A construction loan is a short-term loan that is made to pay the builder, suppliers and subcontractors as the home is being built. It can be obtained by either you or your builder. About 60% of new home builders will require you to get the construction loan.

This first step is to be pre-approved for your mortgage. This means a real pre-approval where you have provided your tax returns, bank statements, paycheck stubs and credit report fee. The written pre-approval can be given to your builder to take to his bank to initiate the construction loan, or your lender can use it to give you both the construction and final mortgage. Then, a property appraisal is completed - yes, there is an existing home there. The blueprints and specification sheet are used to make sure the new home is worth what you are paying for it, even before you build.

If you are the one obtaining the construction loan, you sign the mortgage paperwork. The length of time for the loan is usually 6 months to 1 year. The lender requires a fee to administer the paperwork. There are draws given to the builder as the home is being constructed. This draw schedule is negotiated between you and your builder and becomes part of your contract.

But, this is where the appraiser assists in this process. As the home is being built, the original property appraiser makes inspections to determine the amount of work completed and to make sure that the home is being built according to the original plans and specifications that were given up front.

adminConstruction Loans7 Mar, 2008No Comments

Home buyers who plan to close on their new home before they sell their current one may want to consider a bridge loan to span the gap between the two transactions. Bridge loans can be structured to completely pay off the old home’s mortgage or simply to add the financial obligation of the new home to your current debt.

You must obtain a bridge loan from the lender you use to finance your new home. Typically, the loan is structured with a short term (often one year) and hefty prepaid interest (perhaps six month’s worth).

Most often, a bridge loan is used to pay off the existing mortgage, with the remainder (minus closing costs and prepaid interest) going toward the down payment on the new home. If after six months the old home has not sold, the borrower begins making interest-only payments on the loan. When the home sells, the bridge loan is paid off. If it sells within the first six months, any unearned interest payments will be credited to you.

adminBridging Loans7 Mar, 2008No Comments

The ads are on the radio, television, the Internet, even in the mail. They refer to payday loans - which come at a very high price.

Check cashers, finance companies and others are making small, short-term, high-rate loans that go by a variety of names: payday loans, cash advance loans, check advance loans, post-dated check loans or deferred deposit check loans.

Usually, a borrower writes a personal check payable to the lender for the amount he or she wishes to borrow plus a fee. The company gives the borrower the amount of the check minus the fee. Fees charged for payday loans are usually a percentage of the face value of the check or a fee charged per amount borrowed - say, for every $50 or $100 loaned. And, if you extend or roll-over the loan - say for another two weeks - you will pay the fees for each extension.

adminPay Day Loans7 Mar, 2008No Comments

A loan that is guaranteed by your home. There are two types of home equity loans: the standard home equity loan and a home equity line of credit. In a standard home equity loan, a specified amount of money is loaned in a lump sum for a specified period of time. A standard home equity loan is also called a term loan, a closed-end loan or a second mortgage installment loan.

adminHome Equity Loans7 Mar, 2008No Comments

An auto loan is an agreement between a lender and a borrower in which the lender gives the borrower money and the borrower promised to pay back the amount of the loan and the interest. Auto loans are specific to buying an automobile. Used auto loans are ideal if you’re looking for used cars or autos. We may put a calculator online soon.

There are some great used auto loans online with great rates. Try Google!

adminCar Loans7 Mar, 2008No Comments

Unsecured personal loans are loans which are not secured against the assets of the borrower. The lender has no rights to the assets of the borrower in the event of the borrower defaulting on repayments of the loan.

However, if the borrower does default, the lender may sue for repayment, which may in the end mean that the borrower must sell assets in order to repay the loan.

Because the lender has no security, the interest rate (APR) charged will almost certainly be higher than for secured loans.

adminPersonal Loans7 Mar, 2008No Comments

The best online auto loan companies work with a large selection of independent lenders so that they can offer you the best possible terms and rates for which you are qualified. After all, car dealerships are a great place to find a new or used car, but they are not always the best place to get good rates on an auto loan. Independent lenders are much more likely to offer you the most competitive rates available.

adminCar Loans7 Mar, 2008No Comments

A loan insured by the Insuring Office of the Department of Housing and Urban Development; the Federal Housing Administration.

adminFHA Loans7 Mar, 2008No Comments

Home Equity Loan definition – a home equity loan enables a consumer to use the value of a home minus what is owed on the home. A home equity loan may also allow a consumer to consolidate other higher interest loans such as credit cards.

adminEquity Loans7 Mar, 2008No Comments