By financen | October 30, 2008 - 5:33 pm - Posted in Bad Credit, Home Loan, Loan

People with bad credit often get disheartened when they are not approved for any kind of home loans from any reputed financial institutions or lenders. There are ways by which you should be able to get home loans from any reputable financial institution just like any other person with a good credit history.

Find out a good deal: Finding a good deal on real estate can be quite a challenging task, and if you get one, it will be very rewarding, especially for someone with a bad credit history. When you purchase a home at a cheap price and get equity in the property, the loan officer will consider your bad credit home loan as a partially secured loan. Talk to a mortgage broker to know how these kinds of transactions will help you in getting approved for a home loan.

Investigate creative financing:
You need to be a little creative when you are shopping for a bad credit home loan. There are a variety of ways by which you can get approved for a bad credit home loan. Adjustable Rate Mortgage is one of the common ways by which people get approved for a home loan because their interest rates are quite low. Another way to get approved for a home loan is to involve the seller when you are applying for the loan. The seller can cover most part of the down payment on purchase. Or you can ask the seller to carry back a second mortgage that you repay back to them at a very low interest rate. These creative techniques will help you get an extra $10,000 while applying for the loan with bad credit.

Always believe in a down payment:
prefer to make a down payment of at least 3% – 5% of the loan amount. Of course, the more you can put in a down payment, you will be paying less in interests on the remaining balance. A drop of 2% in the interest rate on a $150,000 loan can save you over $72,000 in interest over the course of a 30 year loan. Plus you borrow a less amount in financing. If required, wait for some months so that you can build up more funds to make a down payment to the loan company.

Shop around with different companies:
always shop with different lenders while you are applying for a home loan. The interests and fees may vary with different lenders. The mortgage brokers will try to convince you that their skill and experience in the market has helped many people in need of home loans and they are going to help you too. Don’t be carried away by their words if they say that no one else is going to offer you a better deal than them, especially when you are having bad credit. Browse through the internet and you will find so many lenders in your area offering lucrative deals. An online mortgage specialist is often the best person to contact to get home loans for people with bad credit.

Improve your credit scores:
While your credit is already bad, you may find out different ways to boost up your credit ratings. Review your latest credit report and go through all the items reported on your copy. You may find out some inaccurate items on your file that should be immediately disputed. Once the incorrect items are removed from your credit report, your credit scores will go up. Then you can contact the other creditors to whom you owe a balance and work out payment arrangements.

Bad credit doesn’t have to stop you from getting a mortgage even if it does make it more expensive. Home loans for people with bad credit are available from a variety of lenders who specialize in bad credit home loans. They can make it easy for you to finance your perfect home.

By financen | September 1, 2008 - 5:08 pm - Posted in Bad Credit, Business Loans, Credit, Loan

People with bad credit can now get approved for business loans. These kinds of loans are not processed through the usual banking circles. They require a different kind of collateral such as account receivable collaterals. When you look for a loan with a bank, they want their customers to have an excellent credit and require collateral. If you want to start a business and your credit got screwed because of late payments, skipped payments, or a bankruptcy, then you should not go to a bank for loans. When loans are issued to borrowers, they will look into the future sales. And to get an idea, they will look into the past sales of your business. If your past credit history has not been good enough, then most of the banks will not approve your loan application.

When a lender is granting funds to the borrower, they will offer some financial assistance in the form of advice so that he does not have to go through any kind of financial crisis in the future. There are many lenders that will try to scam the borrowers by saying that they will remove negative information from their credit report. They advertise that they can remove judgments, bankruptcies, late payments, tax liens, collections, foreclosures and repossessions along with their offer of poor credit lending. When you are applying for any business loan, you should check the legitimacy of the loan company. There are many genuine loan companies who offer help to people with bad credit so that they can get back to their feet.

Nowadays, many lenders and financial institutions know that an individual’s financial situation can get worse anytime because of unexpected losses in the business, family emergency or any other unavoidable reasons. The possibility of poor credit lending is increased in the past few years. There was a time when business loans for people with bad credit were denied. Earlier, if anyone faced a loss in the business, he had to look towards private sources or his personal savings. The small business administration, libraries and bookstores offer guidelines for good business practices so that critical financial difficulties can be avoided.