gic housing finance

There is a few ways to go about getting commercial equipment financing and leasing. The most important tool today you have at your disposal is the internet. You can search for literally hundreds of companies who provide equipment finance and leasing. This allows you to shop around and find the best deal and in today’s environment, it can make all the difference.

The first thing you should look for is a company that provides financing for your industry. A lot of companies over the past few months have moved out of certain industries citing that they are high risk. It is best to call finance companies before filling out any paper work just to make sure they are still in your industry or in current times, still in business. Once you have put together a list of companies offering finance and leasing, your next step is to prepare the necessary paperwork. All finance companies will have their own standards, but I will try and point out the standard documents.

The first paperwork you will be asked to fill out is the application. This will include information such as your full name, address, social security number, employment and information on the equipment you need financed. It’s pretty self explanatory why the company needs this information but the most important reason is to check your credit score. In today’s world, your credit score matters more now than it ever did. In the past, you could still get a loan with bad credit. Those days are long gone. Most finance companies are looking for people with a quality credit score and won’t give you the time of day if you have bad credit. In some cases, banks and finance companies will work with you but will require significant collateral. It is best to wait until your credit improves as you will also get a better interest rate.

After you receive an initial approval from the finance company, some companies can approve application only depending on the amount requested. However, you may have additional steps such as collecting your bank records and tax history. Some companies will want two years of tax history and six months of bank statements. Based on the equipment you are buying, you may need a specification sheet (spec sheet). This can be sent from the dealership or equipment supplier to the finance company directly. This for most part covers the standard documents needed for getting your equipment financed. After the loan documents have been signed and returned, the lender will wire or overnight a cashier’s check to the vendor. You can then pick up your equipment.

Finally, I would like to conclude with some important tips about obtaining your finance or lease agreement. It is very important to read over each piece of paper to make sure that you fully understand the terms of the lease or loan. In most cases, your lease or loan payment will be anywhere from 24 months to 72 months. If you do go with leasing, try to get a one dollar buy-out clause attached to end of your term. This is very important as the life of the equipment being leased will last much longer than the term you leased for.

Many people have been experiencing difficulties in obtaining loans. It is not a surprise since the whole mortgage industry is on a credit crunch. All lenders are limiting loan approvals and mortgage requirements are getting severe. Because of this, it has made many unqualified borrowers in the industry.

If this were to continue, more and more people would have a hard time pursuing home ownership. Almost all people are depending on conventional loans for home buying and their only chance to afford the purchase is being hindered by something out of their control.

The good news is people have found other means to mobilize their home buying deals without having to apply for conventional loans. Even people with poor credit can buy a house when engaging to this option. This method is known as Alternative Financing.

Alternative financing has had growing popularity in the market. While you may not be aware of this, it has been going on for quite some time. Alternative financing have many faces. If you want to learn more about them, the following will give you an idea on what it is all about:

1. Seller Financing- In this financing, sellers take in a portion or the whole amount of financing for the buyer. It is also known as owner carry back. In here, the seller acts as a lender. Buyers will give the payment for financing directly to them. It is also the seller and the buyer who will discuss the terms of financing and it can even be tailor-fitted to the buyer.

2. Lease/Rent to own- There are sellers who offer to sell their homes after a specific period of renting. However, the amount of rent or lease may be quite expensive compared to the usual price because a portion of what you are paying will be used as part of the payment in purchasing the house. This is what rent or lease to own financing is all about.

3. Assuming of Loans- This is a kind of financing where the buyer can take over the existing loan of the seller. Generally, the buyer would have to pay back the seller for some or whole of their equity and the rest of the purchase price will be taken cared of through other means of financing. This is a faster way to pay up a loan. Moreover, if you have troubles with credit, you may be in luck to purchase a home through non-qualifying assumptions.

4. Zero Down payment Loans- As the name implies, in this financing you do not have to worry about shelling out money for down payment. Although not advisable, but if you really are having problems with coming up with a typical 20% down payment, then this should be your option. If you want to avail of this option, you may have to contact your local banks about it.

So, if you really want to purchase a new home and you just have a hard time coming up with the money or getting qualified with conventional loans, this is your solution. Alternative financing makes it possible for you. Just do not forget to weigh the advantages and disadvantages of every option, so as not to get into financial troubles in the future.