There are many tips for making the financing of a mobile home easier and less expensive. Such tips may include checking one's credit report for errors that may lower his score and determining whether one will need a mortgage or just a personal property loan. Some may feel that a personal property loan represents a simpler option, but it may also require the borrower to repay the loan faster and accept higher interest rates. Additionally, one of the best tips for mobile home financing is to comparison-shop for loans in order to get the best deal.
One of the most important tips for financing a mobile home involves checking one's credit report before applying for loans. Often, people are surprised to discover their credit reports contain incorrect information. For example, it may include an entry for an account that does not belong to the potential borrower, list a balance that is far above what he owes, or include a negative entry that should be positive. A person can typically dispute such errors with the credit bureau. The credit bureaus will usually investigate such disputes and correct any errors they cannot confirm. With errors removed from his credit report, a person's credit score may improve, making it easier for him to secure a loan with attractive terms.
It is also important to consider where the mobile home will be placed. If it will be placed on a tract of land and left there permanently, one of the best tips for financing a mobile home involves securing a loan that covers both the mobile home and the land on which it will be placed. If the financing only covers the cost of the mobile home, a buyer may be left scrambling for a way to afford the land he needs.
One may, however, only need a personal property loan to finance the purchase of some mobile homes. If, for example, the mobile home he wants to purchase will be on rented land, he may seek a personal property loan instead of a mortgage. Personal property loans are often granted for shorter periods and at higher rates than typical mortgage loans.
Another tip for financing a mobile home is to compare interest rates and loan terms. While a person may be excited about the prospect of financing a mobile home, taking some time with comparison-shopping may provide for increased happiness in the long term. If he accepts the first loan he is offered, he may end up with an uncomfortably high interest rate and loan terms he later decides are unfair or unattractive. Instead, he may be much more satisfied with his mobile home purchase and the financing he secures if he takes the time to compare loans and choose the best deal.
