New Home Loan
A new home loan is the 1st loan take out from buyer to purchase a new home.For 1st time buyer, getting new loan is quite challenging. Because of lack of knowledge and experience, monthly repayment could be a financial burden if you not manage well.
Mortgage loan normally come with 2 options - fixed rate and adjustable rate, payment term from 15 - 30 years. if your down payment less than 20% of the home value, lenders will require borrower to purchase a mortgage insurance.
Qualification for people of the home loan is based on the debt-to-income-ration. Which is your debt amount should not exceed 30% of your pre-tax income. People with credit problems may find difficult to get this loan.
There are some closing cost, insurance, consultant fees associated with the loan. Thus, find the lender with minimum charges at this aspect.
Before getting a loan, you must aware of the following things :-
1) Affordable of a home - You must clearly know that your financial limit, how much you can afford? Beside the monthly loan installment, home insurance, flood insurance, utilities, and many other obligation must take into consideration.
2) Before applying for the loan, you must clean up your credit report and ensure that the existing debt is paying in time, Before the lenders look into it.
3)FICO Credit score - If your credit score is above 650, you will likely get a favorable offer.
4) Your past credit history is important to lenders to determine interest rate offer. So, if your credit score is below 650, try to improve it before you apply for the loan.
For loan improvement please click to
How to Fix Your Bad credit
For more information regarding home loans, please check out
Home Loans instead of New Home Loan
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