To Loan House

    To loan house is one of the most accepted way on how to have a house. You can have a mortgage, its what you call the loan from a bank. Lender is what you called the bank who gives you the loaning money. Loaning from a bank gives you the amount of money you need to buy your house. Payment should be made after the deal is done. The amount you pay to the bank each month is your mortgage payment.
    And each month you also need to pay for the interest, every bank differs from the rate of interest they require, rate of interest on the loan is what you call the mortgage rate or the interest rate. There are no risk from house loan, provided that you pay your mortgage payment or else the bank will reposse the house. So be sure that you can pay a house loan before you apply.
    I have here some tips for you if you are a first time house loaner. This will help you prepare yourself so you will make sure that you get your house loan.

Gather savings and Pay Off . Although you will gonna get your house from a loan you still have to have a savings, this is for the down payment. The larger the down payment the better because this means the less you will pay for the interest.Also, you will have equity before you even move in to your new home. In addition, you should get as much of your other debts, such as credit cards, paid down in order to up your FICO score and free up credit for your home. The less money you owe, the more money you will be able to borrow, and the better your interest rate will be.

Choose a Bank and Get Approval. You should get a credit approval letter from a bank or lender before you begin looking for a new home. You can go to your choosen bank or lender and fill out their application. After that they will perform some investigation about your financial background to determine how much money they are willing to lend. Some details about the process wont be open to you before they approve your loan such as interest rate until final negotiations. Your credit must be approved before you can seriously begin your housing search.

Choose Your House. When your loan are approved and you have your approval letter its time for you to find a house. You should choose a house that meets the limits provided by the bank or the lender. Once you had chosen your house you may negotiate to the owner or the real state agent. Once the price is settled the bank will request an appraisal and start processing your loan. And that's it, you have your new house.