You’ve decided you want to buy a home, and now you need to figure out how to do it. Whether you’re looking for your first or your fifteenth, there are plenty of options available to you. But before you can do anything, you need to find a good place to put down some roots – in other words, get a residential estate loan.
There are a few types of residential property lending that you may encounter. Here’s a primer on each:
1. Secured Loans: A secured loan is a type of loan where the lender requires the borrower to pledge some form of security, such as an asset or a mortgage on an underlying property, in order to qualify for the loan.
2. Unsecured Loans: An unsecured loan is a type of loan where the lender does not require the borrower to pledge any form of security, such as an asset or a mortgage on an underlying property.
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3. Refinancing: A refinancing involves taking out a new mortgage to replace an existing Mortgage and can be done in several ways: by extending the original mortgage term; by adding additional payments over time; or by converting from one kind of mortgage to another.
4. Pre-owned Property: Pre-owned property refers to any property that has already been sold and closed on, but is still owned by the original homeowner.
5. Second Mortgage: A second mortgage is a loan that is taken out by a homeowner in order to supplement their primary mortgage.