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Buying a new home or car is exciting stuff. Whether you’re going after a condo or a convertible, it’s a great feeling finding what you want. The only thing better? Knowing that you’re saving money on your loan because you’re prepared and your credit report is in tip-top shape.

When you’re considering getting a mortgage or car loan—or any type of loan, really—there are three things you should focus on before you apply. These loan factors are called the “big three” because they could save you big money if you know how to use them to your advantage.

FACTOR #1: Your credit score. The first thing you should do is check your credit score. Scores above 680 will help you qualify for standard rates. The higher your credit score, the lower your interest rate will be. Get your credit score as high as you can before you apply. Here are a couple ways you can do that:

* Order a credit report and make sure it’s accurate. If there are mistakes, have them corrected by filing a dispute.

* Pay your bills on time, especially for at least 6 months before applying for a loan.

* Keep your credit card balances way below your credit limits and do not apply for any more credit.

Your credit scores can be improved if you work at it.

FACTOR #2: Debt-to-income ratio. Lenders need to be sure that you can repay your loan. So they use a calculation called your “debt-to-income ratio” to help them figure out where you stand. You can determine your debt-to-income ratio by adding up your monthly debts and dividing that amount by your monthly income. A debt-to-income ratio under 20-30% is usually considered good and will help you be seen as financially secure.

If you’re not hitting the 20-30% mark, try to lower the amount of your monthly debt. Create a monthly spending plan to help you save money. You’ll want to shrink your debt as much as you can before you apply for your loan. You may also be able to increase your income by co-signing with your spouse.

FACTOR #3: Loan-to-value ratio. Another thing that will affect your interest rate is the loan-to-value ratio. This ratio helps you work out how much you can afford to borrow (at the best rates). All you do is divide the loan amount by the property’s value. If your loan-to-value ratio is above 80%, your rates could jump up quite a bit. So the trick here is to make sure your loan-to-value ratio is below 80%. You can do that by finding a less expensive home (or car) or saving for a bigger down payment.

Keep these big three factors in mind as you prepare for a loan, and you can enjoy BIG savings on your new home or car.

TransUnion’s TrueCredit.com provides millions of consumers with tools to manage their own credit health and achieve greater control over their finances, through easy-to-use educational materials, free monthly newsletters and personal credit reports. TrueCredit.com’s online products include 3 bureau credit monitoring services, insurance credit scores, debt management and identity theft protection tools.

by Elena Laramie

When people need money to fulfill their various needs, the very first thing that comes to their mind is a suitable loan. In fact, loans are playing a vital role in making human life easier and financially secure. The present financial market has solution for each and every financial requirement therefore everyone, who in financial problem can manage to get suitable solution at ease. Since distinct people have distinct requirements, lenders offer various loan schemes so that everyone may fulfill his or her requirement. Normally, financial requirements are categorized into two different categories i.e. short term and long term requirements. Both requirements are of different nature therefore solutions should be arranged in keeping the type and nature in mind. Normally, banks and financial service providers keep all long and short term loans separately, so that the borrower may not get confused while selecting a loan scheme. As far as emergency financial requirements are concerned, the borrower can find various short term loans that are really capable of meeting his or her emergency financial requirements without any problem. Instant loans are one of those short-term financial solutions that offer suitable financial assistance instantly. In fact, these loans can effectively deal with unpredictable financial problems.

Instant loans can be availed to meet various financial purposes such as debt consolidation, car repair, bill payment and payment of tuition fee. These loans are small loans that offer loan amount for a very short time period. As clear by their name, these loans offer instant financial assistance; therefore, people, who are facing any urgent financial problem, can find out a suitable way with instant loans. These loans can arrange suitable finance within a very short notice and can transfer the desired cash in your account within few hours of filling the loan application.

Usually, salaried individuals face financial problems by mid of the month, as their limited salary fails to meet various emergency financial expenses. Instant loans are tailored for such emergency situations where the person is overburdened with any additional expense. This expense can be unexpected illness of any family member, car repair, holiday package, tuition fee or any due bill. In fact, these loans can effectively meet all these requirements of the borrower and make him or her realize that arranging money is no more a hassle some task.

For availing instant loans with an authorized and renowned lender, the borrower needs to meet some basic requirements. First of all, the borrower must be 18 years old and should possess a running bank account. Since repayment capability of the borrower is an essential factor for loan approval, the borrower also needs to provide his or her income details. These income details also include some basic details about the employer. Lenders that offer these loans, also verify all details provided by the borrower. However, one can be rest assured about loan processing time, as this verification process is accomplished with an instant pace.

Harrison Parker is a professional financial advisor and provides expert advises on instant loans . To know more about Instant loans UK, Instant payday loans, Instant car loans and Instant loans visit http://www.instantloansuk.org.uk

by Harrison Parker

Question: What is usually required for a down payment on a land loan?

Answer: When looking for a land loan and trying to determine what you might need for a down payment you can typically expect a range between 20% to 40%. Each land lender has different parameters, but we have listed 3 key factors that usually hold the most significant value to land lenders when determining what you may need for a down payment on a land loan.

1. Repayment capabilities

2. The appraisal and/or purchase value

3. Collateral value from land already owned

1. The ability to repay a land loan is always the highest priority for any land loan lender. Detailed analysis is done on applicants wanting a land loan to determine what down payment is required. Personal and or corporate balance sheets, tax returns, and credit history all play an important role in determining if someone is capable of repayment for a land loan and ultimately what is needed as a down payment. If a solid repayment capability can be determined than the amount allowed to be borrowed could be increased causing potentially a lower down payment. If repayment is marginal and causes increased risk, a larger down payment could be expected.

2. Whenever land is purchased, an appraisal will have to be done if a land loan is desired. An appraisal is done in order to establish the value of the land at the time of purchase. Most land loan lenders require detailed narrative summary appraisals to ensure a true value of the land. In many cases the appraisal value does not exactly match that of the appraisal value. Most often, the loan amount is determined on a percent of the lowest value of either the appraisal value or the purchase price. That percent creates a L.T.V. (loan to value). Most lenders require a standard 60 to 80 percent Loan to Value, meaning a down payment of 20 to 40 percent is required.

3. So what if you do not have the necessary cash available for the 20 to 40 percent or do not want to use that amount of cash for your land loan? Some land loan lenders offer other alternatives for land loans. The amount of down payment can be dramatically reduced or even completely eliminated if you have property you already own that has substantial equity. You are then able to cross collateralize your already owned property with the new property. If the combination of value between your existing property and the new purchased property is at a value against the land loan amount at the 60 to 80 percent required by most land loan lenders, than a loan could be given with little or no down payment.

These three factors all hold the majority of possibilities for the required down payment amount for a land loan. However, every land loan is case sensitive. There could be many more factors that influence the amount needed for a down payment. The only sure way to know is contact a lender specific to land loans and openly communicate your situation and purchase desire. After a short time with all of your information, they should be able to give you an exact answer to what will be needed for a down payment.

Written by Kory Unruh

Vice-President, Land Loan Specialists.com