One of the more popular sub-prime mortgage lenders is Homeloans. You may have seen advertisements for it on TV and in the newspapers. But are they worth considering for your next home loan? In this article we will look at the advantages and disadvantages of this company. We will also explain what makes it different from other subprime lenders.
The main strength of Homeloans Ltd lies in its diversity of loan products. With just one easy application, you are able to receive funding from a range of sources, so a wide array of special deals and loan policies are available. Most of Homeloans Ltd mortgage deals are submitted by licensed mortgage brokers. This is an important protection in the current mortgage climate. The majority of home loan deals that are presented by the brokerage firm are not considered “real estate” related investments – the majority are strictly business oriented.
Another strength of homeloans lies in the fact that it does not differentiate between non-venture funds and venture funders. Both categories of investors are welcome to apply for home loans with the brokerage firm. One of the most popular types of business investment that homeloans promotes is commercial property investment. The mortgage brokers at homeloans also deal with residential property finance. One of the most popular types of investment in this sector is “ominium investing”. Many investors are attracted to the prospects of condominium investing, as they are not restricted to single family homes.
A key feature of homeloans is that the mortgage product offered by the company is very attractive. Many of the home loan repayments that a customer would have to make in the context of conventional home loan products can be reduced or eliminated with the help of a mortgage product. In addition, many fees and charges that are normally levied on home loan products by conventional home loan providers can be avoided by the client by availing of a mortgage from homeloans. For instance, commissions that are charged by conventional home loan providers to independent mortgage brokers are avoided by applying to a single home loan provider. This allows the customer to enjoy the additional benefits of lower rates of interest, greater loan repayment flexibility, and greater loan repayments security.
Another significant advantage that home loan customers of homeloans enjoy is that there is no requirement for them to open an escrow account. Most home loan providers demand that customers close a savings account in their name prior to being granted a loan. However, these accounts are usually held by the banks for the long term and do not contribute to profits. The homeloans approach the banks directly and arrange their own saving account in their name. The banks feel less pressure to provide larger loan repayments in view of the additional costs involved.
The final advantage of applying for a mortgage from homeloans is the added benefit of getting professional advice. While most home loans borrowers approach their loan officer for advice on their loans, homeloans customers get access to a whole host of loan experts who are often more knowledgeable than the loan officer. Besides, most people do not have time to personally visit a bank and assess the interest rate options offered by various providers. For these reasons, the homeloans’ loan officers can serve as an excellent source of information.
The final group of people who can make good use of a mortgage from homeloans is the real estate investors. The main advantage of the service of homeloans is that they offer financing with a relatively low cost associated with a long time repayment period. In most cases, the home loan payment terms are more favourable to the borrowers and this translates into more frequent repayments, thereby increasing the chances of recovering equity. This is in contrast to the situation faced by funders where the rate of interest charged by the funds is considerably higher and this results in a large repayment expense.
With all the advantages of homeloans from homeloans, it is easy to see why it has become so popular in recent times. For homebuyers in particular, it is a blessing as it eliminates one of the largest costs associated with purchasing a property. However, it should be noted that homeloans do not provide home loans to investors. Rather, they are used by home buyers to finance their own home. There are however, a few circumstances under which the services of homeloans can be useful for funders, including the purchase of second homes by investors.