6 Difference Between Mortgage Loan And Home Loan

1. Home loans are essentially loans given by the bank for the purpose of acquiring a home or a residential property.
2. Mortgage loans are loans in which the loan applicant is supposed to give a property or any security as mortgage.
3. A home loan is given for the restricted end use of purchase of a property.
4. Interest rate on Home Loan are much lower than mortgage loans.
5. The mortgage can be land or assets like gold, securities, insurance etc.
6. Home loan is a type of mortgage loan.

How To Get Home Loan With Bad Credit?

1. To offset the impact of poor credit is to make a bigger down payment, particularly a payment of 20 percent or more.
2. Apply for loan when lenders are becoming less strict about credit scores.
3. If you have enough equity in your property, you could get a low-interest, tax-deductible line of credit to spend any way you like.
4. Apply to Credit Unions.
5. Proving a year of on-time rent payments could be helpful.
6. People with poor credit can still get a mortgage, but they will pay far more than even those with credit scores on the margin.
7. Refinance ASAP:
So long as the borrower maintains their credit after the mortgage is signed, they can be eligible to refinance for a much better deal within two years, and their credit will have improved.
8. Sometimes investors will allow a loan to be approved with a low credit score but with other compensating criteria, such as having six months of cash reserves in the bank or no late payments for the past 12 months.
9. Appeal to a Co-Signer:
If you don’t have a friend or family member who’s willing to give you loan, perhaps one with good credit would be willing to co-sign a loan with you.
10. Federal Housing Administration (FHA) loan, which usually approves individuals with credit scores of 600-500.
11. Reduce or eliminate your debt. Debt from student loans or overdue credit card payments will affect your credit score.
12. Adjust your debt to income ratio.
Consolidate your credit card debt into a personal installment loan. Improving your debt to income ratio is one of the fastest ways to improve your credit score and make you more attractive to lenders.
13. Find Alternative Lenders
14. Consider Adjustable Rate
15. Don’t Agree to a Prepayment Penalty.