In today’s times, buying a home is no longer considered as an extraordinary thing to do. These days there are numerous financing options available in the market than ever before. The home buyer can now opt for loans, be it conventional loan or adjustable rate types. With so much variety of choices available, a home buyer can definitely find suitable loan for himself. While looking for a loan, a home buyer should keep his current financial situation as well as future plans, in mind. Many people dream of buying a house but only few of them can really achieve this goal. These days, many people want to buy real estate property but buying it entirely by cash is not practically possible to most of them by taking help of a real estate loan, their dream of purchasing a home can come true. With the real estate loan, one can easily plan and own a property for himself.
People opt for a real estate loan with various intentions. Some may want to invest in the real estate market by buying a corporative flat, others would like to reconstruct their existing real estate and some may plan to build a property. Various types of loans are easily available in order to fulfill their needs accordingly. One can easily come across many financing agencies such as banks and money lending forms who offer real estate loans to people. Since the money involved is much higher than the ordinary loans, there are certain prerequisites to obtain a real estate loan.
Real state loans can be categorized as a secured loan since the borrower needs to handle over a legal document to his lender. By this way the borrower and the owner of the new property transfers the collateral to the lender which acts as security against the offered loan amount. This produce is adapted since the lender is lending big money. Hence the lender wants his money to be secured and wants a sort of a guarantee from the borrower that it will be paid on time. It is with such kind of assurance deal that the lender accepts the loan to the borrower.
While dealing with real estate loan, one must be aware that the payback tenure or repayment period is another important factor while deciding on a real estate loan plan. One must also be aware of the fact that the longer the repayment tenure, the lower will be the installments and thus the borrower finds it easy to payback. There are two types of real estate loans. They are as follows:
1) Residential real estate loans:
Before a person applies for a residential real estate loan, he has to follow certain pre-requisites. Firstly, a residential real estate loan online application form has to be filled. Secondly, his last financial statement and his latest income tax return documents have to be furnished. He must also be in a position to submit one guarantor’s most recent individual financial statement and latest individual tax return.
2. Commercial real estate loan
The prerequisites before applying for the commercial real estate loan are as follows:
1. The commercial real estate online application loan online application form has to be filled up followed by the real estate appendix.
2. The present company’s financial statements and latest tax return needs to be furnished.
3. Finally, guarantor’s most recent individual financial statement and latest individual tax return has to be handed over.
