Having your dream home in front of your eyes will surely be your biggest achievement. But getting a mortgage or a home loan is one of the most important decisions, which you will have to make to own one. Finding the best home loan cannot be taken casually. There are certain tips through which you can opt for the best home loans, such as -
Factors favourable for approval: Lenders can ask you about the total cost of the home including property taxes, maintenance fees and actual price before lending you money. Moreover, your credit score and your employment status can also affect the approval for your loan. Even if you have existing liabilities e.g another loan, the chances for approval will reduce.
Choosing a mortgage online is not a good idea: You can buy anything online ranging from music player, sports equipment to books, but selecting a home loan online is not a good idea. You can search for different mortgage lenders on internet, but you should not work with an internet only firm for mortgage.
Avoid interest only loans: You should avoid interest only loans unless you have planned to move in a short period of time.
Verify if the fee is reasonable: Although some fees might not be avoidable, yet some fees is an unnecessary junk fees or quite negotiable.
Negotiate the rate: You must negotiate on the interest rate irrespective of the type of mortgage you choose. You can get benefit if you are an old customer of the bank. You must have a clean credit history with no due payments or debts. Banks want a reliable customer who can pay for the loan on time.
Avoid paying for mortgage insurance: Mortgage insurance is meant to protect the lender and not you. So you must avoid mortgage insurance unless you have low debt-to-home equity ratio.
Thus, getting approval for a home loan is easier said than done. It seems that the lenders are curiously waiting for the customers to get their loans sanctioned, but it is a very troublesome job.
No comments:
Post a Comment