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Top 5 Things to Consider when Choosing a Home Loan

Published on June 29, 2020November 27, 2020

Buying a home is a huge decision. Anyone who has been through it can tell you that. You need to assess your budget, find the home, organize everything, and start a new chapter in your life. As you can imagine, all of this is stressful and it should be done very carefully, especially if you need to take a loan to buy your dream home. You must get familiar with all the conditions for taking the loan, as well as the payment period. Every bank has different conditions for giving loans, so it is important to find the one that has the best conditions to offer. Let’s take a look at the factors that you should take into consideration! Keep reading to find out more.

1. Check the interest rate

This is usually the first thing that people will ask about and that is pretty understandable considering that the loans are taken for a period of 20 or 30 years. Even half a percent lower interest can mean thousands of dollars after you are done paying it. This is why it is necessary to find the best interest rate that will enable you to save some money along the way and still achieve your goal.

2. Find out more about the fees

Make sure you find out everything you can about the additional costs that you may encounter after you take a loan. Those may be redraw fees, valuation fees, establishment fees, annual fees, and many others. This may significantly add up to the end rate that you will need to pay, so it is truly important to have in-depth knowledge about all the expenses that you may encounter. This will help you have a piece of mind and don’t be stressed out about the possible unpredicted expenses.

According to Absolute Tiny Houses, fees are smaller when you are buying a smaller home. Not only will the total price be reduced drastically but you will also have a smaller interest rate as well. Small homes allow people to become homeowners and get out of rent and it is becoming a more popular trend.

3. Choose between a variable and fixed rate

First of all, let’s explain what both types of rates are. In case you choose a variable rate, you can expect that the interest rate may change at any point when the market changes. However, even though this is not the most stable option, the reason why people choose it is because there is a certain flexibility that comes with this type concerning switching loans or making additional repayments, which can be pretty convenient. It is important to remember that the repayments will also increase if the interest rate increases.

On the other hand, if you choose to have a fixed rate, the rate will stay the same over the set period which usually refers to the period up to five years. There are many pros and cons for taking this type of loan and we will only mention the most important ones. The repayments remain the same and the banks usually offer low interest rates, but you should be aware of the restrictions if you suddenly have the need to switch the loan while the fixed-rate period is ongoing. This is why it is necessary to talk to professionals about the right option and get informed about everything in advance. If you wish to find out more, check out kbbcredit.sg

4. Get familiar with the extra repayments

Having a family comes with numerous expenses, celebrations, and unexpected repairs. At some point, your friends may invite you to come to their wedding or any other celebration which requires paying for the wardrobe, the gift, the transportation, and numerous other things. If you take a home loan that cannot be changed, you may be in trouble. This is why it is necessary to have the option to redraw your funds and simply cover the expenses easily. Sometimes you may end up with a car issue or your pipes may break, life can be unpredictable sometimes. This is why it is necessary to always have a plan B. This is the only way you can relax and enjoy life.

Some banks allow the users to take a loan top up, which means that you will be able to take more money than it was initially planned. In addition, ask if your bank allows the clients to take a break from paying loans. Having a huge loan that has to be paid for two or three decades can be quite a big burden. This is why sometimes clients wish to have some time to take a break. This may prolong your payment period, but sometimes just stopping to relax for a bit can be a huge relief especially in the moments when life becomes hectic. Make sure you ask about everything that could make your life easier.

5. Find the right bank

As previously mentioned, every bank has a different set of rules concerning the loans. This is why it is advisable to visit at least five banks and check out their terms and conditions that you may be interested in. Ask everything you want to know because you will be bound by contract for many years when you sign it. Read the fine print, ask for help from the attorney if you are not sure what something means, seek advice and make sure you are fully aware of all the details that are written in the contract and double-check everything. Once you are fully aware of everything and you make a decision, the rest will be much easier.

These were the most important things you must pay attention too if you want to make a good and informed decision. You must also pay attention to the amount of the loan you will need. Assess the needs of your family for space. Don’t go overboard and find a villa with numerous rooms. That is significantly more expensive than having a modest home that will have just the space you and your family need. Be realistic about your needs and preferences, talk to your family about it, and discuss all the details in a timely manner. In the end, the only thing left for you to do is to buy your dream home and enjoy it with your family!

Tips for Getting a Home Loan in 2020

Published on April 1, 2020

Economy

Getting a home loan in 2020 might be a challenge given the many mortgage options and the low affordability of homes. While finding the right home can be exciting; getting the loan to finance your dream home is equally important. If you’re considering taking the plunge and finally buying a home, make sure you’re doing it smartly and not getting yourself into a loan you’ll regret. Here are ten tips to help you acquire a home loan amid the 2020 real estate trends.

1. Save Early for Your Down Payment

If you want to buy a home, you need to start saving for the down payment as early as possible. Down payment can be as low as 2.25% or as high as 20% of your home’s buying price, depending on the financing option you choose. With this information, you can decide how much you can comfortably save and work on a plan that allows you to put away the amount every month.

The earlier you start saving, the more money you’ll have for the down payment and other home-buying costs such as moving expenses, closing costs, and home appraisal and inspection costs. If you are on a tight budget, consider financing options with low down payments like FHA.

2. Check Your Credit Score

Lenders use your credit score to determine your suitability for a loan. A lower credit score means you are a high-risk investment. Before you set out to buy a home, check your credit report to see what your credit profile looks like to lenders. You can then put up measures to ensure that your credit score is high enough for you to acquire the best home loan deals.

The good thing is that you can get your annual credit report from credit reporting agencies like TransUnion and Equifax. You can also get your credit score at a small fee. If your credit report has errors, you should have them corrected immediately.

When it comes to credit scoring systems that use a range of 300-850, a credit score of 700 or above is usually considered good. In the same range, a score of 800 and above is considered to be excellent. Most commonly, a credit score falls somewhere between 600 and 750. If you have a higher credit score, it means that you’re seen as more responsible to lenders. As such, they will have more confidence in you to lend you more money.

A variety of organizations use credit scores. Lenders can include banks providing mortgage loans, car dealerships, and credit card companies. All of these organizations use your score to make a choice about whether or not to offer your credit like a card or a loan, as well as what your down payment and interest should be. You may have heard of the FICO® Score, but this isn’t the only type of score there is. There are many types of credit scores, including scores by VantageScore and industry-specific scores.

3. Have All Your Financial Documents in Order

When applying for a mortgage, you will need to provide financial documents to convince your lender that you can pay back the loan. With this in mind, ensure that all the necessary financial documents are in order. These include tax return for the last two years or your recent W-2s, your previous two paycheck stubs as well as bank and brokerage statements. With your documents in order and readily available, your home loan processing will be much easier and faster.

4. Make Use of Mortgage Calculators

A mortgage calculator helps you establish what you can afford when buying a home. Use a mortgage calculator to figure out your mortgage installments, given different prices and interest rates. This way, you can plan your finances better and avoid going outside your financial comfort zone.

5. Compare Different Offers

It would help if you didn’t settle for the first quote or lender you find. Have a look at various financing options and compare them before choosing a suitable alternative. Look at factors such as the interest rates, flexibility of payment, fees involved, and even mortgage premiums when comparing different financing options. A better way is to look at the Annual Percentage Rate (APR) of different lenders as it represents the overall cost of your mortgage and gives a more accurate comparison figure. There are several different types of mortgages. You can learn more about them here.

6. Track Interest Rates

Since the cost of your mortgage will be highly dependent on the interest rate, you need to know whether they are rising, falling, or stagnating. This helps you predict what you’re likely to pay for your home loan once you secure it.

7. Get Mortgage Pre-Approval

A mortgage pre-approval not only shows you how much you can borrow but the price range of the homes you should consider, too. It also improves your chances of homeownership as most real estate agents and sellers prefer working with pre-qualified buyers. What’s more, pre-approval shows your seriousness when placing offers on homes. To be pre-approved, you only need details of your income, savings, and investments.

8. Research Your Mortgage Options

Mortgage options differ from one lender to another. Some offer fixed-rate payment schedules while others are adjustable. By understanding the nature of your available loan options, you will be in a better position to choose a home loan that suits your financial situation.

9. Always Communicate Promptly with Your Lender

After applying for a loan, be sure to respond to any requests by your lender promptly. Whether your financier is looking for clarification or asking for more information to process your loan, ensure that you provide immediate feedback. Delayed responses may lengthen your loan approval process, which results in problems that may cost you your dream home.

10. Don’t Ruin Your Credit

Lenders usually take one last look at your credit status before closing to make sure your credit score hasn’t dropped, and your debt-to-income ratio is not higher than it was. To avoid ruining your credit, pay your bills on time and avoid taking new credit or applying for new loans before your home loan is closed.

Home Siding Solution: Know It From the Best Siding Contractors

Published on December 6, 2019

House

So you are looking for an optimized house siding solution. You are welcome. It’s great to know that you are planning to take care of your dream house and you just took the right decision of installing siding for that.

Now, before we get our head around the core issue of your house siding, we need to have a better understanding of the parameters that are linked with it. And, it starts with the weather belt that your house is placed under. It says a lot about the protection that your dream home needs.

If you belong to the most densely populated area of Canada which is the greater Toronto area then you definitely know that it snows around 4.6 months yearly in the GTA. The total liquid-equivalent reading of the same is a whopping 0.3 inches. Further, it rains around 140 days a year in the same geo-location area with a maximum of 768 mm rainfall.

Siding is the best insurance that your house can have.

Admittedly, the weather conditions do sound like a bit malefic for your home as you may need to know that rain and snow are the two most injurious force both for the exterior area and the foundation of your house. So, better roll up your sleeves and dig deeper into this siding solution.

Here is your first plan of action- to get the quality siding in the GTA, you should find a reliable company such as idealsiding and let them walk you through the process.

Starting from looking for the house siding solution to hiring the best siding contractor, what connects the dots? Simply, it’s your understanding and informed decision making. There are many technical factors behind zeroing on the right siding material and the other stapled issues.

Siding contractors engineer the protection you look for.

Having said that, your role as a house owner has a definitive share of this whole workaround. The best siding solution for you primarily depends on these four basic factors namely, requirement, budget, efficiency, and aesthetics. It’s not that, there is nothing more to think about except these core attributes of choosing the best siding solution for your house but we will try to analyze these core attributes first.

The efficiency of siding: The built material

Your particular requirements define the material of the siding that you require. There are many types of siding catering to different user segments. Starting from the primitive brick siding, which is known for creating a timeless look of your house, to the modern-day glass siding, and metal siding, there are a plethora of options to go with. But, different siding material yields different attributes in terms of budget, energy efficiency, and looks or aesthetics.

You can consider these options:

Brick siding: It’s primitive. It durable, energy-efficient and you can always paint the color of your heart on it. But, it’s one of the costliest sidings due to its heavy material handling and installation.

FIbre-Cement Siding: Man-made material which mimics wood siding. The fiber-cement material is less expensive, water and fire-resistant, prevents insects from entering the interior and it’s a good energy-efficient material. You are free to create any design and paint it with any color.

Engineered Wood siding: The material is mostly wood with some added material to derive a superior wood-like finish which is more durable than simple wood sidings. This siding type is more popular that wood imitating vinyl or fiber cement sidings. This siding is fireproof and water-resistant. Further, it protects your hose from insects too. The only downside of these sidings is that they cant be re-painted or re-stained.

Vinyl siding: the siding material is toughened plastic. It’s durable. Easy to install. The maintenance is low. And, it doesn’t make a big dent in your wallet. This siding type comes with an array of color options and thicknesses. It can also imitate wood grain and stone sidings. The newest option is that you can go for the insulated vinyl siding which is a bit expensive but it does its job in the long run.

Stone siding: There are mainly two options with this type of exterior siding- Natural stone siding and fabricated stone siding. On the grand scheme of things, both are smart enough to generate the exact aesthetics that any homeowner looks for. The visually brilliant stone sidings are protective too. Be it, granite or slate or limestone, this siding is here for the durability and lowest maintenance hackles. The only downside of this siding type is that it’s expensive. The material and installation costs can go up with your custom requirements.

You define your siding requirements.

There are other types of sidings like metal, simple wood and glass. But, all of these siding materials are rigorously engineered to meet your demands. They are long-lasting with high efficiency and low maintenance costs. So, as we have detailed in the first section of this article that there are some core parameters which defines your need like the weather belt your house is placed under, your budget, siding efficiency and lastly, the aesthetics you are looking for to make your house more like your personality.

But, affordability plays a major role here. It’s not that your favorite siding understands your budget well. Further, the maintenance of the installed siding is a big issue. Thankfully, the siding experts are there to deal with these parameters and they are the best option that you have to find the exact siding solution for your dream home.

So, what it’s going to be? Feel free to bug us anytime with your requirements and we will be happy to help you out.

How to make your home kids friendly

Published on November 4, 2019

House

A home can’t get it’s full shape without the kids. They are the life of a home. So it’s our primary duty to make the home and it’s ambience according to the kids. So, don’t turn it a 4 walls only, put some life in your dream home.

According to Sohu-shop.dk, a home must meet certain conditions about the physical safety and health of its occupants:

It ensures the closed and the cover. The structural work and its accesses are in a good state of maintenance and solidity. It protects the premises against the runoff and the up-welling. The exterior joinery and the cover with its fittings and accessories ensure the protection against water infiltration in the house.
The restraints of persons or kids, in the home and its accesses, such as railings of windows, stairs, and balconies, are in a state in conformity with their use.
The nature and state of conservation and maintenance of building materials, pipes, and cladding do not pose a clear risk to the health and physical safety of kids.
The networks and connections of electricity and gas and the heating and hot water production equipment comply with the safety standards defined by the laws and regulations and are in a good state of use and operation. Otherwise, it will be risky for kids.
The opening and ventilation devices allow a renewal of the air adapted to the needs of a normal occupation of the housing and the operation of the equipment.
The main rooms have sufficient natural lighting and an opening to the open air or a glass volume to the open air for kids.

Co-ownership life is no longer reserved for young single people. In large cities, many millennial parents choose to settle in vertical communities to raise their kids in the dynamic environment they love. As a result, developers are beginning to pay attention to the issues put on the front line by this burgeoning segment of the population who want to buy homes.

1. An increased number of bedrooms

Many families living in a home had to create a “bedroom” in a smaller home. In short, homes whose sizes are adapted to families are now easier to find. In other words, it is less likely that you have to add a pseudo-bedroom with the help of bookcases and curtains.

2. Better storage capacity

A tiny closet will not be enough if you have strollers, tricycles, and other devices to hide. If you have a growing family, maximum storage capacity is essential. One way developers can maximize storage space is to design smaller bedrooms. The sacrifice is well worth the effort if it facilitates the daily comings and goings in your home.

3. Indoor play areas

Just as the party room is a pivotal element for adults living in a home, kids’ rooms will become very popular in family homes. With indoor flooring, furniture and activity-friendly play stations, these indoor play centres are the perfect places to relax on a rainy morning, or to meet if you feel like your home is too messy for a gaming appointment!

4. Outdoor playgrounds

Other kids’ attractions include gardens, fountains, water playgrounds, and trails where kids can ride bikes, rollerblading, and play in traffic. Who said you could not have your own backyard if you live in a tower building?

5. Parking

If the movement of your “chicks” must include the use of a motor vehicle, you will have to look for a parking space. Parking spaces are in great demand. Yet, in large cities, many homes have far fewer parking spaces than apartment buildings. If you only drive occasionally, check to see if there is a car-sharing location near the building. Is cycling a passion for you? Look for a building with a secure bicycle storage room to avoid cluttering your home and to reduce the risk of flying bikes outside.

6. The importance of location

The proximity to the workplace is one of the advantages of living in big cities. There is something attractive about walking to the museum on a Saturday morning or picking up the kids at the daycare after work and then taking the time to slowly walk the streets in search of a good restaurant for dinner. Be sure to consider the pedestrian potential and access to public transit when shopping for an apartment in a home.

General objectives that guide the activities and relationships of one state in its interactions with other states.

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