Desire A New Home? Know how to get one easily!
If you are planning to buy a house in the near future, it is always advisable to look into the probability in getting a loan pre-approved first. This marks as the first step towards acquiring a home and even the dealers, sellers and brokers, all are going to take you seriously when you are out there negotiating with them for the house. In fact having a pre-approved loan is much of an indication that you are a serious buyer and hence a lot of importance will be given to your talks.
Pre-qualification- An essential
Pre-qualifying a loan requires some of the basic steps to be followed by the borrowers in advance. The entire process is similar to that of a regular loan application. However, lenders just check on certain details like the credit score, income and some other aspects of the applicants and if found suitable they would approve the pre-approval request for the loans. Once you get the pre-approval, the offer is valid for a fixed period generally six months after which it becomes void. In case you get through with the other processes and finalize a house, you can go ahead with the loan.
On your part it becomes essential to check on the lenders, their reputation and try and connect to an authentic lender. It is really important that you check on the different options available with different lenders, compare the interest rates and decide on whether to take an adjustable interest rate or a fixed one. In case you face rejections, you can always try your luck with the other companies.
Different people have different needs. It is to cater to these needs that there are different loan products available with the lenders and the new ones being updated regularly. Some of these loans include the renovation loans, bridge loans, loans for purchasing houses and others.
Criteria to Qualify for a loan:
Lenders are in the lending business to earn profits. Different loans they offer to the customers are not just given like that to anyone. In fact lenders do a due diligence on their part to confirm that the lending decisions they are making are correct and they are sure of getting their money back from the customers.
One has to be a citizen of US who has attained an age of 18 years or more on the date of application. They also look into the income, bank details, savings, assets, debt liabilities etc. so as to get a complete overview of the applicant’s financials. In case of NRI requiring a home loan, the lenders may ask for additional documents and if they are looking for tax deductions they will have to complete some procedures to be able to do so. In case of earning couples, they can combine their income to be eligible for a larger loan amount.
Things to consider when looking out for loans:
It is always suggested to check on all the terms and conditions related to the loan. There are several details which the lenders will not tell you out rightly and hence it is in your interest to know all about them. One should check on the repayment criteria, penalties and additional fees and the facility of loan modification in case you get into financial trouble. Other than this you should also check if the lenders will charge you any prepayment charges in case you decide to pay early.
Even slight differences in the interest can mean a lot of savings for you and hence you should negotiate for the rates with the lenders at the time of getting into the agreement.
Get into a proper position in terms of a respectable credit score, lowering of debts and keeping your loan demand within the permissible limits so as to get a speedy approval from prlog.