Loans

Top 10 Real Estate Loan Tips You Didn’t Know

If you are considering buying a real estate property be it a house, apartment or condo, do not jump in shopping for the property yet, you must first find the best fitting loan for you and get it pre-approved. Investing on a real estate property is a big commitment that you must not rush in. Here are some tips to land the best loan fit to your needs.

 

Loan Types

If you are planning to stay in the property for at least 10 years, you may choose a loan with, an adjustable-rate mortgage, or ARM. The loan usually starts with low interest rates and is fixed for the first couple of years. If you want to stay for a lifetime, consider a 30-year loan.

Credit profile

Lenders greatly considers your credit profile so make sure that you have been responsible paying you taxes, loans and debts. If possible pay more than the required monthly payment and never miss even once. If you have various loans, pay the ones with highest interest rates first. It is better to have a 30% ratio of debt –to-income.

Lifestyle

Consider you lifestyle and needs when buying a property. If you have a family with small children, it is ideal to choose a home nears parks, amenities and schools. Also think about your transportation for work.

Save up

Though it is better to put a 20% down payment for the mortgage, many lenders expect at least 3%. If you are using Federal Housing Administration loans, you have to pay 3.5%. If you are eyeing to buy an expensive grand house, you better save up first to easily close the deal. Also, take some time to research if there is a local down payment assistance that you can avail.

Plan your budget

While it is important to pay for your mortgage, you also have to pay your property taxes, homeowners insurance, regular and emergency maintenance costs, and other fees. You can ask a professional broker to help you calculate a practical home loan that best fits your needs and financial standing.

Surround yourself with professionals

Buying a home may be a dream almost becoming true until you get stressed by the process. Gather as much information as you can and follow your instincts together with the advice of the professionals. Ask the help of the professional that you can trust such as a real estate agent, a CPA or financial advisor. You can even go to a U.S. Department of Housing and Urban Development approved housing counseling agency.

Closing costs

Closing costs is the amount of money you have to pay to close the deal. Do not forget that you also have to pay the closing cost that may depend on the loan estimate that you received from the mortgage you are applying for.

Find the best mortgage

Do not settle with the first one you find. Get loan estimates from various potential lenders aside from the brick-and-mortar banks. Banks can offer discounted rates, but they just stick to their products, while other lenders can have flexible loans that can fit your needs.

Pre-approval

Once you had chosen the loan you think is right for you, ask a mortgage broker to figure out how much can you borrow to buy a home. The broker will help you keep your expectations realistic when looking for a house within your budget.

Stash some cash

Do not use all your savings to pay the down payments and closing costs. Save some for emergency situations which is basically about six months’ worth of your salary.

Understanding 5 Different Types of Singapore Personal Loans

The prevalent economic necessity has caused a rise in the amount of loan products that now exist, and the general population now demand these loan products more than ever before. Whether you are in the money lending business, or you have a quick financial issue that you want to go away, it is important that you know the different types of loan products and their subsequent categories, as it would somehow prove helpful sometime in the future. In this article, we attempt to outline these financial products and put them in the groups that financial institutions as well as niche demographics have so far affected, focusing our scope on personal loans.

Personal loans for foreigners are also known as unsecured loans as they are not secured with any asset or collateral such as your property. There are different types of Personal loans and we shall discuss some of them here:

Signature Loan

This is loan in which an individual applies for a loan where he or she signs a promissory note to pay up at a definite time. The period of time which they attempt to pay back the loan to the actual time they actually repay the loan is called a loan term. This may vary from 6 months to 5 years. Although there are different parameters for being qualified to borrow signature loans, the criterion for loan approval is, most of the time, based on the borrower’s credit, and not necessarily on assets. They usually come with lesser interest rates when compared with other loan sub-types and are mostly borrowed from banks, savings and loan institutions, finance companies, etc.

Credit Card Loan

These loan types which are more available to the public and do not require a credit check, mostly comes with a high interest rate and also attracts other fees for getting access to the money which vary depending on the medium used to access the loan. Using check cashing systems can reduce the interest rate and other fees that you might have to pay. This money lending system was designed for short term loaning but in the tight economic situations, it may have become a more regular option.

Wedding Loan

This is a new branch that is designed to cater for the increasing expense of weddings is the wedding loan. Wedding loans can either be secured using assets or like signature loans, without using assets or collateral. The criteria for securing this loan would depend on the financial status of the borrowers and the amount needed.

Cash Advance Loans

This is one of the easiest to secure loans as all that is required is prove of identity, prove of income and an account. Having a check is also required to secure the loan, but many who do not have it have still been able to secure the loan. However, a fast cash advance loan can be very expensive as it requires only a short time to pay back, mostly from one week to a couple of month, and in most case, you would have pay before securing it.

 

Automotive, Motorcycle, RV AND Boat loans

These types of Personal loans are not only signatory loans but also require assets and collateral for securing them. This is money requested to buy a car, motorcycle, boat or any other vehicle desired, and they come with a loan term that usually last from a year to six years.

Whether credit loans or wedding loans, personal loans have a way of caring for your personal needs when push comes to shove. However, it is important that you understand the risks involved with each loan type that you choose to secure. Sometimes, if not well considered, borrowing loans can result into more financial problems rather than solve the ones we are in.

How To Get Your Loan Approved By Singapore Lender

Most apply loans in banks. This could be personal, business, car, real estate and cash loan. Their aim is to have their loan application approved so that they can get the money and put it into the intended use.

However, the process of approval regardless of loan type is quite challenging. Banks and other money lending institutions have become strict. Therefore, if you want to be approved, there are certain tips that you need to apply.

These Are The Tips .

Know your preferences

Before going out to apply for a loan, you need to do some research online and see what lenders are offering. Their interest rates differ. You will want to apply loans from lenders with low interest rates. You should also know the type of loan that you want. Is it car, business or real estate loan? This will enable you get the best deal and also increase chances of approval.

Be inquisitive

If you happen to come across a loan package and get interested in it, approach the bank or whoever is in charge and ask questions. You can inquire about eligibility requirements. You will be told about documents, materials as well as timeline so that you can apply, then wait for approval process to kick off.

Have accurate credit report

Majority of money lenders today usually look at credit report before approving for a loan. Make sure that it is accurate and free from errors that might disadvantage you by lowering your credit score. With a low credit score, chances that your loan will be approved are minimal.

Come up with a check list

You should create a checklist of vital documents and other conditions that you should fulfil in order to have your loan approved.

Know your financial ability

Do not just apply for a loan for the sake of doing it. Analyze your financial ability and see if you will afford repaying it. This will prevent you from losing some of your property in case you default.

Be patient

The process of approving a loan may take sometime. Do not be in a hurry. Consult bank officials and ask them how long it might take. Do not rush for another loan before knowing whether the first application has been approved or rejected.

In conclusion, you should use the above tips to have your loan approved by the lender. Success is guaranteed.

Basic Tips On Loans And Money Lending In Singapore

Loans are very important. They enable us to accomplish many things that require substantial amount of money. This includes paying college fees, building a house, buying a car and many more. This brings us to the different types of loans. For example: cash loans, business loans, personal loans, real estate loans and many more.

However, getting a loan is not a walk in the park. There are certain conditions that creditors will expect you to fulfill.Creditors may include banks, individual lenders and micro-finance institutions.

These Are The Conditions  

  • You should be having enough assets which can act as collateral in the event that you fail to pay your cash loan, business or any other type of loan that you might have taken. Banks used collateral as security to avoid losses especially when one defaults paying his/her loan.
  • You should prove that you have solid cash flow. This mainly applies to business owners who want to apply for business loans in order to expand their business. The cash flow should be enough to service the loan.
  • Track record of profit making. No money lender will want to risk his money. This is why it is sometimes challenging to get a loan if you have no established or existing business. Therefore, if you are starting a new enterprise, you will be required to provide a record of profitability as well as success in related business that you have engaged in before.

In case you find it challenging to get a loan from banks due to limited number of assets, you can still get it from relatives who know and trust you. They can give you personal loans or business loans so that you can start your small business ventures.

However, loans from individuals may not enable you finance big development projects like building a house. You will need to apply for real estate loans from the bank or other lending institutions.

All types of loans charge interest. Interest rates vary depending on the amount of money borrowed and payment duration.

Furthermore, there are certain things that you need to do in order to be successful when applying for loans. You need to have a business plan, clear your debts and consult an expert.

In conclusion, you are advised to adhere to the above tips when lending money or applying for loans. This will prevent you from making a loss. You will also have a successful loan application.

Helpful Mortgage Tips for Potential Home Buyers in 2016

Many people don’t know much about getting home loans or rather mortgage loans. Instead, they hear about interest rates dropping low and home prices falling drastically, and they hastily jump into house ownership. However, the process of securing a mortgage loan from money lending institutions differs from renting an apartment or applying for a car loan or business loans. Applicants who don’t know the main differences are usually disappointed when they don’t receive cash loans to pay for their homes.

It is, therefore, crucial to educate yourself, and there are ways to avoid disappointments when you are applying for a mortgage loan. Purchasing a home is already a daunting task and not being prepared increases the anxiety. But why would you want to put yourself in such a situation.

To be successful, get in a lender’s shoe and think exactly like one and learn the best ways to get your loan approved.

Your credit score and credit history are imperative

It is imperative to know your credit score, it only takes a short while to get your credit report and order the credit rating. Unfortunately, many home buyers don’t even review their credit history and scores before applying for a mortgage loan; they assume that their credit score is incredible enough to qualify them for a loan.

A bad credit score or a credit fraud can prevent you from getting the right financing for your home. Credit scores and history play a critical role on mortgage approvals. Other factors that can deter you from getting a mortgage loan include frequent lateness missed payments and derogatory credit details.

Save your money

Mortgage loan requirements typically change over time, and if you want to apply for a home loan in the future, you must be ready to cough up a lot of money. Never approach a money lender to ask for a home loan with zero cash- your application will automatically be rejected.

Also, the minimum requirements for down payment may also differ and depend on some factors such as the type of lender and the type of home loan you wish to apply. Different lenders have different requirements for down payments. You should always strive to get a higher down payment.