Your dream home is a home loan away to reality

Obtaining a property of your own is a dream for everyone (at least for most of us). If only buying a home is as easy as paying a snack in a grocery – and as affordable.

More often than not, it takes so much time to finally own our dream house. It can take a lifetime to save and invest in a property. So, how can you afford to buy your dream house if you do not have enough money? Easy – Home loans. The mortgages info from NPBS discusses all the requirements you need to process yours. Home loan is basically a financial help provided by the bank or a financial institution to help you in buying a property. It could be a bit frustrating and complicated because there is a lot of paperwork involved in this process.

Types of Home loans

First, you need to familiarize yourself or research about the different types of loans, rates and terminology. There are different types of loans.

  • The Fixed rate loans, is a loan that has a fixed interest rate. The fixed rate period of this loan may be 3 years and the total length of the loan itself may be 25 to 30 years.
  • The Variable rate loan. This is a loan in which the interest rate charged on the outstanding balance varies as market interest rates change. You should also read the real estate section of a newspaper to have knowledge about home loans. Prepare a monthly budget and identify what mortgage payment you can afford.

Mortgage is the loan that you get to pay for the house and lot. The most important step you can take in the mortgage process is to find the right lender or loan officer. Mortgage rates for the one person can differ widely from lender to lender, so explore your options.

Finding the right loan officer

The loan officer should be knowledgeable, skilled, responsible and willing to take time to explain and discuss the loan process, programs and terms. You should prepare for your appointments and make copies of your paper works for each lender. If you are a self-employed, you will need tax returns for the last two years. You will also need the past three months’ bank statements.  You can also bring your copy of any credit account or loan you pay on a monthly basis.

The loan officer is the one who will take all this information and identify what kind of load you are qualified based on the documents you gave to him/her. After you choose a loan officer and lender, he/she take charge of submitting your application to the loan processor.

The loan processor will compile the documents, order the appraisal and gather any additional information from you. When the file is finished and the appraisal is complete already, he/she will give the file to the underwriter. The underwriter is the one who will decide if the loan is approved.

After approval, all that is left is the closing, where you will sign all the loan documents and complete the property transfer. The process usually takes around 30 days.

I hope this cleared up a bit of your concern. Good luck with your first home loan.


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