ALL ABOUT MORTGAGE
Q.For what purposes I can use the the equity?
You can use your equity for almost anything, be it then for repayment of debt.
Q.How is the money paid out?
The funds are disbursed in draw checks made payable to the borrower and the contractor. We must have 24 hours notice and a written draw authorization signed by the borrower and the contractor.
Q.What is the interest rate?
The interest rate entirely depends on the term of the loan and your credit history.
Q.How much are closing costs?
Closing costs are very reasonable and vary according to the Loan amount.
Q.How does my personal credit history affect my chance of getting a mortgage loan?
Personal credit history shows all your past credit events. The lenders use your personal credit history to analyze the level of risk in sanctioning a loan to you (especially in the case of sole traders and partnerships). The late payments or bankruptcies in the history are danger areas and may hinder your credit process. For this you should include a letter with your application explaining the circumstances for the same and how they have changed now and your eligibility for the present loan. The letter may wash the black spots on your credit history but it should be well supported by documents. Be honest in your approach towards the lenders as they are the experts and can easily trace the loopholes.
Q.How can I improve my chances of getting a mortgage loan?
Throughout the loan process it is most important that what kind of you have on the lender. The borrower must be prepared to demonstrate why you are the right candidate for the loan. You must also prove that you are capable of repaying the loan. Show the lender your history of earnings and the strong future earnings. A larger investment in the business will be an added advantage for you as the lenders feel secure that your interest is aligned with its.