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3 Things You Should Know About Home Loans
6 Comments · Posted by admin in construction loan
A home loan, or mortgage, is most simply described as a loan taken out so that you can purchase a home. Shopping for a home online can make the borrowing process simple and painless. However, you do need to be cautious about potential scammers and low-quality loan companies.
To obtain a home loan you will need to be at least 18 years old and have the income that is required to be able to easily afford the loan payments. While many mortgages are placed on existing homes, you can obtain a home loan based on units, condominiums, new construction or land packages.
Home loans are usually taken out for 15 or 30-year terms and will be based on your monthly payment, the principal and interest rate. You may also find that some lenders require that your mortgage payment also include property taxes, insurance, etc.
When applying for a home loan your credit report will be reviewed and you may be required to provide a number of other details, including: Employment and income records, Tax Returns for the last few years, List of assets, List of liabilities and what you owe, Your budget showing monthly living expenses so that you can demonstrate an ability to pay.
With this information you can determine the kind of home loan and size of the right mortgage for you. In some cases, you can obtain a pre-approval or pre-qualified certificate, which shows how much you can borrow so that you can then shop for homes in an appropriate price range.
To get some of the personal loan deals, the lenders may require you to have a pretty good credit record. Lenders are no longer interested in taking risks; they want to play safe in the present uncertain financial conditions. It is important to know what the lenders actually look for before they lend you money. Some of the parameters for sanctioning personal loans are credit rating, DTI ratio, monthly income, loan tenure and the amount of loan. The basic things come to your repayment capability and the potential earning capacity.
The best loan deal is not necessarily a loan offer that has the lower rate of interest because there are many other things that count. What about clauses like early repayment penalty, arrangement fee, brokerage charges, etc? These things define the overall cost of the loan deal and your decision should also take into consideration these aspects.
Important things you should know about home loan:
* Do not give any upfront fees to loan modification or stop foreclosure companies boasting “attorney based”, “attorney backed” or “attorney assisted”!
* Do not pay for a forensic loan audit unless it is performed by a Law Office, an attorney is the only person that may use lending violations as leverage!
* Do not use a loan modification company unless they have an upfront fee agreement approved by the DRE and offer a 100% money back guarantee!
* Do not trust just anyone with your difficult situation; contact a Law Office and hire an attorney who specializes in Loan Modification and Loss Mitigation services. They are the skillful people who are specialized in this task.
Jeff
http://www.articlesbase.com/mortgage-articles/3-things-you-should-know-about-home-loans-736690.html
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Ashley V. · March 18, 2010 at 10:01 pm
Should I apply for my home loan before I find a real estate agent?
I am a first time home buyer and dont know the first thing about buying a home. I’m hoping to have a house purchased before the end of the tax credit period which I do believe is December 1st of this year. Should I go ahead and apply for the loan [which will be an FHA loan] or should I find a real estate agent first? Also, where would I go to apply for an FHA loan? Can I apply online? and how long does it take to get pre-approved?
Steve · March 19, 2010 at 3:03 am
You cant apply for a mortgage loan before you identify the property price, down payment and other terms.
You can apply get a pre-approval. Perhaps this is what your are thinking?
Depending on your credit score you may want to go to a lender, better yet ask the real estate office who the suggest. If your credit is not perfect or you want a non-standard property, you should consult a mortgage broker.
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Jennifer S · March 19, 2010 at 3:05 am
Get your loan going first. That way you know how much you are approved for and how much you can spend on a home. The worse thing is to go out find a house fall in love with it then find out you cannot get approved for that much or you find the house you love and it is gone by the time you do get approved. This will make the process easier for you and the Realtor.
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Real Estate Investor
jon144au · March 19, 2010 at 3:07 am
This is a Cart/Horse type question.
You may be in a better position to purchase a home if you already have a "Pre-Approval" (not Pre-Qualified) letter stating how much you have to spend, but many Loan Companies won’t Pre-Approve you unless you have an Offer to Purchase for a particular property.
You probably should get a Real Estate Agent to act as your Buyer’s Agent, on your behalf.
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20 years Real Estate Broker
David Z · March 19, 2010 at 3:09 am
you should get pre approved first. once pre approved then go get an agent or use the listing agent to show you the house you are interested in.
you need to hurry. you have to close by 11/30. to be safe you will need a contract with a seller by 10/20 in order to close by 11/30. that gives you about 5 weeks to find a home and reach a deal with a seller.
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BabieBlue · March 19, 2010 at 3:11 am
Hi,
You would need to get yourself pre-approved first before you can buy a home. A good real estate agent should be able to direct you to a good broker or lender so that you can be pre-approved. Pre-approved is what you would need now a day to have your offer being accepted. Pre-approved mean your credit, income and assets have been reviewed by a qualified loan advisor. If you are buying home in california, I can help get you pre-approved. http://www.topstarrealestate.com
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