Financial institutions like banks and mortgage companies fully understand the difficult process of purchasing a house, which is considered as the top investment for a regular person.
Regardless if you are a first-time buyer or you are an experienced buyer, you should be fully aware that mortgage works as a loan that is applied to secure an immovable property or asset which in other words is a house. This mortgage is lent to you as a whole or a lump sum to purchase the property you desired and must be paid back in a period of time.
Having said this, it is pretty important for everyone to be familiar about home loan which is required from you in order for you to be knowledgeable about the precautions that you must take to make sure that you are not just qualified but also well-aware about the money that you borrowed from the financial institution that you have chosen.
In this article, let us talk about how to do finances from OnQFinancial particularly in the aspect of home loans.
First off, you should be a hundred percent sure that your estate agent and your mortgage company is reputable and legitimate, because nowadays, there are a lot of scammers out there who are willing to do anything to rob you of your money. Also, reputable real estate agents and mortgage companies provide you nothing but the best decisions for your specific needs in earning your own home loan.
They are the ones that act not just the seller but also the ones who will guide you financially of your mortgage that is why you should learn the things about loan application processes before you even fill up that application form.
There are actually five types of mortgage options that you can choose from depending on your financial capabilities and we listed it for your convenience.
Variable Home Loan
Capped-Rate Home Loan
First-time Buyers Home Loan
Fixed-rate home loan
Reducing or step-down home loan
Variable Home Loan- this is the most common for new homeowners because its interest rate is always attached to the prime loan rate, meaning, if your prime loan base rate decreases, the interest rate follows as well.
Capped-rate home loan- This is the most strict type of home loan in terms of application because of its benefits. The most popular benefit of this is its interest rate which will not affect if there is a fluctuation and you are only required to pay with the agreed capped rate.
First-time buyers home loan- Technically it is for first-timers who wants to invest in buying a home. This is the type of loan that first-time home buyers can lend to a financial institution with a 100-percent purchase price that includes add-ons.
Fixed-rate home loan- It has a fixed interest rate in a certain period of time where the base home rate is lower than the fixed-rate but this type of loan protects your loan from increasing rates.
Reducing or step-down home loan- There is a guaranteed small interest rate which gradually decreases over the agreed period of payment, despite the interest rate rises or falls in your home loan.