Posts Tagged ‘House & Home’
As the saying goes, home is what you make it. The same is true for home financing loans. Before putting your hands on the application form for a mortgage, make sure to obtain your credit report first. Your credit report is necessary in the process of application. The very first thing you need to do is to decide on the lender. After that, you need to sign the purchase contract that they will provide. You will then need to get your credit approval. This will verify your income, the liabilities that you may have and if you will be able to repay the loan in time. After this, you’ll have to present your proof of income, debts and assets to the lender of the home financing loan. You need to submit all of these requirements as they are essential to your application. Be aware that there is an application fee that you have to pay. So, before you meet with the lender, make sure that you inquire about it to avoid any unwelcome surprises. Generally, the total process for application may take one to eight weeks.
The interest rate is not stable as the market fluctuates so much. So, you can expect the interest rates to go up or down even in an hour. You have the option to lock in the interest rate for your loan. You just need to make sure, though, that the period won’t expire before the time that you close on escrow. Also, inquire for the fee for this option. Ask the lender too if this option is refundable.
Home financing loans vary from lenders to lenders. However, they are either adjustable or fixed. With an adjustable rate, the rate does change. The rates are typically lower. However, they are more risky as compared to fixed rate because there is a chance that the rate will increase drastically. On the other hand, with a fixed rate, the rate does not change. When you already have a variable rate and decided to shift to fixed rate, there are still options for you. You need to talk with the lender about this and inquire about the rates or if there are any special terms that they may offer. Most lenders have preferred rates especially for their existing customers. When buying a house for the first time, make sure to decide on the best financing option for you before you finally fill in the necessary documents of the lender.
As an applicant, you will be presented with too many options for home financing loans in the market. The process could be daunting for first time applicants. So, make sure to read as much information as needed.
Choosing the right lender that will provide your needed home financing loan is important. The wisest investment that you can make for now is to educate yourself about home financing loans. Ask as many questions as possible to the lender like the rate of the loan, whether or not you’ll have to pay any points so as to buy down your interest rate, the closing cost and whether or not they have a prepayment penalty.
Buying and owning a home often leaves many people cash strapped, a new homeowner will often be faced with unseen financial burdens if they need to make adjustments to their new homes or finding themselves in a situation where they have no cash on hand. A good backup plan is to look at The REX agreement which will allow you to draw cash out of your home.
It is good to have options, make sure you are well prepared when taking on the responsibility of a new home.