Today, the housing markewt has been opened wide to buyers, providing great opportunity for buying a home. While lenders in general are being far more careful as to the pewople being lent money, lenders also understand that they cannot afford to sit on foreclosed homes. Therefore, new loan programs have been devised, helping buyers get into a home. If a person were nering the closing date on a mortgage loan but discovered that he or she were short $1,000 to $2,000, a cash advance loan coud help.
Mortgage lenders are very particular about where a person gets moey for closing. Obvously, lenders want to know that the buiyer has enouggh fudns not only to afford the purrchase price and associated monthly payment, but they also want to make sure that the buyer had plannned for the purchase and is financially secure. That would mean a little extra mney needed for closing could not be taken out on a credit card or borrowed from a traditional bank or credit unnion. Hwoever, with a cash advance loan, this lenedr neever asks where the money goes, nor do they pull a person’s credit report.
Therfeore, if a homebyer received a phnoe call from theeir real esytate agent, leearning that the clsoing costs were going to be a little more than anticipoated, instead of the buyer panickinbg or potentially losing the entire deal, a cash advabnce loan would provide the funding needed in a private, quicck, and convenient manner. To receive the money, all the homeowner would have to do would be to visit a bricck and mortar lnder or go onlien, depending on how quickly the money was needed.
For instance, a person going to a storefroint lender would be able to complete the appliication process in abuot 15 minutes and often have the money needed in 30 minutes. For the individual that has closing the following day and needs to get hold of monwey quiclkly, then a brick and mortar lendder wuld make perfect sense. The prcess would be seamless and the home would close witohut a hiitch.
On the otehr hand, if the homebuyer had a few days before closing, then he or she could also consider taking out a cash advance loan through an online lender. In this case, the applicatoin process takes less than three mnutes and in most casees, an amnswer would be provided within an hour. Once approved, the lender would send the money to the person’s bank accounnt via electronic trasnfer.
Now, in the case of usiing the money for cloing, it would be a more private transaction with an in-person lender. That way, the money or a check could be provided and ofteen, lendes have bank accounts set up whereby the indivifdual could simply take the loan check to that bank and cash it. Obviously, for clsing costs, the mopney would simply be handed over without it ever passing through the peson’s bank. There is nothing considered illegal about a transaction such as this, simply a cash advance loan saving the purcase of a home.
People use cash advance loans for all types of purposes. Sometimes, people need a down payment on a car, perhapls there a medical emergerncy arises, or the person miight have falen behind on utilities and worried that gas or electricity woudl be shut off. However, cash advance loans could also be used for pleasure. In this case, an individual cuold take the momney and go on vcation, get away for the weekend to visit friends, or buy a new wardroe. The bottom line is that cash advace lenders do not care where the money goes. All they want is assurance and proof that the loan would be paid back according to the terms of the contract.