Applying For a House Loan

Once you have a proper job and are beginning to consider the idea of settling down, you know that you will want to provide yourself and your future family a comfortable and stable place where they can end up spending their lives. Now this is not possible if you happen to be renting places and living in apartments.

So, you will want to buy a house of your own. However, ever since the housing crisis, a lot of mortgage lenders, both banks and non-bank lenders have tightened their policies, making it a little difficult to be able to apply for house loans. So, if you want to be able to have a strong request in your loan application, you need to make sure that you file the following items.

  • You need to give in a statement of your monthly income so that they can calculate how much you are able to afford when it comes to paying their mortgage rate. As a rule of thumb, your lender will require upto 2 weeks of your pay stub as a part of their monthly payment. So, collecting money for that beforehand as a security measure is strongly recommended.
  • You will be giving in your credit report to them as well, a minimum credit score to meet the normal criteria is a minimum of 680, while a score at 700 or above is preferred. From there they will check your credit history as well.
  • You need to have enough money in your bank to make the down payment as well. Most lenders require a minimum down payment of 10% of the house’s price.

Of course you can find non-lenders that will provide you with better packages and incentives as well, and in case you happen to be interested, you can visit for their policies.

Don’t Spend Too Much

If you reach the end of every month and ask yourself where all your money went, you probably aren’t really keeping a tab on how you spend it. Soon you’ll find that the amount of cash you see flowing out of your wallet is more than what you’re making. A good way to counter this is to set a monthly budget for each of your expenditures. It’s definitely not easy to have to make a comfortable living, pay all the bills and still have cash to spare. Especially if you don’t want to keep such a strict tab on where every penny goes.

But that’s what we have to do if we can’t be sure of our financial stability. Without knowing how much you’ve spent and how much you should spend, you could find yourself making purchasing decisions which are detrimental to your current economic status. We buy our groceries everyday and if we know how much we have to spend on it on average over the month, we can keep an eye on our savings to ensure that we can meet its requirement comfortably less we find ourselves having to starve for the rest of the month because we saw some amazing deals on shoes we just couldn’t pass up.

Make a list of all your assets. Everyone has to learn how to build a comprehensive budget that gives you control of your finances from somewhere and knowing what you have and then collecting your statements to know what your average expenses are gives you a feel for when you can afford to splurge a little or need to hold back. Some people would see budgets as simply restricting yourself, but when we can’t afford to spend freely, making a budget is just what we have to do.

Life After The Completion of Trust Deed

Trust Deed is a Scottish agreement plan only available to Scottish people which helps them pay off their debts in the most efficient way possible. It is a legal agreement which is produced and processed by an Insolvency practitioner(IP). It helps simplify life for people under the weight of crippling debt. However, the question remains, can you get an IVA in Scotland? The answer is no, unfortunately IVA is not available to Scottish people, but a Trust Deed comes forward as a good substitute.

You may have heard about the whole process of a Trust Deed, along with its benefits as well as drawbacks, but many often wonder about a life after the completion of a Trust Deed. Here are some points listed below.

Update on Credit File:

After the completion of a Trust Deed, the individual is now debt free – as even the remaining debt is wiped off, so this change should be reflected in that respective individual’s credit file in about three months time.

Obtaining Credits And Effect on Interest Rates:

Rebuilding credit takes patience, depending upon the time period of an individual’s Trust Deed, the said person might find it difficult to obtain credit for the next year ot two. However, Trust Deed will ultimately make it easier and in about two years time, it will no longer show on that said individual credit card.

Crucial Steps to Take After Completion:

Trust Deed takes disposable income off of the individual for four or more consecutive years, so after it’s completion, the said individual might find himself with a lot of disposable income which more or less would push him to spend and live in luxury. This habit would promote recklessness, and the individual should practice financial planning by putting aside a a certain amount of income for emergency situations.