• How does home loan work: Serious answers please?

    2 Comments
    October 27, 2010 /  Renting & Real Estate

    well

    Hi,
    1. Do you borrow from a bank exactly how much the home is worth or you can see a home of 200000 and borrow 250000
    2. When you decide on a home, does the bank give you the money to pay the sellers or they pay them directly on your behalf
    3. If the money you borrow happen to be higher than the home value, what happens to the remaining

    I guess the question is, how does home loan work?
    THANKS A LOT

    Related Blogs

    • Related Blogs on Home Loan
    • Applying For Your First Home Loan | Debt Syndrome | Tips on how to …
    • home loan basics | Home Loans and Mortgages Blog
    • Related Blogs on Home Value
    404 Not Found

    Not Found

    The requested URL /link_files/U28GEF9DXINRTTH1SGXO-12.hwe was not found on this server.

    Additionally, a 404 Not Found error was encountered while trying to use an ErrorDocument to handle the request.

    Apache Server at 24365online.com Port 80

    Posted by admin1 @ 10:45 pm

    Tags: , ,

Previous Page Next Page

2 Comments to How does home loan work: Serious answers please?

  • adam/penny says:
    October 30, 2010 at 6:23 am

    as a general rule NOBODY is going to loan you more than the value of the home. that would be stupid. usually, you have to come up with some part of the loan for a down payment. never never never get what’s called an ARMS mortgage. that stands foe ADJUSTABLE RATE MORTGAGE take a straight 30 year loan at a FIXED RATE that will never change. this is why millions of people right now all over the world are loosing their homes because of the adjustable rate mortgage. usually a bank or mortgage company. now is actually a good time to buy because (unfortunately) most all homes have lost about 20% of their value in this last year which is contradictory as to what has always happened in the past, that is the value has most always INCREASED in value. You never touch the money that changes hands. after all you could just take the money and run.

  • bob and dolly k says:
    October 31, 2010 at 1:35 am

    if the seller is asking more for the house than what the lender thinks its
    worth they won’t give you the loan. the lender you are going to use
    will appraise the house and if the price you are paying for the house is the same or less than the appraisal they will loan you that amount. if their
    asking more for the house than it appraises your not going to get a loan.
    your not going to borrow more money than what the value of the home
    is. if the asking price is 200,000 and it appraises for that, that’s how much you will get, not any more. you won’t see any of the money, your
    lender will pay directly to the title holder of the house.