Post Tagged with: "Loans"

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

3 Important Tips When Applying for a VA Loan

Loan applicationsNothing beats the feeling of having the opportunity to serve your country. In the United States, those in the military are given many benefits because of their loyalty, and as a way of saying thank you for all their hard work. One of those benefits is the opportunity to apply for VA loans.

VA loans are provided by the U.S. Department of Veteran Affairs. American veterans and those on active duty can apply for this specialized type of loan, but there are some tips that will help increase the chances of being approved for VA loans in Missouri.

Get Pre-Approved

Before even looking for homes on the market, make sure you have been pre-approved. Getting pre-approved will help you determine how much you can afford when it comes to buying a new house. This will help you save time and effort, which is essential when applying for a loan.

Before getting pre-approved, be sure to get your documents ready, as most lenders will ask you for your pay stubs, tax returns, and proof of military service, such as your Certificate of Eligibility or COE.

Find the Right Real Estate Agent

Get a real estate agent to do most of the house hunting for you. Finding the right house can be stressful, but with the help of an experienced realtor, you can get the keys to your new house in no time. Look for an agent who has enough experience when it comes to VA loans, so you can get the assistance you need.

Ask your fellow veterans or soldiers for referrals or look around for a potential agent. Be sure to communicate with them all the time, so they would know exactly what you are looking for.

Check Your Credit Report

Before applying for a loan, secure a copy of your credit report, as some reports contain errors. You can get a free copy once a year, and it would be best to take advantage of that. Your lender will be basing your credibility on your credit report and score, so check everything listed on that paper to make sure it is error-free.

Getting a loan can be a tedious process, but you can simplify it by following these tips. Before you know it, you’ll be holding the keys to your dream house.

March 8, 2018 at 10:19 pmMind of Money