Lisa Helm-Cowley Dip Couns., MBACP
Tel: 07817877615
Individually Tailored Integrative Therapies

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Can I Use a Personal Loan to Pay Off My Car?

Personal loans can be used for many things. If youre itching to pay off your auto loan quickly, using a personal loan could be the answer but it could cost you more money in the long run. Weve got some considerations to keep in mind before going through with it.

Taking Out a Personal Loan

Personal loans are offered by direct lenders from credit unions, banks, or online lenders. Some lenders offer loans anywhere from $1,000 to $100,000, with the terms usually dependent on the size of the loan and your creditworthiness. A borrower with a good credit score has a better chance of qualifying for a personal loan.

If you have a less than perfect credit score, qualifying for a personal loan can be tough. Personal loans typically arent secured by anything (like an auto loan where the vehicle secures the loan). Because of this, lenders may have more stringent requirements to meet.

If you make the cut for a personal loan, you could use that amount to pay off your car loan, make repairs on the vehicle, or just make a sizable dent on your car loan balance. However, you cant use a personal loan as a down payment on a vehicle. Almost every auto lender requires that the down payment amount isnt borrowed money.

Is There a Catch?

If you intend to finish off your auto loan with a personal loan, it may not be a good idea long term.

Personal loans usually come with higher interest rates than auto loans, since theyre not secured by anything. To make up for this risk, most lenders assign higher interest rates on personal loans. Continue reading

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The USDA Loan waiting period after a Short Sale is 36 months from the date of transfer

If you’ve been in the unfortunate position of being on the Selling side of a Short Sale – our hearts go out to you. We are sure it was a difficult decision to make, but now that it’s behind you – maybe you’re ready to buy a new house in North Carolina?

We had a call this morning from a guy who left Florida in e to Raleigh, North Carolina with a new job. The family is now settled, they love the area, and he called with this question.

There are some important features to the way a USDA Loan Underwriter will look at your mortgage application that differ from other mortgage loan programs. Because the USDA Home Loan program does not require a down payment – it’s inherently more risky than other programs https://speedycashloan.net/loans/fast-payday-loans/, like FHA, and the credit underwriting for the program is more conservative as a result.

Frankly, depending on the Bank you had your other mortgage with – they might report it as a Short Sale, and they might not

I’ve looked online, and I’ve found forum comments on Zillow and Trulia that state you can get a USDA Loan with a shorter waiting period… but in North Carolina, the USDA Loan Underwriters will generally NOT approve a loan with less than 3 years from the date the title transferred. So for the guy this morning – the Short Sale was in – and we are well past the 36 month period.

Having said that… here’s the reason there are some conflicting reports about using the USDA Loan Program to buy a home after a Short Sale.

Many of the Homeowner’s we’ve talked to had a long, difficult short sale process. Continue reading