The traditional approach when it comes to getting a loan, a mortgage or a refinance for your home would be to go to the bank. However, what are the other options that are available to you? Could you really save money not going to the bank? The answer is yes.
Save with a Mortgage Broker
There are several alternatives to banks, including private lenders, credit unions and other lending institutions.
The easiest way to find a less expensive financial source than a bank would be to visit a mortgage broker. Brokers know the market and know everything about the different financial products available to you. Mortgage brokers work for you, the borrower, and it is precisely for this reason that they seek to find you the best possible rate for your loan. They also take care of your shopping, so it’s a good way to save money and time.
Solutions for individuals who have a bad credit score
If you have bad credit, do not worry. It is still easy for you to get a loan, even without the banks.
Rental with option to purchase
If you have a bad credit rating and do not qualify for traditional loans, lease with option to buy is a wonderful way to start working in the same direction as the property of the house of your dreams. With the rental option, you basically have the choice to buy the house you want in a specific period of time.
Some of the benefits of renting with a purchase option include: paying a lower amount for the first payment, developing home equity, avoiding closing costs, and repairing your credit rating.
Another excellent source of financing for individuals who have misery with their credit rating is private lenders. These lenders are not interested in your income or your credit rating as banks are, and their lack of compliance with the standards and regulations means that they can close a file in just a few days, usually in less than 48 hours .
Another option aside from the mortgage is financing by the seller. In this situation, the property belongs to the buyer, and the seller takes the role of the lender. The buyer pays the mortgage payments to the seller (this is not a lease but real mortgage payments). The buyer benefits first and foremost by buying a house, but also by building his credit. In case of default of payment, the seller is protected by the keeping of the note on the property. The seller can lend to anyone: those with bad credit, self-employed, bankrupt – name them!