We are in the middle of a very severe recession that’s going to continue through all of 2009 – the worst U.S. recession in the past 50 years. It’s the bursting of a huge leveraged-up credit bubble.
Buying a home is a similar, if not even more extensive process. While the process has a few similarities, there are quite a few differences. For example, instead of saving a deposit and the first month’s rent, you will likely need a down payment, which is way more than the “first and last month’s rent”. Most lenders require at least three percent (3%) of the mortgage price. For example, a home selling for $150,000 requires minimum of $4,500 down. The percentage varies, and three percent normally applies to first time buyers or those with excellent credit, although exceptions apply. You also have to consider closing costs, although the seller may help you as well.
If you didn’t have collateral to put up, your interest rates would be much higher. Or, you might not even be able to obtain this type of loan. Many lenders today just won’t make a loan without some type of collateral.
There are some options, however, that can allow you to stop cycle of renting and finally move into the home of your dreams. Purchasing a home on a lease purchase arrangement is one such option. This is an excellent option if you have a steady income but don’t have a large amount of money in savings or simply set aside to make a down payment on a house.
Students can easily qualify for unsecured student Loans. These loans have relatively flexible qualification requirements. You do not have to jump through hoops to get them. Do not worry about not having a strong credit score. These pop over to this website do not require them. Most of these loans also do not require you to make a deposit upfront nor charge you with excessive fees.
The basics are that you need positive cash flow. You need to make more than you spend. You plan your income and spending in your budget. You execute this budget plan in your day to day work activities on the one side and your spending on the outflow side of your cash flow.
If you spend more than what you earn from your income, this can cause you to be buried in debt. Aside from that, it will also affect your credit ratings negatively. The things that are reflected on your credit rating will determine your chances of getting a good or bad loan offer in the future.
Also remember that the bank employee did not do anything to cause this mess you are in so be nice and they might even help you. At the very least they won’t “accidentally” lose your file and delay the process further for you. You can never be too kind.