Lending Tips Find A Lender
Here are a few things to keep in mind when looking to finance your new manufactured or modular home:
Shop Around For Financing
Loans for manufactured or modular housing vary widely in their terms, so it is important to search for the best possible terms for your budget. Talk with multiple lenders to find the terms and rates that are best for you.
Look Into Tax Benefits
There are numerous tax benefits for people who decide to become the proud owner of a manufactured or modular home. The federal government has implemented tax deductions for the installation of energy efficient products in your new home, and the state of New Mexico has created similar programs. In addition, if you also own the land, make certain you can obtain the tax benefits of having the property titled as real property.
Click here to learn more about Sustainable Building Tax Credit.
Study the Area Where the Property Will Be Located
Because today’s manufactured and modular homes are comparable in value to site-built housing, homes located in an area of appreciating property values will go up in value.
Make Sure You Know the Terms
Typical terms for a new home will have varying payments with terms depending on your credit profile, the size of the home, and the type of loan.
Never Sign Any Document You Don’t Understand
Ask for a complete explanation of all terms and conditions.
Make sure that the retailer and lender you are working with is familiar with manufactured or modular housing and ensure that they belong to organizations that require continuing education and are members of organizations such as the New Mexico Manufactured Housing Association where members abide by a Code of Ethics.
Never Make Any False Statements
Anyone who tries to persuade you to make false statements on your loan paperwork is breaking the law. Never deal with anyone who encourages you to be dishonest on your paperwork. Laws were created for a reason, and any lender who has a problem following them to the letter isn’t worthy of your business.
Beware High-Pressure Tactics
Beware of any situation where high-pressure tactics are used. Never sign under those circumstances.
Know Your Rights
Did you know you have the right to know the reasons for being declined on a loan? You have the right to know specific details about your loan and have all terminology you don’t understand completely explained to you. Your new home should be funded with a complete understanding of what you are required to pay and when. Never deal with a lender who is unwilling to explain the full contents of the loan and the meanings of terms and clauses you may have difficulty grasping.
Some people feel a bit guilty for trying to shop around for a loan. However, you are not only helping yourself by shopping around, it is absolutely your right to do so. Never allow a lender to pressure you into taking a loan without exploring your options. A home mortgage loan is a big step-you’ll want to sign the right contract for the right amount of money.
You also have the right to know what monies are refundable to you should you decide to cancel the contract. Ask up front and know what your costs should be. You’ll be glad you did.
Report Suspicious Activity
If you encounter a questionable person in the pursuit of financing for your home, be sure to report the suspicious activity and consult a housing counselor for advice. You should stay away from anyone who claims they are your only chance to get into a home.
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