In order to buy an apartment, you will need a loan to finance your property like any other residential property. You have to run around various loan providers and financiers to get various documentations and completing the formalities. Rocco Basile who is expert in dealing with property buying and selling has provided few guidelines.
What is the type of your property?
Your property may be a condo, duplex or triplex and all properties are classified differently and the rules of loans vary according to the type of property that you choose to buy.
How to qualify for getting loan?
Any financier would like to check your income, credit score and the tax returns both personal and business for last two consecutive years. Important parameters that they check are as follows:
- Your annual income and expense details
- Your current debts
- Ratio between loan amount and the value of the property.
According to Rocco Basile, small banks are usually more flexible as compared to any large banks.
What are the terms of the loan?
Some people prefer short term loan that can be 5 or 7 or 10 years term while some prefer long term loan, which continues for 25 to 30 years. Interest rates can either be fixed or variable after a specific period of time. Interest rate also may vary for short or long-term loans.
How much loan can be obtained?
Normally any financier will expect that 25 to 30 per cent of the cost of property to be borne by the buyer while they will provide the balance amount. However, that must also be within certain maximum limit that varies from different financiers.
What is the fee?
There are various fees required like for example appraisal fee, closing cost fee, title and escrow cost fee, inspection fee, property insurance cost. If the property is located near flood zone then flood insurance will also be needed.
What is prepayment penalty?
In case, the borrower decides to pay off a large portion of loan much before the end of term then he needs to pay certain penalty for that. This penalty is calculated based on certain formula that also depends upon a number of factor. Some banks have a table created for this and based on that prepayment penalty is decided.
What is recourse and non-recourse loans?
If the loan given by the lender is full recourse then the lender can claim the asset of the borrower or guarantor in case the borrower fails to pay back the loan. In case, of non-recourse loan the lender will foreclose the loan and take the possession of the property.
What are the documentations needed?
Following documentations are needed –
- Photo of the property
- Full description about the property
- Total layout plans
- Details about nearby properties
- Various floor plans in detail
- Details about source of funds
- Closing price of the property
Name and addresses of seller, their attorneys and other professionals, who are involved in this deal.
New Driver? 5 Things to Consider When Looking for Driving School
When it comes to choosing a driving school, there are many factors to consider. Not all driving schools are created...
Landscape Irrigation Systems: The Basics
If you’re a homeowner, you know that keeping your lawn and landscaping looking nice can be a lot of work....
5 Things to Look for in Luxury Hotels
When it comes to luxury hotels, there is a lot to look out for. Here are five key things that...
Is There a Difference Between Commercial and Residential Concrete?
If you’re a contractor, you know that concrete is a versatile construction material. But did you know that there are...
5 Tips to Find the Right Litigation Firm
When it comes to selecting the right litigation firm for your legal needs, choosing wisely is of utmost importance. It’s...
Amazing Reason To Embed Google Reviews Widget on Wix
Offering a value is not enough. To survive in the industry, you must market your business in the trustable way...
3 Ways To Take Control Of Your Finances in 2023
It can be so overwhelming trying to take control of your finances, as it can be difficult to know where...
How to market your watch brand?
The luxury watch market has always been a lucrative business, and in 2023 it’s only going to get bigger. Obviously,...
How To Keep Your New Year’s Resolutions
Do you always have trouble keeping up with your New Year’s Resolutions? Start 2023 off on the right foot with...
What Is Stick Welding And When It Is Used
Stick welding, which is also known as shielded metal arc welding or SMAW, is one of the most common types...
5 Maintenance Tips For Your Septic Tank
If you rely on a septic tank, you know how important it is to you and your family. Yet like...
How Banks Are Using AI to improve Their Services?
Almost every industry, including banking and finance, has been significantly affected by artificial intelligence. The industry of banking and finance...
How to Prevent Your Drains from Getting Clogged
A clogged drain might not seem like a big problem to deal with, but that plumbing issue could quickly spiral...
Things you need to do and think about before the renovation project
If you plan on renovating your home anytime soon, there are certain things you should check of your list before...
3 Things You Need To Be Doing To Look After Your Teeth
Many people don’t prioritise looking after their teeth, however it is so important as we only get one adult set...
Tech8 years ago
Creating An e-Commerce Website
Tech8 years ago
Design Template Guidelines For Mobile Apps
Business3 years ago
What Is AdsSupply? A Comprehensive Review
Business7 years ago
The Key Types Of Brochure Printing Services
Law2 years ago
How Can A Divorce Lawyer Help You Get Through Divorce?
Tech5 years ago
When To Send Your Bulk Messages?
Travel11 years ago
Who Else Wants Also Nfl Hat
Tech2 years ago
5 Link Building Strategies You Can Apply For Local SEO