Bad Credit Loans and Lender Questions & Answers

Q: What is a private investor and how do they differ from a hard money lender or a subprime lender?

A: A private investor is an individual who lends out their own funds to borrowers who are unable to obtain a loan from a traditional lender such as a bank. It is also possible for private investors to pool their money into a fund that lends out money on a larger scale. Private investors are often wealthy or retired individuals who want a better return on their investments than they could expect to make in the stock market or other investment vehicles.

A private investor is essentially the same thing as a hard money lender. A private lender differs from a subprime lender in that the latter still funds loan through a lending institution such as a bank, although the interest rate is higher than a traditional conforming loan.

Q: Why would a bad credit lender fund my loan when traditional banks would not?

A: Hard money lenders, sub prime and bad credit lenders are often referred to as “high risk lenders.” These lenders have a unique understanding of specific types of real estate situations and markets. As long as the lending situation fits into the lenders comfort zone, they will usually make the loan. It isn’t that a bad credit lender gravitates towards overly risky loans or situations. Rather, there are additional safeguards in place for a bad credit lender. Namely, a borrower must have a 20% or higher equity stake in a property to qualify for a bad credit loan — the loan is therefore secured by a larger property ownership portion than many traditional loans.

In addition, the bad credit lender receives a higher rate of return than a bank would with a traditional conforming loan. The greater the risk for the lender, the higher the interest rate for the borrower. If one or more traditional lending institutions deny a borrower’s loan because of credit problems or a small level of liquid assets to use as collateral, a borrower will need to apply with a subprime, hard money or bad credit lender.

Q: If I qualify for a hard money loan, is there a way to eventually work into a normal loan?

A: Of course. A bad credit loan should be a short term loan – anywhere from several months to 2 years. After a borrower has spent a year or 18 months paying off their private loan, our mortgage team will try to transition you into a subprime or alt A loan. Hopefully, this is enough time to rebuild your credit and get on a more stable footing financially.

Q: What kind of financial documentation does a borrower have to show to qualify for a bad credit loan?

A: While the type of documentation needed to secure a loan will vary from lender to lender, most require either bank statements or income tax returns. The lender will usually need to see an appraisal of the property, as well as the title to make sure that the borrower is indeed the owner and to see if there are any existing liens or legal issues with the property in question. Each bad credit lender will analyze the necessary documents and then decide whether to provide the loan.

Q: What if I have damaged or bad credit as well as a low FICO score?

A: The majority of bad credit borrowers apply for a bad credit loan due to damaged credit along with a lower than normal FICO score The whole point of hard money or private loans is to provide a loan to an individual with past, recent, or current credit issues so they can rebuild their credit and eventually refinance to a more traditional type loan.

Q: What is my FICO score and how can I find out what mine is?

A: A FICO score is a basic credit score that estimates the creditworthiness of a borrower and is used by financial institutions to determine credit limits and interest rates. FICO scores are held by the three major U.S. credit agencies (Equifax, Experian and Trans Union) and all vary slightly depending on the formula used to generate the score.

FICO scores range from about 300 to 850. A score above 720 is considered to be “good credit,” while a score below 600 is considered to be fair to poor. Conforming lenders want to see a credit score of usually 640 and higher. High risk lenders will look at credit scores as low as 500, as long as the borrower has 25% or higher equity in a property for collateral.

Q: How do I Apply for a Bad Credit Loan?

A: Do a search on the internet for “bad credit loans” or “bad credit lenders” and will find different bad credit lenders that offer bad credit loans in various states. Then either call them and explain your situation to them or fill out their short online application to be considered for a hard money loan. Be sure to read the language of the loan documentation carefully to protect your self from predatory lending.

How To Find A Great Deal When Shopping Online

No matter where you shop, you want to get the best deal for your money. Online shoppers are no different. Here are some ways to find great deals when shopping online.

Shop for deals online after a major holiday occurs. The best time for shopping is after Thanksgiving. Retailers in stores and online are looking to maximize their profits with your shopping dollar. Most of your favorite outlet stores will be offering popular items on sale at a fraction of the cost to attract more customers.

Some online retailers offer deals to customers that can’t be found in the stores. Special online deals allow people to shop from the comfort of their own home instead of standing in long lines outside the retail stores. They may offer free shipping for orders over a certain dollar amount.

Use coupons to shop at online stores. Check Sunday newspaper circulars. Some stores offer customers the option of using their coupons online. Since you have shipping and handling in addition to sales tax, online merchants will offer more money off with their coupons for online purchases.

Electronics are a popular item to purchase online. Check the comments made by other shoppers before purchasing. Their comments give you an idea of the quality and satisfaction you will receive from the product. Stores like Circuit City offer deals on their electronics which includes in-store pickup.

What they will ask you to do is to enter your address into the computer. They will give you the address of the closest store location and the availability of the product you seek. If the product is available, you have the option of paying online and picking it up in the store. You avoid shipping and handling and long lines in the store.

Sites like Overstock.com are always offering deals on all sorts of items. Some are new and some are refurbished. Be sure that the site you use is an authorized reseller of the selected product to avoid getting ripped off. Again, check comments from other shoppers that have used that site for shopping purchases.

Taking surveys can garner deals at shopping sites all across the Internet. Places like MyPoints.com offer shopping deals to their members through daily bonus e-mails just for trying products for a trial period. Members also earn points towards gift cards and services for trying these offers. There is no cost to become a member. Just sign up and create a profile.

Deals are available to online shoppers, but you must know when and where to look. Online shopping offers the convenience of browsing and buying without leaving your home computer.

Online Shopping All About Online Price Comparison And Product Reviews

As the web grows every day, so do online enterprises and online price comparison websites. These sites have become necessary and handy for shoppers everywhere. Why? It’s simple. People like to spend their money. Companies offer more and more products to choose from. Whether it’s about clothing or gadgets, tools or equipment, musical instruments or PC hardware, there will always be someone to buy them. And for many people, the best place to start searching is the web. Online shopping has become so popular due to the fact that it not only offers the shopper the opportunity to shop from the comfort of their own home, but also because it offers a greater variety of products and the chance to choose the best ones.

But what is online price comparison all about? Again, it’s simple: a bunch of hard-working and determined people gather data and put together a website containing information about various products from many companies, all centralized in the same database, with plenty of information concerning value and other details. Usually, the given prices are the recommended retail prices, but every site states taxes and other additional payments.

So, online price comparison gives everyone the opportunity to find what they need quick and easy. There is no need to wander around the city searching for what suits them best. Also, for each and every person out there, with particular tastes and preferences concerning what clothes or perfumes they like to wear, what kind of food they like to eat and so on, the internet gives an easier alternative. Just a few clicks and you’re set. You can find anything online. No more exhausting and inconclusive searches. No more rude clerks or impatient shopkeepers. No more heavy traffic. Worst case scenario is that you have to take a ten minute walk to the postal office to pick up your package!

Concerning product reviews, their existence is just as useful and as necessary as online price comparison. Nowadays, the ones who profit greatly from the online shopping experience are teenagers. Thank God, they like to buy! IPods, video games, cool clothes, you name it! Most of the elderly are more reserved, but young people, as much as their budget allows, will generally spend meaningful amounts of money for a good time. Naturally, the desire for knowledge of a certain product planned for future purchase always comes to the mind of the buyers. This leads to the necessity of another valuable option on shopping websites that always comes along with online price comparison: product reviews.

Product reviews are all about the specifications of a certain product. Users comment and blog their likes and dislikes during the usage of the product. The reviews are frequently and mostly posted by the webmasters and consist in comments, tips & tricks, pictures of the device and others details, but there are also external links to sites in that specific area of expertise and of course to the official site of the producer.

Another instance of product reviews is the consumer forums. This is where many people log in and share opinions about what they’ve bought, where they’ve bought it and how it’s all been coming along since they’ve acquired that item. Even if forums like these are a good environment for information, it is better to listen to the advice of the product reviews. An item that has been bought and reviewed by the shopper will not have any outside influences in the official opinion.

Online Price Comparison And Product Reviews Handy And Useful Tools

The fastest flowing information current these days is the internet. You can do everything on the internet: research, work, date or shop. Most people prefer online shopping because it’s easier and even cheaper. For instance, think about all the time, car fuel and nerves you can save by simply clicking a few times. Having everything set at your disposal, in a user-friendly and interactive environment, with no dressing rooms or lines to wait at and no angry bored people around to give you a hard time, the purchasing experience is heavenly. Although everything might seem perfect, there is room for online improvement. Luckily for us, they’ve thought of that as well. Here’s how the internet can improve your shopping experience and give you satisfaction, as well as the chance to find better deals…

First of all, meet two of the most useful tools for the online shopper: online price comparison and product reviews. It all began in the late 90′s with the worldwide internet explosion. Small independent companies came up with the idea to centralize all their products along with the required information in an extensive database. This makes shopping easier for both the customer and for the company. It also created a greater deal of clientele and more worldwide publicity. Then enterprises such as the search engines Yahoo!, MSN and Google and other companies were established who could also benefit from online stores.

The sites had and still have a common characteristic: they offer visitors the chance to compare prices for the same products, but belonging to different companies: online price comparison. Having this option available for use, shoppers had the chance to see which products have the best price and the best characteristics. The various product reviews found within the numerous pages of specialized websites consist of information about the year the product was released, the recommended retailer price (with specifications about taxes) and stores in which it’s available.

The search process thus becomes quick and easy. You just need to log on http://www.plaza101.com for example. Since the pages are interactive and easily comprehendible, the online price comparison becomes a child’s game”. Besides online price comparison and product reviews, which always come together, many websites have come up with an even more user-friendly method. A complex web page script allows visitors to select the brand and all the other usual basics. This also includes the purpose or the environment in which the product will be used, your age and many other complex preferences that will eventually lead to the display of a list of exact products to suit your needs 100%, based on your answers to the website’s questions.

The most attractive online price comparison and product reviews sites are those built in an easy-to-read manner sites like Plaza101. You should look for these sites first. They are easier to comprehend, with information scattered throughout the whole content of the review (statistically, it has been proven that most people read only a third of the article as they scroll through it), easy noticeable headlights (colored, underlined and so on) and appointments to season sales or discounts that will give you a better deal.

Shopping has never been easier. Just a few clicks and there you go! You have practically a world of products and services at your feet. With the help of specialized websites and effective searching tools, you can be sure you’ll get the best deals out there!