--> Housing loan is a loan acquired from a financial institution to purchase a home. Home loans consist of an adjustable or fixed interest rate and payment terms. Home loans may also be referred to as mortgage loans. --> Most people take on a housing loan from a banking institution which offer different loan packages to cater for the needs of different users. --> The maturity of housing loans range from 1 to 35 years. The maximum loan period depends on the remaining working lifespan of the borrower and also collateral's age --> different types of housing loans available :
a. Home purchase loan
b. Home construction loan
c. Home improvement loan
d. Home extension loan
e. Home conversion loan
PRIVATE HOUSING LOAN
- Private housing loan is a loan or mortgage that is made by one or more private investors. Home loans can be made privately by someone you know, such as a friend or family member, or they can be made by an investor that is in the business of making loans for profit. -Terms, interest rates, payment schedules and such can vary widely and will be individually set by the private lender. HOW TO APPLY (Documentation needed)
-to have the proper paperwork drawn up and filed so that the loan agreement is legally binding. These documents should include: 1. Promissory Note
-This binding document will include the agreed upon terms of loan, including the amount loaned (the principal), interest rate, payment schedule, penalties (how much and why they can be imposed) and any other necessary information, such as terms of repayment and so forth. 2. Deed of Trust
- mortgage document that secures the promissory note.
- a legally binding document that provides the lender with the legal authority to foreclose on your property if you do not meet the terms of the promissory note and do not pay off the loan. - This document will include detailed information about the legal description of the property, the owner of the property and the...
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