There is no secret to it that the process of home purchase is a challenging task. Apart from looking for a suitable home that suits your needs and preferences, there is a lot that is to be done to get mortgage pre-approval. The need of mortgage arises because making the payment in full is not possible for an average wage earner. Even the rich are sometimes not able to afford a house without a mortgage. However, getting a home loan is not easy and there are various things that must be prepared to secure approval. Below mentioned are a few of them.
Since the lenders are at a risk while lending money, they expect the borrowers to have a good credit rating. This convinces them of timely repayments. While good credit borrowers can achieve easy approval, those with bad credit might have to negotiate and struggle a bit to confirm their approval. Even after securing the approval, they have to deal with high interest rates. In case you are struggling with bad credit, make sure to improve it by repaying pending bills and loans before applying for mortgage pre-approval so as to secure easy approval.
Gone are the days when lending institutions used to grant mortgage without requiring submission of documents related to income. A borrower is now expected to provide his or her proof of income to prove his ability to repay the loan, regardless of the amount that is to be borrowed. Make sure to provide correct and complete documents to avoid delay in processing. Also, a debt-to-income ratio is taken into account to check how much of your income goes towards repayment of loans. Since a lower ratio helps you present yourself as less risk to lenders, be sure of having a lower ratio to secure quick mortgage pre-approval.
Besides submitting the proof of income, evidences related to asset ownership are also to be presented to the lenders. These serve as a confirmation of your ability to repay loan on time. Usually the lending institutions require you to submit copies of bank statements and investments, which prove that you have sufficient amount to pay for monthly payments, down payment and closing costs.
Since the proof of income alone is not enough to satisfy the lenders of your repayment capability, verified employment documents are also needed for pre-approval. These documents must include your name, complete current address, name of your company, your designation and salary. Signed by the firm’s representative, they are necessary to secure easy approval.
Apart from a good credit score and all these documents, sometimes the lenders ask for additional documents which can be provided upon their request. Usually identification cards and copies of billing are required in such a case. Having these documents ready at the time of need result in smooth and hassle free approval.
If you are planning to get a mortgage, be prepared with these things in advance to experience fast and easy approval. However, make sure to choose a reliable lender to enjoy the true benefits of mortgage and home ownership.
Your dream of becoming a home owner is set to come true, as now you can easily buy a spacious and affordable Harjirealtors Flat in Mohali. To ensure that you get the best deal, perfectly matched to your needs, get in touch with professional Harjirealtors Real Estate Agents Mohali.