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What is a wrap-around loan?

"This method of seller financing is risky if the underlying first loan has a "due on sale" clause because the loan might be called due when the first lender becomes aware that the property has transferred title," says Dian Hymer, author of "Buying and Selling a Home, A Complete Guide," Chronicle Books, 1994.

A seller usually will want to incorporate a late charge to encourage the buyer to make monthly loan payments on time. "A buyer will probably want to stipulate that prepayment of the loan be without penalty.

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what to look for in a home loan

What is the first step when looking for a Lethbridge home loan?

Most experts recommend that you should get prequalified for a loan first. By being prequalified, you will know exactly how much house you can afford.

Almost all mortgage lenders now prequalify and preapprove customers, and many of them can even do it on the Internet. You also can do your own affordability calculations; most recent consumer books on home buying include steps to doing so, as do various real estate Internet sites.


Questions about Lethbridge Real Estate?

Ask us below or Call us Now at 403.795.7777
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