Archive for

How to Find a Home Loan You Can Afford Online

With the help of the internet, finding the right home loan can be made a million times easier than going it alone. Nowhere else can you find such a wealth of knowledge and resources on home loans than on the World Wide Web. With a few simple clicks of a button you can be one step closer to owning the home of your dreams.

What to compare?

Before you can begin an effective home loan search you have to gather your thoughts and information to decide what’s most important to you and what criteria you should compare. While each home owner has their own individual needs and concerns to consider before purchasing a home such as location, size of home, size of family, etc. Some criteria considerations are universal and should be at the top of everyone’s priority list, these include:

The interest rate- The higher your interest rate is the more expensive your mortgage payment will be.

The type of home loan-There are hundreds of home loans out there. Which one will be best for you? A no deposit home loan? Variable rate loans? Fixed rate loan? While a home loan professional will help you solidify which loan is best, it’s important that you have an idea of which one you are most interested in.

The terms- Closing costs, exit fees, commissions, life of the loan, and other requirements will all vary from loan to loan. Pay attention to the details regarding all of the terms of the home loan, failing to pay attention to these can mean you’ll end up paying in the long run.

Where to look?

Two of the best places to secure an on line home loan is through a comparison website or multi-lender site. Both sites allow you to compare lenders, terms, interest rates, and other information to help you find the right home loan for you. These sites often require that you fill out an online application that they will submit to multiple lenders, who will then offer you home loans based on the information you provided.

When using a comparison website or multi lender site remember to compare lenders based on your needs, not on what they want to sell you.

Always keep in mind:

o Your budget-How much home can you afford?
o Your credit rating?-Is your credit strong enough to be approved for the home you’d like?
o Amount of down payment-How much money do you have saved? Is it enough?

Applying For A Home Loan – What Do You Need

The Basic Needs When Applying For A Home Loan
Congratulations! Now that you have found the perfect home, all that’s left is getting the perfect mortgage. In order to do that, you will have to know what your lender needs from you in order to get your loan application approved.

Property Description
When applying for a home loan, you will need to provide the lender with detailed information regarding the property that you intend to purchase, including a physical address, what type of loan you are requesting and how you obtained the funds to be used as a deposit.

Your Personal Information
All persons named on a home loan must be able to provide requested personal information including but not limited to names, dates of birth, current address, former address (typically if within the last two years), marital status, current and former employment information, telephone numbers and any dependants you may be responsible for.

Most lenders require tax returns for at least the two years preceding the loan application, along with current payslips or, if self-employed, a year-to-date profit/loss statement. This may be required for more than the previous years income.

Current Mortgage Expenses
An important part of every home loan application is affordability. Your lender will need to know the percentage of your income that will be available to pay for a new home. If you have a current mortgage, be ready to provide a detailed list of expenses that you pay each month in relation to the property. This includes a mortgage payment, body corporate fees, local government taxes (rates), mortgage insurance, homeowner’s association fees, utilities, etc. If you plan to sell the home, advise your lender know so that they are aware you are simply replacing one debt with another.

Legal Yes Or No’s
Almost every loan application asks both the borrower and co-borrower (if applicable) to answer a few simple yes and no questions on the application. Questions pertaining to outstanding judgments, bankruptcy filings, foreclosures, lawsuits, alimony, child support and citizenship status are standard and should be expected when applying for a home loan.

Statement Of Assets & Liabilities
When applying for a home loan, both the borrower and co-borrower will be required to disclose all of their current assets and liabilities. An asset is property, either real or personal, that is owned and is of value. A liability, on the other hand, is a financial obligation for which one is liable. A loan application will request information relating to assets and their current market value, including automobiles, real estate, stocks, bonds, life insurance (cash value), business net worth, personal property, etc. If any amount of money is owed on these properties, the lender will request information relating to the unpaid balance in order to determine.

Disclaimer: Information provided in this article is intended to be general in nature only. This does not constitute specific financial advice to individuals, groups, business or corporations.

How To Get A Mortgage – 5 Ways To Find The Best Home Loan For You

In today’s buyers and refinancing market, it’s important to know how to be a savvy mortgage shopper. Knowing what to look for before you borrow a large amount of money is extremely important. Here are some quick tips that can help you make the right decision on your home loan hunt.

Know Your Terminology – For many first-time homebuyers (or even people who’ve had a mortgage for many years) the mortgage world can be very confusing and intimidating. The good news is that it really isn’t that bad once you learn a few key terms. Here are a few things you should know before you get started.

* Loan Types: Your main options are going to be the VA Loan (only available to qualified veterans), FHA Loans (a popular option for first time home buyers due to the low down payment requirements), Conventional Loans (the most common loan option – requires a 20% down payment) and ARMs (adjustable rate mortgages are good for people who know they won’t be in their house for more than a few years).

* Repayment Terms: You’ll be choosing between a fixed interest rate, where the interest rate will not change over the life of the loan and an adjustable rate where the rate begins low for the first five to seven years, and then adjusts to the average interest rate every year after your fixed term ends.

Points – Points are a crucial piece of the mortgage process that any savvy shopper should familiarize themselves with. We have a great article about mortgage points that we recommend you read. Once you do a little research, you’ll find that points aren’t as intimidating as they seem. They are basically pre-paid interest and can really make a lot of sense for someone who is planning on staying in their home for several years.

Mortgage Rates – One of the main reasons why so many Americans are considering buying a home or refinancing is that we are living in one of the best mortgage interest rate markets in history. It’s important to do your research and make informed decisions, but you will also want to lock-in your mortgage rate while they are at historic lows. This will guarantee that you still get your low rate even if rates go up while you’re still in process.

Get Your Finances & Credit in order – One of the most overlooked aspects of the mortgage process is not directly related to mortgages. Get a free credit report and clean up any deliquencies before you commit to any mortgage as this can help you lock-in the lowest rate available to you. And don’t forget to take a look at your budget to make sure you can afford the monthly payment. If you can, see if you can make extra payments each month or year. You’ll be amazed at how quickly you can pay off your mortgage and how much less interest you’ll pay over the life of your loan.

Work with a Lender you Trust – The Home Loan Expert you choose is almost as important as the loan or interest rate you select. Working with a trusted lender can save you many headaches in the long run. Make sure you check out your lender’s mortgage lender reviews to see what real clients are saying about the company.

Once you’ve familiarized yourself with the basics you should feel confident enough to begin working toward getting your first mortgage or refinancing your home loan. Remember, try not to be overwhelmed by the process. If you choose the right lender, this shouldn’t be a problem at all and you’ll be in your new home (or enjoying your lower monthly payment) in no time.