1. Diversify your
bank accounts:
Consider putting all your funds
into the lending institutions you’ve dealt with most and longest. This may
enhance your chances of getting a loan at favorable terms at the banks. Naturally,
you should make this move right at the start – while you are still house
hunting. Don’t wait until you apply for the loan. If a relative is helping you
out with a cash gift, deposit it in an interest-paying account at the bank that
has the lowest lending rate.
2. Cut down on
debt:
You may be spending too much of
your income on items you can do without. If, say, a big portion of your
paycheck is going to pay off two cars, then consider selling one car. Take other
steps to reduce debts before applying for a home loan.
3. Follow this
checklist:
Here are facts a lender will
need to know when you come in to apply for a loan. Saving time these days can often
save you money; so make certain you have this data ready:
·
The husband’s job history, complete with past as
well as present employers, his duties and above all his salary.
·
The wife’s employment history and present
position. (Note that all banks are required by law to take a working wife’s
entire salary into account when considering a loan.)
·
The total amount of cash the family now has on
deposit and where.
·
All additional income that can come the family’s
way, such as stock dividends, interest on savings accounts etc.
·
The value of any real estate you own, including
its location, condition, and the length of time owned.
·
The current depreciated value of the family car,
or cars.
·
The current value of other major possessions.
·
The face and the cash value of the family’s life
insurance policies, and the name of the company that wrote them.
·
The total amount of all outstanding debts,
including home mortgage, car payments, credit-card charges, department-store
bills, as well as the amounts paid regularly on each.
·
Personal and credit references, complete with
names and addresses, occupations and phone numbers.
4. Consider getting
a longer pay-off time:
The longer your loan, the lower
your monthly payments. Say you need to borrow $60,000 at 13%. Your monthly
payments on a 20-year mortgage will be $703.20, or $8,438.40 a year. But your
monthly payments on a 30-year mortgage - same amount, same interest – will be
$663.60 or $7,963.20 annually, a saving of around $475 a year. Of course, your
total interest cost is going to be higher over the longer term. Take that into
consideration before you decide. If you don’t expect to live in this house for
very long, the 30-year mortgage could be the better choice.
Nelson Ogbonda, CEO
Rivers Property Exchange.com
+2347033577278
riverspropertyexchange@gmail.com
