Mortgage House: You Have Many Options to Save Money

Now, the mortgage loans are providing the best option for affordable housing. Mortgage loans are not less then a gift for several families, who have a distant reality dream of owing a house. Mortgage home loan not only facilitates you to buy your own house but also offer you an option to set your own installment plans as you prefer. To avail these types of loans, it becomes important to hold the required qualifications. Following are some prequalification or prerequisites that are generally asked, when you go for Home Loan Deals:

•    The background of the candidate

•    Verification of bank records and statements to determine the candidate’s eligibility

•    Status of debts such as credit card

•    Previous loan records verification to ensure the regular payment of installments

As there is a ton of options available for house mortgage loans in the market, you can compare the interest rates of the all mortgage Home Loan Banks and choose the most effective out of them. There are so many options such as ARM (Adjustable Rate Mortgage) and FRM (Fixed Rate Mortgage). In ARM, the interest rates are not fixed; it just keeps on adjusting periodically to make the home loan repayment easier; whereas in FRM the interest rates are fixed and the banks have authority to decide the interest rates of mortgage home loans. Here, you need to decide which option suits you the best.  

If you are a homeowner, who initially have financed your mortgage with ARM loan, then this is the time to refinance your home loans. To know the better interest rate, you need to go to a local banker for face to face discussion. You can make enquiry about the interest rates and the current rates available, based on your credit rating and equity. You must frequently ask questions, how it all works and how mortgage rates are determined.

If you want to purchase your own property or home and just due to a bad credit history you can’t get the mortgage loan, then you should explore the poor credit mortgage loan market. Normally, the mortgage loan banks don’t offer mortgage loans to people, who have low credit scores. The poor credit home loan market is escalating; therefore, there are many home mortgage loan banks, which facilitate the buyers, who are struggling with bad credit. Here, they can also find a variety of home loan products which fit their requirements that enable them to get their financial situation back to normal.

Loan against Property: A Helping Hand for Monetary Requirements

Loan against property is the most common all purpose loan that solves all your financial urgent basis requirements such as education, marriage, dream vacation, home renovation, debt consolidation, business expansion, etc. However, you have another option of personal loans that you can also avail for your urgent requirements. But, due to the high rates of Interest with the short repayment term, most of the people don’t opt for this. If you are an owner of a house, but don’t have money for any of your financial requirement, then you can take a loan against your property. It becomes cheaper than opting for personal loan.

The tenure for loans against property is normally ten years. You can use the loan amount for any purpose during this period. But, in the case of personal loans, you have to specify for what purpose the amount will be used for. Although, you can avail these loans for any type of property, whether it is commercial or residential, but most of the banks give these loans only against residential ownership property. There is a limit of taking this type of loan from banks, which most commonly ranges form 10 lakhs to 3 crores. There is also an age limit for applying loan against property; if your age is between 21 to 60, then you can avail it.

Apart form the age limit requirements, you can be asked for some documents at that time, when you go to apply for loan against property:

• Identity proof
• Resident address proof
• Age proof
• 3 months bank statement and IT returns for salaried applicants.
• Last 2 year certified income computation for self employed applicants. 

If you are applying for loans against property, you must fulfill the above document requirements. The banks offer you loan against property on two types of rates and these are fixed rates of interest & floating rates of interest.

As we know, with every passing day the economy of India is developing and getting more powerful, therefore, people are getting more finance literate. Here, loan against property give them option to fulfill their financial requirements and they don’t need to think twice while going for this.