Things That You Should Consider While Taking Mobile Home Loans

Wednesday, June 23, 2010

Do you want to take a mobile home loan? If the answer is yes, then you should consider few things before taking a mobile home loan. This article highlights 5 things that you should consider while taking mobile home loans or manufactured home loans.

Things that you should consider:

Here are the few things that you should consider while applying for mobile home loans.

Shop around: You must not take mobile home loan from the first lender you meet. Before taking a mobile home loan, you should shop around. You should compare the interest rates charged by different lenders. You should take the loan from that lender who offers you lowest interest rate on the loan. This will help you to save a huge chunk of money.

Grow roots: Manufactured homes are financed with either a traditional mortgage or a personal property loan. A mortgage is more appealing option, as it's cheaper than a personal property loan. However, a lender will offer you a mortgage only when your situation resembles that of a traditional home buyer. For that you have to remember two things – the manufactured home has to be permanently attached to a land and the financing has to be secured by combining the value of the home and land.

Understand devaluation risk: Manufactured homes don't hold their value like traditional homes. So if you’re planning to finance the home and not the land, then a shorter loan term will be less risky. You should opt for longer loan term when you're financing both the manufactured home and land.

Have money for down payment: Before applying for mobile home loans, you should save a considerable amount of money for making the down payment. Having some money to pay for down payment is very important before you take the loan. The more money you can put down, the more possibility your loan gets accepted.

Improve your credit score: Make sure that you have a decent credit score before applying for mobile home loans. You should order a copy of your credit report and scrutinize it. You should clean the bad marks from the credit report as soon as possible. Make minimum payments towards all of your accounts on time.

These are the 5 things that you should consider before taking mobile home loans or manufactured home loans.

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