First-time home buyers generally feel a euphoric sense of enthusiasm when they realize the perfect property is within their grasp. Years of renting may be behind them. Owning a home outright and reaping the vast benefits home equity brings is no longer elusive. The basic process of making a down payment and being approved for a home loan is fairly simple. However, there are sure to be a few things related to home lending the new borrower is probably unfamiliar with. Understanding a number of issues is critical prior to approaching a home lender.
For one, the lender is going to request a home inspection prior to any approval of the loan. The lender does this to protect the loan in case the terrible situation of foreclosure develops in the future. The inspection could reveal roof problems which, in turn, lower the equity value of the home. The loan amount may be lowered if the roof is not fixed requiring a larger down payment. New home buyers and loan applicants really should do as much research as possible to avoid being unpleasantly surprised.
Research may also yield positive news. Currently, trends indicate that real estate values and prices are on the rise. 2016 goes into the history books as a year in which real estate values saw an upwards trend. The trend could very well continue for several more years. The end result here would be a home that is worth more than the purchase price. The increase in value may even rise beyond the interest payments on the loan. Keeping up with tweets through Intercap Lending on Twitter might reveal some interesting links to trends and new real estate market boom. Following Intercap Lending on Twitter would be a prudent move.
The annual percentage rate (APR) of home loans do change due to a variety of factors. The direction of the U.S. economy on macro and micro levels does have a ripple effect through lending institutions. The economic policies of the Federal Reserve, for example, can impact APR figures. The average home buyer might not even be remotely aware of what “The Fed” does. Yet, decisions coming out of the Federal Reserve do change APR rates.
Differences between fixed rate and variable rate loans are sure to exist as well. Borrowers’ decisions on choosing one of these loans could be related to the less-costly APR option as opposed to the terms.
Regardless of what costs are involved with a home loan, refinancing is always an option for qualified borrowers. When seeking a new or first-time loan, working with a reputable lender is necessary. Look up Intercap Lending on Google. Doing so will reveal a lot about home loans and a top lender.