Friday, November 19, 2010

Mortgages aid Home Ownership

 A home is a great investment making the interior decorating of a home equally valuable. The real estate market in Kenya is experiencing a boom in the recent past and home ownership is becoming very attractive. Few people have the full amount to purchase their own home and opt to take up one among the various options for financing this investment, namely, a mortgage. A mortgage is a home loan with the home being the security for the same. Mortgages are becoming increasing popular options for financing home ownership, but can be very confusing if one does not have the full details of the type of mortgage suitable for their financial status. Current and future financial implications have to be carefully considered before signing up for a mortgage deal.

Essential Tips on Mortgages

One important factor to consider when taking up a mortgage is the amount of down payment required. Usually a higher down payment will reduce the principal and consequently the interest rate on the loan. Different mortgage lenders offer different options and it is also important to know these from the preferred lender. Some lenders charge a penalty, which may be astronomical, for paying off your loan early, making this kind of information very vital. It is also important to know the closing cost for the loan, which may include appraisal costs and other legal fees.

It is crucial to know the duration it will take to approve the loan application which ranges from two weeks to two months. A loan application may be delayed by bad credit, a faulty appraisal, missing or incorrect and illegible information in the application. Home ownership can be easily accessible when the information and documentation needed is clear and the financial obligations have been met. Owning a beautiful home is further enhanced by functional interior decorating.

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