Chase does offer borrowing options for personal uses. Not all can qualify for them. This is what makes personal lending hard to get. How can you make the personal loan work for you if you are a homeowner?
Let us begin by taking a note of the key differences between a personal finance and a mortgage loan. While the former can be either secured or unsecured, the latter is always secured and is specifically tied to real estate property, such as a land or a house.
Another significant difference between the two is the purpose for which they are given out. While a personal finance can be used for almost any purposes, a mortgage loan must be used to buy a new home or refinance an existing home.
Also remember, unsecured loans are not tax deductible, which is yet another factor separating it from a mortgage loan or a home equity loan.
The scope of a personal finance can be as wide as to include the mortgage loan as well in its ambit, besides a number of other loan types, such as auto loans, student loans, and home equity loan. Moreover, it may be available as an installment loan or as a line of credit.
An important question people usually ask is whether a personal finance affects mortgage application. The simple answer is ‘yes’. Credit scores are among the most important criteria of mortgage underwriting process and they are affected by certain types of debt, including those falling under the category of personal financing.
Personal Loans for Homeowners
A personal loan can definitely help improve your credit score if paid in time, but can it help you buy a home?
You might argue, but it can be a viable option if you need to borrow an amount less than $100,000. Not many lenders are willing to offer you a mortgage loan of such a low amount.
Chase bank offers small amount like personal loans. One more benefit with this financing option is that it can be either open-end (revolving) or closed-end (non-revolving) credit. A revolving credit can work great if you need money on a regular basis for purposes like home remodeling. Unlike HELOC, you don’t have to think about collateral and losing your home in case of a default.
Though not a personal loan typically, Chase DreaMaker Mortgage is ideal for people who don’t have perfect credit or may be falling in the bad credit zone. You need to pay down only 5% (3% of which must be from your own funds) for loan origination. A personal loan might work to meet the costs related to down payment and closing.
A homeowner, on the other hand, can choose a financing option at Chase depending on your typical circumstances and particular needs. He or she can contact a relevant department and call its customer service phone number to get more information regarding available loan options.
You might need money in emergency, such as to pay for medical bills and unexpected travel. It seems a good idea to keep an all-purpose credit card to meet immediate requirements of fund under such situations. Chase offers a range of credit cards for your convenience.
A home equity line of credit can be a cheaper option and may be useful in situations where the use of a credit card seems difficult or impractical. For example, you can draw money easily from an open line to make a delinquent mortgage payment and avoid a foreclosure.
For planned expenditure, you always have one or more ways to seek help from a big bank like Chase provided you have a checking account with the said bank and maintain good credit.
For example, Chase offers auto financing to help you buy a new or used car, small truck, SUV or a minivan. You must have fair to good credit score to apply and get approved. Note that you are required to have access to Chase Online if you intend to apply through an auto dealer.
Even if it is difficult to obtain a signature loan or installment loan, you can rely on several alternatives that Chase has to offer, such as checking account overdraft protection, home equity and small business loans.