The Home Equity Loans option could always come to mind when there’s that need to raise specific funds needed for a project or investment. Also known as Second mortgage, it simply means taking a loan from the bank or some other loan lender with the equity of your house as collateral. The idea is you will pay back a certain percentage of the lump sum you borrowed thru monthly installment .
All of which means your home is at risk when you take out a home equity loan. This means that if you don’t wish to lose your home or property, you must take come steps to ensure you are doing just about the right thing. Sometimes the need to provide the required funds could make one take this loan without thinking it through.
So signing on the dotted line for your home loan (as you may be unable to pay up) what questions should you ask ? what are the fundamental on mortgage home loan ? what measures should you take ?
1. Is taking loan my best and only viable option? borrowing from friends and relatives could get you the money at a minimal or no interest at lesser pressures.
2. What are the Loan Penalties and consequences of missing out any monthly installment.
3. Is this lender or mortgage bank the best option? it is always necessary to talk to as many loan lenders as possible. Who knows you could get better options if you could hold on before making your conclusions.
4. Can you afford the monthly payments? Any chance the interest rate could change during the life of the loan? If yes, how often, and by how much?
5. Do you see the lender as being sincere? of course you might not be a Sherlock Holmes but you can watch out for some minute details or “red flags” from your lender. Does he or did he at any time exhibit any attributes or words suggesting he is insincere? Does he encourage you to submit wrong falsify information? pressure you to sign today? promise what he didn’t deliver or encouraged you to apply for more than you need?
6. Finally, despite feeling satisfied, think twice before you sign. it is your signature that counts, don’t be in a hurry to sign the dotted lines.