Mortgage is a term, not all of us are familiar with. People from business background in studies will definitely understand the term and can even tell us. Well, what exactly is this mortgage? Okay, it’s a financial term. Correct! So, don’t you want to know?
Come on, read further we are sure, you might require this info may be now or in the near future. Buying a home is almost each person’s agenda for life. Or it might be your parents dream, or your friend’s advice to you, or your spouse goal. Be it whatever you may have to know these things in order to help them or yourself in such scenarios.
What is exactly the term Mortgage?
Mortgage is the loan that is taken to buy a home or a plot, property. The term is for 25 years, basically, but it can be adjusted based on your necessity-either longer or shorter. The shorter is the better.
This loan is given against your new property. That is, until you pay off the due completely, the bank has equal rights on your home or property just like you. If you fail to make the payments on time, delay years together, they will sell the property to recollect their money.
Where can you get such mortgage?
Most of the banks offer mortgages. But the product varies, like amount, rate of interest and initial deposit. Even in societies you may get the mortgage source, sometimes for a lower rate of interest. So be sure to make a thorough check before you fix on one.
Guide in finding the right mortgage lender
So, once you have decided on owning a property or land, this option is the toughest choice, choosing the right lender. There are hundreds of banks and organisations available to give you a mortgage, but, you must be careful in choosing them. Not all will fit in your budget and your lifelong earnings and this investment should be considered.
Guide 1: Need of a mortgage broker
Brokers are sometimes needed to make our work easier and hassle-free. Mortgage involves a lot of requirements and documents work to be done. So decide if you will do all on your own, or you hire a broker to do the work for you. If you are working then hiring one is really a good idea, as they will have knowledge about what is the process and what is required.
If you are a little budget constrained, then you may choose to do it yourself. But, take the complete process and its requirements document from the organisation and arrange things accordingly. You might later be repenting if your application is rejected for want of documents.
Guide 2: Type of lender
There are many organisations and banks as we said, ready to offer you a mortgage. But choosing which one you want, the larger banks that have standard process or smaller banks that have more of a personal touch, all depends on you. Smaller banks may have lesser interest rates and may help you closely. While larger banks have standard interest rates, they may not be able to give your personal attention, but the benefits that you get may be more. The type you choose is based on your requirement. See what your financial status is and what is that you looking out in a mortgage lower interest rates for longer years or higher rates for shorter duration.
Guide 3: contact a real-estate agent
They will surely be of help of Personal Finance Advice - Personal Financial Management - Personal .... When you are in the home buying spree, contacting a real-estate agent, and keeping them in touch is very much needed. A good agent will help you in finding the right lender, even if it’s not the one in his office. Few will try to fix you to the ones they are having tie-ups with, but you read the offers carefully and decide.
Guide 4: seek help of friends and relatives too
We don’t see any harm, in you asking advice and help from friends and relatives who had already gone through this process. It might be easier for you to understand and go ahead. They might help you in finding the right and best lenders, from personal experience. They can also help you about the terms and duration that you can go with.
Mortgage initial Deposit:
This factor influences your payback a lot. It can also be said an initial payment or down payment for the property you are going to buy using this mortgage. So, the more you pay now, lesser is the loan amount and rate of interest. Don’t worry, they will give you money up to your capacity (based on your CTC), but interest and the tenure will be higher. So be sure to save some money right from the time you decide on buying a property.
Final is the applying process, which if you have hired a broker, he will take care of. Else you will do. Now that you know most of things surrounding mortgage, it will be easier for you to approach.