Having your own home is the dream of each American, dream for which some people are fighting all their lives to achieve it. Purchasing a home is a big step in the life, and if we take into consideration the actual cost of the homes, we can also consider it a must. At the same time, an excellent credit history has become very difficult to be achieved, especially due to the latest economy conditions. With the income reduced by the economical downturn, many home owners are reaching in difficult situations. For example many of them are getting to owe more with their mortgage, than the home really worth. All these situations can affect negatively the living conditions, but fortunately the BAC home loans are coming with a liberating solution for home owners and as well for those intending to buy a home.
Offered by Bank of America Corporation, the BAC loans are available for individuals intending to buy or refinance a home. Bank of America has created BAC home loans, by purchasing the Countrywide Company, and creating a separate entity to deal with both their own home and equity loans, and those coming from Countrywide as well. The BAC home loans provided by this institution are similar with those coming from other lenders as well. It is estimated that Bank of America through BAC has offered until now around 14 million of loans, gaining the first place on the American’s mortgage market.
The potential beneficiaries of BAC home loans can be divided into two main categories: those intending to become homeowners, and those that are already owners of a residence. BAC home loans are addressed to both these categories, with some differences. For example, for individuals that are looking to become homeowners, there are various loans available. In general the appropriate BAC home loan will be established according with the applicant’s credit history and credit score, and mainly according with their financial capacity to repay the loan according with the agreed terms.
Other home loans are made available in a different mode, being guaranteed by the government. Two examples of these loans are those provided by the Veterans Administration (VA) and those financing solutions coming from the Federal Housing Authority (FHA). Those owning already a property, are also having the possibility to apply for a BAC home loan, no matter this is a refinance loan, a second mortgage, or just a change made to the current mortgage loan. Applicants can establish the most appropriate loan only consulting a representative of BAC home loans. Experienced representatives will evaluate their specific conditions and will offer all support to determine the best loan. In the evaluation process not only the current conditions will be taken into consideration, but the intentions of the applicant for the future as well. Before choosing a loan, the applicant should also get informed about the applicable fees and the closing costs. Purchasing a home can be the most important decision to be made during the lifetime, and therefore it is important to follow the appropriate steps to protect it.
In order to choose the most appropriate loan, the applicant should establish firstly what his intentions are. The situation can differ if they are intending to buy a home, to refinance an existing home loan, or just to use the available equity of the home. For example, when the applicant intends to purchase a home, the available BAC home loan will provide him the exact amounts for paying the home only. In case of a refinance, there are always possibilities to lower the monthly payments, and/or to extend the duration of the mortgage in order to obtain additional amounts each month. Those intending to benefit of a part of their home’s equity, can apply for a home equity loan. Even if these loans are good solutions for obtaining various amounts, the applicant should take into consideration the risk of losing partially the ownership of their home, if he does not pay back the loan according with the contract’s terms. Due to the high risks involved, the home equity loans are recommended to be replaced, if possible, with personal loans.
The BAC home loans are chosen according with the specific condition of each applicant, and the payment terms are also adapted to their financial capacity. Some of these loans are coming with fixed rates, while for others the interest rate is variable. Borrowers can chose to obtain a BAC loan for which he will have to pay higher amounts at the beginning of the loan contract, and smaller at the end of the term, and vice versa. BAC loan specialists will adapt all the payment terms and the monthly installments to the capacity of each customer to repay the loan.
In order to check if they are eligible for a BAC home loan, applicants can visit the BAC website, contact them directly by telephone, or can go directly to one of their local branches. An experienced assistance team will help them check if they prequalify for a home loan, and to start the loan process as well. They are also able to support borrowers during the entire loan application procedure. After becoming prequalified, the applicant does not have the obligation to continue with the process, and at the same time it does not mean that they will actually obtain the loan from the lender. The prequalification process is more like a check of the financial capacity of the borrower, and an evaluation on how much the lender would be available to offer. This prequalification check is very useful especially when intending to purchase a home, in order to have a realistic estimation on how much he can afford to pay for a property. Even if an applicant thinks that he will not qualify for a home loan, they are anyway recommended to require assistance from BAC lenders, as they will be able to identify the best loan that can suit their needs and requirements, no matter their credit history.