Be sure to ask for the annual percentage rate (APR) of the loan’s interest. The APR is usually higher than the originally quoted rate because of the additional fees involved in procuring a loan. You must beware of APR found in advertisements. Often these are used in bait and switch schemes to get customers in the door. Always ask for an itemized list of rates and fees.
Often lenders have reward schemes. Link your home loan to a Voyager or e-Bucks account. Get info on your lenders rewards schemes and make use of them.
Interest rates are constantly fluctuating and it is possible that it could change between the time you apply for a loan and the time you close. Often you can “lock in a rate” that will keep your interest rate the same from the day you apply. Please make sure that you find out if there are any fees involved with this.
Prepayment penalties may be added to lower the loan’s interest rate. There are many types of prepayment penalties that can be added to a loan. Make sure that if your loan has a prepayment penalty, you are aware of the terms and conditions.
This will depend on the type of loan you choose. Most loan applications will require full documentation of income, assets, debt payments, etc… If you apply for a building loan additional documents will be have to be submitted (building plans etc). A loan application in a companies name will require further financial statements, etc.
It can take as little as two weeks, to as long as 60 days or more. Be sure to have the lender give you the most accurate timetable possible so you can determine how far out you need to lock your interest rate.
If you provide complete and accurate information to the lender, the process usually runs smoothly. Be sure to tell your lender immediately of any changes to your income or any new debt or marital status while your loan is processing. There could be delays your lender discovers any undisclosed credit problems so be sure to be as accurate as you can.For more information on debt consolidation, bonds and other related articles go to www.globalproperty.co.za