The Difference Between Banks and Owner Financing

We are going to look at different ways to finance a home, with a wide range of products on the market consumers want to know which one is suited to them.

Owner financing is a new way for people to purchase a property, with what’s happened in the current economic climate consumers have found it extremely hard to get home loans. This is where developers step in, they can offer finance at a lower rate and with a smaller deposit. The type on person who is suited to this type of financing will usually be someone that does not have a great credit track record and cannot afford a 20% deposit or the high interest rates.

This new financing phenomenon has spread very fast over the internet. With auction sites’ offering this type of property, at first it was mainly land for sale but now houses are beginning to appear.

The internet is also a good resource for getting loan quotes, there are many companies that will do a comparison and find the cheapest loan according to your credit history. This creates a bit of online competition so shop around do not settle with the first site you come across try and get the best deal out there. If your credit is good then you will have no problem, but if you have not paid your bills on time or just have too many credit cards you may be refused the loan.

To get a loan through a bank will require some documentation to be provided. They will look at previous credit history first to see if you meet their requirements. Then it is a process of handing in any tax returns, pay slips to prove regular income and any other document they require. Please note that depending on your circumstances, whether you own your business or work for someone else will depend on what type of paper work they need.

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