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Country Discussion Topics
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Loan
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Mshb    Posted 01-01-2005 at 22:00:55       [Reply]  [No Email]
How hard is it to get a loan on a 100k property,when your 18 and no credit?

Ps with a 40k down payment and a well paying job.


JB    Posted 01-02-2005 at 06:47:07       [Reply]  [No Email]
The same thing happened to me when I was 21 years old and out of the Navy. I wanted to buy a house and 4 acres. I went to my bank and told the banker I wanted to pay 60% down and finance the rest. To make a long story short he told me that I was 21 single and a bad risk. I in turn talked to the seller and he agreed to sell me the house and 1 acre, hold the other 3 for three years. A friend of my uncle co-signed for a load that would get me the rest of the money for the house and 1 acre. That friend of my uncle did not even know me. That bank did me a big favor by not loaning me the money. Within one year I had the co-signed loan paid off and enough money to buy the other 3 acres, which I did. All the interest the bank would have charged plus all the phoney extra costs banks tack on would have cost me plenty. Within one year I had my own house paid for, free and clear.
What I would sugest would be to have a parent or friend co-sign for the property and give them deed to the property if you defaulted. I know I would do that if you were my child or friend who was paying 40% down on a piece of property. Or try to come up with another way to buy the property , if it is an investment, find a partner. Bankers are not really your friend. I have not paid one cent in interest since I paid off that first loan. If I could not pay for it I did not need it. I have also accumulated a fair amount of wealth by not paying interest. I am also a blue collar worker with a fair paying job. I have drove a lot of used cars in my life and I have also bought a new car. The moral to the story is don't pay interest unless you absolutly have to.


Not    Posted 01-01-2005 at 22:12:12       [Reply]  [No Email]
that hard.

You have 40% for a downpayment - a good thing.

You are 18 - a bad thing.

You are employed - a good thing.

You say your job is well-paying - a bank will decide that. Not to offend but it is true.

Some unanswered questions the bank/lender will figure out:
- How long have you been employed?
- What has been your earnings history?
- Are you married/divorced/single?
- THE BIGGIE....
What is your credit history?
- Do you have established credit? You'll need it. Although 40% down is a darn good start.

All mortgage lending is determined by your credit score. You can have a score of 600 and get a loan for $60K with a 9.5% interest payment. This is not good unless you can refinance in the next few years as your score increases.

You can have a score of 700 and get a $60K loan for 7.0% interest. Not bad for your age.

You can have a score of 750 or above and get a $60K loan with a 5.75% interest payment. Now that is good.

Good luck.

- Peanut


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