Please explain in detail. What all ways are there to get loan for real estate ?What do we have to give ? and what is collateral ? Thank you for taking the time for explaining it all :)
You have a truly sticky wicket right here. I am no longer definite how well of a buddy you're to Bob or how so much he trusts you, however you need to persuade him NOT to place any of his cash into this deal. The possibilities that Bobs brother will lose his residence isn't Bobs predicament. Even if Bob places cash into the deal his brother will in most cases nonetheless lose the residence besides. If that's all the cash that Bob has on the planet, he MUST maintain onto it for himself. If Bob has no longer signed some thing, urge himi to not signal some thing with out the recommendation of an lawyer. What he could ought to do is inform the mortgage officer than any records could ought to be reviewed via my lawyer for approval earlier than signing. Best recommendation is inform Bobs brother that he CANNOT be a co signer Co signers have authorized tasks to pay if the borrower defaults. They might cross after the ten,000.00 if brother defaults. I desire your buddy listens to you. I am no longer definite wherein your buddy is within the system since you're a little uncertain approximately wether the mortgage is already in situation, or if the mortgage officer continues to be operating at the transaction.
You go to a bank or mortgage broker and apply. The real estate itself is the collateral.
You will need a mortgage broker who will take into account what you earn per year and multiply that figure usually by 4, but some brokers multiply by more, some by less. When the house market was good and prices were climbing it could have been as much as 9 times your yearly wage. However you will need about ten % of the asking price to put down as a deposit. So on a 200,000 house you would need 20 grand. Bank loans are far more expensive than a mortgage loan, and with the house market in the way it is, its tough to get on that property ladder. Collateral are items or buildings you have that are worth money. Good Luck ;-)
