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Home Loans

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Talk to the experts in home loans and get your home loan approved - guaranteed! Don't go straight to your bank, find out what other lenders can do by talking to us. – PowerPoint PPT presentation

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Title: Home Loans


1
Important Things to Do When Obtaining a Home Loan
  • Home Loans Experts

2
  • How hard is it to acquire a home loan?
  •  
  • It should be easy if you have all the
    requirements--a good credit score, savings, and
    permanent employment. Lenders are going to find
    you favorable and easily grant you a mortgage if
    you have all the requirements.
  •  
  • Anyone who plans to buy a house will need to,
    first, find a mortgage broker. A broker can do a
    lot of good since he or she will have the
    experience and knowledge necessary to find a
    lender who can offer a competitive mortgage rate.
  •  
  • Get help from a mortgage expert
  •  
  • Finding the best mortgage broker is crucial to
    your success in getting the right mortgage deal,
    so make sure you spend enough time making the
    selection. Buying a house is not a walk in the
    park but when you have someone with enough
    experience it is sure going to be a lot more
    bearable.

3
On credit score and its importance
  • One of the first things a mortgage broker is
    going to ask you is what your credit score is.
    Your credit rating is going to have a huge impact
    on your home loan application. It's because your
    score is an indicator of how much risk you pose
    to lenders.
  • Your score represents your financial
    responsibility. If you are on time with your
    payments and make sure that every debt is
    settled, then you are going to have a good credit
    rating. Those who have a high score are
    considered ideal borrowers because they have
    proven that they are financially responsible. 
  • On the other hand, people who repeatedly miss
    payments or don't pay at all will have very low
    scores. Lenders do not like borrowers with a poor
    credit rating because they are more likely to
    default on their mortgage payments.
  • If you have a poor score, then your broker will
    advise you to improve it. You won't be able to
    get competitive rates when your score is low. Or
    you won't get approved at all. 
  • There are several ways to improve credit rating.
    Among them are making sure you stick to your
    monthly credit card payments. Another thing you
    can do is consolidate your debt so you can pay
    everything you owe more efficiently. 
  • The moment you have raised your score, you can
    start applying for a loan and if you meet the
    other requirements, then you will be a step
    closer to buying your own house.

4
On proving financial ability to pay off the loan
  • Borrowers also need to show proof that they have
    a stable source of income. Lenders may ask you to
    produce an employment record or history. It is
    important that you establish your ability to pay
    off the loan. However, there are some people who
    cannot produce the necessary documents to prove
    financial ability like freelancers and
    contractors. Although these people may have the
    money to pay for the down payment and cover
    monthly payments, the fact that they cannot show
    proof of stable employment will make it hard for
    them to qualify for standard mortgage.
    Fortunately, there are different types of loans
    that they can qualify for like contractor
    mortgages. These loans are specifically designed
    for people who don't have the typical job.  Some
    individuals may not have enough experience, like
    first time home buyers and young professionals,
    to meet the requirements of lenders. Someone who
    just got out of school and still new to the job
    may not have a stellar credit rating yet. These
    people can still obtain a loan through the help
    of guarantors.
  •  Parents are great examples of guarantors. They
    can vouch for their children during the mortgage
    application process and take out security from
    their property. Guarantor loans are great for
    these kinds of situations. Another type of
    mortgage that individuals can acquire through the
    help of parents or other family members is the
    family pledge home loan. This will allow
    borrowers to buy a home using the property of a
    family member as an added security.

5
On not having enough paperwork to submit to
lenders
  • There are individuals who may not be able to
    submit the complete documents when obtaining a
    loan and therefore not be able to take out a
    mortgage. Examples of these are self employed
    individuals and freelancers.
  • These individuals are not going to pass the
    conventional verification process of lenders
    since they don't have all the necessary
    documents. But it does not mean they cannot
    qualify for a mortgage.
  • They can approach lenders who specialize in low
    documentation loans. This type of home loan will
    not require the usual verification process, so it
    should make it easier for people who have the
    financial ability to buy a house but not possess
    enough documents.

6
On getting the right mortgage type
  • Anyone who wants to get a home loan would
    naturally want to have lower monthly payments.
    This is possible by choosing the right type of
    mortgage rates. Choose from a fixed or variable
    rate. See which one works best for you.
  •  
  • By working with a mortgage broker and learning as
    much as you can about mortgage you will be able
    to find the best home loan possible.
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