Is Your Best Bet An FHA Loan?

Posted on July 18, 2009
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There are so many home loan types that it can be rather overwhelming to know what to do.  An FHA loan is one of the first places you should go if you meet these requirements:

- have 2 years of steady employment
- fairly good credit rating
- need a low down payment
- are a first time homebuyer

An FHA loan is a government sponsored loan that enables you to get a home loan from lender that you can afford.  It is a great option for a person who may be having difficulties coming up with a down payment.

Under an FHA loan there are many requirements and guidelines, though.  It is best to discuss an FHA loan with a loan specialist because they can completely explain the ins and outs of the loan.

For now, knowing why an FHA loan is worth looking into can help you get started on the right track.

A Good Reason Equals A Smart Loan

Posted on July 1, 2009
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Have a good reason to get a loan.  That is some solid advice that you should not take lightly.  There are two main reasons why you should always have a good reason for a loan.

The first reason is that it gives you a goal.  You know where the money is going so you will not simply waste it away and spend it frivolously. 

The second, and more important reason, is that the lender is more likely to lend you money when you have a good reason.  A lender wants to know what why you need this money and why a loan is the best way you can get it. 

Without a good reason the whole purpose of getting a loan seems trite.  A typical lender who will give a great interest rate is not going to be likely to just hand you some money blindly.  Furthermore, why would you borrow money without a purpose?  Unless you are simply borrowing in order to improve your credit score—that could be a great reason.

Looking At Your Own Bank for Loans

Posted on May 18, 2009
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The idea of shopping around for a loan can sometimes be over rated.  It is a good idea to see what your options are, but you shouldn’t miss the trees for the forest, so to speak.

If you are already doing business with a financial institution then it makes the most sense to go to them when you need a loan.  You already have an established relationship and they know what type of person you are.  You have already won half the battle when you use a financial institution you already do business with.

You will likely be able to negotiate with them better because they do not want to lose the business (of your custom) that they already have.  You can also use your current good standing with them to prove you are reliable and trustworthy.

It often makes a lot of sense to go to someone you already do business with rather than strike up a whole new business relationship. Talk to your financial institution and see what kind of terms they can offer you.

Don’t Let Terms Get You Down

Posted on March 27, 2009
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Loan terms look like a tangled mess sometimes.  It can seem like a hassle to try to read all that fine print.  It is a big mistake, though, to not read a loan contract.

Many people believe that defaulting on a loan means only missing a payment.  That is not true.  Defaulting on a loan technically means failure to meet the terms of the loan agreement, which does include payment, but also much more.

You have to make sure that you clearly understand all of your obligations under a loan.  Do not sign a contract if you are unclear about anything.

Bad terms can really get you down and cause you a lot of trouble.  If you do not agree with every term of a loan contract then do not sign it. 

The money is not worth the trouble that will come back to haunt you if you default so be sure you know what you are signing up for!

3 Things That Will Qualify You For A Loan

Posted on December 13, 2008
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It can be confusing trying to figure out all the factors a lender uses to qualify you for a loan.  While there may be many things a lender looks at when deciding to give you a loan, there are really only three things that are going to matter.

- collateral
- credit
- income

A lender is always thinking about getting paid.

They want to know you will pay them back.  If you have good collateral to put down on the loan then the lender likes this because they know if you default they get that collateral.  They like to see good credit because it shows you pay back your debts.  They also like to see steady and stable income so they know you have the money to pay them back.

The bottom line in qualifying for a loan is that if a lender can not be certain you will pay them back then you will not qualify.  It really is that simple.

http://bo-stanley.blogspot.com

Reasons Why Bad Credit Equals High Interest

Posted on December 1, 2008
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It is often confusing why lenders would charge higher interest rates to someone with bad credit.  A person with bad credit does not need the higher payments on a loan that come with higher interest. 

It seems more rational to charge a person with bad credit lower interest so the payments can be more affordable and they are not stuck in the loan for so long.  However, there is very good logic behind the lender charging higher interest rates to bad credit borrowers.

When a loan payment is made only part of that payment is paying the actual loan balance.  The majority of the payment pays the interest and that is money directly in the lender’s pocket.

The lender isn’t stupid.  They know that a person with bad credit is more likely to default on the loan, so they charge higher interest so they can get more money in their pocket right now just in case the borrower defaults.

Now that is smart lending.

Basics of Studyloans - 10 weeks course

Posted on December 1, 2008
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Due to the recession, we feel an urge to send out information about how to solve day-to-day problems. Therefore we decided to publish this course on Studyloans. We are not covering it all, but try to start up, the recognition that things can be operated, also in times of trouble.

Best Regards

Bo Larsen

Online Loans – What To Watch Out For

Posted on November 12, 2008
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Online loans have become increasingly popular as an easy, uncomplicated and relatively straight forward way to apply for a loan from any number of financial institutes and lenders, all from the comfort of your own home. Online loans can be directly between one borrower and one lender, which are typically applied for right on the financial companies website through a secured server. There are also online loan companies that basically take your information and then offer your loan to tens or possible hundreds of different lenders that can then make an offer of a loan or pass on the loan. The company you applied to then selections the top five or ten online loans, passes on the information to you and you then select which loan you choose. These companies basically act as loan brokers, getting a small percentage of the total amount of the loan which is paid by the loan company to the broker. Of course, you actually pay this in your fees and interest, but you are not told of this when you apply.

It is important when applying for online loans that you understand some basic security issues and that you ensure that you are using only “real” lender websites. Some of the common things to watch out for during online applications are:

• Online loans that require an advanced payment or fee for processing. Often these types of loans will offer a guaranteed acceptance or guaranteed approval, however they will require a one time processing fee of some amount of money, usually over $100.00. After you pay the “processing” or “advanced” fee, you will typically receive an email indicating you have been approved and will be receiving an email notice in a few days. You won’t receive the email, the company will not respond to your increasing number of emails and you will typically find that the phone number or address of the so called lender is not valid.

• Watch out for online loans that are not affiliated with a real, physical bank or lending institute but that want information such as your social security number, credit card numbers, bank account numbers or other sensitive personal information. Sometimes this is not on the first part of the application, however you will receive a notice saying that your loan cannot be processed without the information. Once you supply this sensitive information the “loaner” fails to make any contact and you may find that your private information is sold to other companies and you may run the risk of identity theft.

• Be cautious that you are really on the lending or online loans website you think you are on. Don’t go to these sites from links provided in your email, actually type the name into the browser yourself. Often scammers use URLs and names that are very close to actual financial institutes and make links that are so similar that it is very easy to mistakenly give out information, passwords or other sensitive information, leaving yourself open to identity theft.

Managing and Paying Student Loans

Posted on October 24, 2008
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Student loans are considered by many students to be the only way to be able to finance their way through post secondary education since scholarships, which don’t need to be paid back, don’t cover the full cost of tuition, books and living expenses. Typically student loans are in important factor in deciding what college or complete a four year degree owing about $19,237  in outstanding student loans. This number is from the National Postsecondary Student Aid Study and was from data collected in 2003-2004. There is approximately 66% of all students in college level graduating classes that will have at least this level of students loans to repay when they graduate, with the other 34% either debt free or owning debts that were not taken out as specific student loans.

Typically a graduate level student will have significantly higher levels of student loans, however they will also be earning a higher income upon graduation. The range of additional debt for graduate students is between twenty seven and one hundred and fourteen thousand dollars over and above that of a bachelor level graduate. It may be difficult for graduate students to fully fund their graduate programs and classes solely on student loans, so many choose to work or to complete graduate courses on a part-time basis to spread out the payments and partially or fully fund their graduate studies. Courses of study such as medical school, law school or other programs may make working almost impossible, leaving these students with fewer options.

In most cases student loan debt is relatively easy to manage and various programs offer deferred payment dates and other options to help graduates get on their feet in the workforce before loan payments are required. Unfortunately many students don’t manage or understand the student loan repayment process and they end up defaulting on the loan, resulting in different consequences depending on the terms of the loan.

In some cases a loan forgiveness program that is based on volunteer work with specific organizations or even military service may be an option for students that want to pay off student loans without actually having to pay the money directly to the loan company. Working in these programs not only pays off the loan but it also helps develop a resume and provide real world work experience. These programs tend to focused on humanitarian type volunteer settings but may also include areas of specialization depending on your degree and interest in working in different areas. To find out if you would qualify for a loan forgiveness program talk to your financial department at your college or university or contact any community based human resource of employment agency.

What You Should Know About Student Loans

Posted on October 18, 2008
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For students to finance their education, most must take on school loans.  Student loans are money extended to students to help them pay for their professional education costs but they must pay this back after graduation.  Usually government issued student loans have a lower interest rate than personal and other loans.  To supplement their student loans income, many students also apply for grants and scholarships, which they do not pay back.

A student that gets a federal student loan made directly to them must be a half or full time student attending university or college.  Payment does not start until they drop to less than a half time student or finish school.  Loans that parents take have a much higher limit but payment for these federal student loans starts immediately.  Interest begins to accrue immediately on private student loans made to parents or students but the limits are higher and after graduation, payments start.  You can use private student loans for computers, books, room and board, past due balances, tuition, other education related expenses and to supplement other financial aid, federal grants and loans when they do not cover higher educations full cost.

During college or university, student loans continue to accumulate posing a very unnerving picture when the time comes for the students to start paying them back.  Freshly out of college or university after completing their education, it can be very difficult to start making monthly repayments on loans, other debts and student loans.  Most graduates have to work their way up into high paying jobs but still need money during this time for accommodation, food, clothing, transport, other items and loan repayments.  It is inconvenient, problematic, and expensive to make student loan repayments along with other debts such as other loans, overdraft and credit card debts.    

One of the easiest and best alternatives for paying back several loans plus the interest is to consolidate all the loans and increase the repayment length.  A student loans debt consolidation program helps a graduate by adding the loans together resulting in only one payment instead of three, four or more payments.  This also drops the interest rate and reduces the payment amount.  It is very difficult paying multiple lenders at once not only financially but because it is easier to miss a payment accidentally.

Carefully compare different consolidation plans and loans from various lenders to find one suitable for your needs but take your time and never rush into making a decision, as you want to make the best deal possible.