Home Loan Paves a Way to Get a Home of Your Own

A home is a place, where we happily spend with our family members. So, everyone wants to be a owner than to be a tenant. Recently, drastic changes have been taken place in the market of home loans. Most of the Indian banks and money lenders have reduced the interest rates on these loans and facilitating you to fulfill your desire of having a own home of you. In India, there are many possible sources to get these loans. The reducing interest rates of loans for home is an unexpected decision of the lenders. Mixed interest rate, floating interest rate and fixed interest rate with reset clause are the most usually interest rates that are offered on taking loan for a home. The interest rates of these loans are differ from one bank to another.

Like most of the other loans, the home loans can avail in two types such as secured and unsecured. The secured loan borrower should have a property of his own to submit it as a security against the loan. On the other hand, the unsecured home loan borrowers are no need to bother about collateral to get a home loan. In case of secured home loan, the borrower can avail loan at low interest rates, where as the unsecured loan borrowers have to pay high interest rates. If you are an unsecured home loan borrower, who are failed to repay the loan amount in right time, your collateral will be taken by your lender. When it compared to the unsecured loan for home, the secured borrowers can avail high loan amount.

The DDA which is known as a Delhi Development Authority has recently announced that they are planning to build around 5020 flats in several parts of Delhi. The government wants to provide own houses to many of the people, who are living in Delhi, Under the DDA housing scheme, 2008. The DDA invites applications for different types of flats like single, double and three bedroom. If anyone wants to avail a home under this scheme, they should pay 1.5 lakhs in the form of a registration fee. Several banks and lenders are ready to sanctions loans for paying registration fee.

The main intention of the DDA Housing Scheme is to offer good-looking flats to the middle and common class people of Delhi at low rates. You can get application forms of the DDA scheme at various places like the sales counter of DDA and some of the branches of ICICI, IDBI, HDFC, SBI and Axis banks apart from all the public and private banks. The applicant, who is going to apply for this scheme, should mention the detailed personal information on the application form. For some reasons, if the application is rejected by the Authority, the applicant will get back the registration fee.

In brief, we can easily say that the Indian loan market is flooded with different types of home loans. By selecting the best home deal, people can avail a own home without any hassles. In this modern world, people can get the right information by visiting reliable Internet websites that provides all the particulars of availing loan for a home. These websites also allow the people to compare the interest rates of all the banks or lenders that offer these loans. This helps them to get home loan at cheap interest rates.

How to Shop For Home Loans

Shopping for Home Loans?

Shopping for home loans aren’t as simple as driving downtown to a hypermarket, grab a package of home loan and chuck it into your shopping cart – Then paying at the counter. It involves much processes, and adequate understanding on how things would work best for your life based on your POCKET SIZE. There are 406 Malaysia home loans available in 26 banks across the country and thousands of real estate agents/officers around the country.

Malaysia Home Loan Shopping

  1. Start by using WISE Home Loan Calculator. From there, you can get a wealth of updated information regading all of 406 home loans available in Malaysia.
  2. Next, calculate your Debt Service Ratio yourself. DSR – Debt Service Ratio is something the bank takes into consideration before approving your home loan.
  3. Check your personal finance. Applying for a loan / Purchasing a property takes a lot of money. So before you decide, consider your wallet from now to 30 years later.
  4. Remember your fees. Downpayment can cost from 10-20%, and also don’t forget the COMMON FEES. You may want to check out EPF Funding too.
  5. Check out the market value for your property to identify Margin of Finance. Of course, this could also vary. The best bet is to check with your financial institution providing you the home loan. Margin of Finance can jump up to 95% on certain conditions.
  6. Study loan features Before you sign anything or start paying for anything, be sure to study your home loan appropriately. Consult your legal practitioner if you’re unsure.
  7. Understand House Loan Repayments Click on the above link and read about the repayment schemes available today.
  8. See if you’re interested in MRTA Mortgage Reducing Term Assurance is something you should consider. Click on the above and see if you’re really interested.
  9. Know your rights as a borrower. Read more below.

Borrower’s Rights & Duties As a smart home loan shopper, knowing your own rights and the right way of doing things is always the key to better shopping experience.

  • In any event the contract between you and the financial institution is breached, you may take legal action.
  • You have the right to attain accurate information provided by the financial institution regarding any agreement, payment terms and so forth.
  • You have the right to be treated without prejudice, stereotypically, professionally and with courtesy.
  • You have the right to be consulted of any changes made to any part of your agreement in the terms and conditions area.
  • You have the right to access all information that will affect your attainment of home loan.

Home Loan Modification – Your Best Option To Avoid Foreclosure

Home Loan modifications have become a very common topic these days. With the turmoil in the real estate markets, many homeowners are looking to their existing lenders for a home loan modification. Most of the time, refinancing is not an option because the property may be underwater, meaning…you owe more than the house is worth. That is when one should consider looking into this option to stop foreclosure.

There are two major types of home loan modification programs and the guidelines for qualifying are different depending upon the one you choose. Most lenders have their own in-house program. However, the home loan modification program one should try first is the Making Home Affordable Program (HAMP). With this home loan modification program, the lender has to reduce your monthly payments to 31% of your gross monthly income.

They have three ways of getting the payments to the 31% required guideline. The first option and the most common way is by interest rate reduction. For example, if one has a $200,000 loan at a rate of 8% and a monthly payment of $1,767.53 including escrow for taxes and homeowners insurance…the lender may be able to reach the guideline by reducing the interest rate to 5% and bring the monthly payments down to $1,373.64. A reduction in payments of almost $400.

The lender has the option of reducing the rate to as low as 2.5 percent. If this still does not get the payments within the 31% guideline, then the lender can go with the second option of extending the term of the home loan modification. Instead of a 30 year term, they may opt for a term of as much as 40 years. Forty years is a long time to pay on a mortgage, but it does help the homeowner to stop the foreclosure and maintain homeownership. There are also programs available that will assist the homeowner in paying off any mortgage years of ahead of its scheduled time.

The last option that a lender have is the principal reduction. This is where they reduce the amount that is owed on the loan. Principal reductions are common in today’s real estate market, but the lender usually will consider other options first.

However, out of the millions of people who need home loan modifications, only thousands have managed to qualify for this program. An important point to remember when submitting your financial information to your lender is that if the monthly mortgage payment to monthly gross income is less than 31% from the onset, then you will not qualify for this type home loan modification program. Conventional wisdom has taught us that a low debt to income ratio is always good, but with this program, a high debt to income ratio…ROCKS!

With the surge in the need for home loan modifications, there has also been a surge in companies providing this service. These companies will work on your behalf to modify your loan.

If you want the best chance at getting your home loan modification approved, you may want to speak with a professional home loan modification company who can help you qualify. The initial consultation is usually free…so it will not cost you anything to find out if they can help.

In a nutshell, the process you need to go through involves contacting your lender, supplying them with paperwork and a hardship letter, and then calling them on a regular basis to follow up on your file. If you are in foreclosure or behind on your payments, you should contact your lender right away. If you ignore the problem, it will not go away, and they will not modify your loan. You must contact them and ask for a home loan modification.

Feel free to contact me directly for more information, or to explore your other options. If your home loan modification is not approved by your lender, don’t give up. There may be others options available to you.