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5 Reasons to Get a Personal Loan

5 Reasons to Get a Personal Loan

The world would be a perfect place if everyone had enough cash to cater for all their expenses. Well, such a situation is difficult to maintain, and once in a while, we are faced with the need to borrow some cash. When such scenarios do occur getting a personal loan can be helpful. Most personal loans are unsecured since no collateral is placed when taking the loan. However, lenders are required to use their credit scores and other additional factors when determining their eligibility. Personal loans are very flexible.

Below are some of the five instances in which you should consider getting a personal loan.

1. During a debt consolidation

When you are faced with a situation where you have taken loans from different creditors, you will find it very difficult to manage all the creditors. The more credits you have to deal with, the more you are likely to get lost in the many debts hence missing some payments. This will, in turn, lead to paying high interests. In order to save your time and also your money, you should consider debt consolidation, as this is one of the best benefits offered by personal loans.

2. When dealing with a credit card payoff

Just like the debt consolidation, personal loans can offer you a credit card payoff. Even those who lack different sources of credit can still consider getting a credit card payoff if they have even a single credit card debt. When using credit cards, customers have to deal with high-interest rates. Customers can avoid the high-interest rates if they consider taking a personal loan to carry out a credit card payoff.

3. Planning for a home improvement

Many homeowners never plan on when they should carry out a home upgrade, nevertheless, when you have home upgrades coming up, you must be prepared to spend a lot of money. Nobody wants to use their savings for a home renovation or improvement procedure. That’s why many people opt to seek personal loans to cater to this. Since personal credit requires no equity as part of their qualification, homeowners have the privilege of receiving the funds in their homes within a short time.

4. Medical expenses

Nobody ever knows when they will fall sick and the amount of money that will be used in catering for the medical bills. It gets worse if the individual doesn’t have any medical coverage. Sometimes you might need to go for an operation or a medical procedure, but then you lack enough cash. Getting a personal loan in such instances can be very useful. Just make sure you borrow what’s within your budget.

5. Vacation

Every year people plan for holidays. This short break from the crazy working lifestyle can be rejuvenating. The challenge part is that a simple vacation can cost you a lot of money. Getting a personal loan could be your ticket to having your dream vacation this year. You can make the experience memorable so that whenever you will be paying the loan, you remember the beautiful memories.

Do you have a question about personal loans? Click here to contact Back Bay Funding today!

5 Tips to Get Approved for a Home Loan

5 Tips to Get Approved for a Home Loan

Lending such large sums of money is a hazardous business and lenders need to be cautious of who they lend their money to. Different people have different financial situation issues that are unique to themselves. We will be discussing with you some of the tips that you can use to increase your chances of landing that mortgage.

1. Get a cosigner

You can find a cosigner who has enough disposable income to help you qualify for a loan if your income isn’t high enough to qualify for the same loan. How it works: part of the cosigner’s income can be considered towards the loan that you wish to borrow. This happens regardless of whether the cosigner will be living with you or not. To cut a long story short, the cosigner’s part of the agreement is to guarantee the lender that the mortgage payments will be paid as per the agreement.

2. Wait patiently

Sometimes it is better just to sit back and wait to see how the economy behaves. Lenders can sometimes be less generous with loans when the economic situation is terrible. If, for instance, you are in a situation where people are panicking,and everyone wants to have some sense of security, then you can wait for that “storm” to pass. When things start to calm down, you can then realize that lenders become more accommodating with lending out money.

3. Ask for an exception

Sometimes you can get yourself a break when you ask your lender for an exception. You can ask the lender to send your file to another staff to have a look at it as well and see if you can get another shot at that loan that you so dearly want. Avoid sob stories and excuses at all costs and only focus on the facts that you can back up should the need arise. Try to explain the reasons why your loan is having a hard time being approved and what you are doing about it.

4. Try and try again

Not everyone gets it the first time they try. In fact, a good number have to try more than once to be able to land a home loan. One lender may reject your loan request while the other may approve it. So there should there shouldn’t be any reason to give up so quickly on your first or second try. Try and try again.

5. Have a partner or spouse to team up with

Two heads are better than one. The same goes for two incomes are better than one. If you just can’t qualify on your own, why not get help. You have friends, family members that you trust and trust you enough to help you acquire a house loan. Family members can help you with your monthly mortgage payments if they can. They need to do this for the whole process to work smoothly.

Do you have a question about getting approved for a home loan? Click here to contact Back Bay Funding today!

Everything You Need To Know About FHA Loans

Everything You Need To Know About FHA Loans

What is the FHA and their role when it comes to insuring home loans? The FHA (Federal Housing Administration) started its operation in 1934. Its primary responsibility is insuring home loans. The FHA loans provide a subsidized down payment option, which has less stringent qualification requirements compared to conventional loans. Why is an FHA loan a better option for many homeowners?

Why an FHA Loan is a Good Option

Buying a home can prove to be very difficult especially if you’re a first-time buyer or buying your home without a significant other. Exploring FHA loans options would be a good idea for first-time and single homebuyers.

It is very easy for one to meet the minimum qualifications of getting the FHA home mortgage, mainly because the government will insure the loan. Hence your application will be more reliable and attractive to lenders. Compared to the conventional loan, the FHA loan is way more affordable, and issues with payments and credits are given more understanding.

Below are the advantages of opting for an FHA loan.

Low Down Payment

You are not required to make a substantial down payment at the closing time when taking an FHA home loan. For first time buyers, this is a big plus. The FHA clients can acquire financing with the LTV (loan to value) ratio that is close to 96.5%. A first-time buyer can get their home with a very low down payment for as low as 3.5%. In addition to that, the FHA loan terms can allow a client to wrap the closing costs into their mortgage. The closing costs for FHA home loans ranges from 2% to 3% of the total calculated mortgage. A buyer is capable of getting a loan which will be cost prohibitive if they don’t have a lot of money.

Credit Advantages

Clients who have previously suffered from financial difficulties or have middle-income can find FHA loans very advantageous in buying a new home.

Qualifying with a Less-Than-Ideal FICO Score

Clients that are well-qualified can get financed with FICO scores as low as 580. This will enable a client to acquire a mortgage, if they work on rebuilding and improving their credit score.

High Debt-to-Income Ratio is Allowed

Clients with high DTI (debt to income) ratios and credit scores in the mid-highs are eligible for an FHA mortgage loan. If your debt is higher than your average income, you can still qualify to get FHA financing.

Credit Blemishes

If you have declared bankruptcy, you can get an FHA loan one or two years from the date of the dismissed or discharged bankruptcy. This will only be possible if you have managed to maintain a good credit score since your debts had been removed. Remember, the waiting period is determined by the type of bankruptcy you have declared. If you have foreclosed in the past but have managed to keep proper credit ever since the foreclosure took place, you can apply for an FHA loan three years after the date of the foreclosure.

Do you have a question about FHA loans? Click here to contact Back Bay Funding today!

 

4 Ways To Use Refinance Loans to Improve Your Finances

4 Ways To Use Refinance Loans to Improve Your Finances

When most people think of refinance loans, they immediately think “financial woes” are the motivation. That may be the case in some instances, but more often than not using this type of loan is just a smart way to save yourself some money.

If you haven’t been informed on the value of refinance loans, our list will make you see why they are a great tool to save you money!

  1. Leverage Your Increased Credit Score

 Having bad credit hurts, but so does having mediocre credit. By signing your mortgage when your credit isn’t great, you can add hundreds to your monthly bill. It may not seem like a huge deal, but if you do the math you’ll see that even $100 each month on a 30-year fixed mortgage is $36,000 in interest charges!

refinance loans

By refinancing when your credit is better, you can save yourself a substantial amount of money over the course of your home loan. Before rushing in to refinance when your credit score goes up 3 points, make sure you’re sitting at a 760 or higher. Anything below that won’t have the effect that you’re looking for.

  1. Take Advantage of Lowered Interest Rates

Another, if not the best reason, to consider refinance loans is to take advantage of a drop in the national interest rates. There are definitely some things to think about before going into this, mainly making sure the numbers will work in your favor.

First, you should determine your monthly savings by refinancing. Next, determine the cost of refinancing by adding the fees associated with refinancing. Lastly, divide the cost of refinancing by the after-tax savings. This will give you the number of months until your break even.

To make proper use of this information, if you intend to stay longer than the time it will take to break even, then refinancing loans are a great idea. If you aren’t planning on staying longer than the time it will take to break even; you might want to think about a strategy to increase the value of your home and sell it instead.

  1. Switch to a Fixed APR

 Adjustable Rate Mortgages are fantastic, until the rate changes after 5 to 7 years. They then become a dangerous game if you aren’t prepared for a possible sharp increase in your monthly mortgage rate. Riding the ARM until the end of your low mortgage rate and refinancing is actually a huge strategy to ensure that you are given a good mortgage rate that won’t change down the road.

You may be tempted to ride it out and hope for a better interest rate at the end of your 5 or 7-year introductory rate, but if you take a look at the trends in mortgage rates, you’ll see that they are anything but stable. By taking it into your own hands now while the rates are low, you are setting yourself up for a safer future for you and your family.

refinance loans

  1. Lowering Your Monthly Payments

As a last resort, refinancing for the sake of reducing your monthly payment still exists. While it might be better to search out other options, it is nevertheless a great option to keep you in your home while you figure out some things to get you out of your current financial crisis.

refinance loans

If lowering your monthly payments makes it possible to keep your family fed, clothed, and under a roof, then refinancing loans should be utilized. However, if that doesn’t help enough, you should look into more drastic measures like selling your house and downsizing to something smaller.

Let’s Talk

Whatever your reason is for considering refinancing loans, make sure that you speak with someone with the knowledge necessary to guide you in the right direction. Here at Back Bay Funding, our team has the experience with finances that you deserve. Visit us at our website or give us a call at (949) 650-0770 to get the answers to all of your financial questions today!

Moving from an Apartment?

Moving from an Apartment?

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More on Home Loans

More on Home Loans

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Donec ac ante quis sem sollicitudin pharetra eu non libero. Mauris interdum orci magna, a interdum erat vulputate id. Donec imperdiet sed urna sit amet fringilla. Praesent facilisis nisl vel sapien faucibus, quis pulvinar augue eleifend. Curabitur vitae libero purus. Donec facilisis nunc massa, quis euismod tortor mollis et. Mauris a mauris enim. Duis congue, dolor congue gravida ultrices, mauris mauris consectetur ipsum, et imperdiet metus enim non nisl. Sed dictum nisl nunc, id mollis sapien rutrum sit amet. Mauris ornare, ipsum molestie pharetra efficitur, arcu mi efficitur quam, a vestibulum mi purus malesuada ex. Vestibulum aliquam a urna a tincidunt. Sed tincidunt, risus at tempor vehicula, dui mauris suscipit neque, ut ultricies ligula magna non est. Nulla dapibus orci eu elit fringilla pretium. Mauris a vulputate tortor. Mauris facilisis purus risus, vel fringilla neque euismod eu. Morbi felis purus, sollicitudin quis diam ac, dignissim aliquet erat.

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The Benefit of Shopping

The Benefit of Shopping

Not all banks are equal. Most borrowers are not aware that each lending institution has their own set of guidelines, overlays, and limitations as well as  their own interest rates. To understand all of the nuisances of each lender can be a mind boggling and frustrating process for even the most sophisticated homeowners.  Common investor overlays are credit score requirements, post closing liquidity requirements also known as reserves, loan to value restrictions, interest rate adjustments, mortgage insurance restrictions, trust restrictions etc. Learning each lenders appetite and product niche is a full time job. A job which most home owners don’t have time for or the industry knowledge.  While money is a commodity, the loan business itself is a world of subtle contrast and variation.   Our loan officers do constant training with the Nation’s top lending institutions to learn product and guideline information.

Our pre-qualification process consists of three components.    The first step is to understand the unique characteristics of our clients loan. The second is step is to do a comprehensive pricing and guideline search  of our 30+ unique investors.  Once our loan officers have identified the best pricing option for the client, they work with the investor and client to confirm that the loan meets the investor’s guidelines.  Once the three step process is complete, the file is prepared for submission.