A lucrative and budget-friendly alternative to paying home loansPosted by Imgc India on April 19th, 2018 We all dream of living in a lavish residential space, with posh, airy, and comfortable rooms. But often, we find it beyond our means to able to purchase such a home. But with mortgage-guarantee backed home loans (known as home loan mortgage insurance in many countries abroad, home loan repayment may no longer be an issue. Through this option, loan borrowers and seekers are able to avail higher home loan amounts and longer repayment tenures, among many other benefits. Advantages of mortgage guarantee backed home loans - Mortgage-guarantee backed home loans (or home loan mortgage insurance) ensure a number of benefits to both the lender as well as the loan borrower. In the event that the home-buyer is unable to make the loan payment, the buyer gets loan down payment protection. 1.Easy home loan payment options Mortgage-backed loan payments are ideally divided into two categories –
2.Lower down-payment amount Opting for loan mortgage insurance generally allows a down payment discount on home loans of upto 20%. 3.Protection from loan payment default If for any reason, the loan borrower is unable to make the loan payment, then the mortgage-guarantee backed home loans covers the lender for a part of the credit risk. Applying for the mortgage-guarantee backed home loan, and getting it approved In order to finance the loan, the lender checks to ensure that the borrower fulfills certain criterion to qualify for it. Here are some of the necessary pre-requisites that are verified first -
After having the above-mentioned criteria fulfilled, the home loan borrower can opt for a mortgage-guarantee backed home loan, and secure the loan amount to buy his or her dream home. Here is a step-by-step process guide to apply for a mortgage-guarantee backed home loan–
The first step in applying for the loan is to fill out the application form to initiate the home loan request.
All necessary documents must be submitted to the loan provider before securing the house loan. These include –
After the application and the proofs are verified by the lender, the desired loan payment option, such as automatic monthly debit from the bank account, etc. should be specified. In addition, the options for the interest payments, namely fixed or variable payments, must be specified. With mortgage-guarantee backed home loans, buying a dream home is no longer a dream, but a reality. Like it? Share it!More by this author |