Post Tagged with: "Finance"

What You Need to Know Before You Apply for a Home Loan

Loan Application FormIt is great to have your own home while you are still young. You don’t need to wait until after you get married to have your residence. Having a home means a lot to most people, and it gives a person credibility and good standing in the community.

However, there are things you have to do first before applying for a home loan in Lake Oswego. These include computing for your finances, and paying off some of your existing loans.

How to Qualify

A mortgage is a loan on the house. As such, it has to be repaid within the term of the mortgage. The monthly mortgage payment can be computed beforehand and this amount is compared with how much a person can afford to pay. The clincher in this equation is computing for the affordable monthly payment.

Typically, this is 25% of the monthly take-home pay, less any monthly payment on existing loans. This is an essential factor which lenders would look at to determine how much of a mortgage you can afford, hence how much of a house you can afford.

Other Requirements

Aside from the monthly income and the total monthly debt payments for auto loans, student loans and credit card payments, it is also essential to know the person’s credit score. On top of that, it would also help if the person has cash which can be used as a downpayment for the house. All of the above data is used to calculate how much house is affordable.

All mortgage lenders rely heavily on the credit score. Having a good credit score gives a person a bigger chance of getting a loan. The downpayment amount is free cash available to the borrower, which could be cash savings of some form, or an asset which can be disposed of on short notice. Buying a home requires a down payment which is considered as participation by the borrower on the house and loan.

The price of the house, less the down payment is the amount of mortgage required. The monthly mortgage payment depends on the total loan taken out. A smaller house equates to a smaller loan and more affordable monthly payments.

Buying a home requires a taking out a mortgage, and for borrowers, they have to take stock of their cash for a down payment, and how much they can afford in monthly mortgage payments.

July 25, 2018 at 11:11 amStudy Section

3 Things You Should Know and Do Before Applying for Housing Loans

home with coinsSo, you’re thinking of the next big purchase. Finally, you have saved some money and you are now looking to buy a new house for your family. At this point, you should be searching for different loan options.

To help you get started, here are some important tasks you should work on:

Evaluate Your Financial Capacity

Start doing the math. List down all your expenses and compare them with your monthly income. Don’t include the money you saved for the down payment. Another way to do this is to get evaluated by a potential lender. Usually, they will ask about your source of income, your assets, and your credit history.\

Pay Your Outstanding Debts

Before applying for a housing loan, it’s best to clear your debts. It’s a standard protocol for any lending companies to check your credit score. Any delinquencies or delayed payments can get you a red flag. The approval process would be easier if you don’t have any outstanding balance.

Maximize Your Loan Options

There are different loan options you can explore. Choose the best one that suits your needs and financial capabilities. To get an idea, check out the list below:

  1. Fixed-Rate Loan – This is one of the most common housing loans available, which requires a single interest rate. This is good for buyers who are looking for a permanent home or intend to live there for a long time.
  2. FHA Loan – Usually, lending companies require a 20% down payment. With this option, you can cut it down to as low as 3.5%. Primary Residential Mortgage, Inc. also recommends checking out the HARP home loan.
  3. USDA Loan – This development loan is ideal for families in the rural areas. If you qualify, the government will finance 100% of the actual costs. This means you don’t need to pay for the down payment and you’ll enjoy low interest rates.

These are just some of the important tasks involved in applying for a home loan. Consult a property manager, lender, or financing agent for more information.

June 21, 2018 at 1:00 amMind of Money

Three Ways Scholarships Actually Help You

Students taking an examUniversity education can be quite expensive. No one can deny that. Even though Singapore and other countries may offer subsidies to encourage more students to pursue higher education, there is still the matter of books and budgeting for transportation and projects. It would be nice to get financial aid, wouldn’t it?

What you may not realise is scholarships in Singapore do not just cover your financial expenses. In fact, it offers three essential benefits.

Financial Aid

Perhaps the most apparent benefit of qualifying for a scholarship is getting financial aid. This is the most important aspect to cover so that you can focus on studying. If you know you can afford to finish the term, there is one less worry on your mind. Some scholarships also cover more than just the tuition; they might also provide an allowance, which helps Singaporean students live a decent college life.

Confidence Booster

A scholarship is not just about the money. Because of the qualifications you need to meet to get a scholarship in the first place, it becomes a source of bragging rights. Even if you are not the bragging type, you still feel confident in your skills knowing that an organisation believes you are good enough to receive such a scholarship. Parents may also offer good praises and be more proud to talk about you, which gives a significant confidence boost.

Connection Maker

Your affiliation with the organisation that funded your education does not end when you graduate. They may open opportunities for employment and even connect you with individuals who also started as scholars for them. Though this does not mean you get special treatment in job applications, this validates the skills you have. Being a scholar from a particular organisation gives credibility that goes with your good grades.

For many, it is already enough to have the scholarship to fund their education. But wouldn’t it be nice to know it offers much more than financial aid?

March 2, 2018 at 1:00 amStudy Section