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Mortgage Broker Advantages in Virginia

Posted by  on Aug 05, 2010
 
If you have had credit problems, be prepared to discuss them honestly with a mortgage professional. If you live in Virginia and have Virginia mortgage issues, you should look for a Virginia mortgage broker. It is a good idea to look into the best things you should do with your credit and money to best increase your cash flow.

There are some great ways to save money in the long run by looking into Virginia mortgages and Virginia interest rates as well. Getting a mortgage broker is a good idea because mortgage brokers know there can be legitimate reasons for credit problems, such as unemployment, illness or other financial difficulties. If you had a problem that's been corrected, and your payments have been on time for a year or more, your credit may be considered satisfactory.

Keep in mind that if your credit is not in terrible shape, you can reduce your other expenses, even if it means making hard choices or changing your lifestyle to fit your income. Consider selling a second car, taking equity out of your home, applying for a non-secured signature loan, obtaining a loan from a relative, selling your home and paying off your debts with the proceeds and then renting, cashing out your 401K/retirement benefits or selling family heirlooms, and jewelry.

In addition, if your credit is already damaged or one of the above is not an option, go through Consumer Credit Counseling Services. You should also think about checking your yellow pages for the local number.

You might also consider claiming bankruptcy. Claiming Chapter 13 bankruptcy takes longer than a Chapter 7, but your credit will end up in a little better standing. Chapter 13 bankruptcy gives you up to 5 years to pay off your debts. The disadvantage is that you're in bankruptcy for up to 5 years plus your credit report shows your bankruptcy for 7 more years after you have finished paying off your debts.

However, if you are so far in debt that you can never repay it, then the best solution may be a Chapter 7 bankruptcy. A Chapter 7 bankruptcy is the least desirable from a credit standpoint, but you are typically out of bankruptcy in six months and you do not have to repay any debt.

Remember that the disadvantage is that this shows on your credit report for 10 years from the date of filing your bankruptcy. Creditors are starting to tighten their credit requirements, and you may have a tough time getting future financing.

If you're debts are under control now, but want to improve your bad credit history, the most important factor is to make your monthly payments on time. You can use pre-addressed envelopes enclosed with your statements to mail your payments and call the company if you do not receive your usual statement. Also send your payment as early as possible if you carry a balance.

You should know that the majority of companies calculate interest on a daily basis, so the sooner they receive your payment, the less interest you will pay.

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