Mind of Money

What to Keep in Mind When Looking for Commercial Loans

Mortgage and Loan keys on a keyboardCommercial loans are an ideal source of funds to realize the dream of owning or expanding a business. However, you may fail to get funding that is suited for your business if you fail to look at the following points below.

Have the records and plans in place

The lenders want to be sure that their loans will be paid back. They need to see the financial records of your business, your projections, and the activities for which you are seeking a loan, according to ARF Financial, whether its a funding for a restaurant or a small boutique shop. Have a plan, prepare the records, documents, and projections to show that you mean business.

Put some money down

If you would like to buy some equipment or property, you should put a down payment before asking for the loan. Lenders would be more eager to loan you money if you share the risk too. Many of them will not finance your asset for more than 75 percent.

Do market research

Do not close a deal with the first commercial lender you come across. Look around for other offers. Compare the cost of the loan and other terms before settling on a particular lending company.

Negotiate a deal with the lender

Most of the lenders are open for negotiation. See how you can add some icing to the deal and make the lender lower the rates. For example, if you need restaurant funding and your restaurant has some cash flow, you can be banking with the financial institution in return for a better deal.

Borrow what you can repay

Choose a loan that is reasonable for your business. Otherwise, the loan may put you under pressure to seek further funding, cause cash flow problems or even have some of the property taken away by the lender.

If you’ve been planning to expand or re-organize your business, a commercial loan can help you to start your plans immediately. However, keep in mind the pointers above to get the funding that will help your business.

December 3, 2017 at 1:00 amMind of Money

FHA 203K Loans: Giving You a Chance to Turn a Property into Your Dream Home

Home improvementWhen looking for a new house, you will likely stumble upon a property that is almost perfect to be your dream home; the location is ideal, and the property has great potential, but you need to make several significant improvements.

Without those repairs, that home might not be suitable for living, and you might not be able to afford it as lenders rarely give out loans on a property with problems.

However, do not lose hope, as the FHA 203K loan makes it possible for you turn that property into your dream home.

What is FHA 203K Loan?

Backed by the Federal Housing Administration, the FHA 203K loan program allows you to borrow money for both home purchase and necessary home improvements. You must borrow a minimum of $5,000 but less than the certain maximum limits set by the FHA for the property’s location.

The loan interest rates will also vary, depending on your credit and current mortgage rates. You must finish your renovation project within six months; the FHA will place the funds in an escrow account and pay out your contractors as you complete the improvements.

More importantly, you can only apply for the FHA 203K loan if you are an individual or a nonprofit organization owner, not an investor.

Why Should You Apply for FHA 203K Loan?

Because the FHA 203K Loan gives you the opportunity to make significant improvements to your newly bought property, you get to do the things you want for your dream home. If you want to install energy-efficient roofs, an extra room for guests, or glass splash backs for the kitchen, you are free to do so.

Also, the loan comes with timeliness – if the contractor wants their payout, they have to complete work within six months of work start date. So, you will definitely achieve your dream home in just a matter of months.

But the major reason you should apply for this loan is that you will have the lowest interest rates you can get for home repairs, as the renovation loan is combined together with the mortgage.

The only drawback with FHA 203K loan is that you cannot use it for DIY improvements; you must hire licensed contractors for all the work. But other than that, this type of loan offers a great deal. After all, it gives you a rare chance to turn a property into your dream home.

November 25, 2017 at 1:00 amMind of Money

What Makes Tempe Attractive to Homebuyers

Happy Young Family in Front of Sold Real Estate SignTempe, Arizona is home to over 180,000 people. Most of them are satisfied with where they have chosen to plant their feet, and home buyers are also considering the location when thinking about settling down. Several reasons make Tempe an excellent choice for those looking for permanence.

LGBT Equality

Tempe is one of three cities in Arizona that aced the 100-point rating system. This means the Tempe government has done everything it can to safeguard the LGBT community.

This makes it a fairly attractive option for LGBT individuals and couples looking to settle down. If this kind of security is what you’re looking for in a location, consider this the sign that you should check the mortgage rate for a home loan in Tempe because you’ve just found a perfect fit for you.

Great Education

Arizona State University is known for its excellent programs. Whether you are planning to take up a course for yourself or you are thinking about your children’s future, anywhere near the ASU will be a good fit. If you settle down in Tempe, you’ll have easy access to quality education, and you can even experience some of the greatest innovations before they hit the rest of the world. Here’s a bonus: The Memorial Union on ASU’s Tempe campus also has a bakery where students can get their daily dose of sweets. Nothing like a freshly baked cookie to get your mind off that challenging exam you just took.

Overall Climate

Any place can excel at one thing and brag that they are a perfect fit for your lifestyle. Tempe is not like that. You see it excelling in several disciplines, which makes the overall climate welcoming and favorable for you. There is bound to be a neighborhood to cater to your lifestyle.

Now that you’ve seen the factors that make Tempe residents stay, it’s time for you to make a move. Happy house hunting.

November 10, 2017 at 7:16 amMind of Money