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Category: Loan

Tips To Get The Best Home Loan Deal

The process of applying for a home loan may seem scary if you get into it unprepared, but if you have braced yourself up in advance and follow the required steps then it may sound easy to get your home loan application approved.

Well, applying for the loan in a right way is not all that is needed. You are also required to act smart and apply for a home loan deal that suits you best.

Under this article, we will talk about the tips that will help you lock the best home loan deal for yourself.

So, before you apply for a home loan, take into consideration these key tips:

Negotiate Rate Of Interest

Those who lend the money usually define the rate of interest in a minimum or maximum range and the actual rate they charge depends on your eligibility criterion. Being a borrower, you have the advantage to negotiate a better rate of interest.

According to financial advisers, you can do this not only by comparing the loan options available for you but also by improving your chances of becoming eligible by adding a co-borrower and combining the income of the co-borrower with your own.

Go For A Loan Only After Comparing

Before you choose to buy any particular loan, indulge in an intensive research work and compare all the options of the different types of loans available in the market. Know about the equated monthly instalments, available interest rates, processing fee, and other related charges.

The emergence and development of technology have made the process of comparing much easier for you. Now you can compare between different types of loans available by accessing the internet at the ease of your comfort zone.

So, always look at the base rate, margin offered, maximum tenure offered, how eligibility is calculated and most importantly if the lender has earlier funded the property similar to yours.

Rate Of Interest

Home loans are available in return for the rate of interest. So, before applying for a loan always finds out the type of rate of interest you will be required to pay.

If a home loan is based on the fixed rate of interest then the interest rate will not change during the entire loan tenure and the borrower is required to pay the same EMI throughout the loan term.

Under the floating rate, bank loans are linked to the MCLR whose rate of interest automatically changes after a fixed period of time.

If the interest rate is expected to fall in the near future then you should go for floating rate and if it is expected to rise in near future then you should opt for a fixed rate loan.

You can pre-close the loan ahead of its actual tenure. If your loan is based on a floating rate, no charges will be applicable but if you are on a fixed rate loan, there may be charges applicable.

Know Your Borrowing Capacity

Most of the time people decide to pay high EMIs thinking that the loan amount will come down with time due to increase in their income. It is important to understand that this does not happen all the time. Your income may or may not increase with time. Therefore, understand your borrowing capacity and borrow under your limit where paying the EMIs will not stretch your finances.

Additional Costs

When you decide to apply for and take a home loan, never forget that interest is not the only cost which you have to bear. There are certainly other costs too.

Each time you apply for a loan with a bank or any other non-banking financial institution you are charged a certain percentage of the loan amount that you wish to borrow. The percentage charged is known as the processing fee. This amount may vary from 0.5 percent to 1 percent of your total amount of loan.

Banks or NBFCs also charge legal fees to ascertain the legal status of the property. Usually, the legal fees are applicable on either a loan against property or on a home loan.

In fact, depending on the type of loan you wish to borrow, you will be charged a fixed amount for the pre-payment of your loan. In case you do not repay your loan EMIs on time, a late payment fee is charged. The late payment fee depends on the financial institution that has lent you the money and the type of loan you have borrowed.

Ankita is a freelance writer who writes about finance, loans, credit cards and insurance.

April 29, 2018
7 Essential Reasons Why More and More People are Opting for VA Loans in Texas
There is a loan program for every mortgage borrower if you resort to the right real-estate lending service but for many, the VA loan stands out for a number of factors. Further supported by the U.S Department of Veteran Affairs, VA loans are formulated to assist the active-duty military personnel, veterans, and a few other people to turn their dream home projects into a reality at an affordable cost.

Here, we have put forth a few vital reasons why the VA loans for low credit scores in Houston appear to be lucrative for so many people. Take a look.
1. Low Down Payment
The VA loans have the lucrative benefit of the very low amount of down payment. You just have to make 20% of the down payment but you will get a waiver of $453,100 and pay 20% of the amount more than this benchmark.
1. Flexible Credit Score
Compared to the conventional Jumbo loans, where one is required to have a credit score of more than 710, the VA Jumbo loans in Texas can be a convenient option. These require a credit score of just 620 or above to qualify for such a loan. Therefore, it will definitely open many news doors to achieving your dream home.
1. Zero PMI
Usually, in order to decrease their own risk on the Jumbo loans, the lenders make it compulsory to purchase the private mortgage insurance or PMI when you are making a down payment of less than 20%. This PMI can prove to be significantly expensive for loans worth hundreds or thousands of dollars. But now you can save thousands of dollars with VA Jumbo loans as these don’t require purchasing any PMI.
1. Lower Rates of Interest
When compared to the traditional loan programs, the interest rates for the VA Jumbo loans are significantly lower. In fact, these are even more cost-effective than the government aided programs like the FHA or USDA loans. So, refrain from paying excessive interests by opting for the VA loans.
1. Government Guarantee
VA Loans have such favorable terms and clauses because these come with a federal guarantee whereby a part of the loan will be repaid to the lender regardless of whether you can make the monthly installment or not. This kind of an assurance always motivates the lenders to provide the VA loans at the attractive terms as desired by the borrowers.
1. Multiple Options
There are various kinds of VA loans available in the market, right from fixed to adjustable rate ones which can be used for buying a newly built home, a house, duplex, manufactured home, or even a condo. You can also use it for refinancing your existing mortgage and repairing or home improvement projects etc. And since these mortgage rates are set by the U.S Banks, credit unions, savings & loan institutions, or the mortgage lenders, each of them will have their set rates and fees. So, this allows you to choose from a variety of options and compare them according to your budget and requirements.
1. Low Closing Costs
VA poses a limit to the closing costs charged by the lenders from the VA loan seekers. This is another amazing way in which VA loans can save your money. You can save your money and allocate it to the other expenses involving a new home including moving costs, home decor, repair projects etc.

VA loans are extremely easy to qualify. Just like other conventional loan programs, a proper documentation, a considerable credit history, and adequate income are necessary for the monthly payments. But these guidelines are more flexible for the VA loans. So, without any further delay, you should immediately apply for a VA Jumbo loan now.

Author Bio: Joan Gallardo, has 18+ years of experience as Senior Loan Officer, and here tells you why the VA Jumbo loans in Texas are a popular choice. Learn more about loan programs such as the VA loans for low credit scores in Houston by following his blogs.
April 17, 2018
6 Reasons to Apply for a Personal Loan Today
Everyone wants to have money all the time. But a low salary, student loan, credit card debts and other monthly payables can prevent you from saving money and always having enough cash to support your needs and lifestyle.

A personal loan application can be the answer to your need for additional funds. When you get approved, you can use the money you get for various reasons and situations.

Why You Should Get a Personal Loan

If you are not yet sure about how getting a personal loan can help you, here are the different ways it can do so:

1.     To pay off debts

One of the most popular reasons why people apply for a personal loan is to pay off or consolidate debt. If you owe different banks or creditors for a car, student loan or house loan, staying on top of all payments can be difficult. These debts have their own monthly payments, interest rates and due date.

Because of these, you may miss deadlines and even the actual payments. These, in turn, will cause you to pay higher fees,

But with the additional cash you can get from your loan, you can pay off all your creditors and make just one payment every month. Debt consolidation will save you money, time and effort. It is one of the top benefits you can enjoy when you take out a personal loan.

2.     To be rid of credit card debts

The annual percentage rate or APR of credit cards now ranges from 13.12% to 22.99%. If you cannot pay off your credit card debts within a year, you will keep paying monthly fees that will get bigger and bigger annually.

Personal loans come at lower rates. This means you will pay lower interests as well. They also come at a predetermined term and, as such, you will have an end date for payments to look forward to.

3.     To pay for medical expenses

If you or a loved one is sick or must undergo a minor or major procedure and you do not have any money, a loan will help you out. You can borrow what you need and choose a payment structure that will work for you.

Examples of medical and health procedures that you can finance with your loan are:

Cosmetic surgery
- Orthodontics
- Dental services
- Fertility treatments
- After-care or post-op treatments
4.     To finance a home improvement project

Everyone wants to have a beautiful, comfortable, safe and secure home. If you do not have enough money to renovate the living room, kitchen or bathroom, or add a pool or spa on your deck, there is the option of taking out a loan.

The biggest benefit of getting a personal loan for a home improvement project is that you don’t need equity or collateral to qualify for one. In addition, when you choose the right bank, you can apply for a loan online in your home or office.

5.     To make a major purchase

Do you need to buy a new kitchen appliance or living room furniture, or to pay for major car repair work? Get a personal loan to pay for it.

Although many people use a secured loan to pay for expensive assets, some cannot obtain this because their credit history is too short. If you have this problem, you can apply for a personal loan. You will get the money that you need and pay it back over a longer period of time.

6.     To enjoy your dream vacation

If you have always dreamed of going to the Maldives, Bora Bora or Paris and staying at a 5-star hotel and simply enjoying a luxurious getaway, a personal loan can help you achieve this dream. You can do this even if your current financial health is not in good condition.

You do not have to save money for years to experience the holiday of a lifetime. You can have your loan approved in a matter of days (and sometimes even hours) and go on your vacation whenever you please.

Overall, a personal loan will allow you to have the money you want or need to pay off your debts or medical bills, to make an expensive purchase, to improve your home, or to go on your dream vacation. And you can do all these without paying for more than is necessary in the short and long run.
April 12, 2018
Some Guidelines About Business Loan

In this dynamic world, now business is growing rapidly. That is why business loan is very important in every business and it plays a vital role. We know very well that finance or funding is required in every business so that the business is started according to its vision and ambition. So some points are there that people must know before taking any business loan.

In every business, people should know their basic needs and the funds they required, so that the business can be started without any problem. They must have a clear idea why they are asking for business loan according to their requirement. So the future of the business will be grand success.

People must assess their business very carefully before taking any business loan. They should take help from financial advisors or any financial institutes. There are so many institutes are there, those are proving necessary advice for businesses according to the requirement. So that people will not face any problem in the future business.

In every businesses, people must review about their credit history, after that people should think about the business loan. As all financial institutes conduct internal survey after that the business loan can be sanction with the prior approval from concern loan officer. So people should be aware about their credit report from different agencies. If existing business is there, they must asses about their credit score. If credit score is good then 100% chances is there to get the business loan.

If your credit score is good for the subject business. People should look the options about the financial institutes because many times some small financial institutes offer a high margin of business loan but big financial institutes never offer such a high margin of loan as per the required business. People must discuss about the criteria, amount, objectives as per the financial procedure to the concern loan officer after that people can select a right one according to the requirement of business.

Another important factor is business plan. It is very important before projecting any business loan. People should have a good business plan because it is reviewed by the financial institutes according to the credit score. You should have a solid business plan detailed about your past business, evaluation of business and assets and about your concern business project and your business growth over the financial years.

These are some factors people must go through before thinking any business loan so that people will not face any problem in getting business loan from any financial institutes. As we know that finance is very important in every business. Therefore “Where there is money, there is positive thinking, where there is no money, there is always negative thinking”.

February 4, 2018
Bank loan in Dubai – amazing offers by top banks of Dubai

There are different types of loans provided by top banks. It is now a days a need of the day to seek out the future planning’s regarding financial problems and for that bank loan is very necessary for locals as well as for expatriates. It was very much difficult and time taking to proceed your tasks but internet and fast growing technological equipment’s has shifted the paradigm completely to avail the services of a bank either in the form of loan or any other insurance policies. So as the case with banking sector that has developed very much and now contributing a lot in the growing economy by providing the services to its customers. The most amazing feature that has developed recently is best mortgage rates. You should know that repayment and transfer your property for a bank loan in Dubai is not an easy task but not a difficult one at the same time if you proceed with a proper planning. As we are dealing for money so it is a very time taking process and at all it was risky also again because of the burden of the loan. Now mortgage services are a way of life for many people here in the UAE to establish their own house or a commercial property by taking a bank loan in Dubai. There are also many benefits of using bank loan in Dubai services as every time you use the same bank with which you are in contract for loan, the bank provide you many offers on online shopping, ordering food or recharging your phone, you can avail big discounts and many perks.

Why we need a bank loan in Dubai?

We need a bank loan for so many purposes like we have to build our own home or we want to start a small sized industry and now these ideas cannot be fulfilled with the help of investment and loan that can only be possible approaching a bank for a loan in Dubai. Well there is a strong reason also that why we should take a bank loan in Dubai. Suppose you are working in an institution in Dubai as an expat and you live in Dubai and consider it as your home. You have to pay a fixed home rent every month to your land owner and this is due on you for each month and there is no relaxation because your owner is very strict for rent. That rent make a big cut on your monthly salary and you are unable to save money for future purposes and you think that this setup is not giving you anything at the end of your agreement with your land owner. Now what if I told you that if you would take services of a bank for loan you can get your own property by paying easy installment with a very loan interest rate. And most amazing thing is that the installment you will pay to your bank or any lender I mean your financial helper is exactly equal to the amount you will pay for your rent amount. Now if you are a sensible person you will for sure got the idea that why I am paying rent for a building that is not mine and on the other hand top banks provide me with a bank loan in Dubai on easy installment at a very low interest rate and after paying the installments I will be for sure able to get my own home. Now this is the conclusive idea that through bank loan in Dubai you can have your own home that is dream of most of the people in Dubai.

Credit card payment – best facilities from Mashreq bank Dubai

Mashreq bank is considered one of the most reliable bank regarding bank loan in Dubai services. There are different types of package that Mashreq bank is providing to its customers. You can get the most relevant package for a bank loan in Dubai to meet your desires.

Bank loan in Dubai is most appropriate way for expatriates to build their own home or set a business. Mashreq bank of Dubai is best suited for all in this regard.

December 10, 2017