Different Types of Apartment Loans That Are Available for Buying New Apartment
Tuesday, September 18, 2018, 6:00 AM | Leave Comment
The apartments in the multi-storey buildings are highly favorable, especially for nuclear families. However, these furnished or non-furnished apartments may be out of reach of many common people, due to the high costs of these real estate properties.
Hence, the best option for them is to seek apartment loans from reliable financial organizations.
The loan seekers must know about these various kinds of home loans that they can seek from reliable organizations for buying new apartments for living with their families or as property investments.
Main Categories of Apartment Loans Available for The Buyers
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Loans Backed by Government – Majority of the people prefer to apply for apartment loans that are backed by the local government. There are some financial agencies that are supported by the government and hence, considered as most reliable by loan seekers. These agencies offer various ranges of home loans on very low rates that are easily affordable for common people.
The other expenses, like loan organization fee, closing cost, legal expense, mortgage insurance premium, and prepayment penalties are also quite nominal. The loan terms usually range between 5 and 35 years and the funding time of the loan amount is generally 60 – 180 days in these agencies.
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Loans Offered by The Banks – The banks that maintain regular balance sheets are considered to be reliable sources of getting large amounts of apartment loans that are also termed as recourse loans. Since these banks are not supported by the local government, it is easier to obtain loans for the common apartment buyers.
The rates of these loans are also quite low, and the other relevant expenses are also nominal for the borrowers. The loan terms in these banks range from 15 to 30 years, while the loan funding time ranges between 60 and 90 days only.
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Short Term Loans – When the buyers of the apartments want it just as an investment for renting or selling with greater profits, the short-term loans from financial organizations seem to be the best options.
These loans have much higher interest rates due to the shorter loan terms of only 6 months to maximum 36 months. These kinds of apartment loans can be repaid by refinancing with other long-term loans or simply by selling the newly purchased apartments.
Procedures to Apply for The Apartment Loans from Financial Organizations
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First of all, the borrower should ascertain the type of home loan he needs to seek, as per his requirement and financial conditions. Then he must check online and finalize on the financial institution that he finds perfect for granting him the required loan.
As there are many organizations that offer apartment loans, the borrower should check the rules of all these companies before approaching them.
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The borrower needs to enter the website of the chosen organization and fill up the online loan request form there, with his basic details and his email id for further online contacts.
He receives a confirmation mail almost instantly from that company, with the name and contact number of a loan specialist assigned for dealing his case.
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The loan customer needs to send all the details of the apartment to be purchased to this loan specialist, to get the confirmation mail from him within 24 hours with the written quote of the required loan.
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Finally, if the borrower accepts that given quote formally through email, the loan application is sent for further procedures to grant the loan.
Hence, the apartment loans are available quite easily, enabling common people to buy their chosen apartments conveniently.
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Alyssa Moylan is an ordinary woman from Australia, a writer by day and a reader by night. She writes on various topics like business, start-ups, finance and technology. She likes to think of ways on how to solve daily life problems of people. Follow her on Twitter to stay updated.
