The Various Sources Of Home Loan Financing
If you are looking for a home loan, you may believe that your only option is to go to a bank or credit union. However, you could also choose to seek out a loan from a private party or finance the purchase of a home by borrowing against the value of other personal assets. Let’s take a look at all of your options as it relates to obtaining money to buy a home.
Anyone Can Act as a Private Lender
Let’s say that you don’t have a great credit score or don’t want to put a lot of money down to buy a home. A private lender such as your mom, a friend or a colleague could agree to loan you some of their own money. The terms can be negotiated in a manner that is in the best interests of both you and the lender. While a private lender will want assurances that you can repay the loan, a formal credit check may not be necessary.
Use Your Own Assets as Collateral for a Loan
You may have a variety of assets that you can use as collateral for a loan. For instance, you could be able to take up to $50,000 from your 401k or tap into the equity that you have built up in a car or other real property. Even if a 401k or home equity loan doesn’t cover the entire purchase price, it can make it easier to make a large down payment.
Don’t Hesitate to Work with a Traditional Lender
Consulting with a mortgage company in Las Vegas can make it possible to learn more about conventional lending options. Depending on your credit score, income and other variables, you may qualify for a traditional mortgage with a reasonable interest rate and down payment requirements.