Category Archives: Home Loans

Points To Consider Before Applying For Home Loan

Home loanReal estate developers are working very hard to make your dream of owning a house come true. Most of the people go for home loan while buying a new home as it saves you from the tax and also reduces the burden of paying the entire amount of loan altogether. There are many points which are to be considered before applying for home loan. If you are not active before applying for home loan then you can make mistake and have to pay more interest and other payments then you actually need to pay.

  • Know your loan eligibility

One of the important factors to be considered before applying for home loan knows your loan eligibility. The amount of loan which banks sanction depends upon your past record of repayment of loans, your income and your credit card dues. Before applying for home loan, you must check whether you have been regular in paying all your dues and previously taken loans. You must have a check that how much amount you can spare on the monthly EMIs from your regular income. Before you apply for home loan, you must be aware that this much specific amount you are going to spend on EMI. If you are able to spare this amount then only apply for home loan. Usually banks offer loan up to the 80% of the total cost of your property but this is not compulsory.

  • Check your credit score

Before applying for home loan, you must have a check on your credit score. You will get your credit score between the scale of 300 and 900 points. These points are assigned to you on the basis of your existing liabilities and loans, loan repayments, bank account statement, credit card bill payment and also on the base that how much time you have applied for the loan till now. This all things are taken into consideration while applying for home loan. For knowing the credit score, if you are paying processing fees to three to four banks to know the maximum limit of yours then you can be called as credit hungry according to CIBIL and the chances of getting loan is reduced. This CIBIL rating gives the net salary excluding your variable heads and existing EMIs and loans as it predicts the vital capacity of the person applying for home loan to repay it.

  • Choose your lender

A very important factor to be considered while applying for home loan is your lender. Make sure to do a detailed research while finding a financing company or bank while taking home loan. Also see what are the terms and conditions of giving a loan and also see the interest rate and tenure of the loan. Interest rate is very important factor but this does not mean that you should avoid other factors like customer service or the charges if there is early termination of the home loan. Check these details before you choose the lender for your home loan.

No Doc Home Equity Loans

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If you are looking for a loan that offers more privacy and ensures an easy application process, a no doc home equity loan is a good option. The interest rate is usually higher but this is a small price to pay for the convenience you get.

With this kind of home equity loans, your financial history is not going to be looked into during the loan application process. This option is suitable if you are using your inheritance as security for the loan or if the income from your business is not stable. You can also use it if you have a good credit history and your income is stable if you prefer to have some privacy.

When you are applying for the no doc home equity loan, you will only provide your name, social security number and details about the property. The lender usually gets the rest of the details without your help.

Home Loan Modification Programs – Are They Right For You?

home loan modificationMany homeowners feel that they’re paying too much interest for the home loan they took out pre-recession. Whether it’s a mortgage or a home improvement loan to fix your roof, these opinions have created a problem during this now recession. People feel their loan installments are too high in comparison to how much their house is worth and what they can afford to pay. With this recession in full force, people are just simply not in a position to pay the amount they owe. This is leading to quite a few loan defaults.

The Senate is keeping this in mind with home loan modification programs. The borrowers would get a fresh lease on life, and their house mortgages would be broken down into 30-year payment installments. However, some companies may ask you for a share of the money when the house is resold.

The one serious problem that may not help you is the extension of the loan. To any astute business, that is a huge sum accountable even at these easy payment installments. What the government should have done instead was write down the value of the house and pay the balance. Unfortunately, they did not do this so it looks like you should think twice before taking on one of these loans.

Work out your home loan repayments

Finance,home loans,interest ratesAn own house is the most cherished dream of any person of the middle class. Thanks to the several loans that are available from the banks, one can easily get a home built or buy a readymade house. But there are some points that you need to consider before you go for any house loan. Each bank has its own interest rates and other formalities. Some shopping around the different packages on offer will help you select the best that will let you pay off the loan without any tensions.

First of all, you need to about the different plans available for you. Check out the maximum amount you can get, the repayment schemes, and then the interest that also depends on the repayment schemes. Check out the bank that has a good record of customer care. Then calculate the installments and the duration for which, you need to pay the installment. Once done, you can easily apply for the loan without worrying about any possible problems

Home Improvement Loans – No Need to Wait Any More for Home Improvement

Home Improvement LoansJust returned from the house of your relative and when you see across your home, you see cracks, the paint faded and the outdated furniture. You would want to change the whole interior at a go. But as usual, the problem is the money.

Home improvement loans provide you with the opportunity of refurbishing or restyling your home. The home improvement loans are essentially special packages designed to cater needs of people. Home improvement loans are of two types.

Secured Loans: in these types of loans, you have to place an asset before they agree to your loan.
Unsecured Loans: in these loans, you do not have to put forth any asset to get your loan approved.
Unsecured loans are better if you do not have any asset, or you do not want to place any asset. Meanwhile, secured loans are better in case you want lower interest, longer repayment period, and more flexible terms and conditions.

You can choose either secured or unsecured loans as per your need. Today, homes are a part of our lifestyle. Moreover, you may want to have your home rearranged according to Feng-Shui etc.