Prospective homeowners should explore their options prior to signing on the dotted line of a mortgage agreement. Probably the most critical thing to know and understand when acquiring a Home loan is to know what the various terms mean. This can be accomplished easily by asking a lot of questions and asking your estate agent to explain everything to you. Plus, some online browsing can turn up the answers to most of the questions that you might have.It’s important to look at the different types of Home loans that are available and to understand the differences among them. From a fixed rate, to a variable rate, to an interest only mortgage, the choices are many and the difference between them is big. If you don’t understand what a particular type of mortgage loan means in terms of monthly payments, as well as the duration of the payments, then you shouldn’t be signing on the dotted line.

Potential buyers should also understand the various terms or words that are employed when dealing with real estate.

If the mortgage loan that you are getting is a first time home loan, then it is the primary loan and the primary lien holder. This means that the lender of this specific loan holds the first claim against the property for repayment of the loan holder’s debt.

Home loans can be obtained at banks or with the help of a mortgage broker. Each lender assesses their own schedule of fees, offers their own range of interest rates, and their own selection of Home loan packages.

In order to qualify for a home loan, potential borrowers will need to go through a pre-qualification screening. During this stage, each borrower is expected to bring a number of financial documents to verify their information. Once they pass that stage, they will continue with the application process. Additional paperwork is completed and processed.

In order to receive approval for a home loan, the potential borrower needs to provide the following pieces of information: terms of employment, income level, level of debt, age of the applicants, and the type of home that is the intended object of purchase. Plus, the current interest rate and the size of the deposit can all influence whether or not the potential borrower is approved for the loan. The valuation of the home will also come into play as well.

When buying a home, it’s important not to bite off more than you can chew. If a homeowner fails to pay on his home loan, the lender can repossess the home and the homeowner is left with nothing, except maybe bad credit.

To apply for a loan you will have to fill out a short application form. You will then receive a FREE quote from well established, nationally recognized lenders. You do not need to decide now whether the loan is for you.

Just apply and compare the repayments to your current situation. There is no obligation on your part. If you decide that it is not for you, you simply do not have to accept the offer. You have nothing to lose and everything to gain.

Click Here – Application

011.327.4489 morne@mortgagepluscc.co.za

                      www.mortgagepluscc.co.za

Having a set payment for the life of the loan will be easier on your budget. Prepayment penalty Paying off your mortgage loan early can save you thousands of rands in interest but not if there is a prepayment penalty clause in your contract.  Make sure there is no such clause before you sign your loan papers otherwise the bank can charge you enormous fees for paying off your loan.  Most people don’t think they can ever pay off a mortgage loan early at the onset of the loan but your circumstances could change.  It would be a shame to be penalized for trying to save yourself some money.

Interest only loans

An interest only mortgage loan sounds wonderful to some homebuyers because they only have to make a small payment each month for the first 5 to 10 years.  The down side of this is you are only paying the interest and are accruing even more interest on top of that.  You will also not have any equity into the home until you begin paying on the principal.  It’s really like paying rent for your home.  After the introductory period your monthly loan payments will rise significantly.  And since most interest only loans are also VRMs you will find yourself at the mercy of the current interest rate.  If you are not gaining equity in your home from your payment then you should reconsider buying a home until you can afford another type of loan.

Lower interest rates

If you are being offered an extremely low interest rate then you should investigate why.  Ask for a quote  so you can see what the closing costs (initiation & legal fees, insurance etc.) will be.  Many times a lender will add exorbitant closing fees to a loan to make up for the lower interest rate. 

High interest rates

If you know your credit score is good and you are still being quoted higher than normal interest rates then don’t take the first loan that comes your way.  Shop around.  Do your homework and make sure you know what the current prime rate is and the rates of several lenders.  A home mortgage loan is a very long commitment and you don’t want to make that commitment with the wrong lender.

Lenders are in the business of making money so it is up to you to understand what is available to you. Most of us think “bank” when we think mortgage, and one mistake people make is going to their bank and taking the rate the bank gives them.

Even though the bank often gives a discount off the prime rate, most of the time it is not the best rate available. People think that because they are getting a discount that that is the best rate going. In most cases, the rates given by banks are not the best on the market.  Do some legwork first so you can get the best mortgage loan possible.

To apply for a mortgage loan OR refinancing, click here for a  No-Obligation Quote , you will have to fill out a short application form. You will then receive a FREE quote from well established, nationally recognized lenders. You do not need to decide now whether the loan is for you.

www.mortgagepluscc.co.za