt relief companies have their own information networks dedicated to the betterment of all companies involved in the business of debt relief. Customer information from debt relief companies is available in many formats, the most popular of which is via the Internet. There are thousands of debt relief companies that have their sites built online to provide people with more efficient ways to view and assess data about them. Such companies will actually work directly online with their client. Despite the convenience, normally it is more effective to visit a nearby debt relief office and discuss your financial problems face to face.
On the down side, unfortunately some unscrupulous companies pose as debt relief agencies but are little more than scams. Many such instances have been seen in the past and more work is being done by government agencies to minimize the risk of swindlers. So you still must still proceed with caution when seeking debt relief assistance.
Legitimate debt relief companies have as their main customer goal that of providing you with maximum assistance in bringing your outstanding debts in line with your ability to repay. They assist customers to obtain loans to pay off their debts, even if they currently have a bad credit score. Credit scores are always an issue for the people with either too many loans or smaller loans with limited ability to repay. With a bad credit score few banks or other lending institutions will be interested in providing yet another loan, so a helpful alternative may be approaching a debt relief company.
Article Source: http://EzineArticles.com/?expert=David_Cunningham
For practical debt & credit assistance information, please visit GoodTenant.com Resources Page, a popular resource providing great insights concerning how to address your issues and worries related to nagging Income & debt struggles plus other home buyers resources.
Training Module # 3 of 3
How to Generate an Extra Income
By Karen Fairham
Extra income can be said to be that money that you earn aside from income from your regular or permanent employment. This sort of extra income comes in very handy when it comes to paying off certain outstanding debts or when you are trying to raise funds for buy a home or a particular project or for that luxury holiday. It is common place to find everyone looking for that way to make some extra money on the side without having to take up a second job... so in effect they are looking more for something they can do with their leisure time and at their own pace.
When we compare income levels in different countries, it is evident that the average income per person is less than $15,000 a year--in other words, where many people are near the breadline -- Extra Income really does make people happier and improves their lifestyle.
But countries which have average income above the normal subsistence level of approximately $15,000 a year, happiness seems to be income independent. For example, an average American ranks richer than an average Indian or an Austrian, but also less happy.
Why is this? Well you see people always look at their income with respect to their needs and ways of life and this need or way of life is constantly on the increase, meaning that as prices increase the more money we will have to make to keep up with the ever increasing needs. Another factor that drives this is comparing ones standard of living with those of a friend or family, which is when people begin to compare their lives with that of their friends or family and this moves them to a different level of expenditure, thus requiring more income.
The extra income options available today are targeted to generate employment and are targeted specifically at people who can use their skills that are lying dormant to make some more money for themselves. To achieve a moderate success in generating an extra income one should be aware of their strengths and weaknesses. This would greatly help in selection of a most suitable way to generate extra income.
The selection process consists of logical steps. Firstly you should ask yourself honestly what your strengths and weaknesses are. For example, if you are a computer literate you could help your neighborhood in upgrades, repairs or installation of software.
Finally, whatever you decide to do as a way of generating extra income it is important to look first within those things that you enjoy doing, then gradually move from their to other areas taking it one step at a time to avoid burning yourself out and getting discouraged altogether.
Article Source: http://EzineArticles.com/?expert=Karen_Fairham
For more information on a program you can plan into your existing schedule to generate some extra income visit: http://www.goodtenant.com/BizOps.asp
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To Complete This
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Increase Your Income From Home
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If You've Decided to Increase Your Income From Home &/or Get Free Debt Relief Advice
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Important Notice: We Limit the Pre-approval Certificates to be given to Only 25 people in each state per day. This rewards the most motivated members the first opportunity for selection by a seller.
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- Smart Buyers Credit Report Training
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- Smart Buyers Debt / Income Ratio Training
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| When we first found your program we thought this is too good to be true,so we did an application you contacted us right away . You explained the program and we felt it was perfect for us, considering our circumstances. Everything that you said was true and in less than two months later we are moving into a house that my family can call our home. We are blessed to have found this program and we have been recommending your program to all my family and friends. Thank You James G
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