Most people desire to have their own home or property. Purchasing a house is an intense capital decision of which money is not always easily accessible. For this reason, most people opt to get help from mortgage lenders so that they can purchase their dream home. There are various financial institutions that offer this type of loans to the people for example, banks, Saccos and cooperative societies among others. Before a lender grants you a home loan there are some factors that it must look at first. The number of lending firms in the nation is high but most of them have differentiated themselves in lending loans to individuals of a specific career say doctors.
Various reasons exist in why a lending company might want to restrict themselves to granting loans to a certain field. One of them is that doctors are low risk borrowers, unlike other professions for example in the banking sector, doctors have job security and thus it is assured that they will repay their loans. People in the medical staff are risk averse and hence this translates to the nature of property they will buy. Most first time home buyers tend to buy low end houses in that even in case they default the lender can never recover the full amount of loan since selling such a house is difficult.
On the contrary, medical staff will get decent housing that is quite easy to sell off in case of inability to repay the mortgage. Also, lenders prefer to give medic staff home loans because they want future long term business from the physician, for example, the doctor can take a loan for buying a car among other purposes.
The fact that there are numerous mortgage lenders makes it a challenge in selecting the most appropriate one. However, here are some considerations that you should make before deciding. You should first inquire about the variety of loans that the lender offers. Depending on what you want, lenders can either give you the principal plus interest loan or the interest only loan.
The interest rate of the loan is another factor, you should get the rates that are convenient with you. Get a quote from various lenders then do a comparative analysis on each of them. It is also critical that you consider whether your loan is portable in that in case you want to buy another house then you can transfer the existing loan with the same terms of payments. You should also inquire whether the cost of insurance of the property is included in the mortgage amount since this is likely to increase the amount and thus the interest amounts.