As many of us think, mortgage loans and lending are not just for those who wish to buy a house or a piece of land and again they are not just for those in the middle or upper middle class for whom shelling out a chunk of money at one go is difficult; but they also come forward to help the wealthy and the rich in fulfilling their dreams of owning a mansion or a villa. Once a house or a villa is yours, you tend to have dreams about changing their interiors or make additions to enhance their beauty every now and then. But the factor that stands in between your wish and reality is money because every small renovation demands money and not just peanuts but bags and bags of peanuts which is definitely not everybody`s cup of tea. This is the case when you are just buying a house that needs embellishing both from inside and outside too.
There are several folks who have the eye for a palatial and luxurious living. In their eyes, it is only the castle like living and not just any ordinary house or apartment. Since not all the aspirers fall under the rich category, there are banks and financial institutions who are ready to help them to become multi-millionaires by providing the initial funding process from their side in the form of mortgage loans. Yes, now nothing is impossible provided you become qualified and eligible to all their requirements and expectations like a good credit report, a good salary package etc... But before this very crucial and endangering step, there is an important pre-work phase that would enlighten you on which property you can eye on and the ways in which you can make it yours.
- The process of owning a luxury home or a villa is not as simple as you might think. It is not just about the money but there are also other factors like how far it is from your dwelling city, what is the accessibility to that area and more than all these, what is your financial stand in paying for the loan taken every month. Because the very thought or option for a loan is when you are unable to empty your pocket at one shot and hence it is taken from the banks with a fixed interest rate. Though you are not paying everything at one go for the mansion, you will be paying more than the actual value for the palatial living every month which is not going to be easy. So first prepare yourself for this big step.
- Now hit the internet to gain knowledge about what you can and what you should when comes to purchasing a mansion for it is just not any other house but a big, luxurious house. So get to know the hidden dangers in this.
- The next important thing is to hunt for a broker to hunt for the best bungalow for you. It is definitely difficult to do a broker`s job because it is tedious and tiring and you need to have a knowledge in this. It needs tactics and the skill to make people buy a house with you which only the trained and skilled brokers can do. So let your broker search for houses and bring the best one for you within your budget and expectations.
- The next big thing is to satisfy your seller and assure him of the money on the house. A bank letter for the mortgage sanctioned will not do for this but you need to get a pre-approval letter that will alone ensure the seller that you are a trustworthy buyer.
- After this, the buyer will have to present and prove his statements to the seller stating that he is eligible for buying the house and this has to be supported by a bank statement. This will assure the seller about the credibility of the buyer. This, in fact, acts as a proof of the down payment to be made by the intended buyer.
- Unlike the housing real estate market which is very bumpy with highs and lows, the market for such big, opulent houses is relatively stable. The banks are ready to back up their customer`s wish for buying one if they stand up to their expectations and hence buying such houses is not as difficult or time taking as that of a normal house or apartment. The interest rates are rejoicing but the appraisal part is a little tricky because the population who plunge into the idea of buying one such is very less and moreover there are not too many of this in a particular area. So take time in studying it all by yourself.
So for your long time wish and dream to come true, you need to be a little open and ready to even share some of your financial secrets to show yourself worth for that house and that huge spending.
Now, if this is one of lavish spending in big houses for one group, it is different from the other. Yes, for a very normal guy, renovating his existing house is like spending on a villa. So the banks come forward to help such people too with the requested big amount. It is given to him in the form of a mortgage taking his house as the pledge. So unless he pays and completes this loan his house is not his but the bank`s that would come to him on completing his liabilities.
Again a mortgage that is taken for such purposes should be used with caution; because if you spend lavishly and run out of money, you will not be given another loan for
- The house is no more yours and is in the name of the bank on which you cannot upgrade your loan.
- This becomes difficult because the house is now not in a livable state and hence will not hold good for a loan.
So whether it is a loan on a villa or on improving the existing look of a house, do not shell out money like water for you are indebted to someone else and it is not your money.