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.