No Down Payments Loan
As we all know that these days everyone can actuate his dreams by easy finance schemes. As there is cut throat competition in market among financial services so even we don't have fill much formalities also and these companies are ready to give us no down payments loan a big amount as loan on easy installment schemes. But the problem starts when we come to finalize the formalities required by these financial institutions. Firstly, they want something to mortgage for that condition if we are not able to repay the installments on time. Secondly, they want 12.5 % as earnest money deposit before issuing us the amount. Thirdly, they want guarantors. Then slowly you have to re-think on your decision, but at this span of time you are in a mouth of a crocodile means you cannot even quit easily.
Is there somebody who can ask them that if we have something which they want for a mortgage, then why there is a need to take a loan and to give them an earnest money, we again have to take a small loan from some other financial institution. Because taking a no down payments loan means we are not financially sound but we can repay any big amount in installments as we don't have capital but our monthly income is big enough to repay a loan.
Think about Your Options
If you're having money problems, consider these options before you put your home on the loan line.
Talk with your creditors or with representatives of non-profit or other reputable credit or budget counseling organizations to work out a plan that reduces your bill payments to a more manageable level.
Item Contact your local social service agency, community or religious groups, and local or state housing agencies. They may have programs that help consumers, including the elderly and those with disabilities, with energy bills, home repairs, or other emergency needs.
Contact a local housing counseling agency to discuss your needs.
Talk with someone other than the lender or broker offering the loan who is knowledgeable and you trust before making any decisions. Remember, if you decide to get a home equity loan and can't make the payments, the lender could foreclose and you would lose your home.
If you decide a loan is right for you, talk with several lenders, including at least one bank, savings and loan, or credit union in your community. Their loans may cost less than loans from finance companies. And don't assume that if you're on a fixed income or have credit problems, you won't qualify for a loan from a bank, savings and loan, or credit union--they may have the loan you want!
Do Your Homework
Contact several lenders--and be very careful about dealing with a lender who just appears at your door, calls you, or sends you mail. Ask friends and family for recommendations of lenders. Talk with banks, savings and loans, credit unions, and other lenders. If you choose to use a mortgage broker, remember they arrange loans but most do not lend directly. Compare their offers with those of other direct lenders.
Be wary of home repair contractors that offer to arrange financing. You should still talk with other lenders to make sure you get the best deal. You may want to have the loan proceeds sent directly to you, not the contractor.
Comparison shop: Comparing loan plans can help you get a better deal. Whether you begin you're shopping by reading ads in your local newspapers, searching on the Internet, or looking in the phone book, ask lenders to explain the best loan plans they have for you. Beware of loan terms and conditions that may mean higher costs for you. Get answers to these questions and use the worksheet to compare loan plans:
Interest Rate and Payments
What are the monthly payments? Ask yourself if you can afford them.
What is the annual percentage rate (APR) on the loan? The APR is the cost of credit, expressed as a yearly rate. You can use the APR to compare one loan with another.
Will the interest rate change during the life of the loan? If so, when, how often, and by how much?
Term of Loan
How many years will you have to repay the loan?
item Is this a loan or a line of credit? A loan is for a fixed amount of money for a specific period of time; a line of credit is an amount of money you can draw as you need it.
Is there a balloon payment--a large single payment at the end of the no down payments loan term after a series of low monthly payments? When the balloon payment is due, you must pay the entire amount.
Points and Fees
What will you have to pay in points and fees? One point equals 1 percent of the loan amount . Generally, the higher the points, the lower the interest rate. If points and fees are more than 5 percent of the loan amount, ask why. Traditional financial institutions normally charge between 1 and 3 percent of the loan amount in points and fees.
item Are any of the application fees refundable if you don't get the loan?
How and how much will the the lender or broker be paid? Lenders and brokers may charge points or fees that you must pay at closing or add on to the cost of your loan, or both.
Penalties
item What is the penalty for late or missed payments?
What is the penalty if you pay off or refinance the loan early (that is, is there a pre-payment penalty)?
These are the fundamental issues which every middlemen has to face in order to take a no down payments loan . If any financial services wants to hold a monopoly in their respective field then it has to work on these fundamental issues.
