Understanding Home Loan Terms: 3CALoan
To invest in a property or to buy a new property you need to find a lender who can help you the money needed for that and the lender will do that as fast as possible and you also need to keep home loan terms in your mind. There are many of the variables involved in the home loan terms being offered. It’s important to understand the different home loan terms that are used when speaking of both traditional mortgages from banks and also private money home loans from private money lenders. In this article, we will discuss few of them:
Interest Rate:
When borrower search for a home loan then sides by side they also need a lender who will offer them a favorable interest rate. The interest rate is one of the most important factors. You will definitely don’t want to make a loss by giving a high-interest rate. So, you should compare and contrast lenders when making the decision on who to choose to provide you with the home loan.
Credit Score:
Before applying for a home loan, you should pay off all the debts. After all, lenders take your FICO score into account when providing you with a home loan. Thus, check your credit report before you apply for any home loan. Fix the errors by taking some steps like the following:
Get on the electoral roll
Paying all your bills on time
Close all unused credit cards
Close all the joint accounts that you have with your ex-partners
Loan Amortization:
Simple interest and amortized are two factors from which a home loan can be structured in the different ways. You can calculate simple interest home loan by multiplying the home loan balance by the interest rate. For example, the interest of a $200,000 home loan at 12% interest is $2,000.00 per month. So, there is no change in principal amount because this amount represents interest only.
An amortized home loan is slightly more involved. It is difficult to calculate without a calculator, so it requires a calculator. In amortization method, the payment will be broken down into a number of years. Each monthly payment is constant. On the remaining balance the interest rate is calculated, so the amount of each monthly payment that accounts for principal and interest changes. If you make more payments, the amount of principal will be less.
Documents Needed:
Under the home loan terms, you’re required to give your lender some of the following documents:
Your address Proof
Identification documents
Your most recent P60 tax form
Last three monthly statements of all your savings and current accounts
Your Last three months of your paystub
If you receive a gift fund, your lender will require proof if any one of your family members or friends are helping you with the deposit.
Closing:
Home closing fees consist of services and specific fees that you have to pay for closing on your home loan. The closing fees will generally come in between 2% to 6% of the home value but it is also dependent on your home loan program. You can low down closing by taking few actions like:
- Comparing Loan Estimate Forms
- Asking the seller to sweeten the deal
- Thinking before buying points
- Researching homeowners insurance options
- Taking advantage of a military status
Final Thoughts
If you are interested in exploring the options of private money lending or private money home loans for real estate investing or If you still have any doubt of home loan terms, you can contact us at (818) 322-5626 or (818) 3CA-Loan today! Buying a home is a great investment, but you have to be careful and avoid making any costly mistakes. We prioritize informing and educating our clients about the home loan process. Our goal is to provide opportunities for people to meet their financial goals. We help our customers every step of the way. Our competitive rates, efficient services, and talented team can help ease the home loan process.
Our client’s happiness and confidence upon closing a deal reflect our excellent quality services. 3CALoan local mortgage broker provides no tax return home loan which is also called no tax return, without tax return, private hard money home loan, private hard money loan, bank statement home loan, bank statement loan, equity loan and many more. We will run you through the details of home loans and hold your hand throughout the process.
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