It is very appealing since the interest rate seems extremely low, but later on you will be paying higher interest rates, sometimes more than the current market rate. Do not get fooled by this since it is nothing like an adjustable rate mortgage and is only there to squeeze the most money out of you.
Most people who are unaware of how the mortgage process works usually approach banks to get a loan for their dream home. Banks, however, have extremely poor customer service and take a long time to approve the home loan.
Another very attractive offer lenders provide you with is by giving you a low rate which is only applicable for the first few months of the loan. They will quote a rate which is about 2% lower than the current market rate. This is known as a teaser rate.
In order to find deals on Home Loans you will need to do a bit of research. Try to get recommendations from friends or family who have already purchased a house and are at least 10 to 15 years in their mortgage loan. Also, it is recommended that you get a number of quotes from different brokers and compare them to see which one is the best. The internet is a great place to find brokers and get some good advice on getting a loan. The key to getting a good home loan is by focusing more on the financing rather than the house itself.
While applying to a bank, you are required to fill out a number of forms and get a number of documents before applying for the home loan. Banks have a tendency to treat you like an account number rather than a person who desperately needs a home loan. This is why you should not approach a bank to get a loan for your dream home.
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