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Midnight is little black pup that nobody wants, paralyzed by fear he's been in the exact same position


This beautiful boy is Midnight, he wasn't claimed by his owner. This guy breaks my heart every time I see him because he's been in the exact same position every time. Basically paralyzed by fear in a very noisy, very frightening Shelter. Midnight is a 64 lb, 1 yr old Labrador mix. 

This guy really needs a hero! Someone who will love him forever and give this good boy the amazing inside home he deserves. Labs are excellent dogs, loyal, loving and you can see how gorgeous he is. Please, please share to help Midnight find a forever family or Rescue as quickly as possible.

Midnight
Animal ID: #A45925493
Intake Date: 10/19/20
Breed: Labrador mix
Sex: Male
Age: 1 yr/ 64 lbs
Location: City of Abilene, Tx Shelter
925 S 25th St, Abilene, TX 79602
Phone: +1 325-698-0085
Stage: Available
#labrador
#adoptdontshop
#savingabileneanimals 

Securing Mortgage Loans With Bad Credit: It Is No Dream

It might come as a surprise that the chances of securing approval on a mortgage loan with bad credit is not as impossible as many believe.

The reality is that securing approval on applications for any loan, even with a low credit score, is possible as long as the key criteria are met. Once that is done, then there is little reason for lenders to turn the application down.

Of course, low scores do have an influence, with the affordability of mortgage loans affected directly by the interest rates that lenders charge, and the rate affected by the perceived risk associated with the applicant. Understanding the significance of bad credit is important when putting together an application strategy.

The Influence of Bad Credit Scores

The influence that bad credit scores have on the approval process is not actually as great as many people think. So for someone seeking a mortgage loan with bad credit to their name, it is not so impossible to be given the thumbs up.

This is because lenders agree that the reasons for a low credit rating can vary, and do not necessarily mean the applicant cannot be trusted to repay their debt. These scores are calculated by hard evidence, but does not reflect the situations. So, a sudden loss of employment may result in a personal loan being defaulted upon, but a restored employment changes the situation again. When it comes to securing approval on applications for a loan of any kind, lenders are happy to examine other factors.

For mortgage loans, despite the sheer size of the debt being taken on, elements like current income, employment security and the amount of excess income available for monthly repayments are of greater interest than a credit rating.

Credit Scores on Interest Rates

Where credit scores do have an influence is the interest rate that is charged by the lenders. Higher rates are down to the fact that lenders are perceived to be accepting a greater risk, and need to recoup their money. And this is where applicants for mortgage loans with bad credit are affected.

For example, an applicant with a credit score of 600 will pay a higher interest rate that one with a score of 700. So, even with the same mortgage sum borrowed, over the same term and from the same lender, the former will have higher monthly repayments than the latter. When it comes to securing approval on applications for such large sums, this is an important factor to consider.

It is important to realize, however, that lenders will reject an application for mortgage loans on the basis of the affordability of the repayments, rather than the scores themselves.

The Debt-to-Income Ratio

Assessing what is affordable comes down to the something known as the debt-to-income ratio, which is effectively an assessment of the amount of income available to cover new debt. Those seeking mortgage loans with bad credit hanging over their heads can see their application succeed if the ratio is within the 40:60 rate that is deemed acceptable.

This ratio means that no more than 40% of the available income can be dedicated to repaying the new debt. An applicant with excess income of $1,000 per month will not be allowed to take on a debt that requires payments of more than $400. So, securing approval on applications is not simply down to income, but how much 40% of that income is.

The ratio exists because of the need to handle unexpected expenses, like medical costs and other emergencies. Statistically, it is these sudden expenses that cause so much havoc with repaying mortgage loans. So, having 60% in reserve for these unforeseen costs is important.

When it comes to strengthening applications for mortgage loans with bad credit, there are a few areas that should be addressed. From the basic requirements associated with such large loans to the amount of available income there is to take on additional debt, these areas are effectively the key to success.

The basis of this fact is that securing approval from lenders does not depend on the credit rating that an applicant has. Instead, the credit ratio is central to convincing lenders that the required monthly repayments is affordable, while the size of the down payment is equally telling.

So, when seeking approval on an application for a mortgage loan, these are much more significant areas to pay attention to.

Basic Requirements to Meet

Like every other financing deal, there are requirements that must be met before an applicant can qualify for a loan package. When it comes to applicants seeking mortgage loans with bad credit to their names, these requirements are particularly acute.

The key criteria is nothing particularly special. Applicants must prove they have full-time employment, and are earning a sufficient income to make the monthly repayments. Securing approval from lenders also depends basic legal criteria, such as proof of age (over 18), and citizenship.

Further requirements stated, depending on the policies of individual lenders. Some insist employment must have been held for a minimum of 6 months, while others require proof of efforts to improve their financial situation before applying for a mortgage loan.

Ensuring the Right Credit Ratio

A key concern for those applying for mortgage loans with bad credit is the credit ratio that lenders view so highly. Known also as the debt-to-income ratio, it relates to the degree of debt that an applicant already has and, therefore, the ability to take on any further debt.

The ratio is set at 40:60, which means that only 40% of the available income can be dedicated to paying off debts. This means that securing approval from lenders principally depends on meeting the ratio standard. If the available income, after existing debt and expenses is taken into account, extends to more than 40%, then the application will be rejected.

In this respect, the credit history of the applicant is meaningless. All that matters is that the ability to repay the mortgage loan exists in the first place. Once that is confirmed, the likelihood of getting the thumbs up is greatly improved.

Providing A Down Payment

Any applicant that is able to provide a down payment makes a very positive impression with the lender assessing their application. Often, the reason that applicants seeking mortgage loans with bad credit get the green light is that they have as much as 10% of the property value available as a down payment.

The reasons rest in the fact that to gather such a large sum of money requires a considerable amount of effort and discipline, so the applicant obviously is showing a real commitment to the responsibilities involved. This does absolutely no damage when it comes to securing approval from lenders that might otherwise have been unsure about trustworthiness of the applicant.

But, in practical terms, making a down payment means the required mortgage loan is also reduced, thereby lessening the risk and the principal debt. It also reduces the required monthly payments, the interest rates and making everything that little bit more manageable.

Hilary Bowman is a Financial Expert who specializes in Loans for People with No Credit and Bad Credit Loans.
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