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I am only a baby! My "family" left me here, and now they are going to kill me

Acquiring mortgage for your dream home is a significant aspect of your life. Yet, every time you apply for mortgage, if you are flooded with high interest rates and not enough credit you might trace the problem back to a bad credit score. Even if it is healthy, you can still opt for any of the ways mentioned below to improve it further. This will automatically result in much lower mortgage rates and more options for you to choose a lender that offers better benefits.

Getting the facts straight

Find out about the major credit bureaus of your country and apply for your reports from them. is a good resource to understand the concept of applying for reports from diverse credit bureaus in your country. Make sure these reports are set to arrive at periodic intervals and not altogether so, you have the time to work on a few ways to improve your score before you next report comes in.

Be on time with your debt payments

Consistently paying your debts on time is an ideal way to build up a high score. If you have any outstanding debts on your credit card, pay it off immediately. Paying card debts on time also saves you money on interest piling up on your debt. Leaving card debts every month will come up as a negative mark on your score. Ideally, you should pay off your card debts and then do not buy anything on credit for a month leaving a clear gap between two consecutive debts to make sure that your report reflects the fact. Taking credit every month will come up as continuing your balance in to the next month, even if you pay your card debts on time every month.

Moderating credit card usage

To get a higher score, you should follow the thumb rule for available credit on credit cards, use 20% or less. If you cannot sustain within a 20% credit on your card limit you can either try to maintain yourself within a 30% extended level. Alternatively, you can request your card issuer to increase the limit on your card. This will mean that your stake at 20% will increase without taking your score down. You can also apply for multiple cards and split your overall costs on multiple cards to keep your average at 20% or less on available credit on each card.

Alternate your credit type

You can choose between installment and revolving credit. Credit cards form revolving credit where you take credit and pay it off every month. Installment credit refers to alternate sources such as loans, mortgages, and education loans. Alternating your type over time will build up your score and credibility with the national credit bureaus.

Avoid too many credit accounts

Opening too many credit card accounts can damage your overall score. Ideally, you should open an account with any store only if you are a frequent buyer in that establishment. Lenders will question your future financial situation and responsibility towards future debt if you max out all your cards.

The author is an expert in the field of Calgary Homes for Sale. She has taken the time to pen down a few expert tips on how to improve your credit score to improve your overall chances for obtaining a decent mortgage in Calgary.

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STATUS : - read comment for update from crossposter
Many home purchasers are seniors. Some become homeowners for the first time, but most have been and want to remain homeowners. They just don't want to remain in their current house. They may want a house that has no stairs, or one that is closer to family or friends, or in a warmer climate. In many cases, they want to downsize both the physical house and the financial burdens that come with it.

Prior to 2008, the senior who wanted to combine house purchase with a reverse mortgage but could not afford to pay all-cash had to use a forward mortgage to finance the purchase, then repay it by drawing on a reverse mortgage. Because the senior had to qualify for the forward mortgage in the same way as any other home purchaser, an inability to document sufficient income or credit could bar the way. Furthermore, the senior who did qualify had to pay settlement costs on both the reverse and the forward mortgages.

In 2008, Congress authorized the HECM for Purchase program, under which seniors can buy a house and take out a HECM Reverse Mortgage at the same time. With this program, the qualification requirements associated with forward mortgages are avoided, and only one set of settlement costs is incurred.

Senior house purchasers now fall into three groups: those who pay all-cash and intend never take a HECM; those who pay all-cash and plan to take a HECM later; and those who take a HECM when they purchase the house.

Avoiding Reverse Mortgages Altogether

Senior home purchasers who are capable of paying all-cash, and who want to leave a debt-free home to their estate, will avoid reverse mortgages. The same is true of seniors with dependent children living with them, who the seniors don't want to be evicted following their death. In addition, seniors looking to have a new house constructed to their specifications can't finance construction with a HECM. The program requires that seniors using a HECM physically occupy the home as their permanent residence within 60 days of purchase.

These three groups of senior home purchasers who should avoid HECMs comprise only a small part of the total. Most purchasers would do well to at least consider a HECM.

Deferring the Reverse Mortgage

Seniors in a position to pay all-cash can defer the reverse mortgage decision. If they elect to take one in the future, they will be older and their house will be worth more, both of which increase the amounts they can draw under a reverse mortgage. Working in the opposite direction, however, is a likely rise in interest rates from the unusually low levels that have prevailed in recent years. Higher rates reduce the amounts seniors can draw under a reverse mortgage.

If interest rates are stable the credit line available to a senior of 62 who waits 10 years before taking out the reverse mortgage was only 17% higher, whereas a doubling of interest rates during the period would reduce the available line by 69%. For seniors looking to strengthen their finances in the future, waiting is a risky strategy.

Purchase With a HECM

Seniors who purchase a house with a HECM must have the means to pay the difference between the sale price of the property and the maximum amount they can draw on the HECM. As an illustration, a senior aged 62 purchasing a $300,000 house on July 25 could fund about half of it with a reverse mortgage. (Older buyers could finance more). The remaining $150,000 would have to be financed out of the senior's resources: liquidation of assets or withdrawals from retirement accounts. Gifts from family and friends are also acceptable funding sources, but gifts from the home seller or anyone else involved in the purchase transaction, are not.

Seniors with the capacity to pay all-cash who take out a HECM at time of purchase have a range of options. They can use all the borrowing power of the reverse mortgage ($150,000 in the example above) to minimize their asset liquidation. A large proportion of senior purchasers do this, but in some cases it may be ill-advised because no borrowing power is left for future use.

At the opposite pole, seniors could pay all-cash for the house and retain 100% of the borrowing power of the reverse mortgage as a credit line that will grow over time so long as it is not used. At closing or any time thereafter, some or all of the line could be used to draw cash or a monthly payment.

The senior's choice is not limited to these polar cases. Depending on the individual circumstances, a senior may prefer an in-between case where part of the borrowing power of the reverse mortgage is used to help pay for the house, and the remainder is retained for future use. The challenge is to find the mix that best meets the senior's needs. To make a good choice, the senior needs to know what the options are, and what the long-run implications of any set of options are relative to any other set.

For more information on Reverse Mortgages, mortgages in general, or to compare mortgage offerings from multiple lenders in a fair, unbiased environment.