Real Estate Loan Question Checklist
Download Real Estate Loans Database
Are you intending about borrowing money from a bank or financial institution with the intention to buy the home that you have always wanted? Before finally deciding to sign on the space provided, usually a dotted line; make a rundown list on the database of real estate loans to give you a clearer view on some of things to consider. Doing these kind of action will allow you to come up with the right institution to deal with your loan transactions.
Real estate loan is a loan on real estate property that is secured by collateral. Collateral is the term used for the property that is pledged by the borrower for the repayment of a loan. Before submitting the application for a real estate loan it is advisable that you ask the bank or the financial institution about important matters like the following:
1 You should ask every detail about the interest rate; its calculation and how often the interest rate is charged?
2 Inquire about the ongoing fees associated with the real estate loan.
3 Don’t forget to ask about penalties; try to let the bank cite an example on how penalties are calculated.
4 Pay attention to the loan contract. Ask if the real estate lender has the right to make changes in any conditions on the contract at a later time.
5 Are there any fees in case the real estate loan is rolled over.
6 Is it possible that the authentic contract of agreement be changed? Will the real estate notify you in writing and how much notice will be given?
7 You should be informed if there are any clauses not indicated in the document that you signed.
8 You should be aware if there is a compulsory default insurance included in the loan. Don’t forget to ask if you are allowed to get that insurance from a cheaper resource.
9 Is lump sum payment allowed? In cases like these, is there a possibility that the real estate loan provider will calculate future interest and include it on the reduced amount of the principal?
Don’t be shy to ask about these important things even though they are written in the contract itself. Things that are well explained are better understood. In this way, you will be rest assured that you entered a transaction that is clear on both parties. You may select from the list of real estate loans and later on settle with the real estate lender that offers the best deal.
