Finance

All you need to know about Mortgages

Written by Bella Aviva

Every mortgage will have a borrower who is bound to repay the loan and when an additional borrower is added to the mortgage, he/she is considered to be a co-borrower. Suppose that a couple wishes to apply for a mortgage for a joint loan. Then if the husband is listed first on the application form as a borrower (Since he is the primary income producer of the family), then co-borrower is the one who is listed second in the list; his wife. They get eligible for a mortgage if their income, credit and other assets meet the loan requirement. Before getting into detail about the role of the co-borrower, let us know what a mortgage is.

Suppose you do not have enough fund to build a home, you approach the bank and apply for a mortgage which is nothing but a loan that is extended to help you cover the cost of your house. This article helps you get a brief idea on why and when to apply for mortgages.

Some experts suggest that it is advised to apply for a mortgage even before you start constructing or hunting for a house. Getting a pre-approved mortgage can work wonders. One reason why it is important is because it shows the seller how interested you are in purchasing the house. However, some of the other experts believe that the main reason is to apply for mortgages is to understand how much money you can afford. So before deciding to apply for a mortgage, it is better to understand and make an in-depth study on the terms, conditions and other details regarding the agreement. Here are some of the places where you can get a mortgage

  • Brokers: There are a lot of private brokers and specialists who can help you go a long way in finding the right loan for you. They have links and connections with many money lenders making it easier for you to identify the available rates and programs and choose the best possible plan among the lot.
  • Banks: Many people believe that banks are one of the best and the most trusted money lending firm out there. But banks often have very few loan options. So better discuss with the bank manager and make a detailed study on the available plans.
  • Otherlenders: There are a lot of money lending and financial solutions out there that are well-known to have helped a lot of individuals and families build a better life. People who get rejected due to their risky profiles are the main catch of these kind of lenders. So people who have a poor credit history or weaker security often have a higher chance to find a loan from them.

Different lenders lend money at different rates of interest and terms of conditions. Just because they give you money doesn’t make them the good guys. Just keep in mind the fact thatthey lend money so that they can charge interest when you pay them back – as simple as that!