Get Your Free Goodie Box here

What you Should Know Before you Borrow Money by Patty Baldwin and Lori Chambers - HTML preview

PLEASE NOTE: This is an HTML preview only and some elements such as links or page numbers may be incorrect.
Download the book in PDF, ePub, Kindle for a complete version.
index-1_1.png

Another eBookWholesaler Publication

What You Should Know BEFORE You Borrow Money

By Patty Baldwin and Lori Chambers

Copyright 2005

Proudly brought to you by

John Reese

Email

Recommended Resources

Web Site Hosting Service

Internet Marketing

Affiliate Program

What You Should Know BEFORE You Borrow Money

Page 2 of 73

Please Read This FIRST.

This is NOT a free book and you do not have any rights to distribute or sell it or any part of it. Only current eBookwholesaler Members may offer this book for

sale and they must abide by eBookwholesaler Terms and Conditions which

include:

This book must not be offered through auctions, barter, in bundles or in any way that may affect the value of the book or reputation of eBookwholesaler.

The author, publisher or distributors do not offer professional advice and, especially, do not offer any legal, medical, financial or other professional advice.

All readers are encouraged to consult a licensed, qualified professional about any such matters at all times.

The book is based on the experience and research by the author and consultants but the author, publisher or distributors do not have any responsibility for the actions or consequences encountered by any reader of this book.

All readers must accept full responsibility for their own actions and decisions with relation to all the included material.

Copyright © 2005

- 2 -

What You Should Know BEFORE You Borrow Money

Page 3 of 73

Table of Contents

Please Read This FIRST............................................................................................... 2

Introduction....................................................................................................................... 6

When and Why Borrow Money....................................................................................... 7

What Type Of Loan Do I Need?.................................................................................... 13

Secured Loans ........................................................................................................................................ 13

Mortgage................................................................................................................................................. 13

Are You Ready for a Home Mortgage Loan? ................................................................................... 13

Second Mortgage ................................................................................................................................... 15

Home Equity....................................................................................................................................... 15

Line of Credit ..................................................................................................................................... 16

Vehicle Loans ......................................................................................................................................... 17

Title Loans.......................................................................................................................................... 17

Unsecured Loans................................................................................................................................ 17

Personal Loans ....................................................................................................................................... 17

What Should I Know Before I Shop For A Lender? ................................................... 19

Advance Fee Loans ................................................................................................................................ 19

How to protect yourself from advance-fee predators:....................................................................... 20

Mortgage Loans ..................................................................................................................................... 21

Fixed Rate Mortgage vs. Variable Rate Mortgage............................................................................ 22

Understanding a Second Mortgage ................................................................................................... 22

Shorter Terms..................................................................................................................................... 23

Conventional Home Loan ..................................................................................................................... 24

Balloon Mortgage .............................................................................................................................. 24

FHA Home Loan.................................................................................................................................... 24

VA Loans ................................................................................................................................................ 26

Contract for Deed .................................................................................................................................. 26

How to Qualify for a Home Mortgage Loan ................................................................ 28

Save a Sizeable Down Payment ......................................................................................................... 28

You May Have To Accept a Higher Interest Rate on Your Mortgage Loan .................................... 29

Copyright © 2005

- 3 -

What You Should Know BEFORE You Borrow Money

Page 4 of 73

Vehicle Loans .................................................................................................................. 30

Be Sure You Understand the Offer Before Signing On the Line for an Auto Loan ........................ 33

Never Agree To a Pre-Computed Auto Loan .................................................................................... 34

Hold Out For the Best Offer ................................................................................................................. 35

Title Loans.............................................................................................................................................. 35

Interest Rates ......................................................................................................................................... 35

Credit Rating.......................................................................................................................................... 36

Fair Credit Reporting Act/ FCRA ..................................................................................................... 36

Don’t Let A Divorce Ruin Your Good Credit Rating! ....................................................................... 39

How To Build A Lender-Friendly Credit Report ............................................................................... 40

Collateral ............................................................................................................................................ 42

Important Things to look for in a Lender ........................................................................................... 42

Where Should I obtain a Loan?..................................................................................... 43

Family or Friends .................................................................................................................................. 43

Commercial Banks................................................................................................................................. 44

Finance Companies................................................................................................................................ 44

Credit Card Companies ........................................................................................................................ 45

The Pitfalls of the % APR Credit Card ............................................................................................... 46

Online Credit Card Application: the Easiest Way to a Customer’s Heart....................................... 47

Cash It Back with Credit Cards ........................................................................................................... 49

Borrowing Money For a Business ................................................................................. 52

Leasing Companies................................................................................................................................ 52

Private Investors .................................................................................................................................... 52

State and Local Government Lending Programs ............................................................................... 52

Partnership............................................................................................................................................. 53

How Do I Apply for a Loan?.......................................................................................... 54

Business Loan......................................................................................................................................... 54

Home Loans............................................................................................................................................ 55

Cleaning Up Your Credit ............................................................................................... 58

Your Credit Report Can Be The Envy Of All Your Neighbors! ....................................................... 58

Getting Your Credit Report.................................................................................................................. 60

Avoiding Credit Repair Scams ............................................................................................................. 60

Credit Scores .......................................................................................................................................... 62

Copyright © 2005

- 4 -

What You Should Know BEFORE You Borrow Money

Page 5 of 73

Why Your Checking Account Is Vital To Your Credit History ........................................................ 68

Three Mistakes That Could Hurt Your Credit Score......................................................................... 69

Mistake # 1 ......................................................................................................................................... 69

Mistake # 2 ......................................................................................................................................... 70

Mistake # 3 ......................................................................................................................................... 70

Last Words from Patty and Lori................................................................................... 72

Copyright © 2005

- 5 -

What You Should Know BEFORE You Borrow Money

Page 6 of 73