Mortgage and Refinancing Information Channel:

We would like to thank the local libraries, schools, and universities for recommending students to visit us when doing research on any of our information topics.
 Please check back frequently as new topics are added and current topics are updated daily.

Home Equity Loans - 5 Useful Application Tips

Obtaining a home equity loan does not have to be a major ordeal. Unlike your first mortgage, you are already in the home, and usually time is not such a major factor. You can close the loan at your own leisure, and take your time researching the different options available to you. Below you will find five tips that will help you make the process as painless as possible. Remember that your best defense is a good offense, so understand the process and everything that is involved. Don't let your lender pressure you into something that you don't understand.

1. Get pre-approved! This is something that I would recommend for a first or second mortgage. The process will vary depending on your lender, but you can choose to get pre-approved or pre-qualified. The pre-qualification process allows both you and the lender to review your current financial situation. The lender will then determine how much you can probably borrow. There is no obligation and you are not locked into anything. Pre-approval goes a step further and is a more formal process. You will actually fill out an application, and a credit check will be run. The lender will then issue you a letter outlining the amount that you can borrow. You can then use this to expedite your loan, once you are ready to close.

2. Get your home appraised. When obtaining a home equity loan, the critical part of the puzzle is how much your home is worth. Don't be fooled into thinking that an appraisal is not necessary. Home values can fluctuate depending on the economy and your own city demographics. Any improvements that you have added to the home since its purchase can also increase this value. So find out at the very beginning how much your home is actually worth. This will help give you a ballpark figure of how much you can actually borrow.

3. Prepare yourself emotionally. A home equity loan seems like a simple way to get needed funds. But, it is important to remember that you have something major on the line with this type of loan. Your home! If you fail to repay your home equity loan, they could take your home. So, it is important that you discuss the process with everyone involved so they understand what this loan entails. Set up a budget for a few months prior to the closing, and set aside the extra monthly payment. You will also want to consider any life-changing events that may happen during the life of your loan. Are you planning on having a child? Changing jobs? Etc. All of these factors can alter your ability to repay your loan.

4. Do your homework. Knowledge is power. Make sure that you have all of the facts when it comes to choosing a lender and a mortgage program. If possible get information from several lenders, so that you can make an educated decision as to which one is the best for your particular situation.

5. Get your break from Uncle Sam! In most cases a home equity loan is tax deductible. So, make sure to keep all paperwork associated with your loan, including closing cost allocations. You may be able to deduct both interest and principal in some cases. Consult with your tax professional to find out how a home equity loan will affect your tax situation.

With a little bit of time and effort, you should have no trouble finding the right home equity product for your specific needs. By planning ahead and researching your options, you can rest assured that you made the best possible choice for you and your family.

John Ross is a freelance author, providing tips and ideas relating to home equity loans. You can find more of his articles at: home equity loan company, online home equity loans, and fixed rate home equity loan. The Loanchbox is a user friendly website designed to teach the basics behind home equity loans.

MORE RESOURCES

used office furnishings-supplies-equipment-desks-cubicles-service-counters for sale in Akron Ohio   Die cast model cars for sale in Akron Ohio  
used cars for sale in Akron Ohio   unfurnished homes for rent in Akron Ohio

RELATED MORTGAGE AND REFINANCING ARTICLES: No Money Down Mortgage Loans - Ways To Get Approved For a Home Loan Online With Zero Down No money down mortgage loans enabled more people to own their own home. The following ways will help you get approved for a home loan online with zero down. Refinancing Your House - How to Know Whether to Refinance or get a Second Mortgage Refinancing your house's mortgage is not the same thing as getting a second mortgage. While both allow you to cash out your home's equity, terms and rates differ between the two types of loans. Alternative Options For Rising Interest Rates As interest rates have risen in the last six weeks from record lows, homeowners are once again face with finding viable options to reduce the amount of interest paid on their home loans. The rush to refinance provided borrowers with good to excellent credit the opportunity to take advantage of low interest rates, that helped to reduce their monthly mortgage payments, which was the only benefit provided by the lowered rates. Zero Down Payment Mortgage - Can It Be Done? "I've been renting for years now; I've always paid my rent on time. I'll start a savings account soon, so I can buy a house": sound familiar? How much is in that savings account now? Just as I thought, not enough, you went on vacation, found a car you had to have, or WOW; look at the flat panel T. Getting the Best Homeowner Loan for Your Money With so many lenders out there, it can be hard to tell if you're getting the best homeowner loan for your money. Banks, finance companies, and online lending services all offer competing loans, but determining which offers you the best homeowner loan can be tricky. Self Employed Mortgage Loans - A Survival Guide When you're self employed you have numerous advantages. As you are a free agent, you will write off every deduction you can on your tax return. Flexible Mortgage Tips Outlined below are some useful flexible mortgage tips. The most prominent addition in recent years to the mortgage industry has been the flexible mortgage. Applying Online For A Home Loan Can Give You an Instant Approval "Instant Approval For Home Loans" is a common refrain for online mortgage lenders, but sometimes instant is longer than you think. During regular business hours with a typical application, you can expect the databases to approve your application almost immediately. Mortgage Basics for First Time Home Buyers Anyone planning to take out a mortgage for the first time will most likely find the job a little daunting, not least because the financial jargon can often be very difficult to make sense of. As with any major financial decision, it is essential to fully understand every aspect of a mortgage plan before making a commitment. Reverse Mortgages - A Tax Free Income For Senior Citizens I fully realize if it sounds too good to be true, it probably is and There Is No Such Thing As A Free Lunch (TANSTAAFL) immediately jumped into your head when you read the title of this article. However, if you are 62 or over, you may have just found the goose that laid the golden egg. Option One Mortgage Loans - Getting an Option ARM or Option One Mortgage Loan Have you heard about or been interested in finding out more about option one mortgage loans? They are becoming very popular, but its important to understand how they work before you apply for one. I will describe, in this article, an overview of the most common type of option ARM mortgage loan or option one mortgage loan. What is a Homeowner Loan? If you are a homeowner, it couldn't be easier to apply for a Homeowner or Secured loan. Secured loans - i. What is a Reverse Mortgage? Simply stated, a reverse mortgage is a loan that enables homeowners (age 62 and older) to convert part of the equity in their home into a tax-free income without having to sell the home, give up the title, or take on a new monthly mortgage payment. More and more homeowners are using this to supplement their retirement income, pay for health care, modify their home, or just get some cash for emergencies. Sell Your Home and Invest at the Same Time I continue to see the same For Sale signs in my neighborhood. The houses just aren't selling. First Time Buyer Home Loans - Things To Consider When Applying Online As a first time home buyer, there are several things you should consider when applying for a loan online. First, do you know what type of loan you want? Secondly, do you want personal service or better rates? And finally, how do you plan on scheduling in a home loan? Type Of Loan Mortgage loans come in a variety of financing forms to best suit your needs. How to Get a Cheap Homeowner Loan If you're looking for a cheap homeowner loan, you might be wondering what you can do to reduce the amount that you have to pay. The simplest answer lies in two things? shopping around to find the lender that offers the lowest interest rates on a cheap homeowner loan, and maximizing the value of your loan against the equity in your home that's being used as collateral. A Guide to Selecting a Mortgage Broker in Australia Once you have made the decision to buy a home you will need to obtain mortgage financing for your purchase. Until about fifteen years ago buyers had to go directly to banks to obtain loans and shopping around for the right fit was a long process. A New Choice for Home Financing: Correspondent Lenders When you begin your search for a new home loan, one of the first things to consider is where you'll get the money. Your basic choices will be mortgage brokers and banks. A Guide to Quick Homeowner Loans The search for quick homeowner loans can seem futile at first, especially if you don't know exactly what it is that you're looking for. Different lenders may take longer or shorter periods of time to make loan decisions, and the time that they use may be time that you desperately need. 7 Credit Improving Steps You Must Take Before Applying For A Mortgage If you think you have good credit, think again. Chances are there is something on your credit report that can effect your credit rating; this type of news is particularly alarming if you are shopping for a loan or applying for credit.

HOME | SITE MAP © 2012 - 2021 All Rights Reserved Increase pagerank with HitsSurfer