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3 important facts about home loans
When you are purchasing a home, refinancing an existing property or obtaining an equity line of
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- What is the difference between a Life Insurance Broker and a Life Insurance Company?
- A Life Insurance Company is the organisation that actually writes your policy and covers the policy risk. It is also their name that appears on your policy documents and it is their duty to make any payouts if you make a claim.
- What is Level Term Life Insurance?
- Level Term Life Insurance is a form of insurance that pays a lump sum to you or your family if you die or fall terminally ill whilst the policy is in force.
- What is Family Income Benefit Insurance?
- Family Income Benefit Insurance will provide a monthly payment to the family until the end of the policy’s term, following the death of the policyholder.
- Life Insurance laws in Scotland
- The Law relating to Life Insurance and Life Assurance is the same in Scotland as the rest of the UK. This has been the case since 2001.
A lender has no personal feelings about you or your situation and therefore, you must look at getting a home loan as a business transaction.
Make sure all your finances are in order.
Let us start off with your credit as most loans are what are called "credit driven".
Obviously, as you have probably seen on TV or heard on the radio, or seen on the internet, the higher your credit score the better for any new loan.
Here is how it can work for you. If you have a good credit score, say 620 or higher, you have a better chance of getting a good interest rate on a new loan. If your credit score is 660 or higher, the chances of getting a really good interest rate improve.
If your credit score is below 620 you still have the ability of obtaining a new loan, however, you may have to pay a slightly higher interest rate, as a lender will consider you a greater risk. (There are many lenders who are willing to give ( mortgage quotes ) home loans to people whose credit score is under 580, but again, the interest rate will be higher and there may be some restrictions.)
In the event you fall into this category, don't be too concerned, ( mortgages ) because, once you have obtained this new loan and you make your monthly payments on time, pay all your other reported bills in a timely manner, your credit score will go up over time and in a couple of years, you may want to refinance that loan into a better interest rate. Establish your credit.