Question about Personal Loans
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| Sat, 08-16-2008 - 3:56pm |
I really need some advice regarding a personal loan. We currently rent an apartment but are looking to rent a house. The house we want to rent has an option to buy so that would be a perfect road for us to take in order to become a home owner. Renting this house will cost us about $600 more a month but we can swing it-with not much money to spare but this is what we want. We would need to take out a personal loan in order to pay for the security deposit, the cost to break our lease and for items such as a refridgerator. We are thinking we would need about $5,000.00. I have never taken out a personal loan before and have good credit BUT we are in debt about $15,000.00. We never miss a payment, never late and always pay more than the minimum. My first question is: Would we get approved for a loan with this much debt? My second question is: If we would be approved for a loan, do you think it would be wise to get a loan big enough to pay off a majority of our debt if the bank loan rate is lower than our credit cards??? I want this house sooo bad and am trying to figure out a way to get the money before someone else gets the house!
If you have read this, thank you. I appreciate any advice that you can give me.

It is hard to get money from a bank when you are not a home owner. Because you have nothing to put up to insure the loan. My advice if you have some lead way on a card to take the card and get a cash advance for the money.
This is a tough one not because the answer is difficult to give, but because the answer is difficult to hear.
All my best,
Danni
Well said, Danni!
Thank you very much for your prompt response and advice. I want to mention that I haven't begun the process of getting this house yet. I am gathering information first to see if this would be a wise decision for my family.
I was initially thinking about getting the money from my credit card but my friend works at a bank and said a personal loan rate would be much lower. So that is why I was thinking about it. My friend doesn't own a home, makes much less than I and still gets approved for personal loans. I just thought that would be a better option.
As for the lease with an option to buy, it would be handled through a realtor so a contract would be drawn up. Also, I work for a law firm so I would naturally have one of the attorney's review it before I signed it. I believe you mentioned that when you sign this kind of contract, the landlord isn't liable for repairs? This I did not know. Truthfully, I do not now much about it and haven't had a chance to speak with my attorney yet. The only thing that the realtor said about it is that everything that I paid in rent would be considered as a down payment and that the contract would say when we would buy (like 1 year) and for how much.
As for the emotional purchase: It is and it isn't, if that makes sense. Me and DH have been looking for a long time for a house to rent and nothing in our price range has been
Sarah
http://marilynmonroeshop.info