Need Funds? – Find Out the Best Option For You

In today’s world, loans are a fact of life. Everybody has got certain needs and aspirations and hardly ever a person, especially middle class one, has enough liquid cash saved away to fulfill those desires and needs.

Even if there are certain savings and investments, they are kept to weather bad times and for the retirements. This gives way to the need of securing a loan to fund those aspirations. These aspirations may include the latest gadgets, expensive furniture, exotic vacations etc.

Apart from desire to get worldly possessions, there might be some emergency such as sudden repairs to the house or car, unexpected guests, unpaid bills, some medical emergency etc., when available cash is just not enough and quick influx of cash is required.

In such situations one looks to the banks and other lenders to provide a loan. Such lenders extend financial assistance on the basis of the borrower’s earning capacity, repaying capacity, past credit record etc. Let’s discuss some of the most popular ways of arranging required funds through borrowing route.

Personal loan

Personal loans are multipurpose loans which can be used for any purpose on the discretion of borrowers. They are of two types, secured and unsecured. While terms and conditions including interest are easier for secured loan for obvious reasons, unsecured personal loans involve deeper scrutiny of the borrowers and more extensive paperwork. Interest rates are also on the higher side with unsecured personal loans as the risk is greater for the lender.

Documents required to be submitted include employment proof, identity proof, residential proof and in case of secured personal loan documents of the hypothecated asset. Tenure of the loan is between three to five years. To payback the loan amount with interest, post dated cheques or auto debit enabling document is required.

Best thing about personal loans is that the tenure and amount is larger helping the borrower manage his/her finances better. On the downside, time required for approval is long, 10 to 15 days, making this route unfit for emergencies.

Credit card advance

Most credit cards come with the facility of withdrawing cash up to a maximum percentage of the credit limit available. This is fairly easy option as no paperwork is required and cash is available instantly. But interest on the cash withdrawn is charged on the per day basis and the resultant amount can be quite hefty if amount borrowed is not returned back in time. The default will also be included in the credit report as a big negative.

Bank overdraft

Some banks extend overdraft facility with a bank account making it feasible to withdraw money over and above the bank balance. While this method is easy and hassle free, banks charge hefty fees for overdraft services. Moreover the limit can be changed by the bank without prior notice and the borrower may be asked for repayment anytime making this avenue quite unreliable.

Payday Loan

This is a great method of arranging the money in emergencies. There is not much paperwork required and tenure is usually of just a few weeks. Amount extended is comparatively smaller yet sufficient to cover up most emergency expenses.

Since amount is smaller and tenure is shorter, the management becomes easier. Moreover there is ease of applying, now instant payday loans can be applied to reputed payday loan companies online from the comforts of home or office.

Instant payday loans are called so because the approval is within minutes and cash become available in 24-48 hours of applying. Repayment is on next payday and for this purpose the borrower has to issue post dated cheque or arrange for the automatic debit.

The only requirement by payday loan companies is to have a steady employment and valid checking account. Even good credit history is no criteria for granting the loan.

Considering all these methods of financing the personal needs, it is apparent if time is not a constraint and the amount required is bigger, personal loan is good option. However in the time of real emergency, payday loan is a better way of arranging funds. Of course in the event of credit cards being maxed out and credit history being negative, payday loan is the only option.

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5 Golden Rules to Always Borrow Loans Like a Boss

In an ideal world we all would like to have enough money for each of our requirements; wherein there is never a need to visit a lender to meet the cash gaps. It sounds too much of convenience and happy living. Isn’t? However the reality is not that sweet and most of us have little choice in the financial matters. We have a multibillion lending industry thriving on the vast gap between the consumer needs for credit, after all.

With the advent of FinTech industry it has become easier than ever to borrow the required funds, say, in a matter of few hours you can avail loans of your choice. Many lenders even boast off to extend the financial assistance instantly (within a minute) too! The service and processing is as hassle free as it can get today.

Although the channels for borrowing have mushroomed to abridge the walls between lenders and borrowers, the basic rules for applying a loan are broadly the same. You should never borrow more than what you need; and ensure loan affordability at the same time. Here is a quick list to state 5 absolute rules for choosing a right loan so that you are never enslaved by a debt in your lifetime.

1. Borrow according to your repayment capacity

Whether you are a Christian or not, it is not about a belief in faith; it is pragmatic to not borrow beyond your means. Always raise a loan after assessing your repayment capacity. Borrowing more than permissible credit limit or borrowing more than 50 per cent of your income hurts your credit score and credit worth.

In the present time it is not uncommon to borrow despite a low score as a lot of loan offers are always available. Irrespective of loan availability you must strictly borrow if you need one.

2. Try to borrow for short-term; do not borrow for longer term unnecessarily

While it always advisable to ensure the affordability or ease of payment of the loans, you must at the same time ensure that you are not extending the payment duration simply to keep the instalments low. For, larger would be the tenure; greater would be the cost of loan. While raising a loan you must try to save as much on the loan interest as possible. In case you have temporary fund hassles, you can begin the loan with small instalments; and later on, either prepay or refinance the loan to save the additional payment of loan interest amount.

3. Be disciplined in loan repayments

One of the most common reasons to destroy one’s credit score is to delay the credit bill repayments. A lot of people realise the mistake after a loan rejection. It is thus advisable that the sooner you automate the loan repayments and credit bills the better it is for your credit health. Also you may deliberately align the same repayment date for a number of accounts so that there are lesser hassles to manage the repayment date. Always keep in mind: A single day delay is same as a week’s delay. It is thus important to pay before the deadline lapses.

4. Try not to borrow for investment or unaccounted risks

Loans should not be directed to pay for investments or volatile risky payouts. For, it is a liability that must be returned on time with loan interest amount. So loans are not meant to fund your fixed deposits or equity funds. Also, it is important to think critically about the loan purpose as a debt should always be used for significant reasons in life.

5. Keep a tab on your credit report

Once you apply for a loan, it is important to keep a strict vigil on your credit report. You must look for ways to increase your score. In case you are running a rolled over credit bill for a few months, you must first of all clear the balance on this card. It would save enough on the interest component.

Similarly if you have multiple loans running simultaneously consider consolidating your debts and reduce your monthly debt burden. Herein you can also consider using an experienced loan broker’s advice to use cheaper loan alternatives such as a secured loan against property or a homeowner loan to reduce your monthly debt repayment burden.

Keeping all these factors in mind, as you assess your credit health and apply with confidence, your loan application is bound to be accepted, making you a boss of your own financial decisions!

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Securing a Small Business Loan

Insufficient funding is one of the top reasons why 80% of businesses fail within the first year and a half. As a business owner, not only do you have to cover all operating expenses, but the time and effort needed to succeed means you will almost certainly have to bid farewell to your day job and regular pay checks. Unless you’ve saved up enough to pay for everything for at least 18 months, you will probably have to find other sources of funding.

However, here we encounter another problem. A recent survey cited by the Credit Union Times showed that only about one-fifth of small business owners – incidentally about the same rate of successful businesses – rely on a small business loan. The survey showed that 62% were fearful of taking on a loan and almost one-fourth of respondents think they would not be approved for one. A Harvard Business School working paper by Karen Mills (Administrator of the US Small Business Administration until 2013) showed even more discouraging statistics. Banks continue to apply measures that restrict small business lending since the financial crisis hit, since such loans are generally always riskier than those to large businesses. Loans amounting to $1 million or less – the domain of small businesses – have gone down 21% since 2008. These loans made up half of all bank loans in 1995, but only 30% in 2012.

So what can you do to have a better chance at securing a loan?

As the saying goes, “The devil is in the details.” Given the stricter requirements of banks, you will need to come up with a very convincing plan that shows your business will truly make a profit. Each number presented has to be supported by hard evidence or at least some realistic projections backed by in-depth research. There must also be a clear plan as to where the money will go and how it will influence your business’s success.

Aside from this, your entire personal finances will also be scrutinized, so make sure your taxes, mortgages, credit cards, assets and liabilities, and even your credentials are all spotless and in order.

The bottom line is, if you believe in your business idea and do the necessary due diligence in coming up with a sound budget and business plan, there should be no reason to be denied a small business loan. Otherwise, you may want to reconsider quitting your day job.

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An Outline of Personal and Business Loan Categories and Their Uses

The number of loan products have increased over the past 20 years as economic necessity and a demanding public in need of specialization to solve financial circumstances. From personal loans, educational loans, business loans and even municipal loans. The entities that took part in the creation of the various financial products are actuaries, risk management professionals, “information and informatic engineers” and Wall Street amongst others. It was necessary to create, enhance or break down for better or for worse loan services and products to keep money fluid in a diverse marketplace that required funds to address niche demographics.

  • Personal Loans

Signature Loans – A signature loan is just as it sounds. One applies for a loan and gives a signature on a promissory note to repay the loan in a certain amount of time. That amount of time is called a “loan term ” and may be from six months to five years. Signature loans usually require good credit and the criteria for loan approval are mostly based on the borrower’s credit and and to a lesser degree on assets. Not all signature loans have the same parameters for qualifications. Some loans may require the borrower even with good credit to account for assets to show the lending institution for underwriting purposes. The institution may or may not place a lien on the assets but nevertheless wants to have documentation proving that there are indeed financial or physical assets owned by the borrower. Signature loans usually come with lower interest rates than other types of consumer loans like payday loans, credit card advances, title loans and some car loans. More on these topics later. Who are the lenders in signature loans? They range from large subsidiaries of auto manufacturers to banks, savings and loan institutions, finance companies and payday loan companies.

Credit Card LoansCredit Card loans or cash advances from credit cards are another form of personal loans. These quick loans are more readily available to the general public and does not require a credit check. To obtain the initial card more than likely required a credit check or at least the process of identification for secured credit cards. Credit card loans or advances usually come with higher interest rates and also other fees for having access to the cash. Various entities allow access to the credit card cash advances from bank tellers, check cashing facilities and automated teller machines (ATMs). The fees vary based on source used to access the funds. To lower the fees for cash advances some use check cashing facilities to have the card charged and receive cash back in turn for not having to incur the fees of ATM machines as cards are assessed a fee twice; first by the ATM company and also their bank. The interest rates on credit card loans or advances are usually higher than signature loans. There are some states that have usury laws that have lower interest rates on credit cards. The loan or advance on a credit card is not a “term loan” as with most signature loans. It is more or less a line of credit the borrower has access to when they need it as long as there are funds available on the credit card. Interest on consumer loans are no longer tax deductible as in previous years. They were designed for short term borrowing needs but many have come to use their credit cards as a regular source of funds in tight economic times or between paychecks.

Wedding LoansA relatively new form of loan to carve out a niche for the lending industry and meet the needs of the increasing costs of weddings is the Wedding Loan. Because of the expense of weddings which can range into six figures, it sometimes requires a personal loan or even a business loan of the families involved to provide a proper wedding. Wedding loans can be secured (using assets for collateral) or unsecured (signature loans) to obtain funds for the ever growing need to pay for the escalating wedding costs and all the various services and products that a successful matrimonial ceremony would need. The credit criteria and the term may vary based on the amount needed and financial status of the people involved.

Payday or Cash Advance Loans is a fast growing market because it usually requires the least of credit criteria used for loan approvals. One can have bad credit for a quick and instant loan. Just having proof of income, proof of identity and a checking account is all that is necessary to secure funds. Even today many have checking accounts without checks one can still obtain a cash advance by asking their bank to produce a one time check to give to the payday loan agency. Many payday loan companies and stores can get approval with no faxing of documents as they utilize other means for proof of income. Although payday loans come with very high annualized interest rates they sometimes are the only source of emergency cash loans for those in need.

Automotive, Motorcycle, RV (recreational vehicle) and Boat Loans – These personal consumer loans are usually not signature only loans but asset based loans. In other words a financial lien is placed against the asset to secure a loan to purchase or refinance the car, boat et al. These consumer loans may sometimes require a down payment of five to twenty-five percent to secure enjoyment and use of ownership. Because these are not funds that are already available as with credit cards they come with a “loan term” from one to six years depending on the choices of the consumer, the marketplace and the credit status. The interest rates can range from very low usually offered by manufacturers of cars, motorcycles, RV’s (recreational vehicles) and boats to very high if the borrower uses a credit card, a finance company or a “buy here – pay here” lender – or the car dealer who finances the purchase of the car by giving the borrower a term of months and years to pay the balance of the loan off.

  • Business Loans

SBA (Small Business Administration) Loans are loans that are given to small businesses which are not able to qualify for a loan from a financial institution for various reasons from lack of business history, lack of collateral to “secure” the loan or not having an adequate credit history. The SBA is not a direct lender but acts as an underwriter on behalf of the bank that funds the loan for the business entity. If the borrower defaults on the loan the SBA will pay the bank a percentage of the balance for taking the financial risk to loan the funds to the business. There are various types of SBA loans which will not be covered in this article but a future article will explain in more detail.

Conventional Business Loans are loans that are either unsecured meaning no asset is used to approve the loan or secured and called “asset based loans” where assets from inventory, equipment, accounts receivable or real estate are used for underwriting for loan approval. Conventional business loans are given to business entities that have great banking relationships, established business credit history with trade lines with other businesses they do business with and good standing with various credit reporting entities like Dun & Bradstreet. There are short term loans with interest only payments with the balance due at the end of the loan usually referred to as a “Balloon Loan”. There are also longer term loans that are fully amortized (principal and interest in each payment) paid over one to five years or more.

Equipment Leasing is a financial instrument which technically is not a loan. Meaning based on tax ramifications and who owns the equipment – leasing is just that – leasing an asset owned by another entity. Leases are usually from large corporations or a bank. The lease term can vary from one to five years or more and there usually are tax benefits to the business entity in leasing new or used equipment.

Equipment Sale Leaseback is a transaction to use equipment that is already owned by the business or municipal entity to secure funds for the present need for operations. The term can vary from one to five years and the amount of funds can vary based on credit history and a percentage of the fair market value of the equipment. The company then in turn leases the equipment back in usually a monthly payment. The company or the lessee normally has different choices on what they want to do with the equipment at the end of the term. They can roll the lease transaction into newer more updated equipment or software. They can buy the equipment for one dollar or ten percent of the fair market value of the equipment.More and more companies are leasing today as opposed to paying cash or using bank lines or loans.

Merchant Cash Advance is used by businesses that need fast cash and can’t qualify or don’t want to go through the process of getting bank approval for needed funds. A Merchant Cash Advance is also not a loan product but it is the selling of assets or credit card receipts at a discount. In other words the Merchant Cash Advance company buys the credit card receipts and then attaches a fee usually every time the business “batches”, settles or closes the day’s or week’s sales until the funds advanced are paid off. There is no term with merchant cash advances as it is not a loan so there is no set payment amount or period. The paying off of the advanced funds vary based on a the credit and debit card transactions of the day or week.

Factoring Accounts Receivable Invoices enables a business entity that normally has to wait 30 days or longer to be paid by other businesses or governmental entities. Again factoring is not technically a loan but a selling of invoices at a discount for cash now. In a typical transaction the company applies with a Factoring Company and the company looks primarily at the credit of the other business or governmental entity that the company is doing business with. Based on that as long as the client of the company is a solvent business or government agency the invoices are bought and funds are dispensed to the business usually within three days of due diligence on the company they are transacting business with. In other words the funds are dispensed after there is a credit check and processing of the other company. The dollar amount that is advanced can vary from fifty percent of the invoice to eighty or ninety percent depending on various factors such as the size of the invoice to the credit criteria of the other company or governmental entity whether it is a city, county, state or federal agency.

Medical Factoring is a financial transaction that benefits medical entities like hospitals, clinics and various health care professionals that have to wait to receive funds for services performed on patients. Like Factoring and Merchant Cash Advances Medical Factoring is the selling of assets in this case invoices for cash now. In many instances the health care industry receives payment from third party entities like insurance companies, Medicaid and Medicare and state entities that provide funds for those in need of medical procedures. The medical facility or professional in turns sells the invoice(s) on a on going basis or one time for cash now. Once there is an interest is selling the receivables then a Factor steps into analyze the billing so that funds can be advanced. This process can vary in length but is usually shorter in length than the process of getting bank financing.

Contract and Purchase Order Funding allows companies to bid on large projects for governmental agencies, hospitals, universities, prison systems and municipalities or also to sell to larger corporations even if the business does not have the credit or bank approval or the wherewithal to service or fulfill a large contract order. Similar to Factoring which works hand in hand with Purchase Order Funding it is not a loan but a simultaneous transaction that involves advancing funds based on the credit of the governmental agency or larger company and the size of the contract. The funds that are advanced are for the cost in completing the order of products or performing services. So the profit that will be gained is not advanced but the costs as in raw and finished material, transportation, production, labor, expertise and any other costs involved in completing the contract. Once the contract is completed or once an invoice is ready to be sent to the client a factoring company which is sometimes owned by the same company buys the invoice at a discount and the funds that would normally be advanced to the company are usually used to settle the amount advanced for the material and other services that were needed to complete the order. Contract and Purchase Order Funding usually requires large transaction amounts as opposed to factoring that can be utilized for invoices as small as one hundred dollars. With the use of Contract and Purchase Order Funding companies that were locked out of the process of bidding on large contract s may become players in multi-million dollar deals.

Commercial Real Estate Sale Leasebacks are similar to Equipment Sale Leasebacks featured in this article. Instead of utilizing owned equipment to secure cash when bank borrowing is not wanted or not available the commercial real estate is used to access funds now. This can vary from office buildings, medical buildings, retail franchises, industrial buildings and manufacturing to large utility plants. This frees up cash “locked” away in real estate. Many entities find that at the present time the business they are in whether it is retail, manufacturing or another field that the holding of commercial real estate is not in their best financial interest for now. They prefer to put to use funds for their industry. So a retailer selling retails goods decides to focus on the retail operations and to lease the space because that real estate when factored into a myriad of calculations does not fit their financial goals during the present time. Yes the ownership of commercial real estate is an asset and can be used as a security for a loan but may also be viewed as a fixed non-performing entity that does not meet the needs of the business, organization, group or individual that owns the building. Commercial Real Estate Sale Leasebacks are another form of getting access to funds and has increased over the years.

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5 Major Insights on Long Term and Short Term Loans Discussed Honestly

Loans like the short term and the long term have a league of advantages and disadvantages, and most of these depend on the requirements of individual borrowers. Both types of loans provide legitimate access to financial route, but each one has their respective alcove and function. Knowledge on these loans will create a notable difference as the borrowers can make the right decision at right point of time. Moreover, it is going to be useful to save capital for personal purpose and help in the financial growth.

Insight on Merits and Demerits

Insight #1

Long term loans are paid off in small amounts, with time extending to long periods. In most cases, this time period can range from a few months to more than two decades. These loans are processed by traditional banking sectors, financial institutions as well as credit lending agencies, with an essentiality of full financial background analysis. In addition, this financing offer has a very cumbersome process, and this is time-consuming. Here again, you need to check with the credible broker.

Insight #2

Long term loans comprise mortgage payments, school loans, and vehicle loans, providing a considerable amount of money that is easily repaid over a period of time. Besides, the interest rate and fees associated with such loans, which is directly proportional to credit approval, work history, assets and several inter-connected factors. Affordable interest rates are only possible in case the credit history of the prospective borrower is impressive and he or she has the stable employment.

Insight #3

One of the major drawbacks associated with long-term financing is that the application processing is time-consuming, and most often, has to be supported with comprehensive documentation and paperwork. There is also need for the guarantor at the time of applying, especially since there is an unstable economic environment.

Insight #4

Short term loans, also known as payday loans aim at providing quick cash to the borrowers. These loans are functionally opposite of the long-term loans. The process of filing an application is simple, lucid and less time consuming. The lender offering this type of loan product is interested in knowing about your income, the nature of job, and the bank account. This type of financing is for the limited period, and therefore quickly repaid.

Insight #5

Approval of short term loans doesn’t need any credit check or any potential customer. The entire process of application will be over before you could ever think. The credit is available for the disbursal on the same day. The repayments are also gradual and quite objective in nature.

Short term loans or the long term loans; making the right choice, always matters. The differentiation between financing is in the manner the available credit is put to use and the time frame for repayment.

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How to Buy Back Your Own Car at a Vehicle Auction

Unless you have a lot of money, when you get a car generally you will take out a loan on the car that you want to buy. This is no problem as long as things go well for you financially, but no one knows when things might go wrong and there might come a time where you find yourself in financial trouble. One of the things that might suffer is the loan on your car, if that happens, you might find yourself delinquent in paying your loan back. Usually when this happens, it’s unfortunate, but the lender will generally take the car back by repossessing it. This then will act as collateral on the loan. Laws are different in all states but generally the lender is then forced to sell your car at a car auction. You can, if you want to buy back the car through auction bidding.

In some states, it is required that before the lender put the car up for auction that they allow for the original owner to try to buy the car back. He can do this by finding a way to pay back all of the money that is still owed on the car loan. However, the person who had the car loan may also be required to pay for any money that it cost the lender to have it repossessed as well. If the person cannot do this, then the car will go on the auction block.

Once the lender has decided to put the car up for auction, the person who had the car originally will usually be sent some form of communication that their car is going to be auctioned off. This again gives the person who once had the car a chance to get back their car.

If you are one of these people, you need to make sure that before you go to the auction to try to get the car back that you get familiar with the rules of the auction. This means you need to find out if they require the bidders to a deposit down before he joins the auction to bit and if the bidder needs to pay for the item that same day.

If you win the car you will be required to give payment for the vehicle. Whether it is right on the spot, which is normal, or if it’s the next day. It depends upon the rules of the individual auction. It also may be required that it be only cash or in the form of a cashier’s check. Typically when a car is won in an auction there is no payment plans allowed so there is no sense in even trying to go for that. If you are the person that had the car originally, if you win the bid and get your car back, it is doubtful that the winning bid will be the money that was actually owed on the car and more than likely you will still be required to pay what is still left on the car.

Even if you don’t win the car at auction and buy it back, you will still be held accountable for whatever is left over on the original loan. After the payment is made for the winning bid, that will be subtracted from the total amount and whatever is left over is what you will have to pay back to the lender for the loan on the car. Just because the car is sold, does not dismiss any money that still might be left on the original loan.

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Can I Get a Loan On My ATV?

Riding around in an ATV can be a great weekend hobby. Slinging mud or sand all over the place may be just the thing you need to relieve stress from a hectic week. With that being said, have you ever thought of your ATV as a source of cash?

There is no way I’d ever sell my ATV! If that’s what you’re thinking, you won’t have to sell it get cash from it. You could borrow against it through a title lender. Let’s explore how this works.

Borrowing Against Your ATV

You may think that title lenders will only work with individuals that have traditional vehicles. However, a title lender may be willing to lend you money on an ATV through a pawn loan.

If your ATV is worth a few hundred dollars, you probably won’t be able to borrow against it. However, if it is worth at least $500 or so, some title lenders will work with you to offer the loan that you need. They’ll do so through a pawn loan, meaning that you can get cash just for letting someone hold on to your ATV. Think of it as lending your ATV to a friend in exchange for some money – only that this friend won’t damage it!

How Much Can I Borrow?

The amount that you can borrow is based on several factors. These include the value of the ATV and the rules that your chosen title lender has.

Many title lenders offer loans beginning at just a few hundred dollars. Again, this would be done as a pawn loan, but it can be done through a title lender. This could make your ATV a great source of income to pay off a late mobile phone bill, utility bill or to keep your car payments current.

Of course, you could also borrow more than a few hundred dollars if the value of your ATV allows for it. Just ask the lender to assess it’s value and see how much cash you can get!

Example

Suppose that you own a 2011 Can-Am DS 250. A quick check on eBay shows that this ATV is currently going for $2,550. Let’s assume that this is what the ATV is actually worth.

If your title lender offers you a pawn loan of $2,000 for your ATV, you could get the cash you need to pay off any realistic bill and more. You wouldn’t have to take the full $2,000, though. You could go with a smaller amount of just a few hundred dollars, assuming that your title lender of choice offers such amounts.

Is it Difficult to Get a Pawn Loan Through a Title Lender?

You’re going to have to jump the Grand Canyon backwards on your ATV to get a loan on it, right? Not exactly.

Pawn loans are usually simple to obtain. The title lender will be primarily concerned with the value of the ATV.

Also, the process of obtaining a pawn is typically smooth. Often, you’ll get your cash the same day that you apply – sometimes in as little as 15 minutes.

Conclusion

So, the process is relatively easy and you can get some quick cash by using your ATV as collateral. If you need quick cash, then this is an option that you should consider for your borrowing needs.

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Hard Money Lenders of California

There is a strong demand for housing in California. That is the good news. The poor news is that few can afford it. The market has rocketed away from control leaving investors to ponder other solutions. Many are turning to hard money lenders.

The demand for housing in California.

The California Association of Realtors says that essentially all of California is rocking insane by now. The demand for houses has stretched to bizarre levels. That is the good news because it implies that if you are an agent working in that area you have plenty of potential clients who want your services.

And the bad? Few people can buy most of the houses that are currently on the Californian market. They are unaffordable.

The joke in the real estate industry is that if you want to buy a house in California – sure, you can buy a box. Comparatively recently, the LA real estate news traveled the nation comparing property results for $100,000 dollars. In suburban Detroit, you could buy a castle for that amount; in Ft. Lauderville, an orange villa; in Chicago, a stunning condominium near the Lake; and in Manhattan, 200 ft. of earth. California was no better with maybe a small plot that you could rent from an honest landlord with plumbing and utilities included.

Of all areas in California, San Francisco is the nation’s most expensive place to buy with a median sale price of $1,312,500, according to the California Association of Realtors (CAR). The rest of ‘this golden city’ is not much better. In Los Angeles, the median home price is $486,310. But home buyers who want to live in L.A.’s most desirable areas will pay much more, and inventory is tight.

And then you’ll need a loan…

Government-backed conforming loans are capped at $625,500 in high-priced areas. So unless investors can make a substantial down payment to qualify for a Fannie Mae, Freddie Mac, or FHA loan, the only way many Californians can finance their mortgage will be to consider other alternatives.

One of these would be visiting hard money lenders

Hard money lenders – what are they?

More than half of hard money loans is originated and closed in California, and the numbers of hard money lenders who live and bid from this pricey city is growing all the time.

Hard money lenders are independent lenders who dole out their own money to people who need a loan. The money is contingent on the value of the collateral rather than the borrower’s credit history or FICO score. Other advantages are that the process is simple and smooth, the environment personal, the lending schedule and terms flexible; and the process as fast as two days. (Some borrowers actually receive same day turnover). Minuses include low loan-to-value ratio (as little as 50% to 60%) which means that your property may actually be valued at far less than it is. And you have to repay at high interest rates. If you fail to repay, you risk losing your property. For these reasons, many consider applying for hard loans only if they absolutely need them and are unable to get the loan through traditional means. They then apply if they need the loan for short-term purposes and are confident that they can repay.

Hard money lenders in California

Prepare for hours of browsing. Hard money lenders in California are a group unto their own. In fact, many directories on hard lenders add an extra page for lenders in California. You’ll find as many as 200 or more if you take the time to research and you use various engines. Lenders find California to be an exciting market – no wonder with its high prices and spiking demand! The advantage for you is that you’ll find reasonably competitive prices. Be prepared to negotiate about schedules, time, and fees. And always research credibility. Lenders in California should be licensed through a Californian regulatory agency and through the National Mortgage Licensing System (NMLS).

Aside from that, draw up a business plan that will outline how you want to use the money and decide what loan you want. Lenders service different clients and provide diverse loans.

The short of it is this…

The costs of housing in California are notoriously high driving professionals to consider buying instead and to look for loans to facilitate the process. The biggest challenge for these borrowers isn’t income, but having enough money for the exorbitant down payment. (This can sometimes as much as 20%). Alternatives such as an interim hard loan could come in useful; many borrowers tend to hook a bank loan later on to check off repayments. You’ll want a wise and trustworthy broker who can help you make one of the most important choices of your life.

Hard money lenders in California could be your answer.

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Why You Should Access an Online Auto Loan Calculator?

The importance of an online auto loan calculator should not be undervalued. People can easily calculate the monthly amount of money they need to give to a dealer as part of the repayment of the car loan he or she has taken. It is very easy to access a calculator over the internet. You just need to visit a car dealer website and access the same free of cost. Usually the home page itself contains the EMI car loan calculator. You need to select the interest percentage, type in the lending amount, and choose the maximum number of months within which you prefer to pay back the money to get the monthly equated amount with a single click of the computer mouse.

Auto dealerships selling brand-new cars as well as used ones usually offer new car loans plus used car loans, 24/7 whenever a person asks for. The process of loan application is also pretty easy and hassle-free. Whenever you plan to buy a car and for that matter need the required sum of money, what you can do is simply access the internet. For people who don’t have an internet connection at their home, they can go to a nearby cyber cafe to open a couple of reliable dealer sites to go through the car loan application procedure.

Every website contains comprehensive information about auto loan rules and policies. One of the main benefits of applying for a new or used car loan from a dealer is that they don’t hesitate to approve loans to people with a bad or no credit rating. A soft-copy loan form is available in these sites. A potential car buyer needs to fill up the form adding his personal details such as name, permanent address, age, gender, phone number, email address, etc. The data in each online form gets stored in the database of the dealer for them to access the same anytime of the day or night for getting in touch with the car leads for successful conversion.

The primary advantages of using an auto loan calculator are given below.

Measuring Per Month Payment – To make it easier for people to repay the lending amount, almost all car dealers of today have introduced the concept of EMI or Equated Monthly Installment. The borrowers should calculate the payment amount in advance to save money and also avoid confusion using an online calculator.

Saves Time – Of course you don’t have to run after the dealers to know the amount of money you need to pay back. You can easily do calculate the amount yourself using an EMI car loan calculator.

Saves Money – You can become a better decision maker once you calculate the auto loan options that best suits your monthly budget and lifestyle. You should choose the car loan plus payment option that is within your budget.

Crack the Best Deal – Numerous auto dealers offer loans against different interest rates. However, you need to identify the dealership who is giving car loans against a small rate of interest and calculate the amount of money you need to pay every month. A car dealer who is giving loan against a small interest rate and for an extended period should be preferred.

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How Long After Foreclosure Can I Purchase a Home – Will Tomorrow Be Okay?

Losing a home is one of the biggest financial disasters that a family will experience. Getting over that, you have to move on to what’s next? Let’s answer the question: how long after foreclosure can I purchase a home?

The Answer…

It is literally possible, to purchase a new home for your family the same day that you have to move out of your foreclosed home. I know that this can sneak by as some good news amidst all the bad news that you have been going through.

If I were you right about now, I would be thinking that there is no way that I will be able to qualify for another loan to purchase another home. What if I told you that with this process that you don’t have to qualify for a loan?

All the things that come with foreclosure, such as damaged credit and stained reputation, will be eliminated with the way that you are going to purchase this new home for you and your family.

The Method…

Average folks do not realize that there are millions of homes sold each and every year that have no mortgage lenders involved. We have all been told that you have to qualify for a mortgage to own a home. Not True!

Savvy real estate investors all over the country rely upon what is termed in the industry as creative real estate investing. This just means using other people’s money. Sounds a little scary if nothing else. That is exactly what a mortgage is. And no, you do not have to borrow from relatives or have a lot of cash of your own.

We are going to use a technique right out of their playbook known as a lease with the option to purchase. This powerful and very successful transaction will put you right back into home ownership as soon as the paperwork is signed. And yes, you will be the legal owner!

Some Benefits…

The real beauty of this is the fact that you are going to set the actual terms of the purchase. If you come across a deal that you do not like, you merely reject it and go on to the next one.

If you have ever searched for an apartment to live in, this process is about the same, with the exception that you are looking to own instead of just renting. Yes, it is that easy!

You will be amazed as to how quickly this can be accomplished if you are serious about owning your own home. How can I be so sure? That’s an easy one – I have done hundreds of these.

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