Faqs - 100% Finance Home Loan and Your credit Score

What do you want of Home Finance Calculator?.

A 100% Finance Home Loan is a mortgage loan that allows you to avoid the hassles of paying for a house down payment. In straightforward words, a 100% finance home loan is a no deposit mortgage loan.

Home Finance Calculator

Who should avail of 100% Finance home loans?

This loan is for anyone who cannot or doesn't want to prepare the down cost for the home. The usual range for the down cost rate is from five to ten percent of the house value. This is exquisite for habitancy with no personal savings, for newly wed couples who are just getting started to build their family, and for habitancy who have a sudden need for a new home.

What are the benefits of getting a 100% Finance Home Loan?

When you opt for a no deposit home loan, all you have to worry about is the whole that will be used for the fees in applying and securing the said loan. You won't have to wait for months or years in order for you to save some money for the down payment. You can at once live in your dream house.

Other than that, you can even get mortgage loans that will cover the cost of windup on the property, or those that supply you with extra cash for furnishing the house.

What do you mean by reputation score?

A reputation score refers to a three-digit whole that reflects your reputation worthiness. The score is based on your bill-paying history and your debt profile. This helps your lenders decide your reputation behavior and your quality to pay the whole you have loaned.

By knowing your reputation score, you will have a full, insight of your reputation profile. Note that lending associates use the reputation score in determining what interest rate and cost schemes they will offer you. Basically, you ought to have a very high reputation score if you are planning to apply for a 100% Finance home loan.

How do you compute for a reputation score?

There are definite mathematical models that are used to compute for a reputation score. Among the factors that are determined when computing your reputation score are your past and present cost behavior, your present debts, how long have you had such debts, the type of earnings that are available for you, and the type of reputation that you are currently using. The figures generated from these factors are compared with the other cost histories of other borrowers to get your position.

How does getting a 100% Finance Home Loan affect my reputation Score?

When one avails of a no deposit home loan, the borrower is at risk of getting a "negative equity" for the house that he has purchased. This happens if the price of the house that you have bought depreciates. As such, the lending firm will ask the borrower for additional charges in order to make up for the current shop value of the house.

In cases when the borrower cannot pay for the additional fees, the lender can also sell off the collateral or the securities of the borrower. As a result, the negative equity may lower the reputation score of the borrower as well.