Why Does My Auto Loan Hate Me? I Thought We Were Friends!

Most of us fall in love with a car at a dealership and that’s the end of the story. Hey, where do I sign? Even if we do a great job of chipping away at the sticker price and feel pretty darn good about ourselves, we often get burned on the financing end of things. This is especially the case for people trying to score an auto loan with some bad marks on their credit report. Many times, these people are so surprised to hear that their auto loan has been approved that they sign on the dotted line before the dealer has a chance to change his mind! Only later do they realize just how poor they will be for the next 5 years because of the interest rate on that auto loan.What are my financing options?See, now you’re thinking! Impatience will cost you in the auto loan game – every single time. Potential auto loan sources include: a traditional bank, a credit union, financing through the dealership, and the newest darling on the scene – online auto loans.OK, so what is the best option?Well now, this all depends. How does your credit history look? If you have a mortgage and checking account with a traditional bank, then they will probably give you a great rate on your auto loan. The dealership will often find an auto loan for people with a poor credit history – but the cost of driving that car off the lot could eventually lead to even worse credit, when they have the car repossessed because they can’t afford the payments. The best place to shop around for the best rates on an auto loan is definitely online.Uggh! I hate that stupid Internet! It takes me forever to find what I am looking for!Oh come now – how long can it take to type “auto loan” into Google? If you don’t care about possibly paying thousands of dollars more in interest by letting the dealership “help you out” with financing, then by all means go that route. But, for people that want the best rate possible on their auto loan, the Internet is the place to start the search.But how do I know that I can trust those Internet people with my financial info?Very good point – and that is definitely something to consider. To begin with, many traditional banks offer online auto loan applications as a service to their customers, which also saves the bank processing costs. You can apply for Chase Manhattan auto loans online or down at one of their branches. In many cases you will find that banks offer these online loans at a smaller APR than you can get by actually going down to a branch. Chase Manhattan auto loans is one example of this, but many financial institutions offer their online customers a better rate.Now why would they do that?Not too trusting, are you? Hey, that is a great trait to have when shopping for auto loans – don’t forget it! What you are looking for is the catch, and here it is: In most cases, you will get a lower rate on your online auto loan because you will be required to sign up for automatic electronic payments. Plus, seeing a loan officer at the branch takes up the time of employees, and uses other resources that aren’t needed when you submit your application online. But remember, not all institutions offer lower rates like Chase Manhattan auto loans. And even Chase requires you to sign up for automated payments in order to get a break on the rate.And what else should I know?At the very least, shop around for rates on auto loans using the Internet before talking with the traditional institutions, such as bank branches or dealerships. Just knowing what kind of interest rate you can get on an auto loan can help you when you are down at the dealership drooling over that hot new car! Remember, knowledge is power – so don’t just walk into a dealership without knowing what kind of interest rate you can expect for an auto loan.

No Credit Auto Loan Offers Multiple Benefits to Young Car Buyers

The Birth of No Credit Auto LoanTraditionally, young car buyers were considered extremely risky because they had no credit history. Lenders had no information to calculate the credit repaying ability of young buyers and so, they rejected their loan applications.But, things changed with increasing competition. Lenders and online auto financing companies understood that they were losing a large segment of the market by avoiding people with no credit history. So, they introduced a special program called no credit auto loan.Benefits of No Credit Auto LoanIf you are a young car buyer with no credit history and looking for a loan, you will have to apply for a no credit auto loan. The loan program is specially designed for car buyers without any substantial credit history. Following are the benefits of applying for the loan program:You can buy a Car easilyAutomobiles have become extremely expensive. A brand new automobile costs more than $30,000. Even a used car is available for more than $15,000. The higher price of cars has made loans indispensable.Sadly, people with no credit history were not able to buy a car before the introduction of no credit auto loan. Today, the loan program is a boon for young car buyers because it provides them with a golden opportunity for buying the car of their dreams.No more relying on Public Transport or ParentsNo credit auto loan helps you buy the car of your choice. It means you don’t have to spend time in waiting for crowded and unreliable public transport. Moreover, you won’t have to convince your parents to let you drive their car. Total freedom, isn’t it?You can get Lower Interest Rates Most young car buyers without any established credit history shy away from no credit auto loan. They believe that the loan program is expensive and out of their reach. But, the reality is different. You can get low-interest rates by making down payment and bringing a co-signer. Down payment reduces the loan amount and manifests your stable financial condition. And, a co-signer ensures the lender of regular payments. Both these things reduce the lender’s risk and will definitely help you in reducing interest rates.You can build your Credit Score quicklyTo get a loan, you need a good credit history. But to build a good credit history, you need a loan. It is common for lenders to check your credit score before approving your loan application. Previously, young car buyers faced the problem of loan rejection because of their inadequate credit history. But, no credit auto loan has solved this problem. Anyone with no credit history can get an auto loan at affordable rates and build their credit score.It is a Better Option compared to LeasingLeasing allows you to rent a car for a specific period of time. At the end of the lease contract, you have two options. You can return the car to the dealer or buy it from him. It means even after paying regularly for several months, you will have no right of ownership.Such a problem will not occur if you obtain no credit auto loan. Every payment that you make will help you in becoming the owner of your car.How to Get Started?Now that you have understood the benefits of no credit auto loan, you must start the process of obtaining the loan program. The loan process is quite easy and can be completed online. You can take help of an online auto financing company and submit your loan application via internet.All the Best! Hope you find the perfect no credit auto loan program for your perfect car!

The New Rule For Buying a Home – Using Owner Financing

The American Dream; what does it mean to you? People have different jobs or hobbies or passions in life, but one constant remains the same among all of us, and this common thread that unites our dreams is that of Home Ownership! Unfortunately, in this current economy, achieving the dream of home ownership is becoming more difficult than any time in recent history. Too many Americans are following the unwritten rule of home ownership that tells us to ‘Find a Realtor and Get a Bank Loan’. In past economies, with thriving job markets, lower inflation, and less credit restraint, that ‘rule’ may have made sense to follow.But our current economic system is making it difficult for the average person to achieve the American Dream of Home Ownership. In times of unstable job markets, with double digit unemployment forcing people to become self-employed to make a living, the banks are requiring a W-2 stable job history in order to issue loans. In times of a great credit crisis, the banks are requiring stricter credit scores than most people are able to achieve. Fewer and fewer honest, hard working Americans who are used to following the ‘traditional rules’ for owning a home are having the opportunity to own their own homes.What if you could achieve the American Dream of Home Ownership without the assistance of a bank?The purpose of this document is to allow motivated home seekers an opportunity to write a New Rule of Home Ownership that allows you to declare your freedom from the services of a Bank in order to partake in your piece of the American Dream of Home Ownership!In order to understand the New Rule of Home Ownership, let’s take a closer look at the existing rules of purchasing a house with Traditional Bank Financing.The first part of the Traditional Bank Financing focuses on Qualifying for a Loan. While many different loan packages exist, the most common loan written in today’s market is an FHA Loan, and therefore, we shall use their guidelines as an example. The following are guidelines for an FHA Loan:o FHA Loans require a minimum credit score of 620 to be eligible for a loan
o FHA will require 3.5% down on the home. This down payment MUST come from your account. You are not allowed to borrow from friends, family or anyone else. You must document where the funds for the down payment came from. Specifically, the source of the down payment must be from your personal checking, savings or retirement account and CAN NOT be borrowed!In order to work with most Realtors, you must first get pre-approved for a bank. Many Realtors won’t even show you a house unless you can prove that you are able to afford and receive financing for the property. This painful process of pre-approval from a bank can take 2-3 days and involve the following steps:o Proof of Creditworthiness
o You must provide 2-4 years worth of tax returns!
o You must provide your last 4 pay check stubs if you are an employee or an updated Profit and Loss statement if you are self-employed, a business owner, an independent contractor or entrepreneur. However, if you cannot show a consistent pay stub as proof of income, then you may want to skip ahead to the part of this document where ‘Owner Financing’ is discussed, as you will find it increasingly difficult to qualify for a mortgage.
o Your bank may require you pay off other debit to help improve your credit score to qualify for the loan
o And the worst part… this proof of creditworthiness is done throughout the entire home buying process! Even once you qualify and pick out the home of your dreams; underwriters at the bank will have you go through the same process to make sure you still qualify.Now that you are pre-qualified for the home of your dreams, you may finally begin the process of working with a Realtor to find your new home.Once you’ve found your home, the Traditional Banks will want an inspection performed on the home and may require the seller to fix EVERYTHING for the bank to finance your loan. Some people just want a small discount on the house and they will do their own repairs however, many times a traditional bank will not allow you to do this! These small fixes may add to the total price of the house.Also, expect to pay Realtor fees, bank fees, filling fees, “point buy down” fees, loan origination fees, closing costs, title fees, surveys, appraisal fees, and anything else imaginable for which to be charged. Though many of these fees can be rolled into your loan, over the long term, you may be paying an extra 10% in unnecessary Financing Fees that are loaded into your loan!What if there was a quicker, easier, and less intrusive way to take your share of the American Dream? What if you could look at homes without having to pay a Realtor fee, pre-qualify for a loan, and go through a 3 month home buying process? After all, we ARE in a BUYER’S market in Real Estate, so why shouldn’t we be able to buy?Consider the possibility of declaring a New Rule. Instead of working with (and paying for) a Realtor, why not work with the Seller directly? Especially if that seller is a Professional Real Estate Investor who is not only willing to sell the house in a quick and simple matter, but is also will to FINANCE the sale of the house on a short-term basis!Earlier in this eBook, we went over the process of the Tradition Bank Financing. Now, we shall detail the 7 Easy Steps of Purchasing Your Home with Owner Financing:
* Contact the Seller of the Home without having to pre-qualify for a loan and look at the home to decide if you want to purchase.
* Settle on a price
* Agree to a down-payment and interest rate
* Once you’ve agreed to a price, down payment, and interest rate, complete a Deposit to Hold form and pay this 1% fee applicable to the sales price of the property. This fee will take the property off the market while you are closing on the home.
* Fill out credit application; provide 2 most recent paycheck stubs and bank statements as proof that you can afford the monthly payment.
* (Optional) If you chose, you can order your own home inspection to review the condition of the home
* Close in 2-5 business daysBuying a home from a Professional Real Estate Investor is quick and easy. Once you have settled on the price and monthly payments, you have minimal paperwork to complete and can close on the transaction within one week! The following is a summary of some of the benefits of Owner Financing compared with Traditional Bank Financing:
* In many cases, there is no minimum credit score required
* Instead of 10% Traditional Bank Finance Fees / Closing Costs, your Owner Finance Fee averages to 5% of the transaction.
* Unlike Traditional Bank Financing, your down payment for Owner Financing may come from almost anywhere (as long as it is a legal way to raise the funds). You can borrow the money from family, friends, others. There are also some tax incentives for you to use part of your retirement savings. Either way, with Owner Financing, you are allowed to raise your own down payment as you see fit!
* You and the Owner Finance Seller will agree on a time to “close” on the home and may close within 5 business days!
* Your Owner Finance loan is dependent on your down payment and ability to pay the monthly payment and NOT on your credit or having a W-2 Job. Therefore, Business Owners, Entrepreneurs, Independent Contractors, and the Self-Employed may qualify for Owner Financed Homes!
* You are not required to provide extensive documentation to obtain your loanDue to the efficiency, simplicity, and cost effectiveness, you can see why buying directly from an investor with Owner Financing is the New Rule for Buying Homes. Owner Financing interest rates may be a little higher than market price when you initially purchase your home, however, this higher rate, along with a sizeable down payment, will actually help you obtain conventional financing at a lower rate down the road when you decide to refinance!A good way to look at Owner Financing is that is a solution to buying a home with short-term financing. Once you have paid your Owner Financed note on time for say 12-24 months, it’s easier to refinance your existing note with a traditional bank loan at a lower interest. It’s much quicker, easier, and less intrusive to refinance a home into traditional financing then it is to purchase a home with traditional financing!The following example will detail the process and the costs of owner financing:o John chooses to purchase a beautiful home for $150,000 with a traditional bank loan. John’s credit score is 590 and the bank will not loan him any money until his credit score is at least 620. John understands the importance of owning a home and wants to buy something now.
o John finds a home that is being offered for $150,000 with Owner Financing. John has $15,000 to put down and wants to close in 5 business days. John’s new loan is at an 8.5% rate for 30 years and the sellers would like John to refinance his loan in 24-36 months. John’s monthly payment is $1,350 and it includes Principle, Interest, Insurance, and HOA fees. John is happy because he can afford $1,350 per month and is able to take his part of the American Dream!
o As John pays on time for, say, 24 months, John has an excellent payment history with his current lender. John will also need to be working on his credit in those 24 months to raise his score to the current minimum of 620.
o When John approaches a traditional bank John will be able to demonstrate the following:
o John’s $15,000 down payment shows that he has ‘skin in the game’ and is not just going to bail on his house payments
o John CAN afford and has been paying $1,350 a month at a 8.5% rate for his loan
o John’s credit score is now above the minimum required 620
o If John can afford $1,350 a month at 8.5% interest, John can easily afford a $1,100 a month payment at 6.5%!It is much easier to refinance a loan rather than trying to get a loan for the original financing! Since you are already in the house, there is no inspection required, no lengthily closing procedures and there is no longer all that extra red tape that is associated with buying a home with traditional financing!As you can see, purchasing with Owner Financing can be easily done and quickly closed for those who cannot use a traditional bank loan but deserve to own a home now.SummaryIn today’s market, due to tough economic times, there are many people selling their properties. Yet, despite the fact that this is a ‘buyer’s market’, it is tougher to buy a home with Traditional Bank Financing than ever before. Following the old, unwritten rules will lead you to a long and unhappy life in an apartment complex. Motivated home seekers looking for their piece of the American Dream are unable to achieve this great promise by traditional and conventional means due to stringent lending requirements initiated by the very same financial institutions that gladly took over 1 billion of our tax dollars to bail them out! Banks tightening up on their lending practices is causing a shortage of homebuyers in the market. This is one of the biggest reasons that real estate values continue to free fall because there are not enough people who can qualify for available homes while following the unwritten rules.Inspired home seekers, looking to break away from the old rules and ready to write his or her own New Rules to Home Ownership will be able to take advantage of this buyer’s market, and with Owner Financing, you will see more and more people purchasing homes. If you are in the market to buy a home however, you cannot qualify for a traditional loan, I strongly recommend you contact a company that specializes in Owner Finance Homes.Stop drowning in the current economy and create your own American Dream!