Summary: There are ways to get the money you need and there are ways to find lenders that will deal with you even if you do not have good credit. Here is what you must know about getting your loan. You really want to own trailers and you really want to do it soon so you need the right lender and the lenders are out there for you.
If you are in the market for buying trailers one of the first things you’ll need to do is decide whether or not you want to use a real estate agent. Using a real estate agent has many advantages, the most important of which is their ability to help guide you through the buying process; from finding a trailer that meets your needs to the final closing.
If you’re concerned that you will have to pay your agent some sort of commission don’t be. Any percentage of the purchase price your real estate agent asks for will be taken out of the seller’s proceeds.
This means that using your own agent will not affect the purchase price and it will not cost you anything extra to use their services. Utility Trailers financing Ontario services include access to real estate listings for trailers that you may not find otherwise.
Pre-qualified for financing your new purchase
The second step is to get pre-qualified for financing your new purchase, this way you’ll know how much you will be able to afford. This gives you and your real estate agent a price range to work in.
Once you find a mobile or manufactured home that meets your price and personal criteria it is time to give an offer to the sellers. This is where having an agent becomes invaluable; helping you through each step of the process the right way.
When deciding on what your offer should be use some common sense and take your agent’s recommendations seriously. You don’t want to significantly underbid the asking price to the point that your offer is not taken seriously. Chances are if this happens any other offers you make will not be considered.
Understand that the negotiation process
You do need to consider some contingencies when making the offer. Do you want seller credits against the final closing costs? This can include such things as an appraisal, the loan terms and interest rate, and a home inspection service. Contingencies attached to your offer are there to protect you in the case something doesn’t work out.
For instance, if you can’t get the interest rate you were looking for on your trailers financing. Then you will be able to back out of your offer and get back any deposit or up-front money you may have put down.
It is also important to understand that the negotiation process may take several days. The two biggest negotiation points are usually the final price and the timing of the sale. Again, just be realistic about your expectations, use some common sense, and listen to your realtor during the negotiation process.
Focus on rebuilding your credit
When you apply for a Powersports Ontario loan, you will need to address some very important regarding your personal finances. For example, if you have had a bankruptcy within 5 years, there are very few lenders that will finance you, so it is important to focus on rebuilding your credit. Just a year ago, a bankruptcy within two years was a deal breaker. But with the financial crisis underway, things have changed.
The third most important factor in getting approval for a Manufactured Home Loan is your credit score. If your credit score is above 700, then it will be easier for you to get financing. If you have a troubled credit score, then you will usually have to come up with a higher down payment on the purchase of your trailer.
Another important factor is your income-to-debt ratio, which gives the lender a sense of your reliability to pay them back, with your current financial situation. This ratio takes your monthly obligations (rent, car payment, student loans, mortgage, etc.) and compares it as a ratio to your income.
Financing for personal property
The last important factor in getting manufactured trailer financing is the amount you can put down on the home. The lender values the buyer’s ability to save money because this shows a history of responsibility.
The down payment is also a way to manipulate the ratios by way of changing the monthly payment of the loan. Your trailers mortgage broker or lender will go over all of this with you. So don’t feel as though you must become a home loan expert on your own.
Whether you are looking to finance chattel or need financing for personal property, you will definitely need a trailers loan expert, or else your interests are left unprotected. If a trailer has a permanent foundation, you may take out a mortgage to purchase both the home and land.
However, there are also loans available to finance the purchase of a manufactured home only, called a chattel mortgage. The benefit of a mortgage is that you may write off the interest paid on a manufactured home loan while taking a loan out as personal property does not allow for write-offs.
Loan funds to cover trailers costs
A personal property loan is meant for the purchase of homes on a rented lot as in trailer parks. Personal property loans are offered by retailers who sell manufactured homes. In order to qualify, you need to put down 10 percent of the purchase price for 30-year loans.
The interest rate will be 2-3% higher than mortgages, fixed or variable. But, you can qualify for a home loan with a higher debt ratio and use the loan funds to cover trailers costs plus lot improvements.
You have to understand all of your options and know which one is the best choice for you. So that you get the type of loan you need to get the new mobile you are after. When it comes to financing a mobile home you are the one that has to do the work in finding the loan.
Last, the place you can start that will help you find what you need is online with a search. This is a good way to go or if you can find a site that has a lot of good information and points. If you do some of the lenders that deal with mobile homes then you will be on the right track. The bottom line is the lenders are out there waiting for you so go find them already.
