Basic home loan concepts

New to home loans? Are you preparing to apply for one? Here we explain some basic concepts to help first-time borrower's.

1. House as security or collateral: In a home loan you offer your property as security to the lender. Upon failure of repayment, the bank will have the authority to claim legal rights to the property.

2. Down payment: Home loan lenders usually do not finance the total cost of the property. Lenders require a home buyer to pay to the seller of the property (or the builder) a minimum upfront amount as down payment out of the buyer's pocket. Typically, this amount is 85% of the cost of the property. Two useful tips for down payment are:

a) Start saving early so that you are not cash crunched at the time of your house purchase.

b) Contribute more as upfront amount as it will allow you to take a reduced amount of loan, and thereby possibly get better terms on the loan.

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Tiger Woods would be 'terrific': US Prez Obama

US President Barack Obama hopes to see Tiger Woods in terrific form when the embattled golf champion returns to the course in next month's Augusta Masters after details of his multiple extra-marital affairs exploded in public last year. "You know, I think that Tiger has acknowledged that he betrayed his family and that's a personal issue that he has got to work out," said Obama who is an avid lover of the game. "I hope they have worked it out, I'm sure he is going to still be a terrific golfer," Obama told FOX news. Woods has not played for the past five months following the sex scandal that has received worldwide attention as several of the golfer's mistresses came forward with lurid details about his infidelity. The cat was out of the bag after his wife Elin found out about his affair with, Rachel Uchitel, a New York party planner, which led to an argument and accident on November 27 when Woods crashed his SUV outside his Florida mansion sustaining...

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