Home Loan

The Types Of Home Loans In India

Home Loan, for a lot of, is the loan availed for that purchase or construction of the new home. But, the truth is, home loans are readily available for virtually from construction and renovation to extension, land purchase, as well as the stamp duty. The different sorts of home loans issued by banks in India are described below.

Home Purchase Loan: This is the conventional home loan that people all know. It is intended for purchasing a new apartment.

Home Extension Loan: This home loan is for funding any alteration to an existing home. For approval of this loan, however, one may need to obtain the approval from the concerned municipal authorities.

Construction Loan: Don’t confuse it with Home Purchase Loans. To the making of a new home with an existing property. Its terms and conditions will also be widely different from Home Purchase Loans.

Land Purchase Loans: To funding purchasing land for investment/construction purposes. One of the most availed type of loan scheme.

Stamp Duty Loan: For make payment on stamp duty.

Bridge Loans: This kind of loan is availed by people who wish to sell their present home and buy a new one elsewhere. The loan amount is used to purchase the brand new home while the old home waits for its new owner. Continue reading

Home Finance Basics

Buying a first home represents the major financial landmark in your life. With homeownership, you take on the single largest investment you’ll ever make, with all the advantages – and risks – such an investment requires. Understanding home finance can be somewhat confusing, as there is a wealth of information available, and no shortage of companies eager to provide mortgage-related services. How do you weed out the good advice and make an informed decision? Simple: start with the basics of home finance.

Are you ready?

First, evaluate your economic situation. Are you carrying substantial unsecured debt, such as credit cards and student loans? Do you have a steady income and the means to survive an interruption in that income, if necessary? Are you willing to pare down your spending, in order to maintain mortgage payments and, most likely, additional home finance expenses like Private Mortgage Insurance (PMI)? These are major considerations when deciding whether or not to trade the relative simplicity of renting a home for the financial responsibility of ownership.

How much can you afford?

Next, run the numbers. Use an mortgage calculators to determine how buying a home will impact your budget. The government says that housing costs are excessive if they surpass 30% of your household income. Home finance means borrowing a substantial sum from a lender and repaying that amount over a period of time, with interest. Depending on the price of the home and the amount that you borrow, you will probably experience a dramatic rise in the amount you’re spending, just to put a roof over your head. Be sure that you are realistic about the amount of “home” you can handle financially.

Where should you buy?

You’ve heard it before: the three most important considerations when buying a home are “location, location, and location.” Actually, there are plenty of other considerations (see above), but deciding where to buy is nearly as crucial as deciding which home finance loan to choose. Spend time checking homes online, before you venture out. You’ll have a good idea of price values, amenities, and neighborhoods, which saves time when the actual house hunting begins.

What are your mortgage options?

The selection of home finance options for first-time buyers is astonishing. From zero-interest mortgages to the traditional 30-year fixed rate loan, you’ll find a vast array of terms, rates, and other choices. Once you’ve done some homework and determined how much you can afford, it’s time to go mortgage shopping. Speaking with a lending expert can save you plenty of time, but you should be prepared to ask questions of your own. After you identify a couple of affordable home finance options, try running the numbers again, this time with the exact loan, term, and rate amounts. Be sure to include costs such as PMI, points, bank fees, and any additional charges involved with closing your loan. You don’t want to encounter any financial surprises at the end of your home buying odyssey.

You’ve mastered the basics. With preparation, practicality, and a little luck, you can join the ranks of homeowners who have steered through the home finance process successfully, and settle into your personal oasis with pride. For help along the way, contact the mortgage experts at HomeLoanCenter.com, who can explain the process fully and help you evaluate all your options, at no obligation.

First Home Financing Tips – Be Prepared

When buying a home for the first time most people will not know how the process works and what is necessary to complete the process. Buying and financing a new home is a long and involved process and having a few first home financing tips could help make the process go a bit smoother. These could also ease a lot of stress.

A first time buyer is someone who has never bought a home before. A realtor is an asset because their job is help buyers through this process. They have been through the buying and financing process many times and will be a wealth of knowledge on how to get through the process smoothly and how to make sure you are able to get financing.

Your credit score will be a vital number in determining if you can get financing or not. A credit score is based on many different factors such as type of credit, balances on in checking and savings accounts as well as credit cards and your payment history. The cleaner your history, the better the chance for a good outcome when it comes to financing.

A credit score will determine whether or not you can even get financed. If you number is too low, you may be denied. The interest rate of your loan will be based on your credit score. The higher your score, the lower your interest rate because the risk is not as great.

Even if you are financing a home, money will be needed. There are going to be many different costs that will need to be paid upfront. Earnest money will need to be put down. This is money will let the sellers know that you are serious about purchasing the home. The majority of homes will need a home inspection. This will have to be paid for at the time the inspection is done. These only cost a few hundred dollars but some new buyers do not know this is needed.

A down payment may be needed. It is hard to get a mortgage that will cover 100% of the loan price. Twenty percent is the recommended amount needed to be put down on a home but this number can vary by lender.

When trying to finance a new home, it is not as simple as calling a bank and asking for the money. Many factors will go into determining whether or not someone will qualify for a home loan. To prepare, have a clean credit history and have some money saved.

Home Finance – 3 Reasons To Do It Yourself

Home finance just isn’t what it used to be. If you have been following my articles, you know I’ve been preparing you for the situation that is developing in the housing market. In this article I will share with you three reasons why it may be advantageous for you to finance your own home sale.

First, most mortgage lenders are reeling from the effects of the historic levels of real estate foreclosures. Even though a national real estate market doesn’t actually exist, indications are it may have just been virtually created. This is actually more a result of wide spread business practices that are being modified and adjusted because of the problems they have caused.

Generally speaking, the home finance problems have been created by overzealous mortgage lenders that allowed home buyers to make purchases that were not likely to ever succeed. What initially began as a concern for the sub prime mortgage market has now made it’s presence known throughout the industry, including the highest levels.

This reality has caused the mortgage lenders to re-group, reconsider, and revise their previous underwriting guidelines and requirements. As you might expect, the so called pendulum has swung to the other extreme. That would be the extreme of caution and the associated paralysis of analysis.

Even though they are still in the lending business, many mortgage lenders are reluctant to make loans. It doesn’t matter whether you are dealing with a prime or sub prime lender, the thrill is gone because of so many bad loans to recover from. I guess we can call this phenomenon some kind of post traumatic disorder. The reality is, it is taking longer to process mortgage loans and there are more hoops to jump through.

The second reason you might want to consider financing the sale of your home is the tremendous amount of housing inventory in the marketplace. Some estimates suggest it will take at more than nine months to liquidate the existing inventory.

That depends on how well all of the elements fit together so houses can actually be sold.

One of the major elements is the amount of time it takes for sellers to realize that the sale prices are trending downward. Typically that trend will continue until the market determines the actual value of each property. Since most home sellers resist the idea that their property has actually lost value, it is difficult to say just how long this phase will last.

Some experts have reported more than a trillion dollars in specialty mortgages are set to adjust over the next two years. Unless dramatic actions are taken we are likely to see some huge additions to the foreclosures already in existence.

Additions of this magnitude will certainly drive the housing prices down further and faster.

Neither of the two reasons described is an issue you can control. As a matter of fact, right now no one appears to be in control.

The fact no one is in control of this housing fiasco is the third reason you may like the idea of seller financing your property. When you don’t have to worry about the source of home finance funds, one of your biggest worries is over. Seller financing actually puts you in control of the funding. With you in charge of the funding there is no need for you or your buyer to wait for lender approval. You become the bank.

Now, this is important. Since you are going to provide the financing for your home sale, you want to be very certain your loan will be repaid. You don’t want to be guilty of the same kind of misguided underwriting that has caused so much grief in the financial industry. That means you must focus on your buyer and his or her total package.

The total package includes considerations like the amount of the down payment, the credit score and profile, the ability to pay you, and their character. It would also be really great if there is an active savings account in place.

Here’s one more thing about seller financing you may like. You will attract more buyers than with any other type of financing. In the midst of everything that’s going on in the real estate marketplace, as a home seller you need to stand out and be recognized as the resourceful, creative, financially astute, problem solver you are!

Home Finance

Owning a home is every individual’s dream. However, most people cannot afford to buy a home with savings of their own and need their purchase to be financed by a financial institution. A loan provided by a financial institution to purchase or renovate a home is known as home finance. Purchasing a home offers several advantages. Perhaps the biggest advantage is that it allows you to build home equity when you pay the mortgage each month.

It is a common myth that paying monthly mortgage payments is much more expensive than paying rent. Often mortgage payments may be less than the rent. Unlike rent, which might escalate each year or every few years, mortgage payments are usually fixed throughout their tenure. The interest paid on a mortgage payment is tax deductible. Also, you can take a loan against your home equity at attractive rates of interest and convert it to cash.

With the thought of buying a home, there arise many questions and doubts. The questions that one needs to think about include one’s purchasing power and the monthly payment that can one easily afford towards the home purchase. These are the main criteria that need to be considered. They help one decide the budget for the purchase of a home and narrow down the search to homes that fit in the budget.

You should also consider other initial and ongoing costs. These include a down payment, closing costs, home owners insurance, mortgage insurance, utilities, maintenance and property taxes.

Before beginning the process of looking for a home, you should figure out whether you are able to get home finance and an estimate of what you pre-qualify from a lender. Getting pre-qualified is an indication to the real estate agent that you are a serious and knowledgeable buyer.