In cash equivalent, this payment represents approximately 3-10% of the price of the item you intend to purchase on credit. In this case, the borrower will not receive the cash , as the bank will transfer the full amount of the credit to your checking account, and the funds will be immediately transferred to the seller. As a result, the object will have been purchased, but the borrower will have to pay the bank according to the terms of the contract and repayment schedule.
However, you will not be able to make a large loan, even with a down payment, if you do not have sufficient official income. What to do for those who want to make a big purchase who have a financial base but can’t officially prove their income? If you find yourself in this situation, a solution has been found! In this article, we’ll look at several options for getting a great credit and finding the money for a down payment.
Borrow from relatives
First of all, we have to look for money for a down payment among our friends, relatives or relatives . You may need to borrow from more than one person. In any case, when borrowing, you must agree that the money will be returned as soon as your financial situation stabilizes, with no time limit.
You can borrow a certain amount from your relatives in cash, then deposit it in your account and charge it as a down payment. You can also ask your relatives to transfer money to your checking account. Once the entire amount has been collected, you will have the funds to pay the required amount. With cashless transfer to your card, you will know where and how much you have borrowed, so you can give it back without any misunderstanding .
First deposit from the deposit account funds
Usually the bank wants to receive the first deposit in cash. But there are also situations where the bank makes concessions to its customers, and it even makes more profits than expected under the standard terms of the program. For example, you have a large amount of money deposited in a deposit account with this bank. And, although a form of credit does not require security, this deposit can become a guarantee to the bank. In case of unforeseen circumstances, the bank is entitled to repay a certain amount of the loan granted to you for these savings. It is this amount that will fulfill the function of a down payment in the event of force majeure.
Applying for a loan and using a deposit account as a guarantee to the bank will give you the full amount of money you need to purchase the item you need. But the bank will certainly set much stricter requirements for you. It can maximize your income bar, study your credit history in detail, and minimize risks.
Offering a pledge to a bank in the form of a large object such as a car is much more difficult than making a down payment. Why? First, the bank will take a long time to evaluate this object, determine its price and its liquidity, which may result in a negative response to your application. It’s much quicker and more profitable to sell something big yourself, like a second car you don’t use. But use the money from the sale as a down payment.
Get a legacy or gamble
Both are quite risky . Nobody can guarantee you a positive outcome, but in both cases you will have to spend a certain amount of money: inheritance – legal issues, gambling – at rates.
And yet, if you are lucky and have inherited a large sum of money or expensive property, this income must also be documented and documented in accordance with applicable law. Great prizes must also be documented.
The bank that gives you the credit and is waiting for you to make your first deposit must be sure that your money is legal and clean. Any large reward or winnings must have official confirmation that it has been received legally and is yours. Also, such proof of receipt will help the bank understand if you have paid any income tax.
Regardless of how you were able to find the money for the down payment, this payment is proof that the loan is beneficial to the borrower because:
- The down payment reduces the interest rate by 1-2%.
- The down payment releases you from the pledge.
- The down payment reduces the loan principal and saves you money at the annual rate.
Therefore, the down payment – it is profitable. The bigger it is, the cheaper the credit will be. Therefore, the borrower’s main task is to find as much money as possible at the time of applying for the loan and to make a large down payment to reduce any further loan costs.