Financing is the way you pay for a purchase – and the term is usually used in the context of buying a home or a car. Financing may be a 100 percent loan or some combination of a cash down payment and a loan. When you apply for bank financing, it helps to have a strong credit score because banks want to make sure you will pay on time and in full. The state of the economy, including how much cash lenders have available to loan, affects what kind of financing you can get at any given time. To get the best financing, it helps to become familiar with the market for the type of loan you’re trying to get, whether that’s an auto loan, mortgage, school loan or personal loan. From this topic page, you can search for information on all kinds of financing. We have many videos on different types of mortgage financing, and hundreds of articles. Use the topic cloud on the right-hand navigation to further refine your search.
Paying Points When Refinancing
When taking out a first mortgage or refinancing, you may want to consider paying "points." A "point" is one percent of the loan amount, typically paid in cash to the lender as a fee. There are several different kinds of points. There are "discount points," where every point you pay lowers your interest rate by a certain amount. The lender may charge you a point or two as a flat fee as well.
Refinancing Changes Names On Mortgage Loan
When you sign a quit claim deed you give up your rights to ownership in a property. If you're on the mortgage for that property you're still liable for mortgage payments. If you're on a mortgage and someone else agrees to make payments and then doesn't it will affect your credit score.
Automobile Lease Affects Mortgage Loan
When you apply for a mortgage loan, the mortgage lender will look at all of your debt, including student loans and credit card debt. If you lease a company automobile and it's in your name, that could also affect your mortgage loan application. Aside from the way the company automobile may be considered part of your income, it helps to pay down credit card debt to qualify for a mortgage loan.
Be Well Informed Before Shopping For Loan
Zero-down financing is becoming the new strategy for financing investment property. Several large wholesale lenders offer zero-down financing for investment properties. There are several important questions to ask a lender before getting zero-down financing for an investment property.
Buying A Home: Think Through Financing
Home buyers, particularly first-time buyers, who ignore the emotional quotient of a house deal, can end up feeling frustrated with the process and angry at the pace of the deal. Taking some time to think through the deal, including the financing part can help. Aside from thinking about financing when you're buying a home, you can plan out how you're going to cope to help keep frustration and anger in check.
“No Source, No Seasoning” In Mortgage Lending
"No source, no seasoning" is a term used in the underwriting process of mortgage lending. The mortgage lender's underwriter must make sure the prospective borrower has properly obtained the funds to buy a home. The mortgage lender also must ensure the home-buying funds have been in an account for some time.
Refinancing With No Income
A homeowner is refinancing their home after a divorce without any income but with an excellent credit score. Having good credit doesn't compensate for not having enough income to make the payments on the loan. A no-doc interest-only loan will help keep her payments as low as possible and get a loan without showing her income.
Avoid Scams When Refinancing
A reader fears they have been scammed on the fees for their refinancing. Ilyce says they need to compare their loan to other offers to determine if they have been scammed, but she emphasizes the importance of shopping around for a lender.
Refinancing With Poor Credit Score
A homeowner is looking to refinance even though their credit rating is in the 500s. They are looking to refinance into an adjustable rate mortgage to help pay down their large debts. The first step is to make sure the lender offering the refinance is a legitimate lender and that refinancing with them will help raise the credit score.
Interest-Only Loan Not An Option For Fixed Income Buyers
When buying a home on a fixed income, an interest-only loan isn't the best way to go. With a fixed income, it's best to buy a less expensive property with a conventional interest-and-principal loan.