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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
4 Mistakes to Avoid When Applying for Small Business Loans

The truth is that if you are an entrepreneur, it doesn’t just require you to have a working business idea; however, it also relies on how you raise the capital. Talking from a realistic perspective, no business can start or expand without enough money. Often, business owners (small business) face financial difficulties, which push them to let go of what possibly could have turned out being a worldwide changing idea.

Now, many financial institutions are ready to finance and support brilliant ideas of entrepreneurs through small business loans, but you can just get financial backing if you are able to represent yourself as a strong business package.

Not all financial decisions take place in a vacuum. Today, banks conduct a thorough assessment of the applications they receive before they proceed with an approval. In such a case, unfortunately, so many small business owners end up missing these loans and this is all because of poor business ideas, and a lack of clarity on their business loan application.

Know that even a single mistake you make in the application could decline your request for a loan. In many cases, this is because the lender may not examine some information or loan application requests. However, if you wish to avoid rejections, then here are some of the common mistakes you should watch out for when applying for small business loans.

Having Outdated Financial Records

A common mistake that most small business owners make when they seek a loan from their financial institution, such as Aurumfi, is not taking more time to work on all their financials. All banks need to require you to provide this information in order to determine exactly how stable your business actually is before you risk investing money in it.

In this case, if your aim were to work on expanding your business, then any financial institution would want to make sure that your business is stable enough to repay the loan when the time comes, or whether it can sustain itself in the future or not. The information you provide regarding the business has to be tangible and clear.

Since most loan providers demand this information, small business owners end up creating figures to please the bank, forgetting that the bank still verifies the information you provide on the application. Eventually, this leads to denials of the loan verification process as it shows different figures from the one you provide. The right decision is, to be honest with the information you fill in the applications and you will increase your chances for loan approval.

No Clear Use of the Funds

Any organization you choose, lending the loan would keep a keen eye on exactly how you as the applicant plan to use the funds to boost the success of the business. Unfortunately, another common mistake that small business owners make is not having a clear and well-described idea of how they should spend the money that they request. Eventually, this leads to denials of loans by most lenders since the lender will not be able to know whether you can repay the loan with the interest.

The lender wants to know that you spend the money on the right things that will improve your business position. They want to see all your business needs and evaluate whether the amount you wish to borrow is enough to meet all your needs.

As the loan borrower, you have to show the lending party that if you receive the loan, it will improve the performance of your business and create a good impact. Ensure that your points are clear and the benefits you wish to get with the finances you that you qualify for in the days to come.

Late Application of the Loan

So many businesses wait until it becomes too late for them to submit their application for the loan. Usually, this happens when they are desperate for the business funds. This is something that makes them go for any offer. At such times, some of the offers that the small business owners take up turn out with higher interest rates and unfavorable terms. In order to avoid all these, you should take some time and search or the best loan providers or people who can help you make the right decision. Before you make a choice, however, do it slowly, and give yourself enough time to evaluate the different choices that you need for the growth of your business.

Applying for a Wrong Business Loan

From the view of a financial expert, before any owner applies for the loan, they need to consider the capital that they need and the right type of loan that works for your area. Before you apply for a loan, you need to know there are different types, meant to cater to different needs of your business and hence if you wish to borrow, you have to match your needs with the right type of loan.

This simply means that if you apply for an inappropriate loan, this could end up costing you much more on the interest rate. Hence, it is always advisable that you do a complete research on the right type of loan available, one that matches your business needs, to reduce the chances of encountering a rejection.

April 11, 2018
4 Ways to Use Your Bank to Achieve Your Startup Goals

While Hsieh has a point, especially when it comes to finding your startup passion, the fact of the matter is that you do need some capital when launching a startup – no matter how small it is.

And you certainly need a business bank account.

Perhaps your needs are simple (a separate business checking account). Maybe they are slightly more complicated (a line of credit). Wherever you are on the spectrum, and whatever niche your company operates in, you want to be working with a bank that you can count on for the long haul.

While you must not solely concentrate on your current needs (always be looking forward), the fact is that how you utilize your bank and your banking relationship can play a significant role in growing your company.

Here are four ways to use your bank to achieve your startup goals.

1. To obtain necessary financing

During the development of your small business, there is a high likelihood that you are going to want to obtain the necessary financing to take your company’s operations to the next level.

So, you may be asking about how to get a loan in Dubai (or wherever your business is located)?

When you are shopping around for a bank for your startup, ensure you ask about their small business loans and whether they have any types of loan products available for your firm’s needs.

Additionally, if you require startup capital, your bank will be able to discuss various solutions such as guarantees, receivable finance, and import and export finance solutions. These are significant if you want to engage in international trade.

While there are some other options for obtaining financing (hey, friends and family!), your best choice is to go with a bank.

2. To get a business credit card

There are many reasons why having a business credit card is an essential part of growing your startup.

However, one of the most important is the fact that having a business credit card will make it a lot simpler for you to keep your business and personal expenses separate. It also provides for an accurate record of your business expenses.

If you opt to apply for a business credit card, make sure you choose a bank that offers you substantial cashback and bonus points whenever you use it.

3. To stay organized online

Similar to #2, your bank can aid in keeping your startup finances organized. In order to do this, you want to be utilizing their online banking tools.

Even as a startup, your records must be carefully reported, accurate and comprehensive. Therefore, as long as your bank works in conjunction with online software (such as QuickBooks, Mint, Freshbooks and Wave Accounting), then it can significantly aid you in staying organized.

A bank that is technologically capable will allow you to securely access and read records online, and will enable you to perform online payments as well as schedule them.

The service ADCB international transfer allows for fast, simple and safe fund transfers all over the world, thanks to the bank’s competitive exchange rates and established global network of banks.

4. To protect your business

One of the most meaningful ways in which your bank can assist you as a startup is by providing you with insurance. As you undoubtedly know, diving into the deep end and starting your own business does not come without substantial risks.

For this reason, you want to be guaranteed that you have exercised the necessary steps to safeguard your business and personal assets.

Prior to selecting a bank, speak with the bank manager about the types of insurance they provide to protect your business and decrease the danger you assume when you become your own boss.

For your best interests

When embarking on your startup journey, keep in mind that one of the most valuable relationships you will develop is with your banking institution. You want to nurture and grow that relationship because it will only work to your advantage in the long run!

Put it this way: your bank manager will guide you, advise you, direct you, assist you and help you accomplish your business goals.

As your business progresses, so will your day-to-day banking needs. And you would definitely want to ensure that you are working with someone who has your (and your firm’s) best interests at heart, and who will be looking out for the interests and welfare of your company.

April 11, 2018
Financial Mistakes You’ll Hate Yourself For in 10 Years

Budgeting and setting financial goals is not always easy, but you will regret not doing it in the long run. Whether you forget to make a budget, or you didn’t enroll in your 401(k) plan, there are a number of financial mistakes that you will end up hating yourself for in the next decade.

Not Paying Off Your Credit Cards

When you get a credit card, it is far too easy to spend money that you do not have and get into debt. Many people fall into the trap of carrying over a balance from month to month. In a single year, you can waste hundreds of dollars on interest

Paying off your credit card each month saves you when it comes to interest. It also ensures that your credit card debt does not grow out of control. If you continuously have problems paying your credit card bills, there are ways to help you. If nothing works, you may need to rethink having it in the first place.

Not Budgeting Your Money

Too many people put off budgeting until later in life because they don’t think it’s necessary. Budgeting does not mean denying yourself fun toys or splurges, you just have to be more responsible about it.

You can still buy a new phone–but you have to add it to your budget. Your budget helps you figure out where you are wasting money and what you could change. Instead of wasting money on cable or coffee, you could save that money for a vacation or put it toward a 401(k).

Once you get used to having a budget, it becomes easier to save money and hold off on impulse splurges.

Forgetting to Invest in Insurance

Not investing in life insurance, health insurance, and other insurances can ruin your finances.

If you were to die today, would your family be financially secure? If you became ill, could you afford the doctor’s bill? These are questions you need to consider.

One of the biggest causes of bankruptcy is medical debt. Right now is the time when you should be considering disability insurance, long-term care insurance, and health insurance policies. Accidents happen, and it is important to make sure that you are prepared for them as much as possible.

Buying a Car You Cannot Afford

A vehicle might be necessary to get you to work, but it does not have to be brand new. Too many people buy a car that they cannot afford. If they use a car loan, then they also have to pay higher costs for car insurance.

A car payment can easily cut into your budget and your retirement plans. Once you stop having a car payment, you will find it surprisingly easy to afford things like vacations or an emergency fund.

Skipping Your Emergency Fund

Sooner or later, accidents will happen whether you’re ready for it or not. Your car might break down, or your child may fall ill. Life is full of mishaps, and you will most likely have a financial emergency at some point.

Your emergency fund should have at least three months of expenses set aside. Some people have closer to 12 months, but it all depends on your situation. If you are single and can easily find another job, you might need less. If you have children and the sole breadwinner, you will need more money set aside.

Your emergency fund should be placed somewhere that you can easily access it, but you should only do it when you absolutely have to. The entire goal of the fund is to provide you with cash when an emergency happens, so you need it somewhere that you can easily reach. You could try an online savings account or a savings account at your current bank.

Neglecting Your Retirement Plan

Because of compound interest, you will have more money in your retirement account if you start saving now. Plus, retirement accounts, like a traditional 401(k) can lower your tax bill in the current year.

Social Security is not enough for a secure and happy retirement, so you need to make sure that you are prepared for your golden years.

Forgetting to Discuss Money Matters With Your Spouse

For your family to reach your financial goals, you have to work as a team. You need to make decisions together, this way, everyone is aware of what’s going on.

Financial problems are a leading cause of divorce, so discussing money matters can help your relationship as well as your financial situation.

Save Yourself from the Regret

To reach your financial goals, you have to make sure to avoid these mistakes. By planning ahead, buying insurance, and setting a budget, you can make sure that your household is protected from financial mishaps.

You will never forgive yourself later in life if you don’t try and financially prepare yourself for the future. It seems nearly impossible, but by realizing it now, you can save yourself a lot of trouble later on.

March 18, 2018