Thinking on buying a property, your first home perhaps? Or maybe you are seeking to buy a house for your investment? The high price of property today, whether it is a house or an apartment, make it harder for homebuyers not to apply for a bank loan for home. The low mortgage rate policy by the government nowadays has encouraged many homebuyers and investor to seek bank loan in order to complete property purchase.
Many banks in the United States and mortgage companies would gladly offer you a secure funding in a form of secured loan for residential property purposes. There is also possible a possible option to refinance your existing home loan if you are experiencing some financial trouble or just simply seeking for better rate and terms.
Down payment, explained
Both banks and mortgage companies offers a complete package of fixed and adjustable loan rate. However, prior to applying for a loan plan with either institutional bodies, you need to pay a down payment. Down payment is usually made in cash before purchasing an expensive goods and it is the amount of money you pay that represents a percentage of the total buying costs. Whether you are a single white collar employee or a newlywed couple seeking to buy your first home, you might not have a lot of savings to cover more than 20 percent of the home price.
Traditional homebuyers seeking for the best loan term
Do not worry, there is a good news for the traditional homebuyers! Some banks in the US consider an alternative credit solution for home loan. Some banks allow a lower percentage of down payment to be paid for first time buyers. You can pay as low as 5 percent to get a home. But there is a catch! This will be possible if you have a clean credit history, meaning that you always pay your bills on time and settle debts immediately. This is due to the confidence that banks put in you If you have a clean credit record.
Buying a home is a big step in our life, so it is better for you to really consider all options possible because once you apply for a bank loan for home, you are bounded by its terms and condition, including the 15 or 30 years’ monthly mortgage payment plan that you chose. Also, it is important to be discipline on the monthly mortgage payment because when you ignore the importance, you can face serious problems.