home loans

To buy home first time is an exciting & a little confusing as well. You are
to under go physical, mental and financial exercise before buying home. To avoid disappointments, there are some key points you are to keep in mind before coming to property scene.

Home Purchase Loan

While buying home - You are to consider your budget first. How much you have
as bank deposit and how much your lender is willing to give you? Your lending
amount will be entirely upon your income, debts, savings etc. Before lender
gives finance to you he will definitely see how much your income is stable?
Changing jobs frequently in the past will give negative impact upon your credit
history. If you are to buy some car also, postpone this idea for some time, as
your debts for car will effect upon your amount of lending for house. Because
buying house is a big investment. There are different types of mortgages
available in the market : fixed interest, variable rate, 25 year duration, 35
year duration etc. If you are not sure about which is suitable for you, ask your
independent financial adviser. He will help you to come out from this problem.

Survey the area before buying home

Now after setting your budget, you are to survey the area suitable to you to
buy a house with this budget as well. As rates in some areas may not be up to
your reach. So start hunting with real estate agents, newspapers & of course
directly go to the signboards “For Sale” where owner wants to sell directly.

While selecting your dream home, many things you are to keep in mind:

• - Legal Formalities of your new home

  Checking legal documents of the house is very important to avoid getting

  cheated. If you are unaware of these formalities, take help of real estate

  agent or any legal advisor.

• - Home location should be near to your workplace

  Don’t take house very far from your work place. Ask neighbors also about

  purchasing that house. Drive yourself to that place and see what is happening

  in night (means any loud sounds or music which may be disturbing). See views

  from front back, left right and of course in night and daylight.

• - Sewerage system of new home

  Daylight in the house, sewerage system and rainwater outlets are of utmost
  importance while surveying any house to purchase. See if rooms are well
  lighted, gutters & sewerage system is maintained. Provision of rainwater
  outlets are outwards from house. Any pits in back yard or front yards.

• - Building standards of your home
  Make sure that your dream house meets building standards and there is not
  any nasty or hidden expenses in the brickwork. See roofs also, if all are
  intact. Doors & windows are in good condition. Paint of the house is not
  chipped. Flooring of the house, if wooden, it may not be stained, sometimes
  stains are covered under the bed or carpets. So visit to a vacant house is
  necessary.
• - Resale value of your home

  You are not going to live in this house for rest of your life. If you want
  to sell it in future, what may be the outcome. Everybody wants some plus after
  some time. If it can be sold without any hitch. If there are any negative
  points for reselling that house. Otherwise you will be struck with that house
  for long time.

• - Repair expenses of your home

  If some major repairs are to be done, who is going to bear the expenses?
  Seller or buyer. Settle down all these things on paper to avoid any
  disappointments.

• - Renovation costs of your home

  Your prospective house meets your requirements? Are you able to change it
  according to your needs? Suppose any tree is there and can you cut it if
  required. You can get a Home Improvement loan too to cover up renovation
  costs.

• - Make an Offer

  Imagine yourself in that house after making your necessary changes. How
  you would feel? If you think it fits into your budget and your needs, go
  ahead, make an offer and settle all papers legally.

Marc Sylvester is a freelance writer and a
House Loan expert. Visit
MyhomeAdvise.com to get tips and
tricks on how to get equity home loan at lowest rate.

Tags: Home, home buying, home improvement, home loan, home renovation, home selling, loan, mortgageHome, home buying, home improvement, home loan, home renovation, home selling, loan, mortgage

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This home buying tip explains the importance of good credit and what you can do to improve your credit score.

When you apply for a mortgage loan, your credit will inevitably come under scrutiny. Mortgage lenders will review your credit closely to determining your credit “risk category.”

If your credit score is high and your risk is low, you have a good chance of being approved for a loan. If the opposite is true (low credit score and high risk factor), then you’ll likely have trouble obtaining a loan.

How to Maintain Good Credit
When it comes to credit, an ounce of prevention is truly worth a pound of cure. In other words, you should focus on maintaining good credit at all times. That way, when you’re ready to apply for a mortgage loan, you won’t have any unpleasant surprises.

Being labeled “sub prime” or “bad credit” by a mortgage lender can make the home buying process more difficult. So you should do everything possible to keep your credit score high.

There are no quick fixes with credit, only long-term strategies and good practices. Here are some things you can do to improve your credit score:

1. Pay all your bills on time. This means all your bills — credit card, auto loans, etc. Paying bills on time will raise your credit card. Having a history of late payments will lower your score and cause you problems.

2. Keep credit card balances low. Don’t let your credit balances get away from you. This will increase your overall debt, which will in turn elevate your debt-to-income ratio.

3. Keep your debt-to-income ratio at 20% or lower. Your debt should not total more than 20% of your net monthly income. If it does, focus on paying down the debt as quickly as possible.

4. Always pay at least the minimum amount. If you can afford to pay more than the minimum amount due on credit balances, by all means do so. It will reduce your balance quicker and give you a more favorable debt-to-income ratio. But make sure you pay at least the minimum amount. Paying less than the minimum will generally lower your credit score.

5. Limit the number of loans / accounts you apply for. If you apply for credit too often, it could raise a red flag that you can’t manage your finances. Use credit and loans sparingly … only when you need them.

Sure you want to improve your credit score. But don’t focus solely on the short-term. Focus on maintaining a good credit score through the practices outlined above. This home buying tip will pay great dividends when it comes time to apply for a mortgage loan.

* Copyright 2006, Brandon Cornett. You may republish this article if you keep the byline and author’s note, and also leave the hyperlinks active.

Learn more!
This home buying tip was brought to you by HomeBuyingInstitute.com, the Internet’s largest library of home buying advice. Increase your home buying intelligence by visiting: http://www.homebuyinginstitute.com!

Tags: buying a home, credit score, home buying, home loan, mortgage, real estatebuying a home, credit score, home buying, home loan, mortgage, real estate

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Your first-time home buying experience can be stressful and chaotic, or it can be smooth and easy. The difference comes from having a solid plan and knowing what to expect. The following checklist will help make your home buying process a smooth one:

Step 1. Review your credit and finances.
Mortgage lenders will put your credit and finances under the microscope. So before you begin the home buying process, you should review these things for yourself.

Start by requesting a copy of your credit report from the big three credit agencies — Equifax, Experian and TransUnion. Review your credit report closely for errors. If you find an error, work to correct it right away, as the process takes time. For instructions on correcting your credit report, refer to the websites of the three agencies.

You should also review your finances to determine how much of a home you can comfortably afford. Use an online mortgage calculator to determine monthly payments based on total price. This will give you a rough idea of where your comfort zone lies.

Step 2. Learn about mortgages.
Once you’ve reviewed your finances, credit and purchasing power, you should start researching the different types of mortgages. Each type of mortgage has its pros and cons. Finding the one that’s right for you will depend on many factors, such as how long you plan to own the home, how much you can afford to pay up front, etc.

When reading about the different types of mortgages, pay close attention to any sentence that starts with “This mortgage might be a good option for you if…”

Step 3. Visit HomeBuyingInstitute.com
At HBI, you can learn about the home buying process in depth. HBI is the Internet’s largest library of home buying tips and advice, and best of all it’s free!

Step 4. Make a wish list.
Now that you have a better understanding of the financial side of things, you can begin to create a home “wish list.” Write down all the things you want from a home. Include the size, features, location, etc. Categorize each item on the list as a “need” or a “want.” This list will save you time, narrow down your search, and help you stay focused.

Step 5. Find a good agent.
Even with all of the home buying information available online, it’s a good idea to hire a professional real estate agent. When you consider how much money you’ll pay for a new home, an agent’s fee will seem miniscule by comparison. Combine that with the peace of mind you get from having professional guidance, and it’s even more apparent why you should use an agent.

To find an agent, start by asking family or friends if they can refer a local agent they were happy with. If that doesn’t produce any leads, try using search engines or the websites of well-known companies.

Step 6. Get pre-approved for a home loan.
Pre-approval from a mortgage lender will help you in several ways: (1) It will reveal how much you can realistically afford. (2) It will help you identify credit problems early on in the home buying process. (3) It will show sellers you’re serious about buying (which can be helpful when there are multiple buyers / offers).

Step 7. Get a home inspection.
Whether you’re buying a new home or an older one, a home inspection is always a good idea. Inspections cost around $500, which is a small price to pay for peace of mind. A home inspector will examine the home’s roof, foundation, heating / cooling system and other important areas.

* Copyright 2006, Brandon Cornett. You may republish this article online provided you keep the byline, author’s note, and active hyperlinks.

Learn more:
For more advice on first time home buying, visit HomeBuyingInstitute.com — the Internet’s largest library of home buying tips and articles. Online at http://www.HomeBuyingInstitute.com

Tags: buying a home, home buying, home loan, mortgage, real estatebuying a home, home buying, home loan, mortgage, real estate

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