Buying a house is a very important and big decision in one’s life and it is quite different from buying a car or renting an apartment. A customer wishing to get mortgage loan should evaluate his current situation and educate himself on the best ways to get approval of mortgage loans.

Factors to consider before applying for mortgage loan are:

Credit score checkup

First thing is to check your credit score to remove any errors from credit report which can harm your possibility of getting mortgage loan. Besides you will get to know the current position of your credit score. In case of low credit, you may need a co-signer or need to improve your credit.

Calculate monthly income and debts

You have to make record of your monthly income and debts payments and provide them to lenders. The lenders may count the average of last two year’s income to decide how much you can pay for mortgage payment.

It is better to pay off other loans before taking new loan.

Saving for down payment

You need to figure out how much you can save for down payment for your home. Expect your lender to demand 10 to 20 percent down payment and you must be ready for it. Do not tempt into buying more expensive house than you can afford.

Make your mortgage budget

Before applying, review your mortgage budget and how much you can afford to pay back. It is advised that your housing repayment including all fee and charges, should not exceed more than 35 percent of your income.

Speaking of credit, people with bad or not so good credit may find it difficult but not impossible to get mortgage loan. Mortgage lenders have poor credit financing offers for borrowers. Credit scores do not remain low and with few financial adjustments, people become able to get mortgage loan. After working on credit, it is possible to improve it to better credit category and get less interest rate.

Credit score ranges from 300 from bottom to 850 from top. You need high credit score to get better rates, but a survey by FICO tells us that most borrowers are not in highest credit range. A bad credit score can affect your mortgage loan badly as mortgage lender can charge you with high interest and you will have to pay a lot of money which will be difficult for you.

Large down payment reduces the risk for the lender and helps you get mortgage loan with bad credit. Keep some cash reserves on hand for unexpected repairs in home.

Another tip is to pay off mortgage loan regularly and consistently on time every month.

Avoid getting new loans. Mortgage lenders evaluate your debt-to-income ratio before approving your loan and if you have high debt ratio, lender can reject your loan application or offer a lower mortgage. Try to pay off your consumer loan completely before looking for mortgage loan.

If you are not qualified for mortgage loan due to bad credit, do not feel bad, instead work on improving your credit and finances by careful planning to achieve your financial goals.

What plan do you have for your family in any case the worst happens today? While it isn’t reasonable to plan for your own death, you’ll agree that it is inevitable unless you are immortal. Term-life insurance is a type of policy that matures only if the policyholder dies during the time of policy, and the money paid to designated beneficiaries. In other words, term life insurance is a pure protection policy for your dependents.

Other insurance policies that tend to rival the benefits of term life insurance include universal life and whole life insurance. However, there are many reasons as to why you should take term life insurance in place of anything. Well, check out on the following:

• Most affordable premiums

Term life plans are considered to have the lowest premium in all life insurance plans, thanks to its terms and conditions. It, therefore, makes this plan not only affordable but also available to literally anyone in the society. Moreover, a lower premium allows policyholders to afford an optimal sum assured in regards to sufficient financial security to the families in case of untimely demises.

• Future financial security

The primary motive of the policy is to provide financial security for the nominees and take care of the family’s financial needs. In case of premature death, family members of the policyholder will be able to achieve their set goals and continue the legacy even when the breadwinner is no more. Having that in mind, it is essential that you have sufficient sum assured so that everything can be smooth in the future. The best thing about returns from term-life insurance policies is that they are tax-free in most jurisdictions, therefore making it an ideal investment for anyone who has the future of their families at heart.

• No saving component

Most life insurance policies have a saving component in that they have the option of paying a maturity benefit in any case the policyholder survives the term of the policy. Term life insurance has the priority of your family’s financial security at heart and should always come first. If you want other plans, it is advisable that you go for term life first.

• Open for anyone

Lastly, term-life insurance is open for anyone, provided they are of legal age to consent and sign for a contract. You also don’t have to be employed as you are only required to afford the premiums. And the fact that there is an option for affordable coverage, it can be the best choice for small-scale business people. They are self-employed and would want a life insurance.

We live in a world full of uncertainties; hence it is necessary to have some protection and surety that our loved ones will be safe financially; in any case, the life of their breadwinner is cut short. If you are working in a high-risk career such as private security the this is the best gift that you could give your family in case the unfortunate happens. Get a term life insurance today and live a stress-free life!