When it comes to making a major purchase it is always a good idea to shop around. Whether you are looking at getting a new car, taking a vacation, or buying a house the amount of money you pay is probably a major part of your decision making process. This is where negotiation and shopping around helps save you money. Car dealers often compete for buyers’ dollars by offering financing incentives and other sales, and travel sites can be a good place to compare hotel and flight packages. When it comes to a house, you already know it is common to go back and forth with the seller on a reasonable price, but did you also know you might be able to get a lower payment simply by how you pick your lender?
Shopping around for an interest rate for your mortgage can get you a lower payment, if you are able to find a lender who offers a low rate. Most times rates are lower if:
- You have a good credit score, with minimal debt and a record of on time payments.
- Agree to set up automatic electronic payments.
- Get a loan from a local bank or credit union rather than a large lending institution. Locally owned banks and credit unions typically have more flexibility than larger banks and if you are member you may enjoy perks not offered by traditional lenders.
Once you have checked your options, go with a lender that offers the best rate for your loan. Other factors that might play into your decision include the repayment term length, whether you can prepay the loan without penalty, and the date on which your payments are due each month. Getting the best rate and repayment schedule will allow you to make your house payments on time, but even with the best planning it is possible to fall behind. If you have taken a financial hit and need help getting your finances back in order, consider filing for bankruptcy. Bankruptcy will eliminate some of your debts, or at least reduce them so you can pay what remains. There are two types of bankruptcies, and the type of case you are eligible to file depends on your personal financial situation. Your secured debt to income ratio will be examined, and depending on how much disposable income you have each month you will be placed in either a Chapter 7 or a Chapter 13.
For more information about bankruptcy, contact us at www.DsouzaLegalGroup.com. We will help you make choices about your money that are right for you, and that will give you the financial freedom you deserve.