Tag Archives: loans

A road in a farm

Your Ultimate Guide to a Farm Loan

A road in a farmApplying for a farm loan is crucial especially for large-scale farmers. You may use the credit facility to acquire seeds, fertilizer, and other farm inputs. But before taking credit, you need to research to get the best financial aid in the market, along with the best conditions attached.

What to consider when applying for a loan

There are several things to consider when taking a farm credit loan from firms such as Farm Mortgage Loan. They include:

  • The type of organization offering the facility. You need to find the organization that provides the facility without limiting yourself to banks only.
  • Terms of the Loan. You should research on the rates of the credit and get the loan from the organization that charges the least. You should also look at things like minimum installments, the period of the loan, and the cost of taking out the loan.
  • What you need to do with the money. Before acquiring a credit facility, take time and come up with a plan of how you are going to spend the money. Some people take a loan without planning for it and end up misusing the funds on other expenses other than its intended use.

What do lenders require from borrowers?

Before deciding on taking out a loan, it’s important to have a list of questions to expect from potential lenders. They include:

  • List of existing loans: the lender will want to know whether you have commitments with other lenders to see if you can afford to repay them.
  • Whether you comply with lending laws: the lender will want to know whether you have ever defaulted on a loan. This could affect your application.

Finally, if you are contemplating on getting a credit facility, enlisting the assistance of professional financial adviser is very important. They are the experts and will offer you all the information you require on loans.

Is it Hard to Secure a Construction Loan?

Money, calculator and contract focused with house blurred backgroundIf you value customization over convenience, building your home from the ground up is better than buying an already existing one. New home construction projects are actually not uncommon in the North Star State. Despite the additional costs, many homeowners choose to build instead of buying to bring the home up to code successfully. Like a blank canvas, a vacant piece of land offers countless design possibilities.

The only challenge to those who tackle new home construction in Lakeville, MN, and nearby areas are obtaining a favorable mortgage to fund your project. Here’s why it can be hard to secure a construction loan:

Stakes Are Extraordinarily High

Most lenders are reluctant to loan a considerable sum of money for a property that doesn’t exist yet. The construction process is full of uncertainty, making it an extremely risky endeavor. If things don’t go as planned, the lender might find it difficult to recoup the money even if the piece of real estate is used as a collateral. In the end, absorbing significant financial losses is highly probable.

Strong Lender Relationship Is Important

Considering most lenders don’t aggressively market high-risk construction loans, the ones that are likely to provide you with the funding are those that are already known to you. Talk to financial institutions, such as banks and credit unions, which you’ve already established relationships with. Not only they increase your chances of approval, they are likely to offer lower interest rates as well.

Large Down Payment Is Necessary

Even if you manage you find a willing lender, don’t expect the mortgage to finance the entirety of your project. To reduce the risk of your new home construction project, the lender may only offer to cover 80% of the expenses — or even less. Be ready to put down at least 20% of the project’s overall cost to get it off the ground.

Don’t let the scarcity of construction loan providers discourage you from realizing your goal of building your dream home from scratch. Take your time to explore the available financial products and study your options to identify the most favorable ones.

Salt Lake City Joins Top Housing Markets as FHA Raises Loan Limits

Paper with words fha loanRealtor.com ranked Utah’s capital as the top 6th housing market in the U.S. for 2018 when the Federal Housing Administration (FHA) plans to increase loan limits in almost every part of the country.

The online property portal listed Salt Lake City among the “hot” markets for homebuyers, based on its National Housing Forecast report. On the other hand, the FHA will implement the new limits on or after Jan. 1, 2018.

Easier Times Ahead

Danielle Hale, Realtor.com chief economist, believes that home buyers in Salt Lake City will find it easier to purchase properties next year. This expected scenario will stem from a bigger housing inventory, which will help in controlling price hikes and moderately hasten home sales, according to the report.

The city’s real estate market also reflects a strong economy, as prices and sales are expected to grow 4.5% in 2018, Hale said. This will exceed the anticipated nationwide average for property price growth at 3.2%, down from around 5.5% this year. Prices in Salt Lake City may be higher than the national average, but an FHA loan lender may help your budget for a home purchase.

Higher Limits

FHA has expanded the coverage of higher loan limits in 2018 to 3,011 counties in the U.S from 2,948 counties this year. Only 223 counties will still have the same limits on borrowed funds.

The agency will raise the ceiling amount in expensive areas to $679,650 from $636,150 in 2017, while the minimum amount will increase from $275,665 to $294,515. The current minimum amount comprises 65% of the national conforming loan limit of $453,100, which applies to counties where 115% of the median home price amounts to less than minimum limit.

Conclusion

Salt Lake City’s housing market will be in-demand next year, which is why home buyers should be ready to compete with rival bidders on property listings by planning their financing strategies.

Refinancing: Resetting Your Mortgage Package to Your Advantage

mortgage industry in Salt Lake City
Paying your mortgage seems like a gargantuan task but there are ways of making them easier. One of them is refinancing your mortgage, or taking on another loan to pay for the one that you already have. It may seem counterproductive to do it, but it can work to your advantage. Here are more good reasons to refinance your mortgage.

It Lowers Interest Rates

Refinancing your mortgage is pretty much like applying for a mortgage all over again, except that you have already bought your house and have partially paid for it. Since it’s technically a new loan, look for lower interest rates to save more on your total payable amount. If you have a good payment record, you have a bigger chance at getting lower interest rates upon refinancing.

Change Interest Packages

With refinancing, you can also change the kind of interest rates that you have. Change from an adjustable rate to a fixed rate to prevent worrying over rising interest rates. You can also opt to change from a fixed rate to an adjustable rate to try and get lower rates. It will still depend on your preferences but do ask your refinancing adviser for the best options.

Shorten the Term

Mortgages that take a long time to pay have relatively low-interest rates and lower monthly payments. Some Salt Lake City homeowners, however, decide that they would rather have a shorter loan term in exchange for a higher interest rate because it reduces the mortgage package’s total overall amount. When refinancing, ask for a shorter loan term that offers minimum changes to your monthly payment.

In general, the main benefit of refinancing your mortgage in Salt Lake City is the ability to change it to include more favorable terms. Whether it’s a change in the interest rate, the kind of interest, the length of your loan term, or even the amount of payment you can practically benefit from all changes if you plan it out properly. As a rule, do refer to a professional mortgage adviser if you do plan to take this route.