The principle of loan repurchase is ultimately quite simple. Your loan repurchase broker, after studying your situation and establishing your financing plan, requests different partner organizations.
When your file is accepted, the selected organization buys back all your loans from your various creditors. In return, you are now debtor of this unique organization with a unique rate and duration for lower monthly payments than those you had before. With a grouping of personal loans, by decreasing your monthly payments, you increase your monthly living income!
How does your credit buyout study work
To set up a grouping of credits, you must first know your repayment capacity: you must know exactly what you earn and what you spend. It sounds simple and obvious and yet! You have to calculate what the total amount of his credits represents as well at the level of the amount of principal remaining due, i.e. the total amount that you have to repay and what represents the total amount of the monthly payments that you repay monthly.
We must not forget his rent in terms of charges or his home loan as well as car credit or LOA (rental with option to buy), all revolving credits or consumer loans, work loans. In order to set up a buyout operation, all of its information will be requested. Perfect honesty and transparency asked you so as not to give you false hopes and to save you time.
Good to know: it is necessary to anticipate the demand and calculate the amount of the ideal monthly payment which one estimates to be able to reimburse without grafting one’s budget.
To make a grouping of all his loans the borrower must know the total amount of all his charges at the level of taxes, gas, electricity, telephone, various subscription and monthly costs like the nursery, the school and the canteen, insurance, fuel costs, alimony and monthly food expenses which are a very heavy burden. When you have added up all of your expenses, you deduct them from your income and see the amount you have left at the end of the month.
A small example to see more clearly
A couple of tenants with a child earns $ 3,500 in monthly income. They have a rent of 850 $. All charges, excluding loan repayment and rent, represent $ 1,800. You are currently reimbursing 1500 $ for all your credits.
This represents a total expenditure amount of $ 4,150. You have more reimbursement of credits, reimbursement of charges and current expenses than income. It is therefore impossible to without going out without a loan buyout.
If we are considering a loan consolidation, the maximum amount of monthly payment that you can grant on your repurchase is 850 $. You also want to save an additional $ 200 every month in order to give yourself a vacation and set up a savings plan for your retirement. So thanks to the credit buyout the amount of the new monthly payment would be 650 $.
The last questions to ask yourself are:
- Do you have new projects?
- Do you need to change your car?
- Do you have to finance the studies of your child who is going to go back to college 300 km from your home?
- Have you planned to do any work?
- How much do you need to finance your projects?
So many questions to ask yourself in order to anticipate your future reimbursement.
It remains to be seen if this is possible
- Is the debt afterward correct?
- Is the rest of the living enough?
- Are the criteria of our lenders respected?
You cannot answer all of his questions. So contact Good Finance your broker specializing in credit consolidation.
The duration of your reimbursement will be adapted according to your expenses and your projects and not on an accepted idea of too long or too short duration. The amount of your monthly payment with this new loan repurchase will really be adapted to all of your expenses.
How is a loan buyback file analyzed
Once you have completed your study form for consolidation, an analyst specializing in loan repurchase will study the smallest detail of your simulation.
The analysis of the file begins with the civil status: All your contact details are essential in order to be able to respond and contact you as soon as possible. The date of birth is very important even if the age for the end of repayment is 95 years maximum. Civil servant, in the liberal profession or retired your broker in the regrouping of loans, intervenes for all the professions.
Your occupation status: the borrower who has official housing which is often the case in the public service, or who is lodged or rented, as well as the owner of the property or the owner is eligible for redemption.
Value of the property: For the buyer of the property or the owner, the value of the property allows us to determine whether we can make a credit consolidation with the taking of collateral (if necessary). The mortgage ratio or the asset ratio is assessed based on the total amount of the combination and the value of the property.
The calculation is simple, we take the total amount of all the credits (mortgage, personal loan, revolving credit, consumer credit) + debts + costs + cash or the new project to finance and we divide all by the value of Property. Example: Total amount of loans and other $ 120,000 / property value $ 190,000 = at the mortgage ratio, ie 63%. We cannot lend more than the value of your property unless we do a consumer loan consolidation, therefore without a mortgage guarantee.