Day: January 6, 2016

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How Does Equity Factor-In for New Mortgage Borrowers?

Mortgage chattanooga

The 3,000 year-old Manusmriti, or “Code of Manu,” was one of the earliest traces of mortgage law in the world; the text emphasizes the creation of valid documents, law of mortgages, hypothecation, partnership and joint ventures to such a concise degree that it was used as a basis for Modern Indian law by the British in the 1800s. Although contemporary mortgage lenders and borrowers may not be familiar with the script, such historical documents provided the basis for modern mortgages used today — although to compare mortgages from 3,000 years ago with today’s mortgages probably wouldn’t help those looking for home mortgage lenders!

Tips for New Mortgage-Borrowers

Buying a home is a big step for anyone to take, especially the first-time home buyer. Two of the most important factors relating to mortgages are one’s credit history and the size of one’s down payment. The Home Loan Learning Center found that most lenders typically require a minimum credit score of 680; those with lower credit scores potentially face higher mortgage rates, although this can be countered with a substantial down payment — at least 20% of the house’s value is typically considered substantial. Securing finances and budgeting is crucial for the first-time mortgage borrower: your monthly payments should not exceed 36% of your gross income, so lock in your rate as soon as you feel comfortable with the figures..

Reverse Mortgage Lenders for Seniors

Reverse mortgages are available to seniors over the age of 62 and uses the home buyer’s equity to supplement their income in the form of a loan. Reverse mortgage lenders allow seniors to live in their homes while receiving income as it uses the equity of the home as collateral — once an individual choose to sell the home to live elsewhere, they receive whatever is left from the sale price of the home minus the loan they received as monthly payments. In the case that an individual passes away before they sell their home, the home is typically sold by the bank to cover the expenses of the loan, plus interest. So although young mortgage borrowers may be discouraged when they compare home loans, it may be reassuring to some to find that reverse mortgages allow older Americans to turn their equity into an income.

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5 Things to Consider When Building a Home

Building your dream home

When looking into building your own home instead of simply looking for already made homes for sale, a new home builder would prefer you have a plan and an idea of what you are looking into. While, they can help you with the details of the home building process, picking actual custom home plans is something that you may have to do yourself, as you know the needs and wants of your family better than anyone. Here are a few things to take into consideration.

What do I have now that I don’t want? What do I not have, that I want? Always remember that at this point you are thinking about the floor plan, so don’t worry about cabinets and counter tops right now. Think about the number of bedrooms you may need or more storage, closet space or living room size.

What will we need 10 or fifteen years down the line? Don’t think about just the here and now. Remember that you are building this home for the long run and you will need it to fit your needs just as well in the coming years. Maybe you have small children now that need a playroom but when they are teenagers, a playroom won’t be necessary. What could it be then? Possibly a movie theater or even another bedroom; a guest bedroom perhaps? Maybe a large garden isn’t something you’d like now but once the children are old enough, you might wish you had somewhere safe for them to play outside.

Does my design correlate with the site? A new home builder normally recommends that you have your site picked out before you being making your plan because there is always a chance that the site won’t be the right size or shape for your dream plan. once you have the site dimensions then you can begin building your floor plan.

How will my new home look against the neighborhood? This might not seem like an important one but chances are, if you are building yourself a new home, it is in a nice area with a reputation to uphold. You don’t want to get off on the wrong food by making a house that the neighbors will hate! You should check any kind of rules or regulations before getting started because certain areas will only allow certain kinds of houses to be built. It would be terrible to come up with your dream house in your dream place only for it to be shut down.

Will my plan work with my decorating ideas? This is where you can begin to think about your decorating. You want to make sure that the type of house you are making will work with how you are planning to decorate. Some houses only work with certain kinds of decorating. For example, if you have an open floor plan but would prefer to have a specific theme for each room, you might consider closing it off a little bit to give you room for different colors and styles.

These are just a few things to consider when designing a home plan. A new home builder can help you with the finite details that you might miss when doing this on your own. Overall, building your dream home is a very exciting process but it can also be stressful so just remember that it is fun and joyful and dream of the outcome.