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10 Steps to peaceful Home loan processing (Page 1 of 3)

Building a home of our dream is a life time achievement to a middle class person. For making this dream come true to a middle class person banks are playing a significant role by providing them with the right home loans at door steps. But if do not plan properly and if we are not aware of the policies, terms and conditions of the bank we will end up paying more to the bank in terms of principal and interest components.

For the convenience of our customers we planned to give a 10 steps plan which the customer has to understand to take a home loan to build a dream home of their life.

Please read these 10 steps of processing carefully and follow these to make the transaction a memorable moment in your life.

Before going for a home loan processing please be aware of your loan product and the terms and conditions that the Bank is asking to fulfill to have the loan done. There are different products for which bank is having different terms and conditions for each product. Normally the Bank will have the below products which come under home loans.

a. New Purchase of Flat or Independent House: In this a customer can purchase a New Flat or Independent house of his choice which is under construction or in ready to occupy position.

b. Resale purchase: This product is applicable to those customers who wants to go for a Flat or Independent house which was already owned by some body else.

C. Plot + Construction: The product is applicable to those customers who want to buy a Plot and do the construction immediately, but banks ask you to start the construction with in the specific period of time.

d. Balance Transfer (BT): A person who wants to transfer a loan from one Bank/Financial Institution to other can opt for this product.

e. Construction: A person who wants to construct a house in his/her plot can go for this loan.

f. Plot: A customer can go for this loan who wants to purchase a Plot which is under HUDA, Municipality and Grampanchayat limits.

g. Enhancement: Increasing the loan amount which was already taken from the same bank is called enhancement.

h. Top – Up: This loan is just a facility that banks provide to customers to take on the basis of the previous loan and the repayment track.

I. Mortgage: It is the loan that a customer can opt by depositing the original property documents with the bank which he already owns.

2. Rate of Interest (ROI): The most important point to be taken care of in taking a home loan. There are two types of interest rates which banks normally have i.e Floating and Fixed.

Floating Rate of interest is subject to change according to the money market conditions. If the interest rate increases then the bank will increase the Rate of Interest on your loan vice versa.

Fixed Rate of Interest is fixed for the complete tenure of for over a period of time depending on the Banks, but Banks reserve the right to modify the rate of interest if they is any huge differences in the money market conditions.

Countrywide Loan Modification – Countrywide Wants You to Keep Your Home

Are you in default on your home mortgage with Countrywide? Is foreclosure looming over you and you don’t think there is a way out? It might surprise you that Countrywide does not want you to lose your home. A Countrywide Loan Modification might be the solution for your financial situation.

Foreclosure is a traumatic event. Anyone who has experienced it will tell you it is very difficult on many levels. But, one thing you may not have understood is how unpleasant a foreclosure is for the bank or lender. It is a time-consuming thing for them, using many labor hours in the process. There is also quite a lot of expense involved, and in this economy it can be even more. The housing market is at a dead standstill, so a foreclosed house could sit vacant for a very long time. During this period, it is not making money, and actually is costing money. So, it is important to note that Countrywide does not want to foreclose on your house.

They also have some extra incentive to help you avoid foreclosure. There is a government program, the Home Stimulus Plan, that pays them $ 1000.00 for each loan that they rewrite for a homeowner in financial hardship. These rewritten loans have the goal of lowering the homeowner’s payment to less than 31% of their gross monthly income. The lenders must be on an Approved Lender list, and fortunately, Countrywide is on that list!

There are various qualifications involved in this process, and you need to investigate whether you might qualify to apply. Experts always advise that you compile all your information and documenting paperwork before you contact Countrywide for the best chance of success. The thing you must remember is that you are only allowed one application under this program. So you want to make sure it is done correctly and to your best advantage. This program ends on December 31, 2012.

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