Do You Have All It Takes To Get A Home Loan Approval
Applying for a home loan after you have identified the house you want to buy is a hurdle. It always seems like such a task and can be overwhelming especially to home owners.
The best part is you stand a chance of being approved.
Before you start the loan application there are some points you should know to enable you hit the ground on a run note. Do you qualify for a home loan and are you aware of the cost of your investment?
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. According to lenders, you should only spend about three to four times your annual income.
Mortgage prequalification is the initial stage of a home loan application. The pre-approval and prequalification confuses many people. 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. Mortgage prequalification is not recognized so much by realtors as a preapproval will.
Real estate agents fully know that a person is about to buy the house if they see the preapproval will. The process of studying your credit record and determining how much you qualify for is in the preapproval process. Click here! To get more details on interest rates. You can negotiate for a home and also see the homes that are available for sale and which you qualify for using the preapproval letter. For the preapproval process you need these documents, borrower ID, tax returns, pay stubs and bank statements.
The lender will give you the loan estimate upon completion of three days as is required by law. The monthly instalments payable, closing costs and interest rates are the contents of the loan estimate. Of importance to note is this numbers are not fixed and there can be changes when the loan is finally approved.
There is not much that is left for you to do and in fact the lender has a lot of work to do after you are done looking the estimate. Your loan will start processing and verifying the authenticity of the information given. Lenders will ensure all is in order by looking at your hosue.
Approval for the home loan will either be approved or denied. In case it is an approval, the closing process starts and the interest rate locked.