by Arrnica Dayannandan

Created on: February 07, 2009

If you have been eyeing on a real estate property for quite some time, you might want to ask yourself, a few questions like how much can you afford as EMI on a monthly basis. Consult as many agents, middlemen, money lenders, tenants, landlords, flat owners, etc. to clarify any doubts you may have about home financing options, home loans, home and commercial mortgages, home refinancing etc. This will help you collect enough valuable information to zero-in on the most competitive mortgage rates, based on the quotes generated by your research.

If you are one of those with a bad credit or you are in debt, you might want to still conduct research to explore alternative possibilities like home equity loans and credit counseling. There may be some sources of lending that may place a boundary limit on the extent of down payment originating from external borrowings. Ensure that you have received and analyzed the cost of closing the finances provided to you by a lender.

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The success of purchasing real estate is totally dependent on the existing mortgage rates and the amount borrowed.

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Stay aware of your rights as a borrower. For example, you are entitled to receive a statement defining the costs of closing your borrowed finances, within three days of formally applying for a loan.

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Do your homework and shopping for information on the best deals for a loan.

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See if there is a possibility of getting pre-approved for a loan.

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Create a personal checklist for your own real estate shopping and look out for the features listed in your checklist when comparing prices, payment options, borrowing options, discounts by lenders recommended by the real estate seller.

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Try and give an offer price or rate. If you succeed in getting a counter offer out of your broker or lender or seller, then you both may need to brainstorm and negotiate until you arrive at a mutual agreement.

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Check out the property in detail in terms of defects, repairs, legal complications, etc. and assess if you can accommodate the extent of defects, repairs or legal problems that the property faces. If it is a flat or residence, check the carpet area, built up area, and percentage of loading, and whether you are being charged on the built-up area at a higher percentage of loading, which is disadvantageous for you. If your answer is affirmative, then make an offer citing these drawbacks and get a bargain.

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Shop for the best home insurance options.

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Consult friends, colleagues, relatives, acquaintances, classmates, playmates neighbors etc. for benefits and hurdles faced by them with various lenders, insurance companies, property owners, sellers, brokers etc.

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Steer clear of service providers or sellers with issues. Alternatively, have a written agreement to steer clear of the cited examples of issues, if you decide to still go ahead with a particular service provider or seller.

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While signing the agreement papers for the loan or insurance or property or home, be sure to read and interpret, counter-interpret, as well as clarify doubts if any. Have any suspicious claims written, signed and stamped by the lender or insurance company, or property owner or seller respectively, to be on the safer side.

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