Business Magazine

What You Should Know Before Taking Your Home Loan

Posted on the 18 July 2013 by Adeyemiadisa @adeyemiadisa

What You Should Know Before Taking Your Home LoanGetting the best home loan at a considerably low interest rate is not hard to find. But the problem is that most people don’t usually understand what they are going into before signing for the home loan supposedly meant to improve their circumstances.

My uncle recently asked me a question I have never thought of / about myself while we were having a chat over the effects of credit crunch and government policies on the economy.

We were in the garden at the back of his house and he asked how do you find the right home loan?

Not that the question is difficult to answer, but it’s just that I have never even thought of it myself.

1.) How Do I Choose The Best Home Loan?

  • Do you expect your finances to changeover the next few years?
  • Are you planning to live in this home for a long period of time?
  • Are you comfortable with the idea of a changing mortgage payment amount?
  • Do you wish to be free of mortgage debt as your children approach college age or as you prepare for retirement?

Your lender can help you use your answers to questions such as these to decide which loan best fits your needs.

2.) Best Way To Compare Home Loan Terms Between Lenders?

Speak with companies by phone or in person. Be sure to call every lender on the list the same day, as interest rates can fluctuate daily. In addition to doing your own research, your real estate agent may have access to a database of lender and mortgage options.

Though your agent may primarily be affiliated with a particular lending institution, he or she may also be able to suggest a variety of different lender options to you.

3.) Costs Or Fees Associated With The Loan Origination Process?

This fee pays for the home appraisal, a copy of your credit report, and any additional charges that may be necessary. The application fee is generally non-refundable.

4.) What Responsibilities Do I Have During The Ending Process?

  • Be sure to read and understand everything before you sign
  • Refuse to sign any blank documents
  • Do not buy property for someone else
  • Do not overstate your income
  • Do not overstate how long you have been employed
  • Do not overstate your assets
  • Accurately report your debts
  • Do not change your income tax returns for any reason. Tell the whole truth about gifts. Do not list fake co-borrowers on your loan application
  • Be truthful about your credit problems, past and present
  • Be honest about your intention to occupy the house
  • Do not provide false supporting documents


Back to Featured Articles on Logo Paperblog