If you live in New York, home loans are something that you may currently be considering. The decision to go ahead with a home loan needs to be based on solid fact. In other words, before you make up your mind to apply you have to do your research. If you are not diligent in this aspect, the possibility exists, what you thought could get you what you want will turn into a heavy financial burden.
What is a Home or House Loan?
At its basics, home loans are secured loans. In simple turns, a home loan has collateral in case payment is not met in accordance with the agreement. The collateral or security in this case is either property or the home/house. The bank or the individual in control of the loan has the right to get the money back by selling off the property used as security. Yet, even though the property or home is used, there are actually more than one type of home loans.
Types of Home Loans
Home loans in New York are available to satisfy specific needs of the owner. Among the different types you can find the following:
1. Home Purchase Loan: This type of loan is usually equated with a mortgage. Its purpose is to buy a home for the borrower.
2. Home Improvement Loan: If you want to improve or upgrade your current home through, you can take out this kind of loan.
3. Home Extension Loan: If the work you want done on your current home includes expansion up, down to the sides, you will apply for this type of loan.
4. Home Conversion Loan: When you already have a loan out on the current home but wish to move to another one that requires further financial investment, you will see if you can get this type of home loan. It will abet in the transfer of the existing loan to the new home as well as add any extra monies required in the purchase of the new home.
5. Bridge Loan: Home loans of this nature are generally perceived as being short term. They are there to act as a bridge in the period covering the sale of the old home and the purchase of the new one.
6. Home Construction Loan: If you plan to build a new home and not buy one, you need to have a home construction loan.
7. Land Purchase Loan: This form of home loans is not for the purchase of a built property. Its intended purpose is to buy land for construction and/or investment purposes.
In New York, home loans can generally mean one of several things. While it traditionally refers to a mortgage, this does not exclude it being applied to other matters. While all are related to home and property, they are not all the same thing. Keep this in mind when you are considering home loans now and in the future.
