Finance Loans CA

Serious home buyers will always find ways to get the best value in their real property purchase decisions. They will always go for those options which they perceive can offer them good deals in terms of the intrinsic value both in the short term and long term.

One of the emerging options for bargain hunters are foreclosed homes. The inventory of foreclosed real estate properties are still within the upper range and lending companies and banks are anxious in unloading these properties to prop up their liquidity and improve their financial position. At best, buyers can snatch a good deal which can be as high 20% lower than the real market value of these real estate properties. However, the increased potential of earning windfall profits from the purchase is also accompanied by the increased risk of getting “dud” purchases.

If you are going to include in your options foreclosed real estate properties then it is crucial that you properly understand the rules of the game so that you don’t end up like a headless chicken running into a potentially disastrous real estate deal. Aside from the risk that you have to manage, you will also have to contend with the intense competition posed by experienced real estate stakeholders and investors.

If you are dead set in going the “foreclosure” route then it is critical for you to observe the following ground rules.

1. Launch a Comprehensive Search

You logical option shall be through online search of foreclosed homes for sale. You can get the list from websites that specialize in this particular privileged market and industry information. How can you narrow your search for the best buys? Your best bet shall be in locations where there is higher number of distressed real estate properties. In most instances, lending companies and banks are more aggressive in pushing for the disposal of these properties as they are being significantly weighed down by this financial baggage.

2. Stay Away from Court Auctions

This purchase option is better left to experienced and seasoned real estate investors. There are other ways we can get bargain deals from foreclosed properties without having to increase our chances of getting burned financially. Although, you can get the best bargains when you participate in court auctions of foreclosed real estate properties, there are a lot of negatives that can work against you especially if you don’t have the experience and wherewithal in taking calculated risk in your bidding options.

3. Get the Latest Market Updates

Knowledge is power and it is the single most important item that you must have in order for you to make informed buying decisions. It is extremely important for you to understand that foreclosed properties do not necessarily connote bargain sale. Make sure that you are not assuming an overpriced or bloated mortgage loan when you are buying a foreclosed property. You must remember that market value of real estate properties have gone down to record lows from their 2006 record levels.

4. Get a Pre-Approved Mortgage

Real estate experts stress the importance of getting a pre-approved loan before working on the purchase of foreclosed properties. Most lending companies have already instituted stringent requirements in the approval of mortgage applications particularly those involving distressed real estate properties. It is important that you are properly informed by your lender on the terms of mortgage plans for foreclosed properties.

5. Undertake a Thorough Inspection

Never finalize your decision to purchase a foreclosed property without a thorough inspection. Most of these properties will require repair and it is essential that you include the cost of repair in the assessment of the financial viability of the purchase.

Learn how to sell your own house here: For Sale By Owner

If you’re looking to buy a home from an FSBO listing check here: FSBO Listings

Foreclosed Homes FAQ:

Question: Where can you find free listings of foreclosed homes in your state?

Answer: Any real estate agent can get you a list, although most states will be broken into specific areas.

Question: Process for buying a foreclosed home?
I am trying to buy a foreclosed home that did not sell at the courthouse door. I put in a bid, and it is at the bank. How long will it be before I hear something? I just don’t understand this whole process.

Answer: That’s a little unusual. Banks don’t sell their foreclosures direct, they list them with Realtors. If you have submitted an offer directly to the bank, then you need to follow up and make sure it’s being considered. Historically they will sit on offers waiting for a higher one. Why? They’re trying to minimize their loss. On the other hand they may be clearing up the title. When a mortgagee acquires property through a foreclosure auction, they don’t get complete title to the property. They get a certificate of title. It takes a court action called quiet title, to perfect ownership. That may be the reason for delay.

Question: Any tax break for a foreclosed home?

Answer: If you bought one, the tax benefits are the same as buying any other home.

Question: Buying short sale homes vs. foreclosures…will banks move much on the price?
Are short salehomes as negotiable as foreclosures? I have purchased 3 foreclosed properties and negotiated awesome prices. I have never looked into or tried to purchase a potential short sale. Will banks move as much on them as they will a foreclosed house?

Answer: Just like in foreclosure you can get get discounts in short sales. The difference is the amount of time for it to get accepted. Short Sale can take anywhere from 3-6 months to get accepted and tons of paper work. I’ve made an offer and closed on a REO within 30 days. Both are very good techniques, I prefer short sales for a few different reasons.

Question: Ramifications of foreclosing on my wife’s home.?
My wife purchased a home before we were married. We are now both living in the house. I am not on the mortgage. The house is worth less than what we owe and we would like to buy a bigger one. I am preapproved for a mortgage on my own but can the bank come after us or her if we foreclose on the home? Will it just affect her credit. We are fine with doing it if it just ruins her credit and nothing else.

Answer: You don’t foreclose, the mortgagee (lender) does. Yes, her credit will take a hit, but she also risks a deficiency judgment. If you buy a home together (both in title) any judgment won’t attach to your new home. The judgment only attaches to property (real and personal) she owns herself. Double check with an attorney before proceeding.

Question: How to apply for foreclosed homes?
My husband and I have been trying to find a house and obviously been looking at foreclosed homes. How do I go about applying for them? Is it hard getting one? I am new to this and would like some information.

Answer: You don’t *apply* for one. You employ the services of a realtor after you have been to the bank and gotten your pre approval letter for a mortgage, and then you go look at foreclosed properties. If one is in your budget that you like, you work with the realtor to make an offer.

Question: Where can I find foreclosed homes?
Does anyone know of of any websites that list actual foreclosed homes without a fee?

Answer: Your BEST source for foreclosures is your local real estate agent. Precious few foreclosed homes can be purchased directly without using real estate brokerage. If a smaller local bank has a few ‘in house’ foreclosures, they will deal directly with you. ALL of the larger lenders will not deal directly with buyers. Their REO property is handed off to real estate agencies for disposition.

You can attend foreclosure auctions if you wish, but the deals there are rare. The MAJOR bidder on any auction property will be the lender holding the mortgage(s). They will bid up the price until the sale prices meet what they need to satisfy their loans. As well, you need cash to buy at auctions. No time to arrange financing.

Question: I’m buying a foreclosed home, I think the property tax are way too high considering today’s economy and other homes in the neighborhood. How do I go about getting my property taxes lowered?

Answer: Most likely you are going to get a larger tax bill at signing then when your purchase price gets recorded the amount will be reassessed on your purchase price. They are most likely charging you for what the home sold for last. Making the taxes larger. That’s the way it was done on our sale in CA. Took about 4 months to get the credit back once the property was recorded with our purchase price an reassessed on the smaller purchase price.

A responsible homeowner is concerned about the responsibilities that he will be facing prior to the purchase of a new home. If you are planning to buy a new home, it is important to be aware of the costs associated with the purchase to be ready with the financial consequences and determine if you are totally ready with the responsibilities associated with the celebration of moving to your new home. One of the costs that you have to be ready to pay is the title insurance. This is not covered in the mortgage and is included in the closing costs.

The cost of title insurance is not standard for all states and markets. In some cases, the rate can be set by the agent based on market pricing and can be easily negotiated. In other cases, the title insurance is determined by the Department of Insurance and can also be negotiated depending on the home value and some other factors.

There can be a basis for the computation and more often than not, this is based on per $1000 rate. This figure depends on the type of transaction. It can be a basic, re-issue, new construction or refinance rates. The policy for basic rate is computed based on the purchase price and mortgage amount. The re-issue rate uses the back title as a basis for the computation. The back title is determined by the seller owner’s policy and is usually lower than the $1000 rate. The rate for refinance purchases covers a policy that is issued to the owner of the mortgage loan. The insurance is a factor of the value of the previous mortgage amount. Just like re-issue rate, the insurance is lower than the $1000 rate. For new construction rates, the costs associated during the construction of the property is incorporated in the computation. The rate can go lower than the basic rate.

Because there is no specific defined rate for different kinds of home purchases, it is important for you to determine what the prevailing rate is in the state or in the specific area where the home that you intend to buy is located. You can use technology to get the necessary information but the problem is on the relevance of the information. You may not get the latest rates online. You may also not get this information very easily. It will be best to consult your financial adviser or your real estate lawyer if you already have hired their services. They have a clearer picture of the current rates and you can get a close estimate on the costs related to title insurance. With this information, you can prepare for the title insurance cost related to your new home.

Other than title insurance, you will also have to prepare for other costs and it is best to know these closing costs beforehand so you can manage your finances well and be able to say with eagerness that you are ready to move in your new abode.

Need to buy or sell a home in the Bothell, WA area? Check out Bothell Homes.

Title Insurance FAQ:

Question: What is the difference between Title Insurance and Owners title Insurance?
We are about to buy a home in and the closing is expected to happen in a few days. I was asked by mortgage lender that if I would be interested in ‘ Owners title Insurance policy’? Already there is a fee ($763.00) that I am paying as Title Insurance fees. So do I really need this extra protection of ‘Owners Title Insurance Policy’ and if so how will it help me to have this extra protection, when already I am paying for one.

Answer: The title insurance is the Lender’s policy that protects the lender from any liens on that property. The Owners policy is for you, the owner to protect you from any liens that may show up on the property. For example, if in 10 years the county finds that someone else owned part of your land and owes money on it, you would be responsible to pay that if you didn’t have an owners policy. It’s definitely worth it to get it.

Question: Title Insurance?
I understand that I need Title Insurance for my mortgage, however, do I have to have this through the same company that supplies the mortgage? Point being, my mortgage company have asked $1,700 title insurance (Virginia) for title insurance on a property that is valued at $300k. As I understand it, this insurance only covers them, and not me in any way if anything goes wrong. Is this correct?

Answer: First of all, title insurance rates are a set percentage of the purchase price of the house. Second, the title insurance protects YOU, in case it turns out after all the paperwork goes through, that there’s a PROBLEM with you getting clear title (like, some guy 50 years ago willed it to someone else, and a third party who had no right to it, sold it). So you’re not going to get a better rate elsewhere, and it doesn’t cover them – it covers YOU.

Question: What happens if the title insurance company closed business?
I’ve bought title insurance when I bought a new house 10 years ago. Now, I notice that the title insurance company has quitted and closed business. Does it affect anything? Does it mean no more insurance coverage to my deed?

Answer: Are you saying the title company closed, or are you saying the insurer that wrote the policy is no longer in business? It isn’t clear from the information you gave.

Usually, the title company does not underwrite the policy. You need to check the policy and see if the insurer is out of business–the title company and the insurer are not the same. If you find the insurer is no longer in business, you should contact the insurance department in the state you live in, and find out if these policies were assigned to another insurer. The state insurance department should be able to tell you whether or not your home is still covered. If the settlement company (title company) went out of business, but the insurer is still in business, then you have nothing to worry about.

Question: What is title insurance and can I purchase it and have it work in a foreclosure auction scenario?
The way my county works, all bank-owned foreclosures are sold through a public auction that requires 20% payment at end of auction. I heard that title insurance protects against unknown liens against the property which could very well happen in this situation.

Answer: You are correct in your assumption of what title insurance provides. Before a title insurance firm will provide insurance, they will perform a search of the condition of the title covering the property in question. Contact a local title insurance provider and explain to them what you propose to do, and they will advise you accordingly, as to what liens may be against the property.

Question: Is a Title Insurance company responsible when they do not disclose an open permit?
To make it short and simple, I am refinancing a house now. An open permit from 1949 came up, can’t close with out resolving. House was purchased in 1978 and this “open permit” never came up. Title Insurance was issued at purchase. Can we hold Title Insurance Company responsible for this?

Answer: Where did the issue of the “open permit” come from? Title searches involve property title history and encumbrances – not building permit issues.

Question: What is the purpose of title insurance and why do you need it?
I recently bought property and received the title insurance policy in the mail but it doesent seem to cover anything after reading the exceptions.

Answer: Title insurance generally assures the buyer that the seller has the right to sell the property. For instance, after the closing, somebody knocks on your door and says that the seller had no right to sell because the seller originally borrowed money from a friend to buy the property. Therefore the friend may have an interest in your property. Title insurance would cover this situation.

Question: Regarding title insurance, what is a site inspection? How much does it typically cost?

Answer: You are referring to a survey for mortgage purposes. In many states a survey is not needed for refinancing if you can provide one completed within the last several years and there have been no changes. I don’t know what state you live in but this would apply to most east coast states. I am a title insurance agent in 28 states so this answer is not just a guess. If you are purchasing property then a survey will likely be required, especially if you live in a rural area. If you want to do a bit more research on your own, ask your title agent which underwriter they write for and call the underwriter directly to ask if this mortgage survey is needed.

Question: What can be done when a title insurance company gives wrong info on their final commitment?
The title company provided incorrect tax information on it’s final commitment and closing papers. Their “insured” amount was $1100 less than what the actual taxes are. Therefore they did not collect the correct amount from the previous owners for their share of the year’s taxes. Isn’t the reason for paying for title insurance so to ensure all information including the tax amounts are correct? Since they had the wrong information to begin with the incorrect information shows up on the closing papers. I paid the amount that was on the closing papers but now am delinquent for the extra $1100+ they did not report. Are they not liable to pay the insured amount since it was definitely their gross error?

Answer: Who says it was their error? The title company requires satisfaction of open or unpaid mortgages or taxes. If the current quarter or yearly assessments were not ready yet, they had to work with what they had, and they didn’t pull the numbers out of their butt. Usually the assessors office or the collectors office gives a guesstimate number out if they don’t know the new figures. I do closings, and so many times I have been told the latest actual quarter plus 20%. Sometimes it is enough, sometimes it isn’t.

Contact them and ask if they held any escrow from the sellers proceeds for the estimated taxes. If they didn’t, then either you or they should contact the seller and ask for their pro-rated portion.

Commercial lending is a complex process that is very far removed from residential or personal lending.

What is it?

It is loans that are written to businesses for a host of reasons. Usually it revolves around expansion or securing property for a business.

How does it Work?

Usually a bank or finance company even sometimes private investors are willing to lend a business some money to get the business where it needs to be. It is different from personal or residential lending in many ways.

It usually has minimum limits, it would be very unusual for a commercial entity to walk into a lenders office and ask for a five thousand dollar loan. Small loans are usually handled through a line of credit. It is especially for property typically starts at the two hundred fifty thousand mark. It just makes sense to the banks and other lenders to have a minimum.

The lending process is also different from personal or residential loans. With this type of lending there are a lot more documentation that is required. There may be requests for three previous years worth of financials and taxes and a host of other information that would never be requested to write a personal or residential loan.

It is for the purchase of property usually requires a couple of site inspections and business plans. It is for property usually also has to include business plans to justify it. Sometimes with this type the owners, partners or sole owner has to put up there good credit to secure it. It is an additional safety net that is used by the lenders to be sure that the loan is going to be repaid. In cases where personal credit is used the person that is putting up their good name can be held liable for it if it has gone wrong. This is a very bad idea and should be avoided.

Who does it?

There are a few options. There are traditional banks that almost always do it. There are nontraditional banks that do it. There are funding agents that do it and there are private investors that offer it. Each entity will have different requirement and different rate schedules but they will all have plenty of forms and paper work to fill out and provide.

It is the only way that some businesses can grow. It is offered from many different avenues, it is a difficult process to navigate but is well worth it in the end for the business owners.

Commercial lending is almost always used to secure property and to expand.

If you are interested in this type of lending, go to Commercial Lending for more information.

Commercial Lending FAQ:

Question: Does anyone know the rate for a commercial lending?
I’m currently living in mexico and I want to invest in usa. I have some money to buy a commercial land but I don’t know the rates for a commercial lending to build a strip mall in that land so if anyone knows whats the rate for a 1,000,000 usd commercial lending I would be greatfull.

Answer: Most lenders have strict rules about lending to people outside of the country. Call a commercial real estate broker located in the area where you want to build and see what kind of advice they can give you.

Question: What is a spread in regards to commercial lending?
My husband and I are in the process of purchasing a business. The banker has all the information necessary and has sent the application to underwriting. He said that he should get the spreads back today and will call to discuss, but I don’t know what he means by spreads…can someone explain this?

Answer: My sister worked at a bank & from what she told me was that the spread is a basis of points or a percentage of what the business that you’re buying into produces. The Bank wants to make certain that the amount of cash that’s made from the business is current to the market price.

Question: Commercial Lending?
Does anyone know anything about the Commercial Lending job market? I am interested in learning more about it. Salary ranges, Financial Certifications required, Hours, travel. Also, how does someone break into this career? Entry-level jobs for graduates?

Answer: There are several local banks in my area that have commercial lending departments. Perhaps banks in your area have the same. You could call the bank to inquire as to job opportunities within that area. Salary ranges will depend on where you work (the area), the job requirements and such. I think they start here around $50,000 yr.

Question: How the growth in commercial paper and junk bonds has affected commercial lending and yield spread at banks?

Answer: It’s made their assets worthless, and made it much harder for them to profit on a broad spectrum.

Question: Commercial lending statistic?
Could somebody show me the website which contain the total commercial lending for business and household both by banking industry as well as by dedicated lending firms.

Answer: There are pay sites that might have this data but I don’t know of any that give a breakout like you ask for. The hard part is the specifics on each firm.

Question: Re: commercial lending- what is mezzanine financing?

Answer: Mezzanine loans are similar to second mortgages, except a mezzanine loan is secured by the stock of the company that owns the property, as opposed to the real estate.

If the company (usually a LLC) fails to make the payments, the mezzanine lender can foreclose on the stock in a matter of a few weeks, as opposed to the 18 months it often takes to foreclose a mortgage in many states. If you own the company that owns the property, you control the property.

Mezzanine loans are also fairly big. It is hard too find a mezzanine lender who will slug through all of the required paperwork for a loan of less than $2 million. It is occasionally possible to obtain mezzanine loans as small as $1 million.

Question: What is commercial lending?

Answer: Commercial Lending is lending money for commercial reasons. Commercial = business. It can be to start a business, to buy a building that will become a business, to buy more things for a business. It’s basicall anything that has to do with a business. Anything having to do with your personal life such as your home, car, credit cards is called Personal Lending.

Question: How does Seller Finance and Commercial Lending work together on a deal?
I outlined what I “think” it is below.

Lets say you have a building for 1,000,000 at 6% Interest Only for 5 years. Seller is willing to carry back 80% (800,000). Lender is willing to finance the remaining balance with 20% down (So this equates to 40,000 cash you need to bring to the table) 160,000 is the amount the lender is going to finance. I am assuming that the lender has the first position with his loan and the seller finance goes into the second. What can be done to protect the seller should the buyer default on the loan?

Answer: Well, you’ve got the basic theory down but your execution is a bit flawed. First of all Seller financing can only be done if the seller owns the asset free and clear of any debt (he could have some debt on it but that would make it an AITD and totally different).

The lender would be foolish to allow the buyer to come in with nothing down thus 20% down would make for a vested interest in the property from the buyer. The Seller would then finance the 80% at an agreed upon interest rate usually interest only so as to avoid partial capital gains tax on the principal paid back. There would be no lender involved and the Seller would in effect act as the bank.

Using your illustration then, on a $1,000,000 purchase, the buyer would put down $200,000 and the seller would finance $800,000 at 6% interest only for five years. The Buyer would then make 60 installments of $4,000 and then have a balloon payment of $800,000 due at the end of the 60th month.

Buying a new car can be a great experience, but it can also be disappointing when it comes time to do the paperwork. With the right credit score you can either walk into a dealership and drive home with a new car same day, or you can face a lot of difficulty with getting the cash you need to finance your new car.

Unless you are paying cash for your car or borrowing money from a family member, you’ll need an auto loan to purchase your new car. Your best bet is to visit your bank first to find out what kind of loan you qualify for, otherwise you’ll be tempted to get your loan through the dealership. Dealer financing is typically very expensive and will cost you way more money for your car.

Either way, your credit score is the most important variable when it comes to determining if you can get approved for a loan, how much, and at what rate. The higher your credit score, the better the rate you’ll be able to secure. That means you’ll be able to purchase a nicer car or save hundreds of dollars a month. The same exact car you purchase can cost another person several hundred more dollars a month simply because of the difference in credit score.

The average credit score in America is 720, though you realistically need a 760 score or higher to get approved for the best rates. If you fall below the 720 mark, you’ll likely need to take a few extra steps to increase that rating.

See how your personal credit score compares to everyone else.

Check it for free at at http://www.thecreditfix.info

Car Loans FAQ:

Question: Are car loans hard to get these days?
I know with the economy the way it is, it might be hard. My credit score is 634 and I am going to try to get a car. My credit is fair, but am curious if I can get a loan for a car.

Answer: A credit score of 634 is below the 680-700 that many lenders like to see. However, some lenders are going with 620 as a lower limit. You’ll just have to try a few to find out which ones will approve you. All lenders are different in what they will accept, but it is definitely much tighter than a year ago.

Question: Who has the best or most reputable alternative car loans?
I need help finding financing for a new or used car with little to no credit history.

Answer: If you have little credit, but what you have is good, you may qualify for a first time buyer program from a major auto manufacturer.

If you have credit problems, this will be harder. The more you can put down, the better the loan terms you will qualify for.

Question: Can you have two loans on one car?
I have a car loan on my vehicle through my credit union. Is it possible for me to get another loan taken out on my car? I have a family emergency that I am needing a couple thousand for and this seems like my only option.

Answer: In theory, yes you can have a second lien on a car. In practice, this is a very high risk proposition for a lender and the value of your car after the first lien is probably not much.

Try and refinance the car and get cash out. This is lower risk for the lender and you will only have one loan to pay.

Question: Can you claim interest paid on car loans or other debt on your taxes?
I know you can itemize mortgage interest paid, but all my end of year loan statements and credit card statements are specifying the YTD interest paid. Is that for tax purposes or just to shock the heck out of me?

Answer: No, it is not deductible

The reason that credit card and finance companies provide this info is in the chance that the credit card is a business card.

Question: How do principle payments work on car loans?
If I owe $33,000 on my car and I pay an extra $200 or if I pay a lump sum say $4000 at one time how does that get applied to my loan and how does that reduce my debt?

Answer: When you send in your payment make sure that it is stipulated that it is for an additional principal payment. Paying down the principal makes what you owe smaller. You pay interest on what you owe and as your balance goes down so does what you pay on interest. Some banks will apply it to where ever they want. That should be in your loan papers. Someone told you that they are paid ahead and can skip if they need to, that is not always true. Each bank and lending institution has their own rules. Read all of your paperwork.

Question: Does anyone one know about bad credit car loans?
Im interested in buying a car but i have bad credit. Does anyone know of any websites that offer car loans to people with bad credit. A lot of them say they do but they lie.

Answer: Call a few local franchised dealers and ask if they have a secondary, or special, finance department. They do. You can buy a late model, or easier yet, new car. You will need some money up front and a job. You will pay a higher interest rate. Just to clear a point…a franchised dealer is one that sells new as well as used cars. The reason I want you to do that is the new car dealers put a lot of business each month into local lenders. Sometimes that is the difference in a border line approval.

Question: What was the last year you could deduct the interest from credit cards and car loans?

Answer: The deduction for personal interest, including interest on charge card purchase of consumer items, was phased out by the Tax Reform Act of 1986. Congress believed that the deduction for personal interest encouraged people to consume and that such consumption was at the cost of savings. At the time, the American savings rate was declining and, unfortunately, the private savings rates continues to remain low. To eliminate the significant disincentive to savings, Congress repealed the itemized deduction for personal interest other than mortgage interest.

Question: How can I find the lowest interest rates on car loans?
I was told I could shop around and find my own financing besides the dealers.

Answer: You can and should shop around. Sometimes the dealers have the best rates available and sometimes a credit union, your bank or another bank may have the best rates available.

Finding a car loan finance calculator can help you determine the best rate, amount and payment terms for your new or used car loan. These calculators are an important part of the car financing process. Thanks to the Internet, you can now find a variety of car loan finance calculators with just the click of your mouse.

Car loans help you finance the purchase of an automobile. They can be used for new or used cars, but normally you need to purchase through a dealership of some sort in order to get a loan. Car loans may or may not require a down payment, depending on your credit score, your income and how much you want to borrow.

Before you find a calculator and plug in your numbers, make sure that you are using the right kind of loan calculators. There are tons of loan calculators available online, but not all are for auto loans. Real estate loans, commercial loans and credit cards all have calculators available online. Be sure you’re using an auto loan calculator.

Car loan finance calculators will help you determine what is possible based on your qualifications. You’ll need to enter the amount of the loan you want to obtain, the rate of the loan and the length of repayment. Auto loans normally run for 36, 48 or 60 months. The longer the term of the loan, the lower your payments will be. However, you’ll also have to pay more interest if your loan is for a longer period of time.

The car loan calculator will help you find a variety of different options for your car loan. You can play around with the different figures to see how your rate will be improved by different factors. Advanced car loan finance calculators will give you extra details on your loan that will help you evaluate it more carefully. You’ll be able to see how much interest you can save by having a shorter term loan or how much of a difference a few percentage points of interest can make.

Loan calculators will help you evaluate the best options for you before you go shopping for a car loan. By using a calculator before you shop, you can find out what type of rate you can expect. You should note that a loan calculator is just a tool to use. It is not a guarantee that you’ll get those rates. Banks have different rates for auto loans, so it pays to shop around. In addition to considering the amount of money that you want to borrow, the bank will also look at the current interest rates and your ability to repay.

After finding a variety of quotes with an online car loan finance calculator, you’ll be better prepared to find out more about a car loan from a lending institution. For the most accurate rate, you should meet with a loan officer or contact a lending institution online. While you’ll be able to plug numbers into a calculator, you won’t know the exact rate you’ll receive.

For more information on finding a car loan finance calculator and other tips on managing finances, visit Finance-AAA.com. The site offers extensive information on all aspects of finances for consumers.

Car Loans FAQ:

Question: Is it good for credit to have two car loans.?
I have a car loan and want to get another loan. I also want to refinance my house next year, would it be a good thing for my credit to get a second car loan before refinancing?

Answer: If I were you I would wait until you have refinanced your home before going into additional debt for another vehicle.

When you refinance you home one of the largest things other then your scores and pay history that the lender is going to look at is your debt to income ratio. If you have another vehicle loan on your credit it will reduce the amount that the lender will be able to loan you on your refinance of your home.

Question: How many of you refinance your car loans?
Is it a good idea? I have a pretty decent interest rate on my car. However, it could be a little cheaper.

Answer: Never. If you must borrow, pay off as fast as you can. A car is generally a depreciating asset.

Question: Does anyone know any websites that actually offer car loans to us with bad credit?
Does anyone know personally about any websites that actually offer car loans to people with bad credit. They all say they do to get you there and then they tell you another story.

Answer: Seawest Financial Company financed me when I didn’t have any credit. You may pay a higher interest rate but you can re-finance to a lower one once your credit gets better. Hope this helps b/c I know by experience how much it sucks to be turned down for a car loan

Question: Should Me and my wife apply for new car loans jointly or separate?
Me and my wife just recently got married, and it is time for both of us to purchase cars. My FICO score is 650 and her FICO score is around 750. My salary is almost twice hers. Should we apply for our car loans separately? I know this would help my interest rate, but I don’t want to hurt her interest rate.

Answer: Anyway, it would hurt her if you add yourself on her loan, while it would help you to have her on yours. In your current situation, I would have her cosign for your car to secure a lower APR and you should stay away from hers so she can qualify for a lower APR on hers. I was in the same boat with my wife some years back (except the other way around) so I know exactly what you are going through.

Question: Is it true that people with horrible credit can get car loans?
Car Dealerships make it sound like you can be in collections for lots of accounts and they’ll get you into a brand new car with no money down. What’s the truth on this?

Answer: It is true that you can get credit for a car even with really bad credit. However you will have really, really high payments.

Question: What happens with car loans after damage?
My friend’s car was crushed by a tree on Sunday in a storm. His insurance is giving him 9000 for the car, but he still owed like 19000 on it. The bank is refusing to transfer the amount to a new car. How can they force him to pay for something that a. wasn’t his fault and b. isn’t driveable? If his house was knocked down by a tornado, he wouldn’t have to continue to pay the mortgage–how is a car different?

Answer: The balance still must be paid, regardless of fault. The real fault lies with your friend signing up for a bad loan.

He needs to contact the gap insurance company, his primary insurer is still only going to pay the actual cash value of the car. Gap is totally separate.

Question: Do banks finance car loans for first time buyers on used cars?
I am looking to buy a used car. My mother believes that i cant get financed because Im a first time buyer and it would be a used car.

Answer: Yes you can get financed. But it depends on your age (cant sell a car to a minor) and if your mom wants to co-sign. You will need a co-signer to get it.

Question: In 2009, 60% of car loans will be paid off, does that mean people will rush to buy new cars?
A car salesman told me there are 4 to 5 year car buying peaks. The last peak in car sales were from the years 2005 and 2006. He said most car loans will be paid off in 2009 and 2010 and in those same years they are expecting another peak in new car sales. Any truth in that?

Answer: I have been in the business for 10 years, most people try and trade after 3 years. The current popularity of 72 month and even 84 month finance will change that. We get a steady flow of customers for the most part until, like now, the economy gets shaky then we slow down. The 2005/2006 spree was caused by low rates and big sales (GM’s first employee price sale). I hope it does turn but I wont hold my breath.

Have you been searching for somewhere to finance your car with bad credit? In this day and age everyone either needs, wants or has a car. Gone are the days when a car was considered a luxury item. A car is definitely a necessity for most. However, due to your poor credit history, no lender is willing to help. You have even approached your own bank and they have shut the door firmly in your face.

This is when your search to finance your car begins. Although there is a vast array of lenders available, you need to be very careful. I’m sure you have heard many horror stories of people borrowing money and then being held to ransom by the lender. Once they have gone through the reams of small print, they discover that they will need to pay back up to 10 times the amount they borrowed. This, unfortunately, leads to further debt., which in turn can worsen your credit rating and eventually lead to bankruptcy!

Fortunately, this is where certain companies and organizations have evolved to help you. They are intermediary organizations, who will do all the leg work for you. They understand having bad credit can be a difficult time and will provide you with everything you have been looking for. They can show you how to finance your car, even with bad credit. Usually these companies have a huge list of lenders on their books, who are willing to help people in your situation. They can also provide online support and even have access to many unknown government resources. You will usually have to pay a very small one-time fee to get access to this information and remember i said very small!

You can still Finance your Car With Bad Credit, but you will just need to be wary. This is why i believe these intermediary companies are actually a blessing in disguise. The majority of lenders on their books can give you that auto loan online, at a price you can afford. In most cases your auto loan can be agreed and set up within a matter of days.

If you urgently need to Finance Your Car With Bad Credit, then it is time you visited one of these intermediary companies. Click Here to find out exactly what others in your situation are doing and secure that car loan today.

Car Loans FAQ:

Question: Any general rule of thumb how much your credit increases reducing two car loans to one?
Helping a family member I had 2 car loans. One was 28k balance the other 21k balance. Just sold the 28k car and paid that off. Credit is very good, no late pays etc. Trying to determine how many points could that potentially increase my credit? Any idea…someone told me 30-40 points of all other credit is good, which in this case it’s excellent?

Answer: There is no way to say exactly. Sometimes it doesn’t raise your score much at all. I have two car loans myself, one for 20K and one for 50K. I sold the 50K loan and my credit score only improved by 2 pts.

The reason is many factors involve calculating your score. If you closed the account which had a longer history it could negatively affect your credit. Overall credit length of time on accounts make up 10% of your score. So if you’ve been paying on one loan for the past 4 years and sold it while keeping the other car loan you just took out 6 months ago, your score might go down.

Question: Can I take out a car loan if I am already taking out student loans?
I am a senior in high school and I was wondering if it was possible for me to take out a car loan while taking out loans for college?

Answer: Yes you can have the car loan simultaneously with the student loan. My niece had gone for such a option. She had taken a student loan and with that she also a got a student car loans.
The finance provider had a different option for the students with special offers and rates.

Question: Is it good to pay several months ahead for my car loans in order to boost my credit?
my credit is 550, I’m thinking about paying for six months ahead on my car loan so i can increase my credit score and have the peace of mind. i want to do that to increase my credit score so i can get a new car in six months. I want to pay for six months ahead of time, and get a new secure credit card. do you think that can boost my credit to 700 by june of next year?

Answer: If that’s the only bill you have fine. If it’s not, pay high cost loans first. Credit score is not only set on how you pay, but also credit available. If you have a lot of credit cards available to you with low balance but high available credit, get rid of some. Cancel them. This will help your credit score more.

Question: If you had cash would you payoff your car loans or would you use the money for other things?
I currently have two car’s and I have a combined loan for them with a low interest rate. If you had just enough money to pay the loan off would you or would you use the money for home improvements or furniture or what ever? I just wanted to get some ideas about what some people would do?

Answer: I would bank it. Cash is a good thing to have. If I had any debt w/ high interest rates then I might pay some toward that then try to consolidate it into a low interest loan. There again, showing you have cash in the bank would be beneficial.

I definitely would not spend it frivolously. The economy is changing. Having some cash handy might be very helpful a year or so from now.

Question: Good idea to pay additional principal on car loans?

Answer: The answer to your question really comes down to can you invest those funds and have a return on your investments greater than the 6% you are paying as interest on the loan. If you can, don’t prepay the debt but funds those dollars into your investment. If not, continue to pay the debts down.

If you have other debts with higher interest rates, those funds really should be used to decrease those higher interest loans.

By paying down the car loans you are decreasing the term you will be paying on them. If you trade the cars in (or sell them) before the debts are paid, you’ll owe less (and net more out of the sale) if you continue your debt reduction strategy.

Question: Are there any debt relief agencies that help with secured debt. Such as car loans and student loans?

Answer: Federal Trade Commission website also for Consolidation Company and what to watch out for.

Question: If you had 5k in student loans and 5k left in a car loan and you were about to get a check for 8k?
Which loan would you pay off first? And suppose your car payment was $500 / month as well.

Answer: Pay off the one with a higher interest rate. Probably the car loan. Then use the car payment money to pay extra on your student loan each month.

Question: Which is better to pay off car loans, credit card or put money toward mortgage?

Answer: Pick the credit card with the highest balance and pay it off. Then go to the next one and pay it off -then the next.

After that go to the car loans….start with the car loan with the highest balance and pay it off.

Even if the interest is higher on a card with a lower balance you are still paying more because its compounded on the total balance.

There are many people who feel that they simply can’t qualify for a car loan. There are many reasons you may feel this way, including a low income or a poor credit history. For most people who are in this situation it is because they have one or more negative marks on their credit history and a low overall credit score.

Despite these factors there are some options available which can get you a car loan despite your past credit history. These loans are commonly referred to as guaranteed car finance options. Like all forms of car financing these types of loans have disadvantages and advantages.

The most important advantage that guaranteed car finance options is that they allow you to qualify for a car loan, even if you have poor credit history. This can help you to purchase a vehicle even with defaulted loans or a history of late payments. These types of loans are actually designed for people in this type of situation.

The unfortunate truth of guaranteed car finance options is that they always come with certain stipulations and policies which may make them less than preferable for many buyers. The first and most common factor that applies to nearly all of these loans is that they come at a higher than average interest rate. In fact it is not uncommon for a buyer to pay as much as 11 to 12 percent on a loan of this type. This added interest is built in as a protective measure by the financing company to protect itself in case the buyer defaults on their loans. For the buyer this means they are subject to considerably higher monthly payments for a vehicle than someone who has good credit.

Another term used for many of these loans is to require the buyer to place a larger amount of money down to purchase the vehicle. In fact, it is not uncommon for these types of loans to require as much as 20% down on the purchase of the vehicle. To put this in perspective this would mean that a person buying a $20,000 would have to put $4,000 down to qualify for the loan.

This is also used as a method to protect the lender since it helps to ensure that if they do have to repossess the vehicle it will have a better chance of still holding a value higher than or equal to the amount still owed. Unfortunately many buyers simply do not have that much money to put down on a vehicle.

Most lenders who offer this type of loan also have higher than average standards surrounding late payments. While all car loans have late charges most standard loans only charge around $10-$20 for a late fee. Many lenders offering loans for people with poor credit will charge late fees as high as $200.

Buying a car using this method is an option which is designed to help people who have made some mistakes in past. They are also a method which can be used by a person to improve their credit score. In reality they are a good option for many people who have a poor credit history but only providing that they intend to stay current on the loan.

For more information on finding guaranteed car finance and other tips on managing finances, visit Finance-AAA.com. The site offers extensive information on all aspects of finances for consumers.

Car Loans FAQ:

Question: If you are paying up 2 car loans and then can’t afford one of them, which one gets repossessed?
I have a loan on a car from 4 years ago, then I took a loan out on another car 3 years later. Now I have 2 loans on 2 different cars. But now I can’t afford both of them so I am going to have to give one up. The loans are with the same lending company. Do I have a choice on which one they will repossess or do they choose?

Answer: Yes you have a choice its the one you stop making the payment on. Take the best one and dont miss a payment on it.

Question: What are the average interest rates for car loans right now?

Answer: New or used? They’re different. Manufacturers may still be offering 0% incentives, so watch the ads if you’re looking for a new car. I doubt the rate will go lower than that in the near future. Used? Check with a credit union – they’re usually the cheapest place to buy money at retail.

Question: Will applying for car loans with multiple lenders hurt my chances of getting a loan?
I’m fresh out of college and in need of a new car. I’m shopping for rates – filled out a credit application with the dealer, and a couple online. One of the lenders I applied with online wrote at the bottom of an email to “be sure not to apply in multiple places as it would hurt my credit score and negatively affect my chances of getting a loan!”

Answer: All inquiries made in a 14-day period are lumped together and only count as one, they all show but your score only gets dinged once.

Question: Why does the blue book and bank loan prices differ on car loans?
I’m researching a used car. Kelly Blue Book and NADA guides state the value of the car at between $5500 and $6300. I’ve haggled the sale price down to $4800. However, the bank Ive spoken with about the loan says they can only loan $3500 on the car. Why is there such a discrepancy between the estimated value and loan value?

Answer: They are protecting themselves – if they need to repossess the car because you don’t pay the loan, they want to sell it quickly to a wholesale buyer, which yields them less money than a retail sale would.

Question: What are the laws regarding minors and car loans?
My younger brother is 17. He wants a car and neither his mom or my dad will co-sign for him. My husband and I told him we would, but my brother’s mom told him that he can’t legally get a loan without her concent. I used to work at a bank and I know that minors cannot open a bank account without an adult, but the adult does not have to be the minor’s parent.

Answer: Since he is a minor, he cannot enter into any kind of binding contracts until he is 18. There is nothing that states that the adult co-signing a loan for a minor HAS to be a parent or guardian. The only thing is, if he defaults on the loan you will then be responsible for the loan (but since you used to work @ a bank, you should already be aware of what you are getting yourself into if he defaults on the loan).

If you haven’t considered this yet- he’s going to be in the same position when he goes to get insurance & his tags for the car. Can’t due to being a minor.

Question: When filing bankruptcy in CA, can car loans be discharged as well?
My friend is planning on filing bankruptcy, we were wondering if her car loan will be discharged and she’ll get to keep her car.

Answer: If her loan is discharged, no she won’t get to keep the car. She might have an option to exclude the car from the bankruptcy filing, but then she’ll have to pay the loan.

Question: Is there a way I can take out student loans and pay my car loan off with it?
I owe about 12,000 on my car loan with an interest rate over the roof….I figured if I borrowed a lot of money i could pay that loan off with the money I borrowed and get a really low interest rate for my car. Am I allowed to do that?

Answer: Student loans are for education, no college is going to sign off for you.

Question: How exactly do car loans work?
I am looking to get a new car and I don’t have any credit at all which I know is the same as having bad credit, but I read that it is actually not that difficult getting financed right now. So how exactly does that work? I can afford the payments each month, but I don’t have anything as a down payment so is that what I would use the loan for?

Answer: With no credit you would have to either pay cash, borrow from family, or get a co-signer, assuming you are at least 18 years old.

Are you planning to buy a new car? If you are, how do you plan to pay for it—cash or installments? If you have saved enough money to cash out the total cost of the car, it will be better for you. But if you do not have enough money right now, you can always pay the down payment first then pay the remaining amount in installments. You will need a car financing loan for this.

Persons who want to purchase either a used car or a new car but cannot pay the total cost outright can apply for car financing loans. If you want to take advantage of this, you have to carefully look into your credit history. Some car financing companies deny loan applications to people who have a bad credit history. When you apply for a car financing loan, the lender will look at your credit score. If your score is above 600, there is a strong possibility that your application will be approved. But if your score is below 600, it may be wise to postpone your car purchase and improve your credit rating first.

Before you get a car financing loan, you have to make sure that you are completely aware of all the car financing options available. It is expected that your car dealer will also offer you some sort of car financing. However, you can refuse their offer if you have secured a pre-approval from the car financing company of your choice. It is recommended that you shop around for car financing loans first before you go to your local car dealer.

Getting a car financing loan has advantages and disadvantages. This is why you should take your time to look for reliable car financing with reasonable rates. You can browse online for car financing companies so you can compare their reputations as well as their rates. You should never rush into a car financing deal if you are not sure that you are transacting with a reputable company. Remember, purchasing a car is a huge investment. You have to find the best deal for you.

Car Finance provides detailed information on Car Finance, Bad Credit Car Finance, Online Car Finance, Car Finance Rates and more. Car Finance is affiliated with Mobile Home Finances.

Car Loans FAQ:

Question: Car loans?
I am looking to get a used car and I want to finance it through my bank. How do car loans work? Do I need to find a car first or do I get the money from the bank first? What if I get a loan for 12k and I find a car that is 10k – do I need to give back the extra 2k?

Answer: Go to your bank or credit union and get approved for a loan. Go to the dealership and buy the car. They write the contract or purchase order and you can take that to your bank or cu and your loan is for the amount of the purchase of the car. The dealer might have access to your bank or credit union directly and they can take care of all the paperwork. They might also be able to get you a better rate than the bank.

Question: Is it smart to use a home equity loan to pay off car loans, and a line of credit?
My husband and I need to lower our monthly payments. We have no debt except a line of credit for $60,000 with the payment of $410 and two car loans both adding up to about $25,000 and the combined payment of $1050/mo. So, we are spending about $1400/month for these 3 things. If we got a loan for $110,000 and payed all these off, our payment at 6.6% would be around $700/month. Of course I would always pay more than that per month which would go to principle. Why isn’t this a good thing to do?

Answer: In theory it sounds good. But here’s what happens. You borrow the 100 grand and now you have financed your two old cars for 15,20 or 30 years. If that isn’t bad enough statistics show that you will have more car loans, credit cards, etc. PLUS the 100 grand loan in 5 years. You cannot “borrow” yourself to prosperity. Pay off your obligations without refinancing and you will be proud of your actions.

Question: Can you get a home loan that will also willing to pay 2 car loans?
We are planning to buy a house but I was wondering if it’s possible that a lender will also pay off 2 car loans?

Answer: No. A mortgage is a real estate loan. If you’re doing a refinance and have enough equity, you could get enough money to pay those car loans, but the lender won’t do a payoff for you, unless it’s a condition of the loan.

Question: I have two car loans and would like to put money down towards one of them. Which one should I choose?
I have two car loans with the same interest rate 5.65%. One loan is 10,281 and the other one is a new car loan at 22,525 that’s with taxes included. I plan to put 6,000 down towards one of the loans. Do I put the money on the lower one to pay it off sooner or refinance the new one and decrease the taxes and interest paid over the life of the loan. It doesn’t cost anything to refinance with my credit union, so there are no fees involved. Im having a hard time determining which way is more cost effective.

Answer: In my experience, I find it better to pay off whatever you can sooner. That way, once you pay it off, you can put what you save from paying on that one to paying more on the other.

Question: How do car loans work?
I’m a junior in college and I use my dad’s car to get to and from school during breaks or holidays. I’m paying for school through students loans, so I will be in debt after school. So I was wondering how car loans work because I need something big like a jeep or something, and I’m wondering if there is such a thing as a student car loan. Something I can pay back after I graduate from college. I hope that don’t sound dumb but I don’t know anything about car loans.

Answer: Set your sights on that Jeep once you get that job! Earning is a privilege! Self-satisfaction.

Motorcycles are easy on the gas and maintenance. Get a double seater for your dates.

Question: What Benefit Or Bonus For Good Mortgages And Car Loans?
Is there any benefit or bonus for people who live within their means with current mortgage, household bills, and car loans?

Answer: No it’s self destruction at others expense. I personally know someone who lost their home, the following week they were off on vacation. I often wondered how they could go out to dinner four or five times a week and never think about taking a lunch to work.The sad part is nothing has changed for them other than the restaurants at their new location.

Question: What is the name of the company that refinances car title loans?
I ran into some financial problems lately. Stupidly, I went to a car title pawn. Big mistake. I pawned my car title. I once heard a commercial on the radio that refinances car title loans. At the time I was not interested. Now I am. Does anyone know of a company that refinances title car loans?

Answer: Sorry but that will only make it worse by taking first principal and adding their interest and you will have a car payment just to keep car from getting repoed not only by lender but you can not get back even if you have full amount. It will just get worse.

Question: Why is interest on car loans not tax deductable and interest on home loans are?
If I am able to take the interest paid on a house loan of on my taxes every year, why not my car loan. Both are tangible assets?

Answer: Yes, both are tangible assets, but this fact does not determine whether interest is deductible. Instead, you can deduct interest if it is a business expense, and there is a separate rule for homes. Apart from home loan interest, interest paid for personal, non-business expenses is not deductible.

Congress created an exception for interest paid on home loans. You can deduct that interest even though it’s not a business expense. That’s because Congress wants to encourage home ownership.

Whether an asset is tangible or intangible has nothing to do with whether the interest payment is deductible. Banks, for example, can deduct interest paid on their loans because banks are in the business of taking out and making loans. They can do this even though there is no tangible asset involved.

Commercial loans are those issued to businesses for start up, expansion and other reasons that you may face at some point as a business owner. When you are first starting a new business, you are the one responsible for finding the funding to take care of your expenses while you are getting your feet on the ground. This can be tough and many businesses find they have to try for different types of business loans in order to make it through the first few months.

A commercial property loan, or commercial mortgage loan, is a loan specially designed to get you the real property you need to build or function as a business. Whether this is a parcel of land to build on or an exclusive commercial property in a metro downtown area, you will need a good loan to secure the property necessary to operate effectively. Bad credit commercials loans are available, though much more difficult to get as when you have bad credit it makes banks hard to trust you, especially with some as fragile as a new business.

But, the options are out there and if you are dealing with bad credit, you need to work with a commercial loan that is specially designed for those purposes. A commercial bridging loan is a business size payday loan. Essentially, you are gaining access to capital by borrowing against your future paydays whatever form that may be in. When you use this form of commercial borrowing you have to be able to prove you have a certain level of income generating at a steady pace and consistency in order to get the financial backing you need.

These are both great options when you are looking for the commercial loans that are essential to the start of or maintenance of a business. Whether these funds are for daily operating expenses or to take advantage of growth opportunities they can make or break your business if you don’t have them in place. Commercial funding is available from many sources; the key is to find the right commercial loans for your needs, type of business and level of borrowing power. This can help your business and personal borrowing power grow by leaps and bounds as you work to establish yourself in the industry you operate in.

Vince Samios writs about financial topics such as commercial loans

Commercial Loans FAQ:

Question: Is there a difference on how commission splits are handled between commercial loans & residential loans?
I am looking to get into a mortgage career in California, and was wondering the difference between how commercial loans and residential loans commission splits are handled, since there is a larger amount of money people are borrowing between the two?

Answer: Residential Loans will take about a month to close and commercial will take about 3 months on average. It all depends on which company you work for as well and what splits they are willing to pay. If you are licensed with experience you can get 100% with some brokers.

Question: Where do you look for commercial loans involving the purchase of real estate?
I’d like to purchase an apartment building. Is this considered a commercial loan and where do you go to find them and what kind of qualifications are necessary? Is it the same as getting a mortgage where you need 20%? Or is it a little different? I don’t have many liquid assets but have found a good building?

Answer: You need an investment loan. You will need 20-25% for a down payment, but other then that they are like any other loan. The qualifications are the same, there is no such thing as a sub-prime. You also have to have funds to make the payments in the case of no occupancy. You can not use rent from this apartment to secure your loan.

Question: Have the standards for securing a Commercial Loan changed as the home mortgage loans?
Is it going to be more difficult to secure a 800K Commercial Building loan than say 6 months ago? I will be in the market for that kind of loan in the next week or two and haven’t a feel for the market right now.

Answer: Commercial loans have not taken the same hits as residential. Underwriting for residential loans had become beyond ridiculous allowing everyone to get a loan, whether they could make the payments or not.

Commercial lending has been constant in its criteria, thus it has remained stable.

Question: Were can I find a company or mortgage broker that can find or finance small Commercial and Multi Family loans?
I am currently in the market to buy a five unit multi-family property listed at $180,000. Because it is considered a commercial property I’m having a hard time finding a lender that does commercial loans under $500,000. I should be able to put 20% down by drawing equity out of another propriety so I don’t foresee there being a problem financing it.

Answer: You should be able to find such a lender by going to your apartment house association in your local area. they normally have a list of lenders that fund loans such as the ones you are looking for.

You can also find an apartment house lender by looking in your local telephone book. Look for those that specialize in apartment lending.

Now if these units need up keep and rehab and will not appraise to $180,000 until repaired that might be a different problem all together.

Question: Is it true that commercial mortgage loans are all ARM’s?
When we got our commercial loan, our loan officer told us that “all commercial mortgages are ARM.” Although we got in on the low interest rate boom 4 yrs ago, our payments are now almost doubled.

Answer: If it is a commercial loan then most of the programs are ARM’s. Most of them also have a balloon payment. However, there are fixed rate options. The rates are usually so ugly though it isn’t worth doing it (at least on the commercial side). Some of the rates on commercial are in the 5’s right now.

Question: What are some of the basic reasons that commercial loans are turned down?

Answer: A lender will look at how and when the loan will be repaid and assess how sure they are about repayment. They have only so much money to lend and will seek to lend at the best interest rate with the best chances of repayment. If the loan is secured then they will look at the collateral and how likely they are to get their money back from resale. The industry is an issue, if a person wants money for a restaurant that is usually a riskier business than others for example. The borrowers history is also an issue, how successful they have been, how does the business do, does it make money?

Question: Can you take segmentary commercial loans from a bank?
Like take a small loan(let’s say $100-200) for starting the business very first stuff, and then take another loan after few months (of about $1,000-5,000) to buy the rest.

Answer: You should know your total cost for starting a business, plan on putting down 20%. Go to www.sba.gov it is a good website with a lot of answer to help start up businesses. Then go to your bank and ask to speak to a business banker and ask them for a little help.

Question: How do banks qualify people for commercial loans?
I was told that banks look at rent income vs expenses? Someone else said credit, another said amount of Down payment. Can you please inform me how banks qualify people?

Answer:
1. Credit history of the applicant(s)
2. Down payment varies with type of property- 20-30%
3. Business plan- to confirm affordability, you need to prove this using accurate facts and figures (how the business will pay the mortgage)
4. How experienced/qualified the applicant is to run that type of business.
5. Whether the applicant has local knowledge and is known locally

Try an independent financial advisor or broker- they can go to a wider range of lenders.

You would be hard pressed to turn on the television, or visit a news website, without hearing about how you can repair your credit. In today’s troubling financial times there are many people who are having trouble maintaining their credit score. They find themselves falling farther behind in payments and before long there is significant damage that can no longer be ignored.

Credit repair is vital in order to regain a credit score that is high enough that lenders will allow you to borrow money for a car, a new business or even a home. It is important to know how credit repair works. This article may not answer all of your financial needs when it comes to credit repair but it can answer some.

What is credit repair?

Everyone has a credit score. It can be high or it can be low. Most individuals start building their credit when they turn eighteen. If you do not practice money management you can ruin your credit score quickly. That is where credit repair services come in. These services or companies will work with you to reduce your overall debt and will often consolidate your outstanding debts into one, low monthly payment.

Their job is to slowly build your credit up again until it is an acceptable level. Your job is to make the payments on time and not continue taking out new lines of credit. It may be hard to do at first but it is certainly worth it in the end when you are able to buy a home or car of your own without a cosigner.

Is it true that some credit repair companies can completely clean up my credit score and make it perfect?

There are many false credit repair agencies that are operating in today’s market. They deliberately prey on those not knowledgeable about how credit laws work. Some promise that with a certain amount of money they can completely erase your bad credit and give you a great score. These are definitely scams. Some companies claim they can clear your credit score within a few weeks.

This is not feasible unless you have an extremely low amount of debt and the payments have already been arranged. A real credit repair company will explain to you all of your debts and will work out arrangements with your creditors. This takes time and it is definitely going to take money. You did not get yourself into credit troubles overnight and it will not take overnight to get rid of them.

How long does it take you to use a credit repair service?

The amount of time required to use a credit repair service is based entirely on individual problems. Some people may have a mountain of past due accounts whereas others may only have a few small ones. The length of time it takes you all depends on how your creditors react and if there are settlements that can be reached. It will also depend on how much money you can pay back. Do not expect this to be a short time though. It takes time to pay back all of your delinquent accounts and begin building a better credit rating.

How do I know when to use a credit repair service and when to declare bankruptcy?

Making the decision between a credit repair service and bankruptcy is a long, hard thought process. You have to analyze all of your debts and then decide if you can pay them back without endangering your home, car or job.

The best advice anyone can give you is to speak to a credit counselor or a bankruptcy attorney. He or she can review your debt and your income and give you possible solutions. Most people honestly want to repay their debts but are just not able to make the payments.

Visit Mike Selvon portal to learn more about credit repair, and claim your free credit repair tips bonus reports.

Credit Repair FAQ:

Question: Credit Repair?
I have no idea where to start to repair my credit. They are always offering free credit reports but I am leary of that. Could someone please tell me where to start?

Answer: Find out what’s on your credit report. Contact the creditors that are trying to get you to pay. I’m sure you received letters in the mail, saying that you are late or they are going to repossess or something. Start paying something. Call the creditors.

Question: Do credit repair services work? Which is the best agency to go through?
I have paid for all of my old collection accounts and I’m just waiting for them to drop off of my credit reports. I’ve been looking into credit repair service on line and wondering if they can actually help. All of the items on my reports are actually MINE and I did actually owe them, but they are all FINALLY paid off. Is there any hope to get them removed quickly?

Answer: Yes, they do work, but you need to do your own research and decide on what one to work with. Some of those companies haven’t been in business 20+ years because they’re universal failures. You can research them by calling the company you are thinking of using and asking them for references. Granted, you can repair your credit yourself too so make sure to research aspect as well.

Question: Credit Repair: Are there any certification programs I can take to learn how to do Credit Repair?
I would like to learn how to do credit repair. Are there any certification programs?

Answer: If you’re thinking about doing it for others, you might want to consider that you are very limited legally as to what you are allowed to do for others, and as to what you are allowed to get paid for.

Question: How well does the credit repair company work? Does any body have any good/bad experience with their services?
There’s so many credit repair co. out there and I don’t know which have a good credentials or does it really work like they advertised?

Answer: Credit repair companies are like tax preparers. Some are good, some are great and some are horrible and can get you in more trouble than you started.

Question: Is there any way for a credit repair company to set up an account to pull credit for its clients?
I am trying to start a credit repair company but I have not found a company to go through to pull credit. All the companies seem to only work with mortgage companies.

Answer: In my experience, the clients had to get the report themselves. With that said, I was of the impression that anyone can pull anyone’s credit with the subject’s permission. Work with a lawyer and have them create a consent form for you.

Question: How can a person check a credit repair company’s legitimacy?

Answer: Just like in any business, there are honest companies, and there crooks that give the others a bad name. However, you DO need to “do your homework” if you wish to avoid being ripped off! Ask lots of questions, references, and most importantly, check with the Ethical Credit Repair Alliance.

Question: What is the best way to go about eliminating bad credit? Using a credit repair agency or doing it yourself?
I know that credit repair agency’s send out letters that let the credit agency’s know that there is negative items on your report that is wrong in one way or another, but I am wondering if it is better to do it myself or not.

Answer: You can do it yourself and save yourself several hundred dollars. It is a matter of sending dispute letters to all 3 of the credit reporting agencies and having them remove the negative items. They are, by law, obligated to investigate those disputed items. Sometimes the creditor does not get around to replying and the item gets removed. After you get a few of the negative items removed, you need to start establishing some positive credit – apply for a credit card or something.

Question: Is there a way to repair my credit rating quickly after having a debt company?
I am now debt free but have been told that I will now NOT have a credit rating for 6 years as my accounts were defaulted after taking assistance from a debt management company but then paid off by my family?

Answer: You have a credit rating but it will be extremely low. The defaults will show for the next 6 years from the date they were issued. You can apply to add a note to your credit rating, saying that the debt was satisfied – have a search on the Motley Fool website for advice on this.

Basically, you won’t be getting any credit for a good while unless it’s at a very high rate of interest or from dodgy sources.