Buying your first home may be one of the more overwhelming tasks that you will do during your life. Unfortunately, if you have a limited understanding when it comes to this task, you may not be sure of what to expect as you work your way through this purchase. To help you be a better-informed consumer, you will want to make sure that you are aware of the answers to these three commonly asked questions from first-time homebuyers.
What Is Private Mortgage Insurance?
In order to secure a mortgage, it will usually be necessary for you to make a relatively large down payment. However, it is a fact of life that many people will struggle to save enough money to make this down payment. To help individuals that are facing this problem, many lenders will allow individuals to use private mortgage insurance to minimize the amount of down payment that is needed. These insurance policies essentially insure the bank against the risk of your defaulting on the loan. While these insurance policies can be extremely useful, they can also add a substantial amount of your monthly mortgage. Fortunately, you will not have to carry this insurance for the entirety of your mortgage as most lenders will lift this requirement once you meet certain equity requirements.
Will It Matter If You Are Planning On Renting The Property?
Investing in real estate can be an excellent way of providing yourself with additional income through rents. However, you might not be aware that using property for commercial purposes may require different financing terms. This is due to the fact that banks and other lenders will often have far higher credit requirements to issue loans for investment properties. However, if your credit is good enough to qualify for one of these loans, you may be able to include the projected income of the property in your application to help lower the interest rate of your loan.
What Happens If The House Is Completely Destroyed Before The Mortgage Is Paid?
It is a reality that disasters can strike any community. Sadly, if you lose your home, you will still be obligated for the mortgage on the property. For this reason, you will want to make sure that you choose a homeowners' insurance policy that provides replacement coverage in the event your home is lost. This will ensure that you have the money needed to pay off the rest of the mortgage so that you can start fresh.
Share21 October 2016
Apartment living can be a trial sometimes. Even the best apartment complexes can have problems, such as noisy neighbors. I experienced this firsthand with my newest neighbors. Between their partying and trashy existence, I was ready to go crazy. Late one night when they were being particularly noisy, I started researching my rights as a tenant. I found out I did not have to live with their inconsiderate behavior. As a public service, I decided to help others through this blog with their neighbor problems. Whether you are dealing with a landlord that will not do any repairs or bad neighbors, I can help.