Get Through the Checklist – Before Applying For Home Loan

Home is one of the greatest assets a person can always have. Therefore, when you are looking around to choose a home loan for your dream house, it can be helpful to use a “home loan checklist”. It will help you in deciding that will suit according to your requirements and circumstances. You can use the checklist that includes:

  • Buying the home, it can be firs tor second
  • Refinancing your existing mortgages or opting for a new one
  • Consolidating your dents
  • Cash out or any equity release
  • Other investment in the property
  • Construction or reconstruction of any new areas
  • Renovating and upgrading your existing home

You could also make use of the checklist where you want to avoid for loans that will not go well with your particular circumstances or needs.

Ask your loan lender/credit provider for a copy of their respective key facts

While you are doing your research the best way to compare home loans is to ask different lenders and credit providers for a copy of their respective key facts sheet because it will tell you

  • The actual and net amount to be back over the time period of loan
  • The payment options and repayment amounts
  • The fees and other charges payable
  • The comparison rate sheet that will help you to check the total cost of a home loan against other housing loans

What Is Included In The Home Loan Checklist?

Here are few listings that you should analyze before you have signed up.

Interest Rates

You need to know the details of the interest percentage charged by the two parties, (the money lenders and the credit providers). In addition to it, you must also check and compare the rates. There are different types of interest loan charged differently, usually dependant on the amount of the loan

Variable Interest Rate Home Loan

With this option, interest rate can increase or decrease depending on the economic and market conditions. You can check the terms and conditions and ask the service provider about the cut off percentages. This can be the most risky type of loan if you are not aware about the market trends.

Fixed Interest Rate Home Loan

This is the lock-in type of interest rate and it is unaffected by any market rates. However, this kind of interest is granted who is having good credit rating or has high net worth. If you are applying for loans in South California and want to get with fixed rates, then you must consult Maureen Martin. She has 10 years of experience in home lending market. She can advise you the best possible option.

Split Loan

Split loan is a mixture of combined variable and fixed rate interest. This option allows more flexibility to your loan as you can have number of splits.

  • One spilt can be a variable option
  • One split can be as a fixed rate of interest

Comparison Rate

You need to check the key facts before you are actually applying for the loan. You must compare loan against other loans, which will include

  • Interest rate percentage
  • Application fees
  • Ongoing fees
  • Late fees and additional interest being charged on it
  • Late time period

Author: Richard Casteel

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Richard is the chief author of this blog. He worked as a financial advisor in money market form last 10 yrs. His financial sense in Share trading and any other trading is just outstanding. He just shares his knowledge and experience through this blog. You can contact him directly though

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