Category Archives: Home Loan

What You Need To Know To Apply For A Mortgage

You must apply for a mortgage because you finally decided to buy a new home, but what do you need to know before applying? What kinds of paperwork the lender will require of you? What type of information about personal history will the lender need? I strongly suggest you to visit Harbor View Funding-Mortgage Company to learn more about this. How long will it take to apply for the loan?

When you apply for a mortgage the lender may require many forms of financial paperwork. All items that may be requested are a copy of last year’s taxes, a current check stub, a bank statement, and a list of companies that you owe money to and the amounts due. These items are used to determine the credit risk to you.

Some personal information that will be needed for your application for a mortgage is history of residence. You’ll need to know the addresses for the locations you’ve been living over the past couple of years, the amount of time you’ve been there and if it’s a rented or owned location. You’ll also need to account for your history of employment. Lenders are looking for duration of employment and amount of pay to assess how much of a credit risk you are. Personal financial details such as spending patterns, any recent acquisitions of big ticket items, or whether you may include benefits such as alimony or child support in your available monthly income, might be asked. Finally, perhaps the lenders want to know what kinds of assets you have. Have you got an IRA, a car and/or a bank account? If necessary, what types of articles are available for collateral?

The approval process for a mortgage takes between one to eight weeks to be accepted or rejected depending on the type of mortgage that is being applied for. When a mortgage application is accepted, the payment of the mortgage takes 7 to 10 days unless there is any variance with the loan application. You should be given the list of closing costs within 3 days of applying for a loan, and should remain the same at closing. Make sure you look carefully at these prices, and make sure you understand each charge.

When choosing a lender, ask what percentage of credit is refused. A percentage of less than 10 per cent should be predicted. Find out what mortgage types your lender uses most regularly, too. What is the turnaround time for requesting a mortgage? The presumption is that a request will be accepted within a matter of hours, up to no more than eight weeks. Asking these questions beforehand should help you avoid “over-shopping,” which means you have contacted multiple quote lenders. — time a quote is given, it pulls your credit report and actually decreases your credit rating because it looks suspicious. You will not pull your credit report during a six-month period more than 2 or 3 times to avoid adversely impacting your credit score.

Tips to Avail Home Loans

The Need to Offer Home Loans In the recent past the prices of plots and houses have risen more due to inflation. In spite of this, the market for home loans has gone up in the last decade. When you decide to buy your dream house and you are not in a position to raise the required funds, loans from banks or other approved financial services provider would do the trick. Approximately 90 percent of the valuation of the property may be lent through home loan. Blue Square Mortgage LLC-Home Loan is an excellent resource for this.

Loans that have small interest rates and simple repayment plans are common for loan borrowers to obtain. The interest rate and repayment choices are based on the form of loan you make use of. Two of the most common kinds of mortgage loans are fixed rate and fluctuating rate loans. Regardless which which forms which loans available on the market, it’s important to get the fundamentals correct before you make your decision.

Here are some of the helpful ideas for making use of home loans: • Study-Studying all possible forms of loans in advance can overcome much of your doubts. Find out what kinds of home loans are provided by the banks and other approved financial institutions. Studies on interest rate, loan duration and opportunities for repayment.

  • Safe credit records-Ensure consistent and secure credit reports and prevent any issues with the issuance of a loan request. Loan analysis that may be done whether you have a poor financial history or are currently in debt.
  • Dealing smartly with discounted loans-Most lenders give promotional rates to investors for the first time by covering any other costs. The loans are initially sold at reduced rates, and any such costs are subsequently revealed. Identifying and knowing the exact expense of securing a house loan can hold you away from these fictional, cheap loan guarantees.
  • Pay extra – As you pay the normal EMIs, it’s a smart idea to spend more than the EMI once in a while so that the loan’s principal and interest portion rises.
  • Consolidate – Home loans are commonly utilized by individuals even if they have other unpaid debts under their belt. Invest in a combined house loan that would not only allow you to buy your dream house but will also clear up other unpaid personal loans and overdue credit card bills, because that will enable you streamline your finances.
  • Spend less-Saving money on the very essentials alone would ensure sure you earn more. For this, you will conserve money as well as pay the loan EMIs on a daily basis, without going into any more debts.
  • Avail flexible loans-You never learn when to move. Investing in a flexible loan which can quickly be moved to another property in the case of relocation is a wise move.

Each of the various schemes have specific characteristics with one function. Only use house loans from approved financial entities or banks. Through this you will review various forms of programs, keep away from secret costs, get prompt acceptance of the proposal and provide competent support.