Applying for and receiving a large loan is not unlike soliciting for a more conventionally sized loan. However, if the size of a loan approaches a million dollars or more, it may be especially important to understand the terms of the loan, ensure you are on firm financial ground before taking the loan, and utilize the services of a lending expert who specializes in securing large loans.
Finding the Right Lender
There are any number of Internet sites which will allow you to make contact with a lender who can offer a million dollar loan. You can find many of these lenders by conducting a basic Internet search. However, due to the complexity of these offerings, it is advisable to investigate utilizing the services of a mortgage broker who understands the financial service industry and can find the loan that fits your needs.
Taking Advantage of Federal Housing Insurance
If you are in need of a million dollar loan, it may be necessary to investigate the possibility of using mortgage insurance from the Federal Housing Administration (FHA). The FHA insures loans for home buyers and has put in place a set of criteria which makes access to loans more affordable. For instance, the minimum down payment for FHA loans is 3.5%.
Understand the Terms of the Proposed Loan
There are a large number of very complex loan offerings. When dealing with a loan of this size, it is especially important to understand the terms of the loan. For instance, the lenders may propose an adjustable rate loan which contains terms that may be significantly different in just a few years time.
Employ Good Judgment
Remember, just because a lender is willing to offer access to a large loan, it does not mean that you are in a financial position to accept the loan. In some cases, the Federal Housing Administration will insure large loans without requiring a significant down payment. Even though this offering may be government insured, it does not guarantee that it is a sound loan. The FHA low down payment rate of 3.5% has led to concern that loan takers do not have enough "skin in the game".
Max Power started writing in 1996. Power was responsible for providing coverage of local and state governmental affairs for a web-boom-era news and civic-affairs news website. This experience provided him with a range of in-depth knowledge about legal, civic, political and governmental affairs. Power holds a Bachelor of Arts degree with a concentration in history.