Monthly Archives: November 2017

Being A Cosigner All Risk And No Reward

We all might have experienced a situation where a friend or a family member asks you to become a cosigner. Before saying yes, it is best to know what you are getting into. Typically, when you consider cosigning for an auto loan, you are agreeing to repay the loan amount if the primary borrower stops making payments. While you agree to it, the risks outweigh the benefits. You may consider it as a way of improving your credit score, but do not delve into it before fully understanding the risks associated with it.

Risks associated with Cosigning an Auto Loan

1. Damaged Credit Score

Earning a good credit score requires decent effort. When you become a cosigner, any form of delay or non-payment of the auto loan will reflect on your credit report. Inability of the primary borrower to make the payments can decrease your credit score. Also, your debt-to-income ratio increases when you become a cosigner. Ideally, a debt-to-income ratio should not be higher than 36 percent. Being a cosigner increases your debt against your income. And, your credit score decreases due to increased debt amount. Therefore, if the borrower has a poor credit history, rethink your decision.

2. Enforceable Legal Judgments

When the primary borrower is unable to repay the loan, the lender may take legal action against the cosigner. Also, there is a high probability that you are sued before the primary borrower. It is because you are likely to repay the loan amount fast in order to protect your credit score. In case, the primary borrower is unable to repay the loan, a cosigner’s assets and salary can be in jeopardy as the lender can claim his assets.

3. Reduced Credit Ability

When you are a cosigner, other lenders see you as someone who has already agreed to guarantee a loan. The lenders assume that you are already making monthly payments on the loan you have cosigned for, thereby leaving little money to make payments for a new loan. Thus, a new auto loan approval might become difficult for you.

Does it make sense to become a Cosigner?

While it may not be a financially sound decision to become a cosigner, you can agree to it when you are in a position to afford the risk. If you have a good amount of surplus cash or possess substantial assets to repay the loan amount of the primary borrower, you can think about it. Also, if you will be using the car, it makes sense to say yes.

Cosigning an auto loan may look like a lucrative method to improve your credit score. However, it can mean all risk and no reward when you have to deal with a damaged credit score, enforceable legal judgments and reduced credit ability.

Cosigning an auto loan may look like an easy way to improve your credit score. But, it is not true. Before you jump at the first chance of becoming a cosigner, arm yourself on the know-hows of the risks associated with it. Learn more about how it can mean all risk and no reward if you have to deal with damaged credit score, enforceable legal judgments and reduced credit ability.

The Advantages Of Hard Money Loans

When it comes to the real estate industry in the Washington, DC metro area, time and money is the name of the game and in most cases, a home flipper will need financing – fast. With more and more developers and house flippers searching for financing options other than a bank, hard money loans have emerged as a viable option. Often referred to as private money, these loans are a specialized financing tool, in which the loan is secured by a valuable asset, such as real estate. Considering the fact that some borrowers are finding it harder to get money from banks, either due to poor credit rating or lack of balance sheet history, many fix and flippers are opting for hard money loans. In the DC area, access to hard money loans in Virginia and Maryland are equally important.

In addition to offering flexible structure and no prepayment penalties, hard money loans in Maryland, Virginia, and DC relieve the borrower from the hassles of extensive documentation and financial background review.

Here are the top five advantages of hard money loans:

1.Speed – While traditional lending entities like banks may take months to approve loans, hard money lenders, can approve and fund in as quick as 2 to 3 days. Hard money loans, in short, are easier to acquire than a bank loan and cut through the red tape.

2.Money matters – With hard money loans, real estate investors can typically borrow a larger amount of money as compared to a bank loan. The reason behind this benefit comes from the fact that the loan amount is based on the collateral’s ARV, short for After Repair Value.

3.Fewer requirements – When compared to bank loans, hard money lenders have fewer qualification requirements – such as credit rating and balance sheet history. For many, fewer requirements and paperwork means a higher likelihood of loan approval.

4.Extended opportunities – Hard money loans provide new opportunities to real estate investors who want to invest in certain properties that conventional lenders won’t financing. It goes without saying, that banks are extremely risk-averse and will not grant a loan on properties falling outside of their strict lending criteria. In situations like this, borrowers can turn to hard money lenders to quickly obtain a loan to purchase a property in need of serious rehab.

5.Flexibility � In general, financial institutions take a one-size-fits-all approach when it comes to loan terms and conditions, giving little to no room for flexibility. Hard money lenders, on the other hand, can efficiently structure the repayment and terms in ways that are favorable to both the lender and the borrower.

At the end of the day, hard money loans edge out traditional ways of funding properties due to the fact that these types of lenders are not tied down by the stringent rules and regulations that govern conventional lending institutions. In addition to the flexibility, funding is fast, which in many cases, is the most crucial component of laying the groundwork for a profitable fix and flip.

Interest Rates On Home Loans

Home Loan:-
Loan acquired from a financial institution to purchase a home. Home loans consist of and justable or fixed interest rate and payment terms. Home loans may also be referred to as mortgage loans.
Home loans, also known as mortgages, use the borrower’s home for collateral. This home can be a single-family house up to a four-unit property, as well as a condominium or cooperative unit. Lenders fund home loans, but both the lenders themselves and brokers who act on behalf of the lenders originate, or process, them.

Construction Loan:-
A short-term loan used to finance the building of some real estate project. The builders take out a construction loan in order to begin the project while they obtain long-term funding. Because there is no guarantee that the builders will be able to obtain long-term funding and a construction loan is not intended to fund an entire project, construction loans are fairly risky, and, as a result, have high interest rates.
Mortgage Loan:-
A mortgage is an agreement that allows a borrower to use property as collateral to secure a loan. In most cases, the term refers to a home loan: when you borrow to buy a house, you sign an agreement saying (among other things) that your lender has the right to take action if you don’t make your required payments on the loan.
Takeover Loan:-
A takeover occurs when an acquiring company makes a bid in an effort to assume control of a target company, often by purchasing a majority stake. If the takeover goes through, the acquiring company becomes responsible for all of the target company’s operations, holdings and debt.
Loan Against Property (LAP);-
A loan against property (LAP) is exactly what the name implies — a loan given or disbursed against the mortgage of property. The loan is given as a certain percentage of the property’s market value, usually around 40 per cent to 60 per cent.
DTCP Approve :
Directorate of Town & Country Planning. except in chennai metropolitan area where CMDA is approving the layouts of housing, institutional & industrial layouts beyond 1 hectare extents all other places in tamilnadu DTCP is the authority to approve such developments.
Site Purchase Loan :
Indian investors are traditionally inclined towards buying land either purely as an investment or for building a house. So, if you are looking to buy a plot, you may not be eligible for a home loan, but for a land loan. Home loans are available only for the property already constructed, under construction or likely to undergo construction soon. For funding the purchase of a vacant plot, you will have to go for a land loan instead. Although the terms, rates and processes related to land loans are similar to that of a home loan

Top Reasons To Contact A North Carolina Credit Union

Surely, if you have never needed a loan before, you do not really know why you should consider getting in touch with a North Carolina credit union rather than any other available financial institution. Well, before making any decisions in this case, you need to be aware of a few important details that your local bank does not mention when you want to get a loan or benefit from a particular service that they have to offer. It all starts with the fact that a Winston Salem credit union consultant does not depend on commission.
On the other hand, bank consultants are motivated by different levels of commission to convince you that a particular financial product is better than another, even if the second option would match your needs. This is just one of the many reasons why you should consider looking into becoming the member of a North Carolina credit union. At the same time, you should know that even if you have a bad credit score, the right Winston Salem credit union might be able to find a proper solution.
For example, if you visit a North Carolina credit union first and you ask them to look into your current financial situation, they will tell you everything you need to know about it. So, if your credit score is not great, they will not turn you down right away. First, they will make sure that they look up every possible solution. After that, if somehow your credit score is still preventing them from approving your loan, they will offer you suitable advice on how to improve it in the shortest time possible.
Another reason why you should want to get in touch with a Winston Salem credit union is the fact that you will be treated like a valuable member of the community when you walk in such an establishment. Due to the fact that credit unions are owned by their members, you are actually part owner of the institution, which means that the consultants working there have our best interest at heart.
Also, you will be greeted with a smile and will have enough time to talk about your current situation, your needs and expectations. The credit union consultant will answer any questions that you might have and will make sure that when you opt for one of their financial services, you do not end up paying for something that you do not really need. You might also want to keep in mind the fact that credit unions ask for lower interest rates, which means that even if you get a loan, paying it back will not bankrupt you in the long run.
Surely, if you have never needed a loan before, you do not really know why you should consider getting in touch with a North Carolina credit union rather than any other available financial institution. Well, before making any decisions in this case, you need to be aware of a few important details that your local bank does not mention when you want to get a loan or benefit from a particular service that they have to offer. It all starts with the fact that a Winston Salem credit union consultant does not depend on commission.
On the other hand, bank consultants are motivated by different levels of commission to convince you that a particular financial product is better than another, even if the second option would match your needs. This is just one of the many reasons why you should consider looking into becoming the member of a North Carolina credit union. At the same time, you should know that even if you have a bad credit score, the right Winston Salem credit union might be able to find a proper solution.
For example, if you visit a North Carolina credit union first and you ask them to look into your current financial situation, they will tell you everything you need to know about it. So, if your credit score is not great, they will not turn you down right away. First, they will make sure that they look up every possible solution. After that, if somehow your credit score is still preventing them from approving your loan, they will offer you suitable advice on how to improve it in the shortest time possible.
Another reason why you should want to get in touch with a Winston Salem credit union is the fact that you will be treated like a valuable member of the community when you walk in such an establishment. Due to the fact that credit unions are owned by their members, you are actually part owner of the institution, which means that the consultants working there have our best interest at heart.
Also, you will be greeted with a smile and will have enough time to talk about your current situation, your needs and expectations. The credit union consultant will answer any questions that you might have and will make sure that when you opt for one of their financial services, you do not end up paying for something that you do not really need. You might also want to keep in mind the fact that credit unions ask for lower interest rates, which means that even if you get a loan, paying it back will not bankrupt you in the long run.

Car Guarantees More Bang For Your Bucks

With the rising population, the most stressed sector in today’s world is transportation. Due to reasons such as uncertain weather conditions and unexpected delays, you cannot rely on public transport. Therefore, it is best to buy a car for commuting from one place to another.

Amidst the different available options, what kind of car shall you prefer in order to get the maximum benefit out of your budget? Without a doubt, one should go for a certified pre-owned car. The necessity of owning a car and limited budget has helped the certified pre-owned car business flourish in America. You need not to worry about the quality of the car as the dealer certifies it. Plus, it attracts special benefits and offers that you do not enjoy when you buy a normal used car.

Here are some of the reasons why preferring a certified pre-owned car over a normal used car guarantees more bang for your bucks:

You get the Best Quality Car

A car with the best quality is eligible to become a certified pre-owned car. The simple reason is that the dealer does not want to spend extra bucks on maintenance and reconditioning of the vehicle. So, he chooses a car that is in a decent condition. A certified pre-owned car, practically, does not require any maintenance in the near future. So, you should not worry about anything.

Thorough Inspection of the Car

Before certifying a car, the dealer inspects every bolt of the car in order to find the tiniest fault. Once the dealer notes all the faults, he reconditions the car. Once satisfied, he certifies it as a certified pre-owned car. The main advantage of buying such a car is that you need not worry about it as the dealer addresses every major or minor problem.

Extended Warranty

Since the dealers recondition the car, they remain tension-free regarding the quality of the vehicle. Due to the same reason, they provide extended warranty to the car buyer. Having additional warranty will make you tension-free regarding the maintenance of the vehicle.

Some dealers also provide road-side assistance free of cost along with extended warranty.

Low Interest Rates

Despite the higher cost of a certified pre-owned car, lenders provide low interest rates to car buyers. It will lower your monthly payment burden. It is because a certified pre-owned car is as good as a new car. And, lenders don’t differentiate between a new car and a certified pre-owned car. So, they charge the same interest rate on both the vehicles.

More Offers

Since a certified pre-owned car is equivalent to a new car, dealers as well as lenders never hesitate to provide you with additional benefits. Dealers also provide free insurance, reduction in price, additional discounts etc. on special occasions.

You can enjoy the same discounts on a certified pre-owned car that the auto manufacturer offers you for a brand new car. Therefore, saying that you get the maximum benefits by spending the minimum amount of money cannot be wrong. So, buy a certified pre-owned car because it guarantees more bang for your bucks.

Buying A Rent-to-own Car A Feasible Option

A poor credit score can become a lingering nightmare and affect numerous aspects of your life. If you are credit-challenged and wish to purchase a car, getting an auto loan approval may seem like a tedious task. However, rent-to-own cars have gained significant popularity amongst those with a bad credit score. Typically, a rent-to-own car means renting and using the car from a dealership whilst paying a down payment and making weekly payments. Once you have completed the weekly payments of the car, the ownership of the rent-to-own car shifts to you, the buyer. As the dealer requires no significant credit check for the purchase of the car, many credit-challenged individuals turn to rent-to-own cars. Although they may seem like a lucrative option, the disadvantages outweigh the benefits.

What are the Downsides of a Rent-to-Own Car?

1) Expensive Purchase

When the dealer lines up used cars under rent-to-own category, he marks them higher than other cars. As no interest rates are charged on rent-to-own cars, he tries to make a profit through sale of the car. Therefore, purchasing a rent-to-own car means paying more to own a used car with a lower resale value.

2) Frequent Payment Schedule

The payment schedule associated with a rent-to-own car is more frequent as compared to a used car. The dealer requires you to make weekly payments as against the regular monthly payments on a used car. Due to frequent payments, it can become difficult to keep tracks of payments, thereby, attracting the possibility of a late payment fee.

3) No Effect on Credit Score

Regardless of your timely payments, your credit score will not improve due to a rent-to-own car. With the purchase of a regular used car, the ability to increase your credit score is a possibility. However, with the purchase of a rent-to-own car, the payments do not reflect on your credit report and will not help in improving your credit score.

4) Absence of Warranties

There are no warranties on rent-to-own cars. As you use the cars, the probability of a breakdown is higher than a regular used car. Therefore, any repairs, damages and breakdowns are your responsibility as a buyer of a rent-to-own car.

Is there an Alternative Option?

If you do not wish to buy a rent-to-own car, you can still avail a bad credit auto loan to purchase a regular used car. The advantage with purchasing a regular used car is that monthly payments can help you structure your finances and warranties can shield your car from any potential future damages. Thus, purchasing a used car can provide greater benefits in the long run.

A damaged credit score does not necessarily mean that you should opt for a rent-to-own car. The downsides of purchasing the car include expensive purchases, frequent payment schedules, little or no effect on your credit score and absence of warranties. The good news is that purchasing a regular used car with a bad credit auto loan is a suitable alternative.

Choose The Best Suitable Mortgage Option

Borrowing money to buy a new home can be an intimidating process. There are several options and each of them comes with different benefits. But to choose the right option you don’t need to become an expert. You can plan all of it and take one step at a time.
Basics of Mortgages
The first thing you should ask yourself when buying a mortgage is whether you want a Fixed rate mortgage or Adjustable rate mortgage. These two plans are not much different from each other.
Both of these plans allow you to borrow a handsome amount of money which you can pay back in the form of monthly payments.
Under both these plans your first year payments are shifted towards the payment of interest amount and then by the time the equity on your home grows faster.
Both these types require you to disclose your credit history in the form of debt payment, income, monthly expenditures etc.
Fixed Rate Mortgage
Fixed rate mortgage plans are more suitable for most of the clients. They consist on long term i.e. 30 years plan but you can also get 10 or 15 years plan. In this plan the interest rate remains the same over the term of the mortgage. So if you were paying 4% interest rate at the beginning of the mortgage you’ll keep paying 4 till the end. The benefit of this plan is that the interest rate will not rise even if they are going up.
Adjustable Rate Mortgage
In Adjustable rate mortgage plan, the interest rate change over the term of the mortgage. It starts from an interest rate which is lower than the market rate of that time and then sets back to regular rate after some time. So the amount of monthly payment also changes with that.
ARM plan also consist of 30-years plan or so, however, the rules for this plan are incorporated in your contract. So read it carefully before you sign the mortgage papers.
Adjustable rate mortgage plans can be complex because the amount of monthly payment keeps changing over the term of the mortgage. There may be chances that you monthly payment shrinks after few years because the mortgage rates will fall. But in times of high interest rate you have to pay huge monthly payments.
Therefore it is important to consider all points before choosing any one plan. Many homeowners lost their homes in the housing crash because they were stuck with a wrong mortgage plan. Therefore consult your mortgage broker before choosing a plan. It is their job to find the best suitable mortgage deals for their clients. They have experience and knowledge so they can guide you in the best possible way.
If you have any further queries or you want to discuss your mortgage options with our professionals, you can contact us and schedule your meeting today. Our dedicated team of professionals aims to help you through the mortgage process. So the process of home buying becomes a memorable journey for you.

Think Long Term Before You Decide On Your Auto Loan Term

Life is a journey! And, buying a car will make your journey easier. Nevertheless, before you buy a car, selecting the right loan term is important. If you choose a short-term auto loan, you will have to repay the loan over a short period. The term varies between one to three years. On the other hand, a long-term auto loan has additional time for repayment. The term varies between three to nine years. It is good to know the pros and cons of the auto loan term before you sign the contract. Take time for making comparisons and make the decision process a little easier. It is essential because you have think about the big picture.

Short-Term Auto Loan – Pay more for a Short Period

Pay up Faster and Make Way for your Dream Car

Buying a new car is a costly purchase. You need an auto loan to pay for the price of the car. Short-term auto loans usually have a lower annual percentage rate. Remember, the shorter term the better it is for you. Short term guarantees you lower interest rates and higher monthly payments than a longer loan term. It means you will pay up the auto loan with a low rate of interest. There are several benefits of opting for a shorter loan term such as:

>>You can enjoy low interest rates.
>>You can get out of the auto loan debt in a short period.
>>The biggest benefit is that it helps in freeing up your money quickly!
>>It feels expensive at first, but with low interest rates, it will not hurt your financial situation.
>>The car will have a higher re-sale value when you pay off the auto loan quickly.
>>It can aid in improving your credit score.

As a car buyer, remember that a short-term auto loan offers you multiple advantages only when you make large monthly payments. In addition, you will have to do everything to reduce the loan amount. It will ensure that the monthly payments do not become a burden for you. Consider, making a large down payment to the lender. Also, remember to plan your expenses because auto loan payments will take an important chunk of your income and you will not be able to save money for the next couple of months.

Long-Term Auto Loan lets you buy an Expensive car

If you are thinking of buying a luxurious car, a long-term auto loan will be a good option for you. It is possible to afford the car expenses because monthly payments are low. The lenders will offer you affordable monthly payments in return of high interest rates. It means you can even buy a car outside your price range. Many car buyers opt for a long-term auto loan because:

1. It offers low monthly payments.
2. A car buyer with low income can afford a car easily.
3. It is ideal if you want to buy a luxurious car.
4. Regular monthly payments can increase your credit score.

However, you must remember that long-term auto loan stretches the monthly payments for a long time. In addition, you will have to cough up high interest rates to enjoy a longer loan term. Another problem is that you can be an upside down situation for a larger part of the term. It is a very risky situation because if the car breaks down, you will find it very difficult to buy a new one.

When in Great Confusion, Read the Conclusion!

There is no perfect auto loan term. As everyone has different income levels and repayment capacity, there is no one perfect loan term. When the lender offers you an auto loan term, do not be in a hurry. Determine the monthly payment that suits your household budget. Consider your future expenses. Think of major expenses such as a wedding, college fees, buying a house, etc. Pick the auto loan term accordingly. Remember, life is too short for making monthly payments for a very long time. Therefore, it is important to think hard before you make the right decision.

Makes Way For Your Financial Stability

Mismanagement of financial resources do create a lot of obstacles, which then makes it tough for you to lead a normal life, without any stress. It is a fact that you can easily deal with financial troubles when you have substantial funds by your side. But what if you do not have sufficient money to come out from the crisis? The problem area is of course your poor credit score. In such situations, taking out the loans is the most viable solution to make the survival easy. You must be thinking whether you stand a chance to avail loans in the absence of guarantor or not. At this point, there is no need to worry because you can prefer the option of loans without guarantor. These loans are can be sourced without facing too much hurdles.

Credit Checks is not required

Overcoming the financial setbacks looks always a tough task for someone who is looking for a way to manage the crisis, despite having no credible footprint. When it comes to satisfying the various financial needs and demand, you still have a chance to procure loans with no credit check and no guarantor option. Since your financial condition needs to be revitalised, managing the increasing expenses with these loans seems to be possible. Instead of getting confused, you should need to concentrate on availing these loans.

Prefer to Borrow a Small Amount

If you are trying to acquire some sort of funds, it would be preferable to opt for short term loans with no guarantor through which cash shortage problems can be solved. However, it is important to look for the best possible solution that can help you in a positive manner and this is where short term loans gain prominence. At best, these loans are meant for solving small term financial difficulties. If your credit score is not in your favour, then it is wise to acquire small amount of funds. With the loans, you will certainly find a way to deal with the cash shortage, which does provide some good respite.

Bad Credit is not an Issue

When you think about the loan, the first thing that will definitely come in your mind is credit history. Having a poor credit score always act as a trouble in the way of borrowing funds but credit score is really not a problem in the context of short term loans. In other words, the doors of borrowing short term loans for bad credit people with no guarantor option is still opened in time of urgencies. Therefore, these loans allow you to get access to the enough funds to manage the situation without much of hurdles.

Optimising solution with the right offers

As a bad credit borrower, it is true that the options of securing emergency funding are limited for you. For a change, the no guarantor loans with no credit check option seems ideal for your circumstances. The loans are made available to the borrowers, struggling with poor credit score and looking for a way to manage the cash shortage. More importantly, with this loan alternative, you are free from the compulsion of providing guarantor for borrowing the loan.

If you are in financial mess, then you can utilise these loans to accomplish your various purposes like to tackle unexpected expenses, education expenses, and medical bills and also provide comfort in financial instabilities for bad credit borrowers.

Auto Loans Technology Comes To Your Rescue

Do you remember the time when you had bought your first car? Deciding a car was one difficult thing while getting loan at nominal interest rates seemed even more difficult.

So what has changed in the recent years? What has made us so lazy yet so smart? The answer is technology! Global access to internet and widespread sharing of information has helped us reach the present stage of virtual awareness. You may not physically touch a car but you can know about each and every bolt of the car. You can compare them easily with the help of technology.

In the same way, obtaining auto loans has become a piece of cake. Thanks to the rising use of technology, applying for an auto loan is possible without even moving a single inch from your seat.

How can Technology serve you in applying for an Auto Loan?

According to Interactive Advertising Bureau, 58% of the population regularly researches for a product on internet before buying it. It is a true example of digital awareness among the buyers. If you are applying for an auto loan, look how technology comes to your rescue and helps you save your hard-earned money in the process.

E-Documents

Scan your certificates and identifications along with your signature and save it to an e-vault. Uploading your personal information can help you save a lot of your effort, time and money. Whenever you need them, you can log in the system and retrieve them quickly. It makes applying for auto loans easier. Whenever you want to get auto loans, you need to submit your e-documents without having to refer to your original documents.

Comparison and Calculations

Previously, you had to understand each and every term of the auto loan contract and manually check the interest rates. However, things are different now. You need not waste hours calculating the monthly payments. The internet does it for you within a couple of seconds.

Also, the traditional rule of applying for an auto loan with the dealer is out of the window. The merit of borrowing auto loan over the internet is that you can borrow it from any lender you like. Also, comparing various offers has become easy because of technology.

Flexibility

Time is valuable. In the old days, you had to fix a meeting with the lender and visit his office. Also, you had to negotiate in order to get the best interest rates for your auto loan. While technology has made it possible for you to obtain a loan, it has also made you the owner of your time. There are no time boundaries for applying with the lender. Whether it is night or day, you can apply for an auto loan and get approved.

Technology has made the once ‘unimaginable’ a reality. Today, car buyers are conducting thorough research before making any kind of purchase. It is the reason behind many businesses opening an online store. Technology offers you great comfort and ample choice. So why not use it to save your valuable time, effort and money? Apply for an auto loan with the help of technology and buy your new car.