How to get a loan? Learn more about the rules and procedures to get a loan and how to negotiate it to save money on loans.
You can still borrow money, or the mortgage or home equity loans, car loans or student loans. But you will see that the rules have changed. Your credit score and credit score is more important than them, and buying homes and cars require larger down payment.
If you are not sure whether you get a new personal loan, this process will help you get a loan:
- Add all sources of income for month.
- Total of all monthly living expenses needs your savings, mortgage, debt, and insurance payments.
- Avoid loans that require monthly payments greater than the balance of the introduction of a monthly expenditure of income.
The best guarantee for a loan from the bank: Cash value life insurance policies, savings bonds, U.S. government securities (90% of value), every day for the stock of money management (70% of market value), and shares in mutual funds (40% value market).
The federal government announced two new programs to help kick start consumer credit. First, the Federal Reserve will buy $ 500 billion of mortgage-backed securities. News sent low mortgage rates and produces a large number of calls to the mortgage broker. The second part is $ 200 billion program to lend money to private investors who bought securities backed by student and auto loans and credit card debt and small business loans Small Business Administration. In theory, the easier credit dripping from this program, but it may take some time before consumers see the consequences. This program does not address the reluctance of lenders to seize the opportunity for one, but the most creditworthy customers.
You can receive the best in the local branch bank or credit at the community or a smaller bank and savings. If you do not like the price offered to you or denied, continue shopping. Prices and money sources many variables. Because the lender on the one side of town did not say it does not mean it. Prices for the store, and ask for your credit report and verification of your credit score to see your situation and what you can drop your credit. Before you get a loan, you should know types of loans generally, including:
- Credit Cards
Banks feel the pinch in the credit card portfolio, which is written from a record level of consumer debt financial stress, has chosen to ignore. I even pointed to the required credit score and reduce the credit limit.
A year ago, the credit score lenders have 720 lines for your business. Now, with the customer credit score 740 or 750 will be approved for credit cards, but can not qualify for a lower rate. You tend to receive a new credit demand and do not expect much to offer to renew the religion card introductory teaser rate.
For the customer, and several donors, including the city, and increasing the minimum requirements for the level of cash. Automatically increase your credit too often. Lenders do not willing to cut you into little deviation recession time. Some lenders, including Capital One, focus on the group.
In some cases, credit card companies, but used geography as a risk factor. This is especially true if you live in an area that falling house prices or experience as a mortgage.
Pay on time, even if only a minimum payment. It is possible to get a ticket and a big increase in interest rate if your payment comes one day after the scheduled time. If the card issuer cuts your credit limit, you will receive a separate announcement today or in your monthly statement. Ignore changes and run the risk of exceeding your credit limit, which causes the picture, and you may have higher interest rates.
Maintain the balance to less than 30% of your credit limit. If you spend a chill on the tariffs, it is a red flag on your credit score and reduces your resources to encourage you to raise interest rates.
If you have a card that you save for emergencies, and take them out every few months and use it to prevent the cancellation by the issuer due to inactivity. The best way is not to close the accounts because the proportion of your credit balance is available that can damage your credit score increases. - Study Loans
Last spring, the credit crunch and threatening lenders ability to finance loans for students known as the Federal Stafford, and the fear that students will not be able to obtain these loans in time for fall. The conference came to the rescue, but still access to student loans, the law that allows the government to buy back loans if necessary, a loan program to continue running.
As a result, most students are not the problem of access to Stafford, which is available to anyone who applies without a credit history that a fixed interest rate 6.8% or less bears. Under the new law to increase the maximum students can borrow $ 5500 for freshmen, $ 6500 for the second year and $ 7500 per year for children and adults.
Dad and mom with bad credit, but may have trouble qualifying for a loan combination, which together with parents Stafford. Plus loans, fixed rate of 8.5% or less wearing, you can borrow up to the cost of study, but you need a basic credit qualifications pass the test. Foreclosure, bankruptcy or serious delinquency on the charges made you out of the race.
The arrival of constantly trying to act older people struggling to give a break to extend the deadline can be ignored or mortgage lender at the end of medical payments for 180 days. Until now, and the government, which is optional, has failed to persuade lenders to reduce. The students are eligible for a parent PLUS loan, the maximum will be eligible for higher Stafford subsidized and that the maximum total of 9500 new year and second year and $ 12,500 per year, youth and adults.
He also asked for a personal loan last year, is a private student loan if you have a FICO score as low as 620 have. This year, lenders require borrowers around the world to score at least 650, often 680-700 or higher. Borrowers with little or no credit history should participate in a site that meets these criteria for getting a loan. - Car Loans
Apart from the problems the auto industry, sales worst in 15 years the shortage of liquidity which resulted in reduction of rental transactions, and the borrowed money. Credit is available to consumers with good credit history. If you have a FICO is 700, should have no difficulty in borrowing. If you have less than this mark, you can shop elsewhere.
Do not offer cash loans and financed the remaining balance of your loan old car on the road to extinction, so be prepared to make some money on the table. If you have a good credit score, the largest payment has been placed in the driver's seat as far as price. If the result is not healthy, you need the biggest stake in the car for the loan. As a percentage of the cost of vehicles, the average payment jumped from 17.5% to 19%.
If your credit does not shine, it may require you to several lenders to take loans for a period of 36 months or 48 months, not 60 or 72 years, mean higher payments.
Foreign car makers are more likely than domestic firms to finance customers’ shaky credit, and some of their loans to borrowers with scores as low as 550. But if you can not pay via Bank detainees, does not mean you can not buy the brand. Some traders apply for a loan and one for you, and hundreds of banks to compete for your business.
Even if you think you the best deal get through a dealer, please check with your bank or credit union. The average level for a period of five years, new car loans ranged from 6.4% to 6.6% with credit unions to banks. - Home Equity
Several years ago, an increase in home values so you can quickly build a pile of equity in practice before the ink dried on the settlement of your card - and then borrow to pay for everything, from house to reform university education. But lenders strict standards for approving home equity loans (which you borrow a fixed amount at fixed rate) and home equity lines of credit, or HELOCs, the variable rate deals that allow you to borrow money when you need it.
For example, go the days when you can increase the estimated value of your home minus the mortgage. Now you should be able to not more than 80% of the estimated value and borrow less than the mortgage. In areas where prices have fallen, including parts of Florida, Nevada and California, the loan to value ratio were to go as low as 60%.
Lenders are also no longer dependent on drive-by evaluations, which amounted to little more than an inspection on the sidewalk.
You have 680 credit score, even 720, compared with 650-680 you can go a few years. As with the first mortgage, you must document income and assets. Interest rates depend on the amount you borrow and your site. The average level is about 5% on new HELOCs and 8.3% in home equity loans. - Mortgages
A bank account for your fixed monthly payments during the loan period costs. Early and often only covers interest payments. As loans mature, payments start to reduce the principal amount of your debt. Sure way to reduce costs: deliberately exaggerate every month, even by only a few dollars. Additional payments are automatically used to meet part of the loan, paying less unusual school principal, the less you pay interest.
Bank refuses to approve an additional payment. Discuss the problem with the President. If you have the space, and associated with the state or federal agency that regulates your bank.
To get credit now, you'll push for a document that income and reserves to make mortgage payments, and running households still face unexpected expenses.
Housing loans to borrowers with questionable qualifications for the housing boom has dried up because lenders - mortgage and investment companies to buy - can no longer rely on home price estimates in an effort to save the bad loans. Now most of the lenders (and borrowers) must play by the rules of Freddie Mac and Fannie Mae, which lend to the criteria, so that investors will buy in the secondary market.
Subsidized loans from the Federal Housing Administration also recovered to a choice, not only for borrowers credit challenges (most of the people with credit scores below 620), but the prime minister for borrowers seeking a low down payment.
Lenders will ask for at least two months of the financial information for the two tax years and control of the employer to work overtime and bonus or commission income will continue.
Lenders are also more careful to check the ratio of debt to your income. For February 1, 2009 Freddie Mac is a limit of 45 per cent of total income before taxes for all debts, borrowers with credit scores 740 or higher get the best price. And FHA guidelines, but strict: the mortgage should not exceed 31% of your income, and total debt can not be the highest 43%. And the FHA does not impose a credit score threshold.
Congress has authorized the FHA, which rely on them to secure credit for making plays in the market falls. FHA loan guarantee and the same amount of Fannie and Freddie. Starting on January 1 the maximum is 115% of metro median home price to $ 625,500, and the minimum payment is 3.5%, compared with 3% in 2008.
Mortgages are still quite affordable. According to [fragile Associates, in early November the national average for 30-year fixed rate loan is 6.4%. FHA loans are 6.7%, and the large expansion rate is 6.8%, and the traditional jumbo rate is 7.9%. Adjustable-rate mortgages do not offer many advantages: The interest rate on the ARM 5.1 was 6.4%, and one-year ARM was 5.8% (one even though the years that the weapons are rare). Elections can help stabilize the market, but there is no indication that prices will fall rapidly. - Installment loans
Bank recommends this type of loan. You pay interest on the total amount of the loan advance, even if you pay it little by little, and therefore not take full advantage of the money during the loan period. That compared with the cost of your present loan at the end of each time period (payment of a note). Not all banks are willing to comment as well. An annuity is more profitable. Shopping around can save hundreds of models on a car loan.
You may eligible to get a loan with a few conditions:
- The plan must expressly provide that loans are available to all participants in the plan.
- Loans must be provided with fair and reasonable.
- Loans may not exceed $ 50,000 or less than $ 10,000 or more than half of the accrued interest.
- The loan must be repaid within a period of 5 years (not including loans to finance the manufacture of personal data). ($ 50,000 loan limit participants plan to reduce the maximum loan balance during the last 12 months).
Instead of selling securities, consider the use of collateral for loans from brokers. As brokers borrow from banks in terms of, you may be more money closer to the Prime Minister. There is no fees balance.
You have money, but you have a certificate of deposit (CDs) and are not scheduled until now. Or, in exchange, and used as collateral for loans. Load the normal rate 2 percentage points above that paid for the license. These points divided by a short time, an amount that is not extensive.
The average number of families paying more than $ 140,000 in the 40-year banking relationship to borrow money to credit, home improvements and car purchases, and the use of audits and savings accounts.
Most of the loans, whether for credit, property, insurance or buying a car, depending on the negotiations and no matter how much or how little you save with a bank loan. You will have to pay to achieve a better deal, not only banks and volunteers.
Determine the total cost of at least three bank loans. For each bank know that you think that others in the same time. Compare every aspect of every transaction from bank interest and legal fees, points, etc., then a visit to the head giving the best deal. In addition to open an account, you'll be interested to borrow money.
When you are ready to get a loan, you have access to people who can adjust the rules to your advantage. Keep in mind that no matter how hard the bank's head appears more profitable for banks to half a percent of loan value hits you walk out the door, especially if you think you take you’re other.
