A personal home is the first asset an individual starts working for, and it is a lifelong dream that needs proper execution. However, if you have decided on getting a home for yourself, you must carefully plan everything and consider every aspect before diving into this. There are two immediate pressing matters; the first is a suitable property, and the second is an unavoidable home loan.

However, qualifying for a home loan is another story. You must prepare yourself to be evaluated by the loaners. They have specific parameters on the basis of which an application is accepted or rejected. One of them includes your repayment ability, which is most important. The assessment is done after a thorough background check of your earnings, current living expenses, savings,
history, profile, etc. Let’s check out these points to increase your chances of acceptance.

5 Points to Ponder Before Applying For a Home Loan

This blog has discussed 5 essential pointers to focus on before you apply for a home loan.

Checking Your Credit score

A credit score is the building block of the home loan application process. This number is dependent on the consistent record for paying your dues, such as EMIs and credit cards. The credit information report, abbreviated as (CIR), has your credit score. It is the credit history of your loans from different institutions like any bank or Housing Finance Companies (HFCs) or NBFCs (Non-Banking Financial companies).

The bureau maintains your records and releases this information to the banks or lenders whenever an inquiry starts. The higher your credit score, the higher the chances of loan sanction. Make sure you check your credit score at least 6 or preferably 12 months before planning to buy a home.

Budget, down payment, and EMI

Consider your budget for setting off to buy a house, how much money you should consider for a down payment, and the amount of a home loan is a requirement. Usually, you may get 80% of the property’s value in the form of a loan if the income is sufficient.

Select the EMI range you are comfortable paying. There is a facility of EMI calculators to play with various options. In case your income is insufficient, add your parents or spouse as a co-borrower.

Documents for Home Loan

Having adequate knowledge about the documents is necessary before directly applying for a loan. Here is a document list you must have beforehand.

Go For the Right Banks or Lenders

Do not go for multiple lenders simultaneously, as too many credit inquiry requests negatively impact your credit score. However, that does not mean that you stick to one and not explore your options. Here is a tip, go for banks that have a history of approving home loans. Understand their criteria and adjust yourself accordingly.

Repayment Tenure

The repayment tenure is the time taken to pay off the entire approved amount. Your earnings and savings will help determine the time taken. EMI and tenure are interrelated to each other; the lesser EMI you opt for more will be the repayment time and vice versa.

Conclusion

We hope that these points will help you prepare for a loan application. If you are looking for options, Red door Funding might be of help. Call today at 832 539 7099 for help.

We offer great tips on how to do real estate investing for beginners. One of the highest-paying, secure forms of investment is real estate. Real estate can be a good investment that allows you to build wealth over time. Whether you are an experienced investor or a complete beginner, this blog will give you informational tools to get started. However, it can also be a risky business for beginners. Here’s how to succeed with little or no money down.

Real estate investing is more than just putting your money into a house and waiting for it to grow. It’s a smart way to make “passive” income and build wealth over time.

There are a lot of reasons people start investing, but usually, it stems from a time in their lives when they need money. It can be because of a divorce, an unexpected job loss, or just a general dissatisfaction with how much debt they’re in. Some people even come from the world of business and entrepreneurship. And want to invest in property for the same reasons they invest in other small businesses: it’s an investment that will grow with them over time.

Whatever your reason is for looking into investing in real estate, the first thing you should know is that there are tons of ways you can go about it. From buying properties one by one off the MLS, renting, wholesaling to flipping homes for profit. And there are plenty of ways to get started with absolutely no money down. The most important thing to consider when starting out is what type of investor you want to be: do you want to be passive or active?

Active investors deal with properties every day, while passive investors hire someone else to manage their properties for them. No matter what kind of investor you would like to be, one thing’s for sure: if you have any desire at all to dive into real estate, there’s no better time than now.

The truth is that real estate is one of the most solid investment options out there. It takes time, patience, and knowledge, but the returns are worth it. Hopefully, this information is enough to get a beginner off the ground. And well on their way into their first investment. But if you want to learn more about real estate investing, make sure to contact us at Red Door Funding. Get in touch with our experts right away. Call us at (832) 539-1099

When we talk about the home loan experts, there are many options to go with. With banks and independent finance firms extending their hands in the loan facility, acquiring a loan is not impossible anymore.

However, not to forget, it is not impossible, but it is not as easy as it sounds. It might take you weeks and even months to get your loan sanctioned, which makes it an evidently a prolonged process. Mind you, before you go for it, it is vital to know some ins and outs of the process and the eligibility criteria so you can better have everything sorted out in advance.

Eligibility Criteria

When it comes to the eligibility criteria of a home loan, several factors can affect your case as a whole, so before you go ahead and apply for one, here is your take on basic factors.

Banks and other financial organizations generally charge a fair chunk of the borrower’s salary as an installment to pay it back. These installments are generally forty to fifty percent of the borrower’s income. The number of installments is different in every case until the borrowed amount is paid back along with interest. If you have any other existing liabilities, you can reduce the amount, so it is better to notify the lender ahead. The eligibility criteria also depend on the number of dependents you have; the more the dependents, the lower will be the monthly payments. Moreover, your job stability also affects your chance to qualify for a loan request. Self-employed individuals and job hoppers are less likely to be eligible.

Types of Home Loans

There are generally two types of home loans depending upon the interest you choose, fixed interest and floating interest. As it suggests, fixed interest stays the same despite market fluctuation whereas; the floating interest rate fluctuates with the latest marketing trends.

Increased Tenure

Many people tend to request banks and financial institutions to prolong their repayment tenure to make it flexible for them. However, where it might seem flexible, it is not flexible!

Extending your tenure might decrease the installment amount, but it will lead you to pay a relatively higher amount in the long run.

Red Door Funding —Your Home Loan Experts

We at Red Door Funding are the home loan experts helping you rebuild your house. We are the pioneers of short-term home loans and help you acquire the loan and pay it back. Investing in real estate has always been a tedious task for the amount of research one should do before deciding. Our representatives at Red Door Funding will help you do all the research on your own and answer all your questions. Call us at 832-539-1099 to inquire about our services.

This article will help you learn more about a reverse mortgage vs. home equity loan. Are you an aged homeowner with different options to convert your home equity cash?

Both reverse mortgages and home equity loans will allow you to have cash in hand, which you can use on your living expenses. Both of them have their unique features, and you must understand them both before making a decision.

What Is A Reverse Mortgage?

When you apply for a reverse mortgage, it is the opposite of your regular mortgage. Here, you do not send money payments to the lender; instead, they send you monthly payments, increasing your debt and reducing your share in the house. You hold the home on to your name, but when you are going to sell your home, your loan becomes due.

What Is A Home Equity Loan

This is the opposite of a reverse mortgage because where the lender makes a payment to you, you make monthly payments to the lender. This money is borrowed against your home equity at a fixed interest rate. You receive the amount in 1 sum, and you have to pay it back in monthly installments. As your interest is fixed, your amount will not change. You can use the amount you have received as you wish, i.e., for repairs, renovations, remodeling, etc.

What Are Some Key Differences Between Home Equity Loan vs. Reverse Mortgage

All these allow you to turn your home equity into cash, but they have different repayments terms, disbursements, etc. ‘hence these are the factors that make them different from one another.

Disbursement Terms

  • Home Equity Loan: You will receive it in one go
  • Reverse Mortgage: You will receive the total amount in monthly payments, etc.

Repayment

  • Home Equity Loan: You have to return the loan in fixed monthly payments based on a fixed interest rate over a set fixed period of time.
  • Reverse Mortgage: When the loan matures, you return the full amount in one go.

Age and Equity Requirements

  • Home Equity Loan: In general, there are no age requirements, but you will need to have a minimum of twenty percent equity in your home.
  • Reverse Mortgage: This is possible only if you are above the age of sixty-two years and own the home.

So now that you know the difference between a reverse mortgage and a home equity loan, it will be easier for you to decide. Meet the lenders, understand the requirements, do your assessment and research, and only when you should go ahead and decide. But if you are still not sure and need assistance, visit us at Red Door Funding, where we have the best team who will be able to assist you and solve all your queries. Call us at 832-539-1099 to learn more.

Are you in the marketing looking for a home and are thinking that can you buy a foreclosed home with an FHA loan? Then the answer is yes, you can. If you have an FHA loan, you are allowed by the FHA to purchase a home that is in foreclosure.

Is It Possible to Purchase A Foreclosure Using A FHA Loan?

Yes, it is possible. There are strict rules to buy foreclosed home, and the home should meet the FHA standards. Also, there are lessers benefits compared to a traditional loan.

The Requirements for an FHA Loan?

You must meet the requirements; else you will not be eligible to buy the property. Here are the details.

The Requirements Of The Borrower

  • Credit Score: In most cases, loans are only sanctioned to those who have higher credit, but in this case, you are eligible for an FHA loan even if your credit score is low.
  • Repayment Ability: You will need to provide relevant documents as there will be a verification held to ensure you are able to pay the debts.
  • Become A Resident: Once the purchase is complete, you must shift to the new house. You will not be allowed to keep it as an investment or rent it out ahead.
    Down Payment: You must be able to make a three and have half percent of downpayment.

What Are The Requirements For The Home?

  • Should Be Evaluated: The property should be evaluated by FHA.
  • Conditions: As per the FHA rules, the property should be in proper conditions, i.e., you should be able to live in it.

What Are Some Pros and Cons of Buying a Foreclosure With an FHA Loan

The Pros:

  • You may get a good deal which is not possible otherwise. If you close the deal as a foreclosure, then chances are the cost will be less compared to doing it in other ways.
  • Even if you have a low credit score, you have the possibility to own a property. This means that with a low credit score and at a lower price, you have the chance to close a good deal.

The Cons:

  • The property must meet FHA’s requirements because the seller will sell the property as-is. If there are any repairs needed, they will have to be done by the FHA.

It’s absolutely okay to have a lot more questions when you are thinking that can you buy a foreclosed home with an FHA loan? And if you are not sure, do not worry about that. All you have to do is connect with Red Door Funding over email or a phone call; you can come to see us as well, and our specialists will be able to assist you. Call us at 832-539-1099 to speak with one of our specialists who will help answer and solve all your queries.