Home loans are a breather in today’s world and it wouldn’t be possible without some help from banks and financial institution.It also has becomes easy for us to go one step closer towards our dream home.
A home loan is a secured loan that borrowers obtain in order to purchase a home, its like borrowing money from a financial institution or bank to purchase a house.It also consist of an adjustable or fixed interest rate and payment terms.
There are different types of loans:
- Fixed Rate Loan:Fixed Rate Loan offers at fixed rate of interest ensures that the borrower only has to pay fixed equal instalments as home loan repayment, during the entire loan tenure. It is a long- term planning and a fixed monthly repayment schedule
- Adjustable Rate Mortgage:Adjustable Rate Mortgage offers interest rate you pay on your home periodically changes, the rates remains the same for years.It is not a long-term, fixed rate mortgage. Instead, it offers borrowers a lower initial interest rate for a shorter fixed period — usually 5 -7 years.
- Federal Housing Administration Loan:It is one of the best loan choices available today for any homebuyer seeking a low down payment combined with relatively easy qualifying standards .It is a mortgage that’s insured by the Federal Housing Administration.
- Veterans Affairs Loan:Veterans Affairs Loan is one of the most powerful and flexible lending option on the market today.These loans are primarily used for buying or building single-family homes.
- Bridge Loan:A bridge loan is money that bank lends for a short period of time.It is only entitled to a bridge loan only when he/she has a contract to sell his old or existing house.
What are the documents that you need for a Home Loan?
The process of getting a home loan as much as possible, bear in mind, documents plays a very important role.Along with the Home Loan application form, you’d need to provide your address proof, age proof and identity proof documents, banking details and proof of your education qualifications.
A Home Loan is a big responsibility, always give yourself sometime to think deeply and make a decision based on better thinking.Also keeping in mind that borrowing is a big ask and when it comes to borrowing money, it becomes a long term liability, which needs to be fulfilled at any cost and without any fail.It is also recommended that you must be extra careful in how you handle your credit cards, especially while you are applying for your home loan.
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