You have decided to buy a new home. However, there are several issues that bother you at the moment and the most important one is finance. With markets full of choices for home loans, there are several things to be considered while selecting a particular home loan plan. Consider these basic guidelines to get home loan, before you apply for it.
Excellent credit track record will help you a long way in getting your home loan approved easily and fast. So pay all your utility bills, credit card dues and taxes on time, in particular in the year before applying and all through the period when your application is being processed. Pay off your credit card dues because it will decrease your liability and raise your credit score. Getting pre qualified for a home loan is an excellent idea given that it offers you an idea on the amount you can borrow. You can get pre qualified free from any major lending company.
Keep all relevant documents readily available. These documents would take in copies of your bank account statements, income tax returns, pay slips, recent credit card statements, and other supporting documents. Managing these documents would as well help you have an idea about your financial status and resources. The maximum limit of home loan that the lender will offer will be different to the limit that you can manage. Although, not all organizations ask for guarantor, it will be beneficial to have one. This also raises your credibility and possibility to get approved to a higher amount.
As soon as you have decided to buy a particular home, submit an application for the home loan. The more comprehensive and correct your documents, more rapidly will be your home loan process. You can as well submit an application online and the mortgage broker will call you back. All the documents submitted by you are authenticated during the processing of your loan. A loan executive may visit the home you have chosen in addition to your existing home to authenticate your information. Your employment information will as well be verified. An appraiser will call you up and visit your home you wish to buy, for its valuation. Subsequent to all the information provided by you, are confirmed to the satisfaction of the loan executive, a letter of approval will be issued, containing the amount of home loan and the terms that has to be signed by you.
Your legal document will be with the lender as security for the home loan. You will have to sign the loan agreement with the lender. You can take out the amount of loan as and when necessary by you as per your requirements. Until the whole amount is withdrawn, you will have to pay only the interest on the amount withdrawn. Once the whole amount is withdrawn, you will have to pay back the loan amount with the help of monthly installments. Maybe the whole process sounds too lengthy and tedious, but a home loan fulfills your dream of owning your own home.
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