IC asked:


When you want to buy a home you will generally need to look into home loans to see what your financing options are. You may have assumed, before you started looking into it, that there was just one sort of loan that people could get when they wanted to buy a home but when you start looking into it you will find that buying a home with a loan is much more complicated than that. There are a lot of different loan products out there for you to choose from and chances are you will not be able to navigate the world of loans all on your own. Instead, you may need to seek the assistance of a mortgage broker to help you understand what is what and also help you determine what sort of loan may be best for you and your specific situation.

Home Loan Basics

There are many different types of home loans for you to consider. You should try to learn about all of the different types of loans out there before you decide that one is or is not for you. The most common types of loans that you will find are the fixed rate loans. These loans are a great option for those that plan to stay in their home for more than three to five years. The reason for this is that the rate stays the same for the entire term of the loan. So, if you start off your mortgage with a 6% interest rate, it will continue to be 6% for the whole 10, 15, or 30 year loan term. This is a good idea if you plan to stay in the home for a long time because you will always be able to determine what your monthly payment will be.

Another very common type of loan that you will find is adjustable rate home loans. These loans are ideal for those that are planning on living in their home for less than five years. The reason why these loans are a great option for these people is because the interest rate starts off very low and then the longer you are in the home the higher it gets because it adjusts from time to time to meet the current market interest rates. Many people like these loans at first because they are very affordable but then if you stick with it, you can end up in trouble if you are unable to make your mortgage payment. The adjustable nature of the interest rate is what ends up getting a lot of people in trouble.

In addition, there are loans that are meant to refinance a home. Many people refinance a home to lower their mortgage payment, trade in an adjustable rate mortgage for a fixed rate, or get money out of their home to pay bills, update the home, or pay off debt. These home loans are for those that already have a home and would like a new one.

These are the basic types of loans but you should not confuse the type of loan for different loan programs. There are different loan programs that apply to different people based on where they live, how much money they make, how much they can afford, and what their credit score is. There are a lot of different programs out there for you to take advantage of, so shop around, learn all that you can, and then choose the right one for you.



Annie

stark_one asked:


Bear Sterns/JP Morgan got $30 Billion bucks of our money. And many of us are being thrown out of our homes?

Rosemary

amok2b asked:


well recently ive been meeting up with a company that claims a loan modification is a bad idea! For one thing, its only a temporary revilement, that it’s no a good move and are “advising” me to get an attorney so he can represent me but im not sure who to trust now a days. I need help in finding the right people to help me so i wont lose my home. Another thing they pointed out was that a loan modification only gives you more debt than how you started because the banks only do so much to “help you” and before you know it, you end up worst than how you started. What should i do?
Ok! at the moment i have not gotten the famous FORECLOSER letter. Right now i am at the point where i have already missed two payments and i owe the bank about 4,000. My payments come in two different bills one is for 848.00 Interest rate is 12.2500% and the second of 1710.00 interest rat is 7.7500% (not including tax property) i have been up to date on my smaller bill but am having a hard time completing the bigger bill. Yearly i pay almost 6,000 on tax alone and i am also not up to date on that. Basically the help i am seeking is someone who wont ***** me over for money and fight for my home. I know i am paying too much for my home because the home value has gone from 540,000 (from when i bought it) to 316,000. Who can help me? should i look for an attorney for this kind of problem?

Lucille

agniputra asked:


 

Own house is the dream of every person. For a middle class person, it is considered as a life time achievement as it requires quite a huge amount of money. Banks play a pivotal role in fulfilling this basic need. The products they offer and the services they provide are of immense use to people who intend to have their own house. For a safe and beneficial home loan, proper awareness over the products, policies, terms and conditions of the bank is most important as ignorance may result in more payments to the bank in terms of principal and interest components.

 

With proper planning and a right approach you can avail an easy and beneficial home loan to fulfill your dream of possessing a house. The following ten-step plan will certainly help you in accomplishing the task:

 

Know about the products: Prior to going for a home loan learn about the products that various banks offer; also know about their terms and conditions. After careful study select a product that suits best to your financial status.

 

Know about the rate of Interest: This is the most important factor about which you have to think more than once prior to going for a home loan. Plan carefully whether you want to go for a fixed or a floating interest rate plan. Have a good clarity from the bank so as to avoid disappointment in the future. Also if you go for a fixed interest rate plan, make yourself clear if it is fixed for the whole tenure or subjected to changes as per changes in money market conditions.

 

Know about the repayment Period: Choose an apt repayment schedule as per your financial status and possible future growth. Usually banks offer a tenure ranging from 1 to 25 years for home loans, and 1 to 15 years for mortgage loans. So keeping in mind of your income levels and liabilities choose your own plan for flexible repayments to avoid future disappointments.

 

Know about the eligibility criteria: Banks usually take fixed and variable income sources into consideration to approve a home loan. They reserve the right to sanction or reject the application if they find any information misleading. So it is advisable to provide useful applicable information only. Once you receive the sanction letter please read it carefully for Interest rate revisions, Sanction conditions, Pre-closure charges and terms and conditions of the bank before signing it.

 

Legal documents and scrutiny: You must submit all the legal documents pertaining to the property you intend to buy to the bank. So you must collect all the link documents, lay out and plan, and ownership documents from the vendor. It is to be taken care that if there is any legal dispute on the property then the proceeding and judgment copies are also required.

 

You must verify the legality of the property with a legal advisor prior to buying it. Banks will not hold any responsibility if any legal issue that may arise in future, and the customer has to continue to repay the loan. Remember that bank will not take any responsibility about the legality of the property.

 

Technical evaluation: Banks evaluate the value of the property based on the standards set by their panel members. You should take all security measures against the deviations both horizontal and vertical which will affect loan processing as well as future transactions. If the property has deviations, you should ask the vendor for the copies of regularization. The property should have the necessary permissions or documents to regularize the deviations according to Building regularization scheme (BRS). Also, check all the details like plot area, sanction area, plot number and the government approved plan valid dates before going for a processing.

 

Home Loan Agreement: Please read the document carefully before signing it as it is a long term contract between the customer and the bank. Once you sign the document it can’t be altered or modified until you repay the loan in all respects.

 

Registration: Home Loan processing ends with the registration of your dream property. Take care that the sale deed clearly states about your complete ownership of the property. Remember that even a small mistake can lead to bigger problems. So read the sale deed documents carefully prior to submitting for the registration process.

 

The vendee should collect all the link documents, Plan copies and tax Paid receipts from the vendor at the time of registration only.

 

Processing, pre-payment and foreclosure charges: The customers have to pay the processing charges to the bank for the loan availed. The customer should know about the additional charges which bank will make in cases of pre payments and foreclosures. A customer needs to pay a max of 4 % of the outstanding principle along with service tax towards the foreclosure charges of the loan.

 

Tax exemption: In addition to giving the joy of possessing a house, home loan provides the facility of Tax exemption on the principal and interest paid over a financial period.

 

A customer can claim tax exemption for the amount paid as stamp duty during the registration process. The Bank will provide you with the provisional certificates to claim the tax exemption from the income Tax department.



Albert

tnhampton1 asked:


The loan payment are too high right now. We don’t have enough equity in the home to refinance. So Loan Modification is our only choice.

Eva

mystty asked:


I am trying to get a home loan, but my credit is bad and i dont qualify for a HUD home loan do to self-employment. i have about 5k saved for a down payment does that help? is there anyone who will give me a loan? ( i DONT have a co-borrower)
most of my poor credit is due to major hospital bills. my score is in the low 500

Elaine

angela m asked:


Our house is going in to foreclosure and we are trying to get a loan modification. My husband found out he is likely to lose his job next month. Will this affect getting a loan modification?

Laura