Loan Signing Services

Archive for October, 2011

Are you looking for a home loan, but you are not sure which one is right for you? There are many different types of home loans and it can be very confusing to try to pick the best option for yourself. Here are 7 different types of home loans and what they should be used for.

The first one is the traditional purchase mortgage. This is a home loan you get to buy an existing home. Be careful not to do the 100% financing option because you will start with no equity and it will take you 10 years or so to build any real equity. You should always put at least 10% down.

The second type of home loan is a refinance loan. This is a loan that is used to get a lower rate, pay off debt against your home, or to add on to your home. This is a first mortgage that is usually between 80% and 90% of the value of your home. Make sure the benefits of your refinance out weighs the loan itself.

The third loan is the second mortgage. This is similar to a refinance, but can go up to 100% and sometime 125% of your home value. These are used in emergency situations, especially the 125% loan because the rate is much higher and you will be tying up all your equity.

The fourth different type of home loan is the construction loan. This is a loan that is used to start building a home. It has 4 stages of funding as the home is build and if you are not quite wealthy, then you are wasting your time building. It usually takes a new home around 10 years to appreciate to the value of the original construction loan.

The fifth type of loan is the first time home buyers loan. This is a purchase mortgage that is designed for anybody that is purchasing their first home.

The sixth type of loan is the home equity loan. This is similar to a second mortgage, but many times the rate is prime plus a percentage. These are good for people that just need a little bit of money.

The seventh different type of home loan is a line of credit. This is a revolving account that works much like a credit card only your home is the collateral. These are good for people with a business or with an addition to their home because if either one gets more expensive than planned for you can take out more money on your line of credit.

There you have it, seven different types of home loans. Now you just need to pick the right one for you and start applying.

Payday loans are extremely easy to get for almost anyone that has a job and a bank account. Within a few hours you can have money deposited right into your checking or savings account. But what if you want to take advantage of a payday loan and you don’t have a bank account, does this mean that you can’t get one?

Paycheck advances are big business and lenders don’t want to leave anyone out. Payday loans are also very convenient; there are no credit checks to pass and they are very short term loans. If you don’t have a bank account for whatever reasons you can still get a payday loan. You will have to present more information to validate your income.

Advanced paychecks are unsecured but that doesn’t mean that the lender is not going to cover themselves against bad borrowers. You will likely not receive cash but rather a check instead. This might make it take a bit longer for you to lay hands on actual cash since you will either have to pay to cash it or deposit it and wait for it to clear. It will do you no good to have a worthless piece of paper.

Expect if you are applying for a payday loan without direct deposit that you will pay a higher interest rate than someone who does. Without a bank account you would be unable to postdate a check for your lender. This means that you would have to find other ways to make your payment on time.

The usual criteria for a payday loan with no direct deposit are that you must be at least 18 years of age, you must be a citizen of the US, and you have to have a job that brings in a minimum of $1,000 monthly.

As you can see, these loans are available to almost everyone since payday lenders have loosened the restrictions for them. This is likely because of the popularity of them and the fact that emergencies seem to always pop up and this is a fast and convenient way to get your hands on some cash regardless of what your credit looks like. Be smart when you opt to use a payday loan and be responsible. When you are conscientious you will find that payday loans without direct deposit can be a fantastic trump card for you in the event of an emergency.

Direct Loan is true to its name and self explanatory. It is a program in which the government loans money directly to students rather than using a third party bank or other lending institution to process and make the loan. The direct loan program has been in affect for about 15 years now.

The opposite of a direct loan is a Federal Family Education Loan (FEEL). Both direct loan programs and FEEL programs make PLUS and Stafford loans available. There are other similarities between what each program offers. The borrower has to decide which type of program he wants.

Since both offer the same types of loans the same requirements must be met. If it a loan offered based on a person’s credit scores then both direct and FEEL programs will have the same requirements. The same is true if the loan is based on a family’s income. Both programs will have to follow the same requirement guidelines in offering the loan. With so many similarities how does one choose?

Well there are some differences to consider. One is in customer service. When you involve a third party that is in business to make money normally you get more of a personal touch. Also, because the lender will make no money if they are not able to extend you credit they will work harder to get you approved for the loan. Government agencies are normally not as personal or as accommodating.

Go to talk.collegeconfidential.com/forumdisplay.php?f=7 if you want to hear what others think about the two different programs.

Many things posted are solely personal opinion and not so much on the actual variables or requirements of each program. Reading through it may help you get a good idea of where you stand between the two options.

One important factor to keep in mind is that whenever you are dealing with a private lender your loan is subject to be sold to another lending institution.

The opposite is the case with direct loans which are always directly with the federal government. It if is important to you that throughout the life of your loan you are able to deal with the same person or group of people if you have questions or concerns you might want to consider going with a direct loan program.