Tips To Follow Before Buying a Property

d5Are you prepared to buy a property of your very own? A place to live that is nearer to the place you work or study? Or maybe you want to try your destiny in a different city?

Whatever the reason, here you will find featured imminent into the buying process – from the beginning to the very end.

Find The Right Home For You

Initially, you have to identify a suitable property. However, before you do this you should put together a complete list of requirements. Once you have noted down everything you will be ready to start hunting for a dream home. Start your hunt over the internet and through local newspapers – regularly check the listings in your region. You can also inquire your family members and friends if they know something about a property for sale in your desired locale.

Meet The Property-Owner

Have you originated a home that looks attractive? Then you need to meet its owner. Remember, this is one of the most essential parts of the whole process. If you don’t like what you see or hear during this conference you shouldn’t move onward. Before you speak to them face to face try to run verification on their background.You need to know whether they have a good reputation or not. Have any court proceedings ever been commenced against them? If they have, you may desire to look elsewhere. Don’t forget, they will be glancing to find out all about you too! Found a well-respected landlord and met them in person? Just don’t sign the home ownership agreement until you have read it thoroughly.

Authenticate All Legal Documents

There are a lot of important legal documents without which the sale of a property is not complete. It is the responsibility of the property buyers to verify all these documents and guarantee that they are appropriately signed. Some of these legal documents include- sale agreement, share certificate, society documents, sanction plans, etc.

Possession And Registration

Possession is the substantial transfer of the property, but is not adequate to establish legal transfer of ownership. For this you will have to get the property registered in your name with the local authority, with the property seller documenting that the property is being transferred to you. At the time of registration you will also have to pay a stamp duty which is a government tax levied on property transactions.

Advantages of Home Ownership

d44This article reviews the advantages of homeownership as compared to renting. Homeownership creates a wide range of opportunities from increased social standing, financial benefits, and tax deductions. Homeownership is a means to increasing personal wealth, protection against inflation, and also significant tax advantages. The following list compiles the main financial and social benefits of homeownership:

• Tax Deductions – The tax advantages of homeownership include the following deductions: mortgage interest, real estate property taxes, moving tax credits, and capital gains. According to the IRS, if a property is owner occupied, the homeowner can deduct the interest paid on their mortgage loan and their equity or second mortgage. In addition, the property taxes for owner-occupied dwellings may be deducted. The capital gains tax break is applicable, if you sell your owner-occupied home for a profit and then use the profit to purchase another property. Whereas, the moving tax credit can be utilized if it is necessary to move for employment.

• Freedom to Customize – As a homeowner, you will have the freedom to remodel or improve your house without permission from a landlord. Whether you want to repaint a room, install new carpeting, finish the basement, or add an addition for more space, the choice is yours.

• Forced Savings – If you have a mortgage on your home, part of each payment you make will be towards the principal balance of your mortgage. Each time you make a payment you are building equity in your house. Each payment is a long-term investment in your future. In addition to paying down your mortgage, most housing appreciates, thereby creating more wealth for you the homeowner.

• Stability – Renters typically sign annual leases. If the landlord wants to sell the house or has financial issues you could be forced to move. In contrast, homeowners have full control over their property and decide if and when they will sell their home.

• Fixed Monthly Payments – As a renter, your monthly payment will likely increase over time. You will have little control over future increases in your monthly payment. A homeowner with a fixed rate will only see their payment increase if the property taxes or homeowners insurance increases.

There may be other benefits of homeownership depending on your income, family size, and investment philosophy. Before purchasing a home to occupy or investing in rental property, it is advisable to discuss your specific tax advantages of purchasing property with a knowledgeable tax preparer or CPA. Tax laws are constantly changing and can be extremely complicated.

Some Tips For First-Time Home Buyers

c22You have decided to go for it. Buying a home can be breathtaking and nerve-wracking at the same time, particularly for a first-time home buyer. It’s hard to know accurately what to expect. The knowledge curve can be steep, but most of the concerns can be determined by doing a little financial homework at the beginning.

Take these 5 steps to help make the procedure go more efficiently.

Now that you know how much you can afford.

Check Your Credit

The home buyer’s credit gain is amid the most important features when it comes to meeting the criteria for a loan these days.

Estimate assets and liabilities

So you don’t owe too much money and your payments are up to date. But how do you spend your money? Do you have lots of money left over every month, or are you on a shoestring budget?

A first-time home buyer should have an excellent idea of what is owed and what is approaching in.”You should know a little bit about monthly cash flow”.

Cover mortgage rates in your Locale

“If I was a first-time house buyer and I wanted to do the whole thing right, I would most likely try to path my spending for a couple of months to see where my money was going”.

For example, some experts, such as the self-employed or salesperson, may have a more hard time getting a loan than others.

Organize Documents

When pertaining for mortgages, lenders will request two recent pay remnants, the previous two years tax returns and the precedent two months of bank statements.

Purchasing a home can be time-consuming, but knowing what you require and where to find it can save time when you are ready.

Succeed Yourself

As a first-time home buyer, you previously know how much you can afford to expend before the mortgage lender advises you how much you qualify for Bank rates.

With manipulative debt-to-income ratio and factoring in a down payment, you will have a good thought of what you can afford both straight and monthly.

Though there is not a fixed debt-to-income ratio that lenders want, the old standard utters that no more than 25% of your gross monthly income be dedicated to housing costs. This percentage is called the front-end ratio.

Finally, speak with mortgage lenders when you are initiating the process.

Check with friends, neighbors and co-workers to find out which lenders they liked working with and ask them.

Buying A Home: Tips And Thoughts

cfrThese recent developments have further attracted many individuals from nearby cities to settle down in Noida and Greater Noida, resulting in a demand for residential complexes as well. The real estate builders in Greater Noida and Noida are taking a constructive prospect of the changing scenario.

Noida and Greater Noida are filled with opportunities for one and all. The developers have planned a wide array of residential projects in the region. These projects comprise of wonderfully planned apartments, villas, town houses, independent homes, 2 and 3 BHK flats in Greater Noida West and more. A majority of demand is inclined towards buying apartments in gated communities. Today, Noida city comprises of many gated residential communities & complexes with magnificent amenities.

Moreover, the government has also planned to extend the developments in the city’s infrastructure. This has attracted many buyers to invest in property in both Noida and Greater Noida. A few of the major factors that are adding to the popularity of the city is the strategically planned metro line, the Yamuna Expressway, the highly acclaimed educational institutes, world class commercial spaces, international level malls and stores, entertainment centers, ample greenery and more. The investors and home buyers are singling out Noida Extension as it also offers a variety of affordable and better residential choices as compared to its neighboring cities. A few of the best real estate developers in Noida are constructing well crafted luxurious projects which are equally well designed yet affordable projects, attracting every aspiring buyer.

The outskirts of Noida are gradually gaining popularity too, largely amongst the mid-income groups. Builders in Noida Extension are developing well designed yet spacious projects meant for affordable housing with all necessary amenities, making living convenient at feasible rates. Therefore, one can own spacious homes without worrying about day to day necessities or connectivity issues.

Owing to the astounding expansion in economy, infrastructure and commercial developments, there is a huge stipulation for all kinds of property in the entire Noida city. The investors are taking smart decisions by purchasing property as it is one of the most lucrative investments at the present age. The builders in Greater Noida are designing projects that interest all kinds of investors.

Thus, the competitive property prices in Noida, for both commercial and residential purposes, are the biggest boon to all aspiring buyers. The prices here, both commercial as well as residential, are much preferred over other cities. Excellent connectivity, infrastructure are a few other attractions in the region. Widely benefitted is the young generation who are new to the corporate culture & of course, the well settled families that need not look out for an affordable house. Noida is one place that offers immeasurable prospects for everyone.

Are You Looking for a Real Estate Agent Who Gives Cash Back

cvvWhat would you choose when buying a home? Cash back or no Cash back? Many Realtors are already engaging in sharing their commission with their home buyers.

Asking your realtor to share his/her commission is a valid question to ask. Not many realtors look forward to hearing this question and would prefer you didn’t know that it is possible for you to receive cash back; yet the inquiry should be encouraged by realtors from all possible home buyers; as the cash back to the buyer could actually make or break a deal for them. In many states it is now legal for a Real Estate broker to share his/her commission with the home buyer.

Although; there may be some lender restrictions; it is always best to search online or other advertising for Realtors actively advertising this offer. Once you have located some in the state you are wishing to buy a home; go over the details with your broker of choice to see if you actually qualify to share in the commission. In most cases cash back realtors may give you actual cash back at closing or the rebated funds may be applied towards your closing cost or possibly even used to lower the sales price. Each situation is unique as per state and lender regulations.

Realtors throughout the USA know and understand that due to the age of technology with everyone using computers, cell phones or tablets the home buyers are able to do the search on their own without the assistance of the Realtor. Searching for a home that fits your needs represents a good deal of the work. In the past the Realtors were the only ones who had access to the MLS (multiple listing service) and had to spend many hours by finding a home that fit the criteria of their buyers. Now the purchasers do most of that. Once a buyer locates one or more properties they then call an agent to show them the homes they have located online. Just for this reason alone Realtors simply don’t have to invest as much time with a home buyer as they did in the past and as such they reward their buyers by sharing a portion of their commission.

Yet be aware, even though you are sharing in the commission there are many steps of the home buying process that are better conducted by an experienced Realtor. It should be the cash back realtor’s duty to make sure they are not trading off a part of their commission for you to do all the work. Besides getting cash back you deserve to be provided with full services. It is important you receive assistance during every step of the buying process; regardless of whether it is your first home or next home. Just because you spend the time initially finding a property does not mean you get should get limited services.

Not only ask your Realtor of choice for the cash back option but be sure your cash back realtor represents you as a buyer’s agent not a transaction agent. This means your agent is working specifically for you to protect your interest. Your buyer’s agent should walk you through every step of the home buying process; such as setting up and accompanying you to the property viewings, writing and negotiating all offers, assisting you with mortgage lenders and specialized down payment assistance programs and especially accompany you on final inspections and to the closing table.

Whether you are someone still renting and are considering purchasing your first home or next; you should feel confident in your agent of choice and end up more than satisfied like the many other home purchasers who bought through a Realtor and received cash back.

So don’t hesitate to begin your search for the home of your dreams because you feel you might not have enough cash to pay for the many items required for the purchaser to handle. Working with a cash back realtor can help with up to 1% of the sales price in most cases. For instance if you were to purchase a $400,000 home, you would receive back $4000.00 to do with as you please. This kind of money can be used for virtually anything, including home repairs or updates, new furniture, a vacation, college savings funds or simply put it in the bank. In some situations the home buyer can get even more than the 1%.

Knowing that this option is available I can’t imagine why anyone would choose to settle for less than a cash back realtor. Search from them right along with searching for your perfect home. If they are not openly advertising this offer; then ask anyway!

Six Reasons Why New York Real Estate Prices Could Go Higher

cu1) With zero or negative interest rates, many buyers consider Manhattan real estate to be like a secure savings account that will keep its value. When faced with the choice of a guaranteed loss in a bank, or real estate that holds real value and is expected to appreciate over time, buyers may continue to bid up Manhattan real estate prices.

2) According to CBRE research, the average price of property in New York sold for $842 per sq. ft. compared to London at $1,025 per sq. ft. and Hong Kong at $1,416 per sq. ft. This means that New York prices could continue to rise another 21 to 68 percent in order to reach the same relative price levels.

3) The US is considered a safe haven compared to other geographic regions. Wealthy buyers from Russia, China, India and other parts of the emerging world perceive New York a stable market to invest. The US economy still remains one of the strongest in the world, and hasn’t suffered the same decline as commodity producing emerging countries. The US dollar has been strong and it’s considered a politically stable place for foreigners to put money.

4) New York Manhattan real estate is much more affordable than other global cities when comparing average income to average prices. New York is 2.8 times more affordable than London, and 6.4 times more affordable than Mumbai.

5) Renters may choose to lock in their cost of living in fear of being priced out of the market. If prices continue to rise, or interest rates rise, renters may decide the pull the trigger in a purchase before they lose the opportunity. While prices are higher than they were in the past, at least they will have locked in their price. Many tenants are seeing their rent go up faster than property prices so it could make sense to lock in a long-term cost for living in New York.

6) Many affluent and wealthy millennials will inherit or be gifted the funds to purchase their homes. Their parents may be financially successful and want to give their children a leg up. In many cases parents or grandparents can gift, guarantee or co-sign a purchase to help them acquire a home which they can live in and launch a career. New York has many great professional opportunities and world-class living. Many families consider it well worth the cost of buying an apartment to provide the very best opportunities for their children that could last them a lifetime.

Factors To Consider When Buying An Apartment

c33Apartments offer an affordable entry point into the property market. While this is the case, it doesn’t mean that you should go in blindly. To help you out, here are critical factors that you should consider when buying an apartment:

Access to amenities

This is probably the most important factor that you should consider. To have an easy time the property that you are planning to buy should be close to the amenities that you need. These include hospitals, gym, schools, public transport, shops and parks. If you would like entertaining yourself within the area of your residence go for an apartment that is close to clubs, cafes and other entertainment joints.

Peace is of essence. For you to have peace of mind ensure that the apartment isn’t too noisy. Before making the purchase, take your time and inspect the amount of passing traffic. Inspect the building during the evening or during any other peak hour traffic and determine whether the noise will affect your lifestyle. As rule of thumb never invest in a property that negatively affects your style of living.

Cash flow

This is an important factor to consider if you are planning of buying the apartment and then rent it out. For you to decide on whether the apartment will generate income for you, you need to consider a number of factors including: size of down payment, strength of the local rental market, interest rate on your financing and type of market that you are buying into. While C class buildings have more tenant turnover, they attract higher repairs and maintenance.

If you are unable to determine whether a given property is of value to you, consult an expert.

Age of the building

Just like any other old item, an old building requires regular repairs and replacement. Experts recommend that you avoid buying apartments that are more than 20 years old as they have high maintenance costs. Buildings that are too old also tend to be out of style and risky to live in. Before parting with your money get a report from certified architects or engineers on the condition of the building.

Car parking

This is an important factor that many people ignore. If you have a car, it’s important that you consider where you will be parking it. Understand whether there is a car parking in the apartment or whether you will be required to pay extra for it.

Appreciation

If you are planning of selling the apartment at a later date, consider the appreciation of the property. The real estate industry is speculative and you have to buy the property at the right stage of the real estate cycle. You also need to buy the property at the right neighborhood. When making the purchase, look at areas that have the potential of growing at an average pace of 5-7%.

Home Buying Myths Debunked!

dgYou want to buy your first home and there is information EVERYWHERE – from your family, friends, real estate professionals and countless online articles. With all of that information coming at you, how do you separate fact from fiction? Here are some questions we see most often:

1) Buy the cheapest house in the best neighborhood

While somewhat true, it’s important to think about WHY that home is priced so much lower than others. There could be hidden issues or major repairs that you’ll need to address once moved in and this could cost you big time!

2) Get more bang for your buck in the burbs

While it’s true that land costs less in the suburbs than in the city, you need to consider things like travel time (commuting back and forth) and its associated costs such as automobile payments, gas, repairs and even public transit costs. Not only if you’re commuting for work, if you’re someone who likes to be in the city to watch your favourite bands, sports teams or the latest play, factor in all the time you’ll spend going back and forth.

3) Location, Location, Location

OK, location actually IS important but think ahead. The best deals can be in areas that aren’t fully developed yet – this could be new construction or a neighborhood that is going through an urban renewal process. Imagining your neighborhood 10-15 years down the road can save you big bucks and get you in that perfect location.

4) Get a home inspection and forget it

Most first time buyers believe that getting a home inspection that has passed means that they’ll never have to worry about home repairs (at least for the near future). It’s important to know that home inspections will cover the systems and materials on the date of the inspection so it won’t cover a furnace if it goes kaput 2 weeks after the inspection. Also, keep in mind that a home inspector will only be looking at the surface – if anything leaks or the electrical has issues behind your walls, it won’t show up in the report.

5) I won’t be able to pay my monthly payments

If you take that time to plan your finances out, you’ll be fine. Many times, you’ll be approved for a mortgage for example that will strain your monthly finances. It’s a good idea to buy a home with a lower price than your maximum approved amount so you have some flexibility as the years go on.

The 10 A’s of Property Acquisition

vttThe 10 A’s are certain factors to keep in mind to guide the potential buyers on what they should be looking for in acquiring property:

1. ACCESSIBILITY – is one of the most important factors for consideration. Money can improve your property in the future, but money can do very little to improve your location and accessibility to where you go from day to day. So check the location of public transportation terminals, how many rides, how long the travel time, the traffic condition, etc. Because you are trying to improve your lifestyle, the property that you are acquiring must be easily accessible to your work, your children’s schooling and your lifestyle, where you spend most of your time that defines your life. As Real Estate Broker for over 15 years, accessibility is what my clients are looking for in a property aside from the goodness of the property itself.

2. ADEQUACY – The property must be adequate for you which means sufficient in terms of rooms, lot area, floor area, utilities, amenities, car garage if you have a car or planning to buy one. Ideally should remain spacious even if you install all the appliances and furnishings you need as well as the cabinets and closets for all your belongings. Most often though adequacy might be in conflict with affordability, so you might compromise by accepting a less adequate space for the meantime but can be expanded in the future when you have the budget which brings us to the next A, which is…

3. ADAPTABILITY – The property must be adaptable to the growing needs of the family. It may be just small for now, but the structure must be solid enough to add more space like adding a second or third floor in the future, or upgrading the house to your future anticipated needs. Be aware that there are subdivision developments that do not allow changes in the structure of the house, so you need to check on the details as to how you will adapt to your future space needs. This brings us to the next A which is…

4. ACCEPTABILITY – The condition of the unit, the materials used, the style, the neighborhood, the quietness, the security, the deed of restrictions imposed on subdivisions or condominium corporations are acceptable to you. For example, some developers do not approve any changes in the frontage of the house while others do allow. There are those who allow vertical expansion such as second floor for bungalow unit or third floor for 2-storey unit but there are those who cannot allow this to happen. There are condominium projects that do not allow pets and you might not like the idea. It will be good to know the deeds of restrictions of any development before deciding to reserve a unit to ensure that you are acceptable to all conditions and restrictions of living in the place.

5. ADMIRABILITY – Usually this is the higher form of acceptability which is mostly applicable for high end properties. It could be the spectacular mountain or city view, the design of the house, the beachfront feature, etc. This may not be very necessary especially on low cost housing which acceptability may just be enough but it’s a great factor for consideration too because admirability means extreme feeling of likeness for something.

6. APPRECIABILITY – The property must easily appreciate over time. So, it must be durable enough to last a lifetime and that the style is so that it will not easily become obsolete. You will never know that you can be transferred to other areas as required by your work or business or your children have grown, etc. And so, the property must have a very good resale value such that when you sell it in the future, you make a good profit aside from using it for so long. To often, the lack of consideration for appreciability has been a big blunder for some home buyers or builders. They focus too much on what they want in a house, too often blinded by their desires only to fall victim of a real estate principle which is OVER IMPROVEMENT. Look at your neighborhood, if your house is the biggest and most expensive one, you might be a victim of over improvement. The effect is that, when the time comes you don’t need your property and you have to sell it, you cannot even sell it at cost. You need to sell it at big loss to make the sale happen. And so, in this case, real estate is not an investment for you. It’s a loss because you focus too much on what you want. The most practical is to enjoy the house at the same time you are confident that someone will buy it the moment you don’t need it and of course, for a profit.

7. AVAILABILITY – You may have so many wishes for features of your dream home, but if these are not available, it’s still useless. Waiting for them to become available may elude you with the investment that you could have started right away. Your real estate agent or broker will be more than happy to help you find what’s available for you. You need to be watchful always for availability of a good deal. It nothing seems very interesting at the moment, it’s sometimes a good idea to just keep in saving money for the time being and when it accumulates, you can use it wisely the moment a very good deal comes along.

8. AFFORDABILITY – What is the price of the property, what is the equity or down payment, what is the interest rate if financed, what is the monthly amortization, how much you are allowed to loan basing on your income. If your income is not enough for a 20 year term loan, you can choose the longest term up to 30 years depending on your age. Or you can combine the income of your family members. Pag-ibig can allow members of your family to become your co-applicant up to 3 applicants including yourself. These are the questions to ask to find out your affordability and if how much a financing institution can grant you loan. Again, a real estate broker or agent can help you find a way to make the property affordable for you.

9. ACQUIRABILITY – is the condition of the property that can make it easily acquired by the buyer by checking if it is titled, the tax declaration is current and real estate taxes are updated, the are no zoning violations nor violations of ordinance or existing laws, no boundary problems, not mortgaged nor having legal problems such as lis pendens, or not subject to road expansion, etc. The development must not have issued with CDO (Cease and Desist Order) by HLURB (Housing and Land Use Regulatory Board) for violation of building code, rules and regulations. The property is not prone to flood or land slides. Checking should be farther than what your eyes can see. Aside from interviews with neighbors, it may be a good idea to check back on the property during rainy days. Due diligence on the part of the buyer must be exercised as this is required by law. Due diligence is to do everything within the power of the prospect buyer to check and protect himself from troublesome deals. Negligence to do this could produce disastrous results.

10. APPLICABILITY – Applicability means the property is suitable, appropriate, useful and serves a purpose. So, even if it is not the most ideal property and even if it’s not the best deal at the moment, for as long as it serves a good purpose, it’s a good deal.

The above 10 A’s of Property Acquisition is written by the author to help real estate buyers to make sure that they get the value for their money. As we can observe in the internet and numerous websites today, too many brokers and agents ENTICE prospect buyers by their usual practice of RESERVE NOW! TO AVOID PRICE INCREASE!. For me, it’s absurd to hurry up buyers making them fear of the price increase or any form of enticement. The motive is clear, which is nothing but just to make a sale. In contrast, I strive to make sure that my prospect buyers will be disclosed with everything they need to know in order to help make sure that they make the right investment decision. I believe that sharing is caring, and it’s my passion.

10 Must-Do’s When Shopping for a Mortgage

ce3You’ve made the decision to buy a first home or trade-up to larger digs for the growing family. Or, as in my case, I’m in the hunt for a home after moving from Oklahoma to North Carolina. At any rate, I can tell you that the focus on shopping for a mortgage is every bit as important as finding the right house to buy.

In 2016-2107 home construction is projected to rise with housing prices going up. Mortgage rates will also rise as a byproduct of the Federal Reserve tightening credit.

New home starts rising, mortgage rates increasing, a strengthening economy and the Federal Reserve tightening credit are all good reasons you should follow this approach for capturing a good mortgage.

You’ll probably find more loans available than homes, so be as active in this search as in you are in viewing homes. Finding your best mortgage is a challenge because fees and rates can change daily, so be inspired and meet this challenge.

Check your credit and get it in order. Lenders will pour through your credit with a fine toothed comb to determine your ability to service debt. Knowing your credit profile will give you time to improve your credit or fix any errors before approaching lenders. Your credit rating will directly affect mortgage rates, so do not neglect this step.

Hold off opening new lines of credit or closing old lines. Applying for a new credit card or canceling one you no longer use will lower your credit score. This will be a temporary dip, but any hard inquiry on your credit will cause a drop in score.

A variety of lenders, including credit unions, consumer banks, mortgage companies and commercial banks, can underwrite a home loans. Start with your personal bank first but consider all lenders in play.

Meet in person with your banker, mortgage lender or broker. Speaking face to face gives the chance to ask questions and get immediate answers. Developing a personal relationship with a lender will energize the search process and get you a pre-approval. The pre-approval allows you to make a serious offer on a home when you find the right one.

Banks may have fewer options since they are dealing with their own products, but they can be more flexible and may negotiate if you have large assets. Understanding the mortgage process provides an edge to finding the best deal, and your banking relationship can help out here.

Mortgage brokers have more options because they shop among many lenders. If a loan can be made, a broker can find a lender to do it. Brokers don’t lend money directly. They gather paperwork from the borrower, passes it to a mortgage lender for approval, and collect a loan origination fee as compensation.

Don’t hide any known negatives from a potential lender. Being honest up front is the best chance of getting a good deal. If a lender will not consider you for some reason, it’s best to know this right away and move to another funding source.

Stay in contact with your lender of choice. If anything changes in your home search, let your contact person know immediately via short email or text.

Compare apples to apples. As loan options surface, don’t make the mistake of just comparing the mortgage rate. Compare all fees: points, origination fees, and any cost charged by the lender. Often, a “no-fee” loan will be offered but the fees are actually included in the rates.

Always get a Good Faith Estimate worksheet. The GFE summarizes all estimated costs for the mortgage loan and helps you:

  • Compare offers
  • Understand all loan cost & fees
  • Make a good decision when choosing a loan

Your take away is to diligently shop for a good mortgage before looking for a home. Find a good banker or mortgage broker, but also remain proactive and stay on top of the process. Mortgage rates are still quite low and lending options are abundant. Take the challenge, be thorough, and find your best new home loan.