Buying a Home? Do it With Free Housing Loans

The old saying "A home is built of hearts and a house is built of bricks", it is very true. Each person should have a home, a dream home, a place to return to after a hectic and busy day. It is a place which lightens your mind, frees you from all sorts of worries and gives you a sense of belonging. Whether you buy a home with your own funds or you buy it with home buyer loans, all this holds equally true.

There are various private agencies ready to fund your dream home and also government giving you a helping hand through free Housing loan. The US government has decided to offer Housing loan in order to improve the standard of living of citizens in general and also to help homeless people as shelter is one of the basic needs. People can apply for free housing loans in many ways; mortgage is one of the oldest methods of taking a loan. It is just giving a security to the money lender to claim the debt amount in case the borrower fails or refuses to repay the loan.

Choosing a Housing loan is one of the difficult tasks in this economy, but things are made easy with free housing loans. Before applying for a loan it is necessary that have a plan of the total money you are going to spend on this venture. It is necessary that you stick to this plan and budget. Free housing loans provide the borrower a sense of relief and of course, a roof over his head!

The present government in the US is focusing on creating awareness among people about the free Housing loan, Home Buyer Loans and grants. But prospective first- time home owners should beware of scamsters in their midst claiming to be government agents and asking you to sign on documents pertaining to your assets.

The government also provides counselors who come a guide you through the process of acquiring a free housing loan.

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Way to your dream property through Housing loan…

Buying a house could be an exciting experience in life. You are on the top of your happiness while purchasing it. But finding the right home is more important. It needs lot of planning, spending hours or months looking for a suitable property of your choice and budget. There are lots of background checks like scrutinizing the area of living, travelling convenience, security aspects and finally scouting for the best deals on home loan. The most important part while taking Housing loan are interest rates applicable and judging the fact that your home loan does not turn to be too expensive over the duration of the loan. So, here are few tips to consider while finding the right home loan as easy as possible.

Savings

Depending upon your housing needs such as buying a new property, constructing, home extension or renovating it you are required to establish a monthly budget that will help you save enough money for your down payment. Banks or finance companies provide loan up to maximum of 80% of the agreement value of the house. Every bank or finance company has its own criteria under which you will have to show the margin money of around 15 – 20% handy before applying for loan. Therefore, make sure you have saved at least 20% of the down payment and also have little extra savings to cover a few months of your home loan payment. Recession, health risks or other perils don’t come knocking at your door so it’s better to be prepared to cover your expenses for couple of months.

Credit Score

A good credit score will put you in a position to attract the best deal on your Housing loan. It’s a good idea to obtain a copy of your credit report before starting to buy home. You will see what your credit profile looks like to potential lenders and can take steps ahead to improve your credit score if required.

Home loan EMI calculator

These are great tools for helping you understand how much loan amount you can avail, what is the interest rate applicable, processing fees associated, pre & post penalty charges applicable, etc. These tool help you stay prepared with the projected installment on your loans. They are very easy to use and can show how much your monthly mortgage payment would be under different home price, down payment and interest rate scenarios.

Prompt Co-ordination

When applied for Housing loan, it’s important to respond promptly to any request for additional information from your lender and the paperwork as quickly as possible. Waiting too long might cost more towards your housing finance. It might end up losing your finances for dream home or deposits you have made, if any.

Employment Status 

Whenever an individual has been employed in the same job or in the same type of job for atleast 2 to 3 years, it shows his or her stability, job security and continuous source of income for loan repayments. Therefore, a home loan approval is more likely. It is advisable if you’re consistent in any job for more than 2 years and simultaneously looking to buy a new house, wait until your loan gets approved before making any changes. Once you have your home loan, you can migrate to a new job.