Home Loans for you
A home loan is basically a kind of loan, which is secured on your home. In other words, home loan uses the equity in your property as a security in case you are unable to repay the loan. Generally speaking, you can avail around 100,000 or more on the basis of equity available in your property.
Use of home loans
Home loans are used for a wide array of purposes. These include debt consolidation, mortgages, home improvements and a new business setup. Thanks to a dip in house prices, more and more people are spending money in enhancing the look of their house.
Loan to Value
In the last two or three months, the modifications in the home loan market have led to a plenty of financial institutions minimizing the loan amounts and the Loan to Value (LTV) ratio. Even the financial institutions that have retained high Loan to Value ratio have tightened their routine for home loan. Therefore, it has become real tough to get the home loan at low rate of interest.
If you are employed and have regular source of income then you will not face much problem in getting a home loan because financial institutions will not see you as a risk. But if that is not the case and you are self employed or working from the home, financial institutions will treat you as a risk and may not approve your home loan application.
If one financial institution does not approve your loan application, don't feel disappointed, move on and contact another financial institution. As the home loan market is quite competitive in nature, there is a good chance that someone will approve your loan application.
A home loan is basically a kind of loan, which is secured on your home. In other words, home loan uses the equity in your property as a security in case you are unable to repay the loan. Generally speaking, you can avail around 100,000 or more on the basis of equity available in your property.
Use of home loans
Home loans are used for a wide array of purposes. These include debt consolidation, mortgages, home improvements and a new business setup. Thanks to a dip in house prices, more and more people are spending money in enhancing the look of their house.
Loan to Value
In the last two or three months, the modifications in the home loan market have led to a plenty of financial institutions minimizing the loan amounts and the Loan to Value (LTV) ratio. Even the financial institutions that have retained high Loan to Value ratio have tightened their routine for home loan. Therefore, it has become real tough to get the home loan at low rate of interest.
If you are employed and have regular source of income then you will not face much problem in getting a home loan because financial institutions will not see you as a risk. But if that is not the case and you are self employed or working from the home, financial institutions will treat you as a risk and may not approve your home loan application.
If one financial institution does not approve your loan application, don't feel disappointed, move on and contact another financial institution. As the home loan market is quite competitive in nature, there is a good chance that someone will approve your loan application.
A home loan is basically a kind of loan, which is secured on your home. In other words, home loan uses the equity in your property as a security in case you are unable to repay the loan. Generally speaking, you can avail around 100,000 or more on the basis of equity available in your property.
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