Home Loans
Loan Location Home Loans
Working with Location Loan mortgage brokers offers a range of exceptional benefits, including access to multiple lenders who can provide finance options and alterations when it comes to home purchase. Our professional brokers are highly experienced in assessing and researching potential options based on your unique situation. With their expert advice, you can rest assured that the best possible options for your needs will be put forward – saving you time, effort and stress in the process. We understand how important purchasing a home is and strive to make sure each client is given the professional service they require. Don’t hesitate – enlist our professional help today!
Basic Loans
Basic home loans are mortgage loans generally consisting of low ongoing interest rates as well as open-ended fees, as well as a reduced or a renounced application fee. If you can manage to modify the terms of your loan, and find a new loan offer of interest, you can’t undo your decision of the alteration of your terms for a new loan once switching from the low-rate policies you began with. To qualify for a basic home loan, apply for a lender, make applications for affordable loans based off of your financial situation, if needed, adjust your credit score, present your lender with a strong front of financial stability, and for your monetary protection, double check as to whether or not you’re connected to a bad lender.
Packaged Loans
Packaged loans are an open option with many lenders although there is a bare minimum portion of a loan you can temporarily obtain for eligibility for a loan. There is commonly only one packaged fee whether you have many or little loans you may have with your lender. You will end up with a lower rate offer from your lender depending on how much of a loan or multiple loans you have borrowed from. These packages are originally offset accounts to help your interests on loans and credit/debit cards. Due to certain circumstances or situations, credit cards will be mandatory. You are also required to pay a yearly fee in order to maintain possession of a packaged loan. A loan package fee is payable every six months starting from the date of your loan settlement. If the repayment of your loan and fees are debited from the same bank account, then your fee will be an addition to the monthly loan repayment in its due month. A packaged home loan can also offer early repayment and redraw facilities, bank as well as saving accounts, credit cards, very importantly, insurance and numerous other services such as financial planning and share trading. With a package loan you are able to purchase both real and personal property. To make a packaged loan, conclude as to whether you’re qualified, identify your financial needs based off of the terms of your personal circumstances, consult with your local lender about the various loan options, gather and organize your files and documents required for the loans, fill out the mandatory Small Business Administration [SBA] forms, assemble a draft of the SBA packaged loan by a lender, and finally submit your documents and find out if you’re eligible.
Fixed or Variable
A fixed rate loan is a mortgage loan with a locked in interest rate remaining the same throughout the entirety of the loan, no matter as to what terms you have, generally between one and ten years. During the time of your fixed interest rate, there will not be any alterations to your interest rate and mandatory payments, whereas variable loans generally entail the alteration and modifications of your interest rate over time. If you choose a variable rate home loan, you must act on the downfalls in the interest rating in the duration of your loan term. The more decreased your rates are, the less you pay on the interest of your home loan balance. There is however a possibility of losing your benefits with your loan once you make alterations to it. Although some fixed rates can be lower than the variable rate. Luckily for you, Loan Location is here to guide you through step by step for a result in a relaxing lifelong break from financial struggles.
Principal and Interest Loans
A principle and interest loan is one of the most commonly used types of mortgage. With this type of loan, you are required to pay both the principle amount that you borrowed as well as an interest rate. The principle remains fixed throughout the life of the loan, but the interest rate can vary depending on a number of factors including market conditions and your credit score. Paying back both principle and interest means that you will be able to pay off your mortgage sooner than if only principle had been paid. However, it also means higher monthly payments over the life of the loan. It’s important to research all available options so that you can make an informed decision when selecting a principle and interest loan for your needs.
Interest Only Loans
An interest only home loan is a mortgage loan in which the mortgagee is only required to pay off the interest for some or all of the term, with the essential balance without adjustments during the interest only period. To become eligible for an interest-only loan, you’ll need to confirm with your lender that you have a stable repayment arrangement, and your way of proving so is to present your lender with investments such as Individual Savings Accounts [ISA’s], or evidence of cash in savings or endowment terms. Although, another way is to sell secondary property if an option. Interest only loans can last from five to fifteen years. Investor benefits include access to extra cash flow for the use of your investment property due to the lower amounts of payments required.
Low Doc Loans
A low doc home loan [low documentation] is a mortgage entailing less monetary documentation as evidence of your income, assets, and liabilities, unlike a standard home loan. These mortgages can be taken out by using different forms of verification. Low doc home loans are generally used by self-employed borrowers and the owners of small businesses and are usually given higher interest rates and can possibly contain terms excluding borrowers. For those applying for low doc loans, its importation to understand that Lenders Mortgage Insurance [LMI] is generally applied if you’ve borrowed over 60% of the entirety of your purchase price, although borrowers typically need a higher deposit, as most lenders demand a minimum of 20% deposit for those applying for a low doc home loan.
Full Doc Loans
When applying for a full doc loan, also known as full documentation home loans, it is important to ensure that you provide full evidence of your income, assets and liabilities. Your broker will use the evidence provided to assess your eligibility for a full doc home loan.
Your broker will require you to provide two years of personal tax returns, two years of business financial statements, and Notice of Assessment. These documents are essential in proving your ability to afford the loan repayment amount over the full term of the home loan agreement.
Keep in mind that full doc loans typically offer lower interest rates than other types of mortgage products because they carry less risk for lenders. However, if you are unable to provide full proof of income or assets, you may not qualify for a full doc home loan.
It is important to note that full doc loans are not suitable for everyone, so speak with your broker to determine if you are eligible for a full doc loan and what type of loan product best suits your financial needs.
Non-Conforming Loans
A non conforming loan is a type of loan that falls outside the traditional lending criteria from prime lenders. This means borrowers can still obtain credit, however it comes with a higher interest rate due to the greater risk the lender takes on. These types of loans are becoming increasingly popular in Australia, with an estimated one in five people requiring a non conforming loan for various reasons.
Reasons for needing a non conforming loan vary and could be due to bad credit history, change of policy by banks or even automatic decline by a low credit score or mortgage insurance. They are also suitable for self employed Australians who may not have the ability to prove their income through traditional means and therefore qualify for what is commonly known as a low doc loan.
Non conforming loans are a viable solution for those who may not be able to access credit through a prime lender, however they come with higher interest rates as the lenders take on greater risk. It is therefore important to do your research and consider all options before taking out a non conforming loan.
Overall, non conforming loans can provide necessary access to credit for those that are unable to obtain a conforming loan. However they come with higher interest rates and should be thoroughly researched before making any long-term financial decisions.
Alt-Doc Loans
An alt-doc home loan, also known as an Alternative Document loan, is ideal for self-employed clients who do not have the necessary documents to qualify for a traditional home loan. The most common requirement for an Alt-Doc loan is that you do not have to provide all the normal documentation that you would for a full docs loan. Without these pieces of information, it may be difficult or impossible to get approved for a basic home loan.
Alt-doc loans are becoming increasingly popular due to their simplicity and ease of use. With an Alt-Doc loan, applicants can bypass much of the traditional paperwork associated with obtaining a mortgage and instead focus on providing evidence of income through their past two years’ tax returns and creditworthiness. Ultimately, this can help self-employed individuals to get the same home loan as everyone else, without all the hassle and paperwork.
If you are self-employed and need an alt-doc loan, it is important to speak with a qualified mortgage broker who has experience in this area so that they can help guide you through the process. With their assistance, you will be able to find the right Alt-Doc loan for your needs and start living in your dream home sooner than ever.
Debt Consolidation Loans
Debt consolidation is a popular way of managing debt, but it can also be a risky endeavor. When consolidating your debt into a single loan or payment plan, credit score damage can be the result if you fail to make timely payments. Additionally, there may be additional fees associated with debt consolidation, and you may not receive favorable interest rates for such loans. In some cases, collateral may need to be put up in order for the loan to be approved; this means that if you’re unable to make payments on the loan, you might lose said collateral.
Ultimately, debt consolidation can help manage debt better and reduce overall interest rates paid out over time. However, it’s important to consider the risks involved before committing to any type of debt consolidation program. Be sure to speak with a financial advisor to ensure that this is the best course of action for your situation.
By understanding the risks and benefits associated with debt consolidation, you can make an informed decision that works in your favor. With proper research, you can successfully reduce debt without damaging your credit score or putting up security.
GENERAL ADVICE WARNING
Any advice contained in this website is of a general nature only and does not take into account the objectives, financial situation or needs of any particular person. Therefore, before making any decision, you should consider the appropriateness of the advice in regard to those matters.
