Question about Personal Loans

iVillage Member
Registered: 06-03-2006
Question about Personal Loans
4
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.


iVillage Member
Registered: 11-17-2007
Sat, 08-16-2008 - 5:11pm

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.

Avatar for cl_phocid
iVillage Member
Registered: 03-26-2003
Sun, 08-17-2008 - 9:56am

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

iVillage Member
Registered: 04-12-2007
Sun, 08-17-2008 - 10:47am

Well said, Danni!

iVillage Member
Registered: 06-03-2006
Sun, 08-17-2008 - 2:24pm

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