Posts Categorized: Credit Tips

Having bad credit can leave you in a state in which you feel hopeless and incapable of doing much. It’s important to improve it as soon as you can so that you can access more opportunities, so read on to see some of the ways in which you can stay competitive despite having poor credit. Buy the Cheapest Car You Can If you absolutely need to have a car due to work or some other commitment that makes it impossible to live without a car, go for basics. Apply for owner occupied loans if you have a property, and get the cheapest car you can…
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The end of 2021 saw a boom in the US housing market and the trends seem positive for sellers for most of 2022. As we enter a new year, what are the trends to look out for? We had a closer look. Mortgage Rates Will Rise There is no doubt that record-low mortgage rates fueled the housing frenzy of 2020 and 2021. Some believe that this was the most important factor in the housing boom. But prices are rising. The Mortgage Bankers Association expects average interest rates on 30-year loans to reach 4% by the end of 2022. That is not such good news for…
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There are many reasons why a hard money loan is considered a last resort. The borrower is required to use their own property as collateral rather than their credit. This loan type also tends to be more expensive than others. The closing cost and origination fees cost more and its interest rates also tend to be higher. Then there’s the down payment which usually falls between 30-40% of the overall loan. As a whole, a hard money loan requires a lot of risk to fall on the borrowers rather than the lenders. Benefits The borrower can still benefit, however. Getting approved for a hard money…
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As the cost of living continues to rise, investing in real estate has become one of the best ways to build wealth. But, not everyone is familiar with how to purchase a property or is knowledgeable about a hard-money loan. Not only does it take time and money, but it also takes knowledge and skills. If you’re ready to start investing, these three steps will help you get started. Understand the Process: To get started, understand the process and what you need to learn. To invest in real estate with a hard money loan, there are three steps to take: 1. Choose an appropriate property…
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Property ownership is a key part of the American dream, but making it happen can be more challenging than you anticipate. Having an investment property that you can buy cheaply, renovate and flip for a profit is another common dream. However, since one in three Americans struggles with poor credit, many ordinary people are not able to take advantage of the opportunities they see in front of them. Without approval for a loan or mortgage from a traditional bank, there is no way for them to take on a home remodeling project that can provide them with a nest egg they can save for the…
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If you are looking for alternatives to a traditional mortgage, you may be asking what is a hard money loan and how does it work? This kind of loan might be right for you if a conventional mortgage is too difficult to get or takes too long for your needs. What Is a Hard Money Loan? A hard money loan is an option for homeowners who need to get money quickly, using an asset to guarantee the loan. Unlike a mortgage, a hard money loan can be processed and paid out in a matter of days. The process of getting a hard money loan is…
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A hard money loan is a type of short-term loan taken out by real estate investors. The loan uses the property being purchased as collateral. A hard money loan can come with several benefits, such as speedy financing and a hassle-free application. If you’re an investor with a poor credit score, you might be wondering if you qualify for a hard money loan. Hard Money Loans Have A Less Stringent Approval Process Hard money lenders are more flexible than traditional mortgage lenders. Around 68 million Americans have poor credit, so this spells good news for borrowers within this population who are looking to take out…
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If you’re looking to invest in real estate, chances are you’re planning to take out a hard money loan to obtain the required funds. However, when shopping for the best hard money lender, it’s important to ask the right questions. For starters, a hard money loan is a loan that’s secured by the real estate you’re purchasing. Now that you have the basics, here are more questions to ask your hard money lender to ensure you’re getting a deal that best suits your needs. What’s the Interest Rate? Your interest is the largest factor that will affect the total cost of your loan. It’s important…
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Private money loans are a darling to budding real estate investors. Traditional mortgage options may be out-of-reach to most investors with low credit ratings. Additionally, the slow bureaucratic approval process at the bank may require you to present your tax filings, credit scores, appraisals, among other documents, before approving the loan. Sadly, you may lose out on the remarkable fix and flip deal that you were hoping to cash in on before the money ever hits your account. Hard money lending is often presented as a silver bullet to solving an investor’s cash crunch problems. But is taking out a private money loan the right…
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As the name suggests, an owner-occupied loan is given to a borrower who is expected to stay in the home for at least a year. Banks consider these loans to be less risky compared to investment properties. Because of the lesser risk they carry, owner-occupied loans come with lower interest rates. They also have lesser fees and penalties compared to second home mortgages or investment property loans. What are the Risks of Owner Occupied Loans? There are many advantages to owner occupied loans. However, these advantages are only beneficial if you stick to the agreed terms of the loan. For instance, with an owner-occupied loan,…
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