Not-so Easy Home Loan

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Getting a home loan was never designed to be easy. This is because it is a serious responsibility at any stage of life. Lenders like to examine each potential home buyer to ensure that their investment (their loan to you) stays sound. Here are some tips that will help you make your home loan go smoothly.

1. Build and maintain good credit. This means buying on credit and paying it off on time. It means having some savings set aside. It means using a personal budget to help yourself stay on track.

2. First time home buyers have certain helpful perks available to them that they can use. These can vary, so be sure to ask about them if this is your situation. In fact, asking many questions is important. It does not make you look dumb; it makes you look like you take this loan seriously.

not so easy home loan

3. Later in life, your income might be more stable. In a case like this, get your loan for a shorter lending period if possible. For instance, get your mortgage for fifteen years instead of thirty. You don’t want to be paying this off when you’re retired and your income is reduced, and you don’t want to pass along expenses to your children when you’re gone.

4. Consider the different ways of making that major improvement on your existing home. You might be able to do it slowly, on a cash-only basis. You might need a home loan to add a room or to rebuild a kitchen. Make sure you have some solid estimates on how much this will cost, and then get a loan for a little more than that just in case you need to cover some unexpected expenses related to the redecorating.

Home loans can be very useful. They take time and attention, but if you ask questions and stay organized, this will smooth out the wrinkles you encounter along the way.

May 11, 2016

How a Payday Loan Can Be Beneficial

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Payday loans are usually small loans used to pay for an emergency or unexpected expense. As the name implies this type of loan is short-term and is typically paid back on your next payday. This kind of loan can be helpful because it gives you access to cash quickly.  You can pay your unanticipated bill and avoid writing a bad check or negate the need to use money that is earmarked for another obligation. Following are more beneficial reasons for utilizing a payday loan:

  • The application process is fast and approvals are granted quickly, usually the same day
  • Most lenders offer online applications
  • Once the loan is approved funds are sent directly to your checking account
  • You don’t need to have any credit, and bad credit is okay
  • Payday loans don’t require collateral like most loans at a bank
  • You can use the money for anything
  • Payday loans have a lending cap, usually $1000 or less, so you can’t over borrow

The availability of payday loans has dramatically increased over the years making it easier for people to get emergency funds quickly and easily. However, as with any loan, there will be interest charged on the funds you borrow. The amount of interest a payday loan lender can charge is regulated in every state where this service is offered.  The lenders are required to share the rate of interest to be charged when making the loan.  You should always read all loan documents, and ask any questions before signing any contracts.

It’s good to know there are companies that offer payday loans because you never know when you’ll be faced with an unplanned expense.  If you find yourself in a situation where you need money quickly, then you should look into the possibility of using the services of a payday loan company.


May 10, 2016

Home, Personal, and Payday Loans

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Most people don’t have the money in their bank accounts to make expensive purchases, such as buying a home, paying down their debt, or taking an expensive vacation. If you are hoping to do one of these things, luckily you have options. There are a variety of loans that you can apply for to help you buy the things that you want and need.

Home Loans

A home loan is a great way for you to finally own a home of your own. There are several types of home loans available. Each has benefits for different people in different situations. For example, if your income is limited, and you can’t afford to make a large monthly mortgage payment, you can go with a 30 year loan rather than a 10 or 15 year loan. Also, the interest that you would be paying depends on your credit score. The higher your score, the lower your interest payments would be.

Personal Loans

A personal loan can help anyone who needs extra money. Like home loans, the interest that you would pay is based solely on your credit score. Unlike a home loan, you can use the money for anything that you like. Many people take out a personal loan to pay off debt, purchase a vehicle, or take a much needed vacation. The amount of money that you can take out for a personal loan depends on your income, your credit score, and the amount of money that you need. Oftentimes, you would be required to put something of value down for collateral. This will give the bank reassurance that the loan will be paid. If you fail to make the payments, the bank would take the collateral and use it to cover the amount of the loan.

Payday Loans

A payday loan is a great option for someone who needs money fast, but doesn’t have the credit necessary to get a personal loan. The money that you can borrow from a payday loan lender is usually between $300 and 1,000. The loan and the interest would need to be paid back on your next payday. The interest level on Singapore payday loans is often much higher than the interest on a traditional loan.

If you are like most people, you don’t have enough in your savings to make a large purchase or cover the cost of an unexpected bill. Luckily, banks and other lenders are there to help you get the money that you need.   

May 10, 2016

What is a Secured Loan?

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Generally speaking, there are two main types of loans: Unsecured and Secured. 

Secured loans are loans which require the potential borrower to provide some sort of collateral –usually an asset like a car, property, or money- in order to secure the loan for the creditor.  By extending credit in this fashion, it relieves the lender of a great deal of risk in the event the borrow defaults on the loan.  In case of default, the lender can take possession of the asset used as collateral and use it to satisfy all or part of the debt, and a deficiency judgment can be obtained against the borrower for any outstanding amount.  A good example of this is a home mortgage.  A mortgage is basically a secured loan with a house or other property used as collateral.   The borrower agrees to make the required payments, knowing that if they fail to meet their obligations the lender can retake the property and sell it to recoup the costs of the loan.  If there are any additional costs beyond what the lender receives for the property, they can pursue the original borrower in order to recoup those costs. 

An auto loan in Singapore is another example of a secured loan; if the borrower falls behind on their car payments, the lender repossesses the vehicle and may sell it to recoup the costs of the initial loan.

In exchange for the borrower providing collateral, the lender may also be able to extend credit, or offer more attractive interest rates and repayment options to borrowers who might not otherwise qualify for these benefits.  An example of this is a secured credit card.  Many banks offer secured credit cards to individuals whose credit history is shaky or nonexistent.  These borrowers are seen as a higher credit risk, so their options for borrowing are fewer than someone with better credit.  However, if they provide collateral, the bank will issue them a credit card.  Typically this is done by depositing funds into a secured bank account associated with the credit card.  The credit limit will reflect the amount in that secured account, and if the borrower is unable to pay their credit card balance, the funds in the account can be used to recoup the amount owed on the card.

May 10, 2016

Bad Credit Making it Hard to Get a Loan? Consider Some Alternative Options

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If you have bad credit, you may wonder if it’s even possible for you to obtain a Singapore flexi loan. While it won’t be easy, people with bad credit can obtain loans by exploring alternative options, such as friend and family, a home equity loan, asking a co-signer to sign, or apply at a local credit union. People with bad credit can also look to fix any errors they find on their credit report, and perhaps apply for loans where the Singapore licensed money lender already does business.

People sometimes wonder why it’s easier to obtain funding from a credit union then it is from a bank. The reason is that a credit union is member-owned, and it’s a nonprofit entity. They are usually more likely to work with individuals who have bad credit, using the applicant’s job security and personal character. A bank may reject a person based only on his credit, not considering his employment history, the amount of assets he has or other characteristics that still make the applicant a good candidate for a personal loan in Singapore.

personal loan Singapore

If the applicant cannot obtain funding from a bank or a credit union, he may want to turn to friends and family. Sometimes asking a friend or family member for money can be difficult and it does come with the risk of harming the relationship between the applicant and his friend. To make sure both parties are protected, they should obtain a lawyer and have a contract drawn up, just as there would be if the applicant was borrowing from a bank. The applicant can also consider taking a loan out of the equity in his home, known as a home equity loan. Even if the borrower has bad credit, sometimes a bank will still loan off the current mortgage based on the home equity if the applicant is current on his mortgage payments and has a good payment history.

May 10, 2016