Home Loan – Four Infallible Tips For Recognizing and Picking a Genuine Mortgage Lender

The term ‘mortgage lender’ refers to a bank, credit union, life insurance company and any such other financial institution which advances loans to people for the purpose of buying or refinancing real estate. Knowing the criteria that make a good mortgage lender will help anyone to choose the right mortgage lender. This will in turn help to simplify the process of acquiring your dream home or refinancing a home.

Oh, you think all mortgage lenders are good and reliable and can help you in your quest to acquire your dream home? No, it does not work that way! Do not be sucked in by their flashy ads in the mass media. A good advert does not make a good mortgage lender. And a loud mortgage lender is not necessarily a good one.

In fact, there are 3 categories of mortgage lenders: first are those that are impeccably good, reliable and can satisfy your need whatever the need is and these are relatively few, second are those that may be good but are not in a position to meet your specific need and the third category comprises those that have no business being mortgage lenders at all.

The watchword, therefore, is ‘vigilance’. Yes, be vigilant when you see their ads. If you will, however, take the steps outlined below, you will always be well-positioned to see through their enticements and there will be no basis for confusion:

One, look for a genuine experienced lender. This, however, does not mean that there are no new and smaller home loan providers that are reliable. Yes, some new and smaller mortgage lenders can be quite reliable. In all cases, it is always advisable to run a check with Better Business Bureau for the credentials of the home loan provider. Your friends or family who may have obtained a housing loan in the past can be a good source of information in this respect.

Two, look carefully to be sure there are no hidden charges or fees that you are not aware of. Do not be attracted a low interest rate only. You could end up paying much more than you bargained for. Be sure that you understand every item of the terms of the loan. For example, it should be clear to you, whether the loan tenure or term is 10 years, 15 years or whatever, whether the interest rate is fixed or variable, whether flexible repayment is allowed or not, and so on. A lender with clears terms on these factors is always more reliable.

Three, check out the services of the housing loan provider. This is very important. The application procedure, negotiations on loan amount, interest rates, customization of loan products to suit your needs etc form part of the loan process. A lender who is responsive to your needs and would customize products to suit you is advisable.

Four, be aware that some mortgage lenders focus on mortgages pertaining to only a geographical area or can fund you only up to a certain amount. It is therefore important that before you approach any housing load provider, get information about its scope of operations. A lender with wide coverage is always preferable.

If you use the above tips, you will be able to separate the chaff from the wheat and will be in a position to pick the right one out of the many and different mortgage lenders contending to help you acquire your dream home or refinance a home.

Three Pointers for Bad Credit Home Loan Borrowers

Riding a bicycle, getting your first real kiss, getting your first car, these are some of the things you relish in your memories. How about getting ready to buy your first home? Are you ready to add home ownership that to that list? Anxious to make it a dream come true for you and your loved ones? But wait. You have a bad credit history.

That has happened a lot nowadays. Because of these financially troubled times, many have folks have taken a hit on their credit ratings; sometimes because of unemployment or financial investments gone awry. That being the case, there are many lenders out there willing to take on chance on bad credit credit home loan borrowers.

Yes, your credit score could be holding you back if you range in the fair to poor category. If you have made the decision to finally be a home buyer in spite of your poor credit history, consider that you may have some edge as a first time home buyer. You do have some options to get you and your loved ones into a home of your own. Yes, even with a bad credit history. Following are three pointers you should consider as you get into the home loan market.

Pointer One Be Persistent and Courageous

You already know that if anything is worth having it might involve a little bit of struggle. So the going will get rough when it comes to taking out a first time bad credit home loan. Keep your eye on the prize. Do not be alarmed when you are refused. Take courage, regroup and try again. Do not grab the first lender who says yes. Sensing your desperation, the lender may make you into putty in his hands and charge your usurious interest rates. And, if you find a lender who says that he or she is doing you a big favor because of your credit rating, you have the wrong lender; find another.

Pointer Two: Approach the Proper Lenders

Speaking of lenders, you will eventually find one even with your bad credit history. As noted earlier, many folks are in your shoes and there are lenders who will lend. Focus on lenders who specialize in bad credit home loans. Make a list of at least ten and start making your calls to get a quote. Let the lender know that you are having other lenders give you a quote as well. You could go to a broker and give them some general information and have them come up with a list of lenders willing to execute bad credit home loans. Once you get started, you may find yourself in the middle of a credit rating competition. That would be very nice.

Pointer Three: Combine FHA and non-FHA Lenders

One important thing to do, since you are a U.S. citizen, check out the Federal Housing Authority (FHA) to see if you qualify as a first time home buyer. This could be a way to make it easier to qualify for a loan. But, do not go for only FHA lenders. Your list of lenders should include both to increase your chances of finding the best bad credit home loan. Now, do not stop until you have at least three solid offers in your hand. Make your search for a bad credit home loan work. You can be in your home in a few short months. Then you can start rebuilding your credit by making all your credit payments on time. You could be in a situation to have your home refinanced at a much lower in six to twelve months.

Home Loans – Which To Choose?

Which do you think is the most wanted and common loan people opt for these days? The answer is undoubtedly home loans. Having a home of one’s own is not only as important as possessing a car or a property, but even more significant on a very personal level. Home loans are very handy in situations when you are hard up for money, but need to purchase a house and don’t have sufficient financial backing.

And today’s market enables you to achieve your goal of a home by offering very good home loan plans on various levels. Although the choices are many, making the right choice is the key for success. In the home buying procedure, the kind of loan you go for always plays a crucial role. Depending on your monetary status, you have to accordingly choose the type of loan that is best suited to help you buy your dream home.

So, how many types of home loans are there? Such loans fall under three major types. Which are:

(1)Fixed rate home loans- as the term suggests fixed rate loans charge fixed interest all through the loan period. This means that you will have sure information about how much you have to pay in intervals. But, incidentally the lender may charge you high interests.

(2)Adjustable rate home loans- adjustable rate loans initialize with a set rate of interest for the first few years say 3 to 5 years. During this initialization period, the rate is fixed; they do not fluctuate at all. After this period the interest rate can ebb and flow, rise and flow. But, there are certain limited lines beyond which the rates cannot increase. After the initial period when the rates do not change, they can change all through the life of the loan.

(3)Balloon home loans- balloon loans are also called reset loans. They start off in the same manner as a fixed rate loan by charging a preset interest rate along the introductory phase. After this phase, the lender can demand full repayment of the loan. Obviously, paying the rest of the amount at one go is almost next to impossible therefore you can reset your loan. After the reset the interest rates can go higher than the former rates.

These are major types of home loans. Choosing your preference is the most important aspect of buying a house with the aid of a loan.