Love Break-up!!! Because of Savings!!! Strange Is It !!

Naveen and Neha are perfect match and an understanding couple. Naveen has a plan for everything in life. Neha is a cheerful and practical woman. Both of them discuss and get things done. So what made their ways apart? I should tell this.

Neha wants to visit a good restaurant and have nice food. Naveen says 'no'.

Neha wants to get away from her daily schedule and go for a vacation. Naveen says 'no'.

Neha's birthday time!!, Naveen got a card for her. She is happy after all he had given her a card atleast. 

Finally, Neha asks Naveen. "We earn well. We can spend though not for a luxurious life but for a relaxing and comfortable life. But why do you always say 'no' for anything that makes me feel happy?"

Naveen  now opens up. He has a dream house and he wants to buy it. 

So what is he doing? Yes. Saving saving saving.

Saving, forgoing the comforts and the feel good factors too??

Yes. He wants to save not just for the down payment of the home, but for the whole value of the property. So how does he save?

Age : 26 years

Salary : Rs.40,000

Expenditure : Rs.15,000

Savings : Rs.25,000

His dream home value ; Rs. 40 lakhs.

On an average per year he saves : Rs. 3 lakhs

No. of years he should save : 14 years.

In the mean time the property's value increases which means he has to save even he reaches his limit. Ofcourse, his salary increases and he can save more. If you observe in the example, he saves more than half of his salary. Without even fulfilling smallest of his desires. When will he explore life if not at the age of 20s and 30s.

So, Neha asks him to go for a home loan. He rejects. She tries to explain.

So, is it that you should not go for saving at all if you buy a home? No, save for the down payment and for the rest go for a home loan.

Let's see how it works.

Age : 26 years

Salary : Rs. 40,000

Expenditure : Rs. 18,000

Savings : Rs. 22,000

His dream home value : Rs. 40 Lakhs

No.of years he saved : 2 years

Amount saved : Rs. 8 lakhs. (used for down payment) 

Home loan amount : Rs. 32 Lakhs

Salary after 2 years : Rs. 60,000

EMI Fixed : Rs. 32,000

Now, at the age of 28 years, he is enjoying in his own dream home. Since, EMI is fixed, he need not think of saving for  a home when his salary increases. He can invest in somehting else, where he gets more returns.

Is that the end? No, you can, rather have to, monitor your loan. This helps you to put an end to your home loan faster.

Experts help will always work. So, seek help to pay your home loan faster.

Ohh!! the love story above!! They didn't breakup :-) Naveen understood Neha's ideas and followed her. They lived happily ever after in their own home. ;-) 

How can you have a break up if you listen to her?  ;-)

Frustrated with Your Home Loan Lender? Here is the Solution.

Answer these questions and think of a solution.

How many of you are frustrated with your home loan lender? Either for a loan disbursal or for a balance transfer or the most important for the higher interest rate changes!!

How many times do you postpone going to a bank for a balance transfer and doesn't go because you didn't research which bank is giving lowest interest rate or which bank charges less on the balance transfer?

How many office hours do you spend to visit the bank on your home loan work?

How many of you didn't research before taking a home loan and now taking the pain?

How many of you dream of closing the home loan fast but don't know how and when?

Do you know, 50% of the people in India use banking portals. Out of which 40% use them for research. 18% of the time is spent on searching for the best banks while on internet.

The one-stop solution for all these is

www.loanyantra.com

Visit the website and fill the details. Get a solution to all these questions. Truly a reliable, economical, one-stop solution.

Is Your Builder Recommending a Home Loan Lender?

I have been checking for a home loan transfer recently. When I bought a house, I did not go around banks to get a home loan. Guess why? Because my builder, at the time of selling, suggested a bank for the home loan and I followed him. Now with the raise in interest rates, when I looked for a balance transfer to another bank, I ended up with no result after going around all the possible banks.So where does the problem lie? Is it with me because I didn't confirm the legality of the required documents or because I blindly followed the builder recommended bank? Or is the builder at fault because he made himself comfortable with the one he was tied up with? Both of us looked for our safe side. That's good. But what happens next is the question. I can look for financial institutions or individual lenders. So for those, like me, who want to get home loan from the banks, it is very much important to research on the banks, on the legality of the property and then decide to buy the property.

It has been found that in many cases, the agents of the banks colluded with the builder to help them to sell their residential units and for this, they keep the prospective home loan buyer in dark about some of the important aspects of the housing project.

So what are the things one should look at while buying a property or I should rather put it as, what are the things a bank looks at while granting a home loan.

1. Legal search report to ascertain the title of the property.
2. Technical search report to know the layout plan and the quality of construction.
3. Land record, occupancy certificate, Title deed, authority or municipality approvals and other similar documents. Note : Please demand these documents from the builder in whose project you are going to invest. After all you are going to invest your hard earned money. you have all the rights to go into the details.

After granting the home loan, the next stage is disbursement. So, if you go with the builder recommended bank, it usually happens that instead of 20% disbursal, the bank might disburse 40%. So again the buyer is at loss. The buyer ends up paying more interest without any reason and necessity. 

In contrary, not all the cases would be the same. The buyer should always keep in mind that in real estate sector there are a very few honest builders. Also one should always check with those home buyers who have earlier bought the flat from your selected property developer. 

What Loanynatra.com does

So, after buying the home with the help of home loan from your preferred bank, what is the next step. Keep watching for the lower interest rates every now and then, find out for the lowest interest rate and that too a suitable home loan for the balance transfer. So it is a cyclic process. Is there any solution that you can keep your hands away from the research and have a sound sleep? Yes. www.loanyantra.com stays with you from the time you decide on buying your new home. It selects a suitable home loan product for you, helps you in knowing the interest rates by giving alerts. Suggests you with the best balance transfer option when needed. So being a loanyantra customer, it saves your time and also saves your money. Use that saved money and time to spend with your family. Plan for a vacation. 

Myths About NBFCs / Banks Vs NBFCs

Why would you prefer going for a home loan only with a bank rather than with an NBFC?

This question was pondering in my mind since the time I had met a cousin of mine. He was really worried to apply for a loan from an NBFC. I think, after the Sharada scam, the RBI is really strict and clear about the rules with regard to NBFCs. Earlier, the minimum net worth for NBFCs was retained at Rs.25 lakh. Now, all NBFCs are to attain a minimum net-owned funds of Rs. 2 Crore by March 2017.

Also you can check the list of NBFCs involved in providing home loan, in the link provided in the official RBI website.

Note : https://rbi.org.in/Scripts/BS_NBFCList.aspx

So, as discussed above, we find NBFCs are also safe to opt. With the emerging economy and population, India needs support financially. Banks could satisfy this need only to a minimum extent and to only a particular group. This made the need for other financial service providers (NBFCs) which are regulated by National Housing Bank.

A coin has both sides. Similarly, banks and NBFCs, have both pros and cons. One should think wise, customize and pick up the best fit. Let us discuss in detail about them.

Who should opt for a bank?

• Apart from the 80% loan amount, if you can meet the  20% down payment amount of the property, the stamp and registration amount. 
• If you have enough time to wait till the sanction of the loan.
• If your property has all the required legal documents.
• If your chosen bank provides a lower interest rate when compared to an NBFC.

Who should opt for an NBFC?

• If you want 80%  loan on home value which includes the stamp and registration charges also.
• If you are running out of time.
• If you are satisfied with the interest rates.

New customer Vs Existing Customer

Neither the banks nor NBFCs offer the same interest rate to the existing customers as they offer the new customers.

Existing customers can convert to the present interest rate by paying a minimal amount. Usually it is 1% of the outstanding loan amount.

Earlier were the days, where you find NBFCs interest rate in double-digit. With the awareness and competition on the shelf, NBFCs are slowly positioning themselves to become viable alternatives to traditional banks for procuring loans.

5 Questions To Ask To Figure Out Whether To Rent Or Buy A Home

A home is one of the biggest financial commitments most of us will ever make - so it's understandable that we might get a little stressed over what seems like a straightforward question:

Should I rent or buy?

To try and ease that anxiety, we spoke with a financial expert and a certified financial planner to get their take on when buying a home is in your best interest.

While there's no universal "right" answer, start your decision process by asking yourself these five questions:

1. Can you afford it?

Having the money for a down payment is only the first step. Next, you need to make sure you can afford to pay your home loan ... and costs like utilities, maintenance, furniture, taxes, and inevitable surprise costs like emergency replacement of the broken boiler.

"Understand what you're getting into," says certified financial planner. "You have to be able to afford to purchase and maintain the property, and expect that your bills will change on a monthly basis."

Plus, she points out, you'll need to be able to pay all of the fees during the buying process. "The best thing you can do is educate yourself," she advises. "If you don't do your research, making the wrong decision to buy could really set you back financially."

Rent if: You don't have the money saved to buy and carry a home.

Buy if: You'll have the cash to cover the initial transaction, plus the ongoing costs of homeownership.

2. Are you financially secure?

To be in a financial position that's secure enough to responsibly to buy a home, you need:

• Decent credit ("You don't need perfect credit or even good credit," he says, "but generally  CIBIL score above 650 you can qualify for a conventional loan.")
• A stable income
• Moderate liabilities
• Enough cash on hand to cover down payment and closing costs
• Liquid assets as financial reserves

When expert says "financial reserves," he's talking about an emergency fund. It's not a good idea to scrounge every paisa from each of your accounts for a down payment, leaving yourself without a safety net for an emergency or hobbling your retirement savings.

"I wouldn't recommend that someone without an emergency fund buy a house," cautions most of the experts. "It really sets you up for trouble when you wipe out your savings to reach this goal and don't have any money set aside."

Rent if: You can't check off one or more of the above bullet points, or if buying would completely wipe out your savings.

Buy if: You're financially secure outside of your home savings.

3. What are your other financial goals?

While buying a home is a major financial accomplishment, it's unlikely that it's the only one you ever intend to make. I remember a client and her husband who were "really gung-ho on buying their first home." But after getting a financial plan and seeing exactly how much money they would need to lay out, they decided to postpone their purchase for another few years in order to finance their other financial goals, like starting a business.

"It's all about breaking it down into steps, and getting clear on the numbers," says experts. "If you have any major life transitions coming up, you may want to hold off and see what happens." How will your home purchase affect your pursuit of your other financial goals?

Rent if: You're currently prioritizing other financial goals above homeownership.

Buy if: Homeownership is your primary financial goal, and you're both aware of and comfortable with how the cost will affect your progress towards your other goals.

4. Are you willing to be the super?

This isn't a financial question, but a lifestyle one: If the sink springs a leak, the yard needs to be mowed, the door handle breaks, who deals with it? It won't be your landlord or super, experts points out, so either you'll need to DIY or find the cash to hire someone.

Rent if: You want someone else to step in when things get complicated around the house.

Buy if: You don't mind dealing with the increased chores that come with being your own landlord.

5. Where do you see yourself in the near future?

Different experts have different estimates, but generally, it's recommended that a home buyer spend at least four to five years in a home to offset the costs of buying.

But aside from the numbers, "buying a home is as much an emotional decision as it is a financial one," says experts. "Of course, you must crunch the numbers to determine whether buying makes financial sense, but it's just as important to feel that you're in a place in your life where buying just makes sense. It's no coincidence that most people seriously start considering buying a home when they get married and are comfortable with the idea of settling down and raising a family."

Rent if: You're unsure where you'll be in the near future.

Buy if: You expect to be in the same place for a few years and want to own your home.

Buying vs. Renting

Should you stop renting and buy a home?

If you’re ready for the commitment, you bet!

Yes. Buying a home is a big decision. A big commitment, too. But if you think it through, clearly understand your financial situation, and you’re ready for the short- and long-term responsibilities, it can be one of the most rewarding decisions you’ll ever make.

Why buying a home is a good idea.

Build equity: 
Every monthly EMI payment you make is part interest and part principal. The principal is what you owe on the loan and it goes directly towards your home’s equity. It’s like investing in yourself. Which is a lot better than 100% of your rent payment going to the landlord. Plus, whenever home values increase (and historically they do) so does the value of your home.

Tax advantages: 
The interest portion of your monthly payment is like any other interest. It’s the fee you pay for borrowing the money. However, the great thing about home loan interest is it’s tax deductible. And so are your property taxes.*

Loan options: 
There are different types of loans to choose from. So depending on your financial situation, and long and short term plans, you can apply for a home loan that will fit your needs.

Live your way: 
Do you feel comfortable in a sparse, minimalistic space design? Or do you like different colored walls and pictures everywhere? As a homeowner, you’re free to live, decorate and change your home however you want.

What the experts say.

Many experts believe it makes good financial sense to buy your home rather than rent. Experts predicted that rents for apartments would increase year on year nationally – by average 8% in 2014-2015 – and rents will continue to increase by 7.5% each year in 2015 and 2016.

If the average national home loan interest rate hovered around 10,5% (they’re much lower today), homeownership may well be a better investment of your money, especially if you plan to stay in the home for at least five years. Experts estimate that buying will be cheaper than renting until the 30-year fixed rate reaches 12%, more than what it is currently!

Important homeowner costs to consider.

Down payment: 
Different loans require different amounts.

Insurance:
Property insurance is recommended. Flood or other types of coverage may also be required.

Property taxes: 
Varies widely. Determined by local city or state government.

Maintenance and home improvement: 
From a leaky faucet to new paints, you don’t have to fix everything yourself, but paying for and getting it done is your responsibility.

Reasons to keep renting for now.

Sometimes, due to your personal situation and long term plans, renting is currently a better option.

• You anticipate a change in employment or income in the near future.
• You’re not comfortable making a long-term commitment to a particular location or area.
• You need to build a stronger credit history.
• You’re not prepared to handle responsibilities like leaky faucets, paint and other routine maintenance.
• You’re not financially ready to cover monthly and yearly costs for utilities, insurance and taxes.

*Everyone’s tax situation is different. Please consult a professional tax advisor.
** This summary is based on a Rs-30,00,000 home loan amount, loan term of 240 months and an interest rate of 10%.

Loanyantra Customer? Know your Benifits.

The major change this century is going through is e-commerce. Isn't it surprising at the change we are into now! To purchase an item say a saree or a shirt, earlier was the time when we used to go to different shops, explore and then decide and finally buy it if it is of the right price. Now it is all "online."  For what not and where not, this convenience has been experienced? 

Yes, home loan sector also takes up this change and makes it convenient to the customers. So is the convenience only till choosing the home loan or suggesting a home loan? No, loanyantra.com goes a little beyond this. Let us see till where loanyantra.com makes its customer convenient and above all risk-free.

Two friends conversing..

Friend 1 : Hi bro, finally I took a home loan from a bank after a lot of research.

Friend 2 : Oh cool. But I didn't research, I got associated with a company. 

Friend 1 : Company? what company?

Friend 2 : It is loanyantra.com... a website which manages your home loan. 

Friend 1 : But what is the need bro..is it really thaaat advantageous?

Friend 2 : Ok let me explain you. Suppose that both of us are in a home loan entered at a same time. Say loan of Rs.45 lakhs with interest of 9.50% with EMI being Rs.41,946 for 240 months. 

Friend 1 : Ok fine. Say the time to be Jan 2015. So our loan goes till 2035.

Friend 2 : Correct if there is a change in interest rate by 0.5%, the EMI to be paid will increase from 240 months to 271 months.

Friend 1 : Yes, ofcourse. What can anybody do with that.We just have to pay.

Friend 2 : No dear, that is what loanyantra.com does. 

Friend 2 (loanyantra.com customer)                             Friend 1

Home loan : Rs. 45  Lakhs                                                              Rs. 45 Lakhs

(Jan 2015)

Interest :       9.50%                                                                           9.50%

EMI :             Rs. 41,946                                                                    Rs. 41,946

Period :         240 months                                                              240 months

* (June 2015) Increase in interest rate by  0.5%

Period :        Remains at 240 months as he                              271 months

(June 2016-  paid 3 EMIs extra as part payment                     Still paying.

June 2027)    as suggested by loanyantra.

June 2027  :  Loan closed                                       

                     Total paid  - 

                     148 EMIs + 

                           36 EMIs                                                                     Still paying

                  (as partpayment suggested by loanyantra)

                   So,184 EMIs * 41,946 =  Rs.77,18,004

                                                

July 2027 : Started investing Rs.42,000                                      Still paying

                   in SIP till 56 months with 

                   average returns of 15%.

                                     

                                          

Jan 2032 :  Received Rs.34,19,126                                                        Still paying

                  (Left these returns untouched for 5 years)

                                     

June 2037 : Final returns received Rs.68,76,830           Loan closed 

                                                                                                     Total paid - 

                                                                                                     271months *41,946 = Rs.1,13,67,366.

Friend 1 : Those are really big figures!!! So, you say, with  loanyantra managing your home loan, you could finish your home loan faster and also could invest in investments of your preferred choice.

Friend 2 : Yes, dear. Remember that the above situation has change in interest rate only for once. In practice, the interest rate change can be many a times. So, each time researching might not be possible. So, why not leave it to the managing company. It costs you really a minimal. 

Second Home - A Relaxing Option?

With increasing affluence on the one hand and a growing realization that there is a need for a relaxed lifestyle at least on weekends, the concept of second homes appears to be gaining popularity. According to the National Council of Applied Economic Re­search, the number of households de­scribed as rich is expected to reach 11 million by 2013 from 3 million in 2003. Meanwhile, the number of mid­dle class aspirers is predicted to leap even more dramatically, from 46 mil­lion to 124 million. The number of HNW Is in India is growing at 20% YoY, second only to Singapore.

This growing opulence of Indians surely makes the second-home mar­ket pretty hot. According to a study conducted by Kapston.com, a Banga­lore-based E-business consulting firm, second-home sales in India in­creased by 50% from 2002 to 2007. The trend slowed a bit in 2008, most­ly due to the economic woes of the US. Then it picked up in mid-2010 to slow down slightly only in the recent time, although now it's a normal, reg­ulated market where good stuff sells very quickly.

Motive 
Different people invest in a secondproperty with different motives. For some, second home is to have a re­laxing place away from the hustle and bustle of city life, extreme heat and the stresses of work. There are many who'd like to have a second home to spend the rest of their lives in, post-retirement. Others invest in a second home in order to earn rental income.
The primary reason for buying a second home is still lifestyle among Indians; however people have start­ed realizing the investment potential, but the investment consideration comes in a strong second place.

Be Wise 
Even if buying a second home in­volves spending a lot more money be­fore retirement, you will be wise to consider it as an investment. If, for ex­ample, you buy a second home five years before you retire, you will be able to earn money by renting out your property for the next five years, and cover a part of the mort­gage costs.

For NRIs
And it's not only for Indian dwellers. Non-resident Indians are buying this mid-level housing as well. NRIs can easily attain housing in In­dia because they were born there— but they can also buy even if their parents or grandparents were born there.
Many NRIs choose to go back to where they came from; they have dreams of having India as a possible place to retire, where hired maid ser­vants will run their day-to-day tasks while they relax close to friends and family. The home towns where they grew up always have a certain draw on their heart strings.

A second home is not a bad idea. It can serve the purpose of a change from the routine, once in a while, and leave you refreshed and energized. It can also be a wise investment. In fact people in the higher income brackets even opt for more than one second home as part of their long term in­vestment strategy.

Home Loan - Apply online; know the present interest rates; get alerts too!! - Loanyantra.com

Now-a-days, competition for home loans has outgrown competition for homes. This rose a requirement of applying online for a home loan.

When you can search for your home online, then why not search for a home loan online. So after searching and applying online, we take our services a step forward. This idea is in action only to take the home loan and the related services to our customers customized. 

What makes us different from others.

As we are, our service starts where many others' end.

Once you apply online, we take you through the process, which is simple and transparent. Check your eligibility and we guide you to the customized interest rates. If you find us your true beneficiary, associate with us. You will get a call within no time. Get home loan approval from the required bank.

So now, you experience our efforts. Retire from your home loan thoughts. You are into our loan rate shield process. We send you alerts on changing interest rates and suggest you for a balance transfer when needed. 

Infact, we are managing your loan. Each step, from the time you enter your details, apply online, getting customized rates, getting required bank approvals, and timely alerts, we try to save your valuable time, make it economical and most important keep you away from stress.

For details, visit, www.loanyantra.com.

The Hidden Costs of Buying Your First and a New Home.

Everyone knows that buying your first home is an expensive ordeal—just the cost of a down payment alone can be significant for many buyers. But those aren’t the only costs that you have to consider prior to home shopping.

First-time buyers often don’t realize that they will need to pay for more than just the selling price that they negotiate with a seller. Things like interiors, hookup fees for utilities, and appliances are all extra expenses.

So what else do you need to budget for as a first-time buyer? Follow along as we take you through the basics.

Step One: Before You Buy

Before you start booking viewings, figuring out a budget, or even browsing through furniture stores, you need to figure out what your real costs are going to be. Your down payment is not the only upfront cost that you are going to have to pay, so you need to make sure that you hold enough back to cover all of the extras, such as:

Legal fees

Though mentioned in the cost sheet by the seller. Take care that you are in the safe side wuith the legal charges.

Agent fees

If you are buying a house using a real estate agent, make sure that you have your terms discussed in detail before proceeding further. Usually it is 1% - 2% of the property cost. 

However, the agent is paid a percentage of the sale price upon the completion of the transaction.

Inspection and appraisal

The trend now in India with the sellers is, they mention the cost for the government approval in the price sheet. So be clever and conscious when you calculate the cost of the property. Please do research on the present trend and compare in your price sheet.

Mortgage with interest

So maybe you have a general idea of what you can afford for a mortgage, but did you factor in an interest rate? Will your interest rate change based on your down payment? Will your rate fluctuate, or will it be fixed?

You will need to talk to your bank about this, to see how much you qualify for and what they can offer to you. Your monthly payments can change significantly based on your interest rate, so if you get an offer that seems high, feel free to shop around for one that better suits your bank account.

Note : Feel free to visit our website (www.loanyantra.com) for constant alerts on interest rate changes and also for zero fee balance transfer.

Step Two: After You Pick a House

Don’t put away your calculator yet!  Sure, you made your budget work for the “before” costs, but don’t forget about the “during” costs, which include:

Moving expenses

Do you have enough stuff to warrant a moving truck or movers? Is your new place far away from your current one? If you need, or want, to hire movers, you’ll need to figure out the cost. Depending on your preferences, movers can get pricey.

For example, if you just rent a moving truck or trailer, your costs will be moderately low. But if you need people to help pack your things and move your items out of one house and into another, you’re going to have to cough up some extra cash.

Home Insurance

Homes come with all kinds of monthly expenses, and insurance is one of the necessary ones. Depending on the age and condition of your home, your location, your insurance history, and so on, your insurance rates will fluctuate. They’ll also vary drastically by provider.

Be sure to shop around for the best coverage and price for your personal needs.

Interiors and Utilities

We all know that interior designing and buying utilities are going to cost money; that is inevitable. Interior designers will surely cost your pocket. So depending on your financial situation, take a call. There are plenty of options around. Probably, it is time for you now to look up for offers and sale. Now-a-days, shopping online and cash on delivery options make things easier and economical as well. So think wise before you shop either online or outdoor. The idea is to save money and time too.

Property tax

Property taxes are something that every homeowner has to pay, and they vary by location. And this is one of the taxes the government is strictly probing. So to avoid paying lump-sum, plan well in advance. 

Step Three: Once You Move

So, you figured out a budget and selected a house. Since you’ve probably put a lot of your cash into the process so far, it might be difficult for you to consider parting with any more of your money, but chances are you still need a few things to turn your new house into a home.

Take a deep breath and remember:

• There will be unexpected costs. Maybe something gets damaged in the move, or maybe you need to change the locks to your new house. Don’t beat yourself up for not thinking about every single cost involved.
• Your first grocery trip is going to be expensive. Why? Because, chances are you need to stock up on groceries, spices, canned goods, and other staples. Don’t worry, you’ll only need to do a move-in shop once. The rest of the time you’ll just buy what you need, when you need it.
• All of the money that you were saving isn’t gone. It’s finally gone towards what you were saving for in the first place.

Setting up House and Settling in

You won’t often hear that buying a house is easy, but you won’t hear too many regrets about doing it either. It’s a big purchase, and it’s bound to be a bit complicated, but don’t let that keep you from building equity and making a home of your own.

Spend wisely, save for a rainy day, and cover your most important costs before anything else and you’ll have a happy and financially healthy home to call your very own.

Thinking of Financing Your First Home?

For most people, buying a home is the biggest purchase they will ever make, and the majority of first-time buyers need to obtain financing in order to do so. With such a large number on the table, it’s important to choose financing that works for you in both the short- and long-term.

From down payments, to mortgage brokers and traditional lenders such as banks, we’ll explore what options are best for you.

Should I Use a Mortgage Broker?

A mortgage broker is someone who provides you, the borrower, with financing options from various lenders. Think of them as a sort of mortgage middleman.

You provide them with financial details about yourself, such as your job history, credit report, down payment amount, etc., and they take your information to various private lenders to see what they can offer you for an interest rate and mortgage term.

There are many potential pros to using mortgage brokers, such as:

• Communicating between you and a lender.
• Lower interest rates.
• Flexibility for a typical borrowers.

As well as cons, that can include:

• Inability to service your loan.

Mortgage brokers are able to present your information to multiple lenders, allowing for flexibility if you don’t meet the strict standards usually required by banks. Often, mortgage brokers are able to find options for those who are self-employed, who have poor credit history, or a short job history. But remember that those options may come with penalties, such as a higher interest rate or a larger down payment.

If you do choose to go with a broker, make sure that you choose someone who has a good reputation and a lot of experience.

Should I Use a Traditional Lender?

Traditional lenders, namely banks, provide mortgages to clients, allowing both parties to communicate directly. Often, first-time homebuyers with good credit, a down payment, and at least a year’s worth of job history will contact their bank first when seeking a mortgage.

Banks tend to have pre-designed mortgage options, which includes interest rates, terms, and so on.

The benefits of choosing a bank can include:

• Reliability, trust, and security.
• Potential savings for clients with multiple accounts.
• Faster approval.

While some negatives are:

• Less flexibility for buyers who are self-employed, or who have poor or little credit history.
• More rigorous requirements.
• Limited choices in terms of rates, length, and more.

When exploring the option of using a bank as your lender, remember that you don’t have to stick to the bank that you have other accounts with. Feel free to explore what other banks are offering. Some may offer bonuses for having checking or savings accounts with them, or based on the down payment that you will make.

If you do choose to go with a bank, be sure that it is a bank that you feel comfortable with and that you have them walk you through the terms of your mortgage so that you understand the ins and outs.

Should I Save for a Cash Sale?

Cash sales are probably the most desirable types of home purchases, since the buyer forgoes interest rates, mortgage terms, and the stress of finding a lender, but not many buyers are able to purchase a home using cash alone.

In smaller towns or less desirable areas, homes can go for reasonably low prices, which may allow you to save enough to buy one, but in areas with higher demand or in cities, home prices aren’t quite as affordable.

In order to save for a cheaper home it can take years to put away enough to make the purchase, but for even a moderately priced home it can take even longer, depending on your income and expenses.

Often, buyers who are able to purchase using cash benefited from an inheritance or something similar, but just because you have the cash to cover your house entirely doesn’t mean that you should use it all.

Before choosing to use all of your cash to secure a home, consider the following:

• If I use all of my savings to purchase a home, will I be left cash poor?
• What will the cost of renovations, repairs, or other fees outside of the mortgage be?
• Am I borrowing money from someone I will need to pay back?
• How long will it take me to save for a home, based on both my expenses and inflation?

How Should I Finance My Mortgage?

How you finance your mortgage, whether through a broker or a bank, using just enough cash to cover the down payment, or paying for your home entirely, depends on your financial situation, the property, and your goals not just for now, but down the road.

Not every lender is suitable for every buyer, and only you can decide which avenue makes you feel the most confident and comfortable. Take your time, shop around, and explore what is available to you. In educating yourself about your options, you can make the best choice for you and your finances.

Note : Our (loanyantra.com) customers can always find us as a reliable source in managing the home loan as we suggest you the best home loan option that suits your financial situation, and always alert you with the changes in interest rates. 

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