A home loan is a major type of lending, the main difference of which is that money can be spent only on purchasing housing. Moreover, it often happens that the lender pays directly the credit amount to the seller, after the conclusion of an agreement.
There are several types of home loans:
- A home loaning is a type of lending, which includes a certain pledge (not a purchased object, but possibly another house, car or valuable property), a thorough check of documents and credit history. Moreover, the conditions of this long-lasting loan are quite strict, especially in relation to age, citizenship, place of residence, place of work, and experience.
- A mortgage is a credit similar to the mentioned above. The mortgage implies that the property being bought becomes collateral for the borrowing. In the case of a house loaning, they cannot take away the place of residence. In the case of a mortgage, real estate can be sued. Besides, the mortgage implies a down payment on housing (up to 30 of the price).
- Installment of housing implies that if the bank is involved, the seller pays interest on the credit (or agrees with a contract). If acting directly, the money is gradually paid directly to the seller.
Loans for housing are long-term and large-sum credits which are carefully checked. They are very beneficial for lenders due to the lack of risks. The agreements are usually made from 5 to 20 years or even more, but at a higher interest rate. It often happens that a rollover is issued for home loans with varying interest rates. It should be taken into consideration.
Where to ask for help?
Of course, you could hire the credit broker to help you with issuing a loan. This specialist can prepare the documents, find the most profitable loan, and negotiate with the bank employees. Their services are usually calculated as a percent of the deal, which is a huge amount and pity to give. Fortunately, there are many brokers, and due to the high competition, their tariffs are quite low. A familiar lawyer or broker can also help.
However, you have to be cautious, if the assistant declares that it is necessary to pay immediately, before the completion of the transaction, he is likely to be a fraud.
How to get a home credit?
To get a loan for a dwelling on favorable terms, you should consider:
- The mortgage rates,
- Payment terms,
- Availability of benefits,
- The size of down payment
- The type of loan repayment scheme: annuity or classic.
The easiest way is to choose a program by comparing credit terms. Make a request to the banks you are interested to work with or find yourself on the Internet. Due to the standard form, compare conditions quickly and conveniently. Terms to be compared:
1. The size of the initial payment;
2. Interest rate type: is it fixed or flexible;
3. Loan cost and repayment order.
If you plan to pay off the credit before the deadline set by the bank, find out if there are penalties for early repayment. By issuing a loan to buy a dwelling, banks check the client, his credit reliability, and financial capabilities. To maximize the chances of approving, contact the bank the requirements of which are in line with your opportunities.