Month: June 2019

Do’s and Dont’s of Applying for a Mortgage

A mortgage is essentially a loan which is taken to purchase property or land. The minimum time of the loan is 25 years but these can be shorter or extended as per the particular demand and need. The loan is secured under the property that you provide as collateral unless the whole amount is paid off. There are some prerequisites that you must consider before applying for a mortgage.

Mortgage Image

Here are some of the things one must take into consideration:

  • The debt load increases when you apply for too many loans. When one applies for a home loan the lender will surely assess the load of debts, and then compare the same with gross monthly income. You don’t wish to increase the Debt to Income ratio, as this can have an adverse effect on your chances of getting loan approval.

  • Credit card debt is a common reason for rejection of a mortgage loan. Too much debt on the credit card can put you on the bad side of lender’s preference. It is wise to use credit card mindfully if you wish to apply for a mortgage loan. Overuse can also affect the credit score by escalating the overall credit utilization ratio.

  • Lenders utilize the credit score as a tool to assess the risks involved. The higher your credit scores the more chances of lender trusting you for providing a loan. If you wish to avail a mortgage loan, you must ensure that you never pay late. A single late payment of credit card can greatly affect the credit score and decrease your credibility.

  • Home loan agents in Delhi will help you incur and understand the other additional costs that were not mentioned or calculated. To improve and better the chances of qualifying for a mortgage, you must save money. Before you apply for a mortgage, it’s good to avoid purchases that diminish your savings. Put off heavy purchases until you’ve secured loan.

  • Mortgage lenders wish to know your complete history which includes steady employment and income. It becomes a matter of concern if you have a non-employment income source. Generally, a steady income of 2 years minimum is required. In case, your income decreases due to any reason this can affect your lending process.

 

Mortgage Image By Loan On Phone

What should you do before applying for a mortgage?

  • Limit the credit card usage to only extreme requirements. You don’t want to overburden yourself with an unimaginable amount of debt on the card.

  • Make sure you repay the credit card bill amount on time. If you don’t pay the bill on time, the penalty charge will be incurred and it will reflect upon the credit score.

  • Save money for future use. This is essential for a down payment and adds cash reserves. Savings are a must; if you have some amount in hand you can be relieved that you will not face any severe money havocs.

  • Ensure that you have job stability, stay on your current job and avoid switching. If you reflect stability this adds a character benefit for your lender, he can trust you better.

Home loan agents in Delhi provides you the right knowledge and awareness that is a must for procuring home loan or any other related loan. You may consult a loan consultant on the phone or physically to help you through the process. Maintaining a status quo is a must. You should know that only switch your job when you have a big fat paycheck. When you apply for a mortgage loan, even the slightest actions can have an effect on the chances of getting loan approval.

What are Unsecured Loans and What are the Pros and Cons?

When you decide on opting for a loan, there are some factors that will help you determine if you need a certain type of loan or not. There are two types of loans, Secured and Unsecured Loans. An unsecured loan is a type of loan which issued and provided only if the borrower is worthy of taking credit. This particular loan type doesn’t require you to use any collateral as an asset. The terms of these loan types are two-phase process, approval, and receipt.

An unsecured loan is a complete opposite of a secured loan. Secured loan defines that the borrower pledges and keeps his collateral as a guarantee. This acts as the lender’s security. Unsecured loans are bigger risks for the lender since the rate of interest is typically high and the credit score expected to be published is also high. In some cases, the lender may allow loan applicants with insufficient credit to offer a cosigner. The cosigner can legally obligate to fulfill the debt in case the borrower becomes a defaulter.

Unsecured Loans Image

There are two types of unsecured loans, revolving line of credit and fixed-interest installment loans. They offer perks insurance policies, warranty, free airfare, and hotel stays. Some people who issue the loan also have discounted purchases involved, movie tickets, and much more.

PROS OF UNSECURED LOAN

  • There is no risk to the personal property since you haven’t kept any as collateral. If you get laid off, nothing can bother you since there is nothing the lender can sell to reimburse the money.

  • The process to apply for an unsecured loan is similar, since the banks and credit unions have made the whole process simpler and easier. You can apply for the loan on peer-to-peer lending from the comfort of your home.

  • Unsecured loans have an added advantage that in the worst case scenario the balance that is due gets wiped away if you file for bankruptcy. However, one must keep in mind that this shouldn’t be the intention of opting for a loan. This can count under fraudulent and forgery. Activity. An unsecured loan has its own way of wiping off the personal loan.

CONS OF UNSECURED LOAN

  • The loan amounts are small. Unsecured loans are good for the people who wish to borrow a loan, but it can be fairly risky for lenders. This is why the loan is provided for a lesser amount. The risk that there exists with no collateral involvement is the major reason for risk. Recouping the money is greater.

  • Lenders charge quite a high rate of interest to justify the risk that there involves in providing unsecured finance.

 

WHEN SHOULD YOU CONSIDER UNSECURED LOAN?

To procure an unsecured loan you must have a good credit score with decent credit standing. Some lenders specialize in the lending process to consumers who may not qualify for loans from traditional sources, financial institutions, and banks. Often, people wish for assistance in loan processes.

Pros of Unsecured loans Image by Loan on Phone

Loan on Phone acts as your personal financial assistance, offers you much-needed consultancy for procuring loans on competitive terms and at suitable solution. Loan on Phone helps you through the process with providing you full documentation, describing the service level and also the terms of business. The specialized services provided includes Loan against property in Delhi NCR, loan against unapproved property, and loan against industrial, and much more.