What You Need To Know Before Applying For a Portfolio Loan in Texas
Portfolio Loans in Houston, Texas, offers non-traditional loans that don’t require substantial down payments or unreasonable financial obligations. There are no barriers to buying your first home or moving into that dream house you’ve been searching for with Portfolio Loans.
If you’re looking for a loan in Texas, there are several things you should know before applying for a portfolio loan. If you’re already an experienced borrower, these things will be old news to you. But if you’re a newer borrower or have questions about what to expect, read on to learn more.
Why Portfolio Loans?
The main advantage of applying for Portfolio Loans in Houston, TX, is that You can use it to finance business or farm equipment, as well as commercial real estate and other types of property. You can also use it to help finance working capital needs and investments in stocks, bonds, and mutual funds.
Applying for a Portfolio Loan is Easy
The application for a portfolio loan is a simple matter of self-disclosure. To receive a portfolio loan, you are required to disclose your entire financial situation as well as the value of your assets. The good news is that you can send this information in an email, and the bad news is that you have to know what information will be required.
Rates and Formalities
You will be asked to sign a deed of trust before receiving your loan. This is simply a formality. However, the lender will not release the lien on your property until the loan has been completely paid off. The interest rate on your portfolio loan is based on the Prime Rate plus a percentage that your Portfolio Loan Lender in Houston, TX decides upon, which may be as high as 7% or 8%.
The Amount of Money You Can Get Varies
The amount of money you can borrow depends on how much value your portfolio has. If you have a lot of value stocks, bonds, and other things, you can get more money than if your portfolio is made up of less valuable items. This means that even if you have much money saved up in your account, it does not mean that you will be able to get as much from a lender as someone who has invested their funds.
Get Your Credit Score
Before applying for a portfolio loan in Texas, getting your credit score is a good idea. It will allow you to start rebuilding your credit from scratch so that when you apply for a loan, your credit score will help your chances for approval.
Remember, if you shop around for Portfolio Loans in Houston, TX but aren’t realistic about what type of property or purchase price you can afford, then it’s doubtful that any lender will approve your loan application.
The Length of the Loan
There are three options for you to choose from regarding the length of time for the loan. These are short-term, long-term, and adjustable rates.
- Short-term loans last for 12 months and have an average interest rate of easily over 20 percent.
- Long-term loans last considerably longer than short-term loans and can last up to 30 years.
- Adjustable-rate loans are just what they sound like; they vary with the market and change every year or two, so they are sort of like having a variable rate loan but without any predictability.
How to Choose a Lender?
There are some bad apples in the lending business as in any industry. The best way to avoid them is to research your Portfolio Loan Lender in Houston, TX, before applying. In general, larger banks and lenders who do this kind of thing all the time will be more likely to give you a better deal than smaller institutions or those who only occasionally lend on personal property.
Also, understanding how much money you can borrow beforehand will help eliminate any potential surprises during the loan application process.
The Bottom Line
Contrary to popular belief, not all financial institutions provide the same range of services. Some are more suited to your needs than others, depending on where you live, so it’s essential to shop around when you’re looking for a portfolio loan in Houston or anywhere else in Texas.
