Owning a house is probably everyone’s dream. With a lot of financial planning and saving up for years, it might look like your dream is about to come true. But, as a matter of fact, the real hurdles begin only when you start working on it. Though you can go on and on about how much you saved up and all, it is still not going to be enough most of the times, as a property purchase comes with a lot of additional costs. You might have planned to avail a mortgage loan or a home loan to purchase the home, but what about the down payment? Wish there was an option for that too? Well, you do have the quick cash personal loans online which you can avail from the financing companies, lenders, and platforms like shorttermcredits.com, and use the funds to make a down payment while purchasing a home or property.
These personal loans can be availed for relatively smaller amounts of money from shorttermcredits.com, irrespective of your credit scores and do not need collateral too. These personal loans for bad credit can be conveniently borrowed and can be used for down payment purposes. However, as easy and convenient as it may sound, using these short term loans bad credit for the purpose of down payment may come with strings attached. So, it is essential that you know all the circumstances before taking the plunge. Here are a few briefly outlined points which you should consider before availing these personal loans for bad credit for making a down payment.
1. You Will Have 2 Loans To Repay – You have already availed a home loan for making the purchase of the home, which you will be repaying as EMIs to the bank. By taking an additional personal loan, you will also have to repay this loan along with the home loan. So, before availing both these loans, you need to be aware of your financial circumstances and if you are capable of repaying both the loans on time. If you are in a situation where you really need the personal loan for down payment but cannot repay it completely in a short period, then you can apply and borrow quick installment loans for bad credit, in which our lenders will provide you your loan amount with manageable repayment options.
2. Relatively Higher Interest Rates – Compared to the bank loans, these personal loans for bad credit come with relatively higher interest rates. So, until the complete payment of your personal loan, you will have to pay huge amounts of money towards payment of your home loan plus its interest, and the personal loan & its interest. The more amounts you borrow as a personal loan, the more interest amount you will have to pay, and the more will be the EMI you need to pay. So, make sure that you keep in mind the interest rates, the total amount, and the EMI amount you will have to pay for both the loans before finalizing a deal and borrow only the amount which you can repay on time.
3. Your Net Income Values – Most banks and lenders may have issues in approving a second loan when you are already having an ongoing loan in hand. Most of the times, the banks and the financing companies make sure that the net of all your existing loans does not exist 40% of your current income. Irrespective of how many existing loans you have, the sum of all your EMIs should not exceed 40% of your monthly income. Although this may have many reasons behind it, the primary reason could be to avoid taking more financial aid to handle your regular expenses as most of your income could be going towards paying the loan EMIs.
Exploring the details well, making the basic calculations, analyzing all your circumstances, and a little thought can help you to figure out if you should avail an extra personal loan for making a down payment or not. If you are sure of managing all your regular finances along with your home loan and personal loan, then you should go ahead and make a sensible decision. Availing quick installment loans for bad credit means that you don’t have to touch your savings. But, make sure you evaluate your entire financial situation and do not fall into a debt trap.