Do You Have All It Takes To Get A Home Loan Approval
When buying a home one of the hurdles that come to mind is the application of a home loan. At first the process seems daunting and especially to a new home owner.
You stand being approved thanks to the national loan approval rate which is approximately 90% .
There are some steps that you should know so that you can start off on a good footing with the loan application. Know the price of the investments you are taking the loan for and also find out if you qualify for the mortgage or not.
Before anything else you should first decide how much you are willing to spend so that you can determine the range of price. It is so because of the different situations on your finances and your debts and the fact that you have to account for them. The recommendations given by lenders are that you spend a quarter of your annual salary to get a home.
The first step in making a home loan application is the mortgage prequalification. Pre-approval and prequalification are two confusing terms. They do not mean the same. Mortage qualification is lesser than pre-approval and it is at this point that the loan officer asks you questions about your credit and income without any further questions. Real estate agents do not regard a mortgage prequalification as a preapproval will.
The preapproval instantly shows the real estate agents that you are indeed going to purchase the house. During preapproval process your credit history is looked at and a determination is made on the loan amount and interest rate that you qualify for. You should click here! To get interest rates details on the loan you are qualifying for. In the preapproval letter there are details of the type so houses you qualify for and empowers you to negotiate for the same. The preapproval process is not complete if you don’t furnish the bank with your ID, your bank statements, tax returns and other pay stubs.
The law requires that a loan should take no more than three days before the estimate of the loan is given by the lender. The loan estimate contains details of the interest rates, closing costs and monthly payments. Of importance to note is this numbers are not fixed and there can be changes when the loan is finally approved.
Soonest you are down reviewing your estimate and the loan application the remainder of the work is with the lender. Your loan will start processing and verifying the authenticity of the information given. The lenders will also look at your house of choice and ensure that all is in order.
Finally, your loan will either be denied or approved. The interest rate will be locked if an approval has been granted and closing costs starting.