Common Types of Consumer Loans

Wednesday, August 16, 2017
Posted by admin under Consumer Loans 

Loan paperwork

Sometimes, you may need a loan, but you aren't sure exactly which loan would be best for you and your needs. You can continue reading below for information on common types of consumer loans. If you're still curious about details, it's a good idea to speak with your bank and see what they recommend. It's important to keep on top of payments and make sure that you're only borrowing what you can manage to pay back.

Credit Cards

Some people have multiple credit cards, but they can sometimes be difficult to manage and pay back. If you're only making minimum payments on your cards, you can expect to pay on that amount for quite some time. Usually, it's advised you pay off your credit card debt as quickly as possible, since the interest rates can be rather high. Many credit cards will offer low interest or no interest for an introductory period, but after that time the interest rates tend to climb significantly. Although there's certainly no harm in having a couple credit cards, and they can assist you in building credit, it's a good idea to make sure that they keep them under control.

Personal Loans 

Whether you have emergency car repairs, a water heater to replace, or any other unexpected and larger expense, a personal loan might be your best bet. You can generally get a personal loan through your local bank or credit union, and you should be able to pay it back over a reasonable period of time and with manageable interest. A personal loan can also be a relatively easy way to build up your credit over time.

Vehicle Loans

For many people, this may be one of the first loans they ever take out. Whether for a used or new vehicle, a vehicle loan should also be kept manageable. Always remember that in addition to your loan, you will also be paying for gas, repairs, and insurance. Keep those numbers in mind to make sure that you aren't overextending yourself on the loan itself. Over time, it can build up your credit score, but there are easier and faster ways to do that.

Of course, there are also mortgage loans and other common loans available. For the best consumer loans in Vermillion County, you should always keep in mind what you need and what you can manage. Always take into account additional and associated costs, so that your loan is easy to repay.

Tagged Consumer Loans  Common loans  Personal loans  0 Comments

How to Qualify for a Construction Loan

Tuesday, May 23, 2017
Posted by admin under Construction Loans 

A couple discusses house blueprints.

There is a reason why many homeowners purchase existing homes or go with a builder in a subdivision. The process to getting approved for construction loans in East Central Illinois and West Central Indiana, is lengthy and difficult. The good news is that you can get easily approved for this type of loan as long as you meet all of the criteria listed next.

You Need a Qualified Builder

In order to get a construction loan, you'll have to be involved with a qualified builder or general contractor who has experience building a home from the ground up. Nobody is arguing the fact that you may be able to do this yourself, but a bank is not going to loan you any money to try it out. If you don't have any proven record in the building industry, then you should hire a builder or contractor for your project.
The good news is that hiring the right builder can actually save you money, because they have the right contacts with suppliers for materials, and they may already have access to a reliable crew. 

Your Lender Wants Details

It's not enough to apply for a construction loan of a 3-bedroom home. Your lender is going to want to see a lot more details. They'll want to see the blueprints, floor plans, and the list of materials that are going to be used in your home. They'll want to know how tall your ceilings are and what type of insulation material you will be using. Fortunately, you'll get this covered with the first step, as your builder or general contractor will be the one to provide you with all of that information.

You'll Need an Appraisal

It can be difficult to appraise a home that hasn't been built yet, but it has to be done in order to get the loan. The appraiser will look at the value of your land, all of the details about the type of home you're building, and compare it to similar homes in the area. The more information the appraiser has, the better. Of course, at the end of the construction, there will be another appraisal to convert the construction loan into a regular home loan. 

You'll Need a Down Payment

Many builders of subdivisions have the ability to offer you attractive financing terms with a small or even zero down payment. But when you're dealing with a construction loan for your personal residence, you can expect to come up with a rather sizable down payment. In fact, 15% is the minimum amount required for a construction loan. Some lenders might even ask you for 25%. Plus, they won't loan above the appraised value of the home, so if you want to build a fancier home than the appraisal can support, you might have to come up with the difference.

A couple checks on the progress of their home construction.

Now that you know what to expect from your lender, it's time to get all of your ducks in a row. It's a good idea to discuss your plans with your lender before you invest any money of your own. If you plan to include the property in the construction loan, this is something you should discuss with your lender ahead of time. 

Tagged Construction Loans  Development Loan  Home Loan  Consumer Loans  0 Comments