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.
