Easy steps to get your home loan approved
Applying for a home loan is often one of the most stressful parts of purchasing a new home. However, waiting to find out whether your dreams are about to come true as you wait for your home loan to be approved doesn't have to be a strenuous experience.
Follow these steps to make sure your home loan application doesn't give you sleepless nights:
Make sure you can afford it. Banks usually allow for a mortgage payment of roughly 30% of your income, a percentage based on living expense norms. While you may be ready to spend the next few years drinking only tap water and eating peanut butter sandwiches at every mealtime, banks are not known for trusting promises alone. If, however, you can prove that your expenses allow for a larger payment, go for it.
Get pre-approval from your bank. Knowing beforehand whether you will qualify for a loan gives you the assurance you need when you're ready to make the big decision.
Make sure you have the documentation needed ready. This may include proof of income, bank statements, identification, liabilities statement and of course the purchase agreement.
Save up for a deposit. Long before you know exactly what you will spend it on, start putting away as much as possible for your future home.
Leaving what may be the most important for last - your credit rating. The proof of how well you have managed credit in your life and the best indication the bank has of how you will treat their home loan. Before going any further, consider getting your credit record up, getting rid of bad debts and up to date on the payments of current debts.
Remember, every transaction is unique. Continuous communication between you and your real estate agent will ensure you know exactly what is needed when applying for a home loan. When that agent brings years of legal expertise to your real estate investment, the result you want will be reached so much sooner.
Author: 3%.Com Properties