Can I get a Second Bond?
If you wish to purchase property, either for a home or business, you are almost always left with no choice but to take out a bond. Bonds are also known as mortgages, and chances are unless you are living under a box, you are well aware of the recent mortgage crisis.
Banks want to lend money. In fact, it's one of their primary ways they stay in business and a founding pillar. Holding bonds allow the bank to make a long-term profit. It also allows the bank to own property until the lender has fully paid off the loan.
The bank holds stipulations for individuals wishing to purchase property. For example, the individual must put down a cash deposit against the purchase of property. Generally the buyer must meet a minimum of 30% of what the property is worth.
The current mortgage crisis has resulted from banks, especially in the United States, becoming too lenient in who they offer mortgages too. In fact, sometimes banks allowed people to take out mortgages with little down. They are now paying the price, and as a result, must only offer new mortgages with a high down payment.
The bank must remove itself from a large risk, so the direct deposit is necessary. The deposit allows banks somewhat of a chance to recover damages in case the borrower drops out of the picture.
Bonds are intended for the long-term, with a minimum of ten years required, and generally running more in the twenty to thirty year period. People who apply for mortgages for the first time must display a steady employment and pasty financial stability for at least a few years.
Banks who issue bonds are entitled to ask for banks statements and details of income of both parties in the case of a joint bond against a property. You have no option here. While you may not like disclosing your personal information, the bank must closely examine and judge whether or not you can afford the bond.
Owning a property is a responsibility and benefit every individual should experience. However, taking out a bond is serious matter and one that demands a lot of examination beforehand.
Banks want to lend money. In fact, it's one of their primary ways they stay in business and a founding pillar. Holding bonds allow the bank to make a long-term profit. It also allows the bank to own property until the lender has fully paid off the loan.
The bank holds stipulations for individuals wishing to purchase property. For example, the individual must put down a cash deposit against the purchase of property. Generally the buyer must meet a minimum of 30% of what the property is worth.
The current mortgage crisis has resulted from banks, especially in the United States, becoming too lenient in who they offer mortgages too. In fact, sometimes banks allowed people to take out mortgages with little down. They are now paying the price, and as a result, must only offer new mortgages with a high down payment.
The bank must remove itself from a large risk, so the direct deposit is necessary. The deposit allows banks somewhat of a chance to recover damages in case the borrower drops out of the picture.
Bonds are intended for the long-term, with a minimum of ten years required, and generally running more in the twenty to thirty year period. People who apply for mortgages for the first time must display a steady employment and pasty financial stability for at least a few years.
Banks who issue bonds are entitled to ask for banks statements and details of income of both parties in the case of a joint bond against a property. You have no option here. While you may not like disclosing your personal information, the bank must closely examine and judge whether or not you can afford the bond.
Owning a property is a responsibility and benefit every individual should experience. However, taking out a bond is serious matter and one that demands a lot of examination beforehand.
About the Author:
Graham McKenzie is the content syndication manager at BondCredit.co.za South Africans leading Bond Originator
Posted in | Edit |
0 komentar:
Post a Comment
Please writes your comments