14 Apr 2015
Choosing the right home loan could be as easy choosing the right mortgage broker to do the heavy lifting for you. As a buyer, the home loan application process could mean time-consuming hard work for you; but with the right mortgage broker to assist you should get through it with relative ease.When applying for a home loan, it is important to understand the aspects that form part of the lender’s evaluation of your eligibilities.
- Employment and Income
Beyond your income figure, your employment stability will also count. In assessing risks, lenders tend to side on the stability of the buyer’s income; including employment type, duration of the current employment, and the industry in which you work. If the buyer has been employed for less than two years, the mortgage broker may have to demonstrate income for a longer period.
- Savings and Deposits
The buyer’s ability to save as shown in regular deposits in a savings account is a plausible proof of his ability to pay off a loan. While bigger savings is always better, the underlying habit of being able to save is given more consideration.
- Credits and Loans
Copies of credit card statements, and loan statements when applicable, are always required. These documents serve as evidence to the lender’s capacity to pay off the loan. A buyer who is able to pay bills on time, and spends within his credit limit, will have a more positive impact than when otherwise.
The modern technologies available to lenders also allow them to compute the buyer’s risk. With the help of credit facilities and complex electronic algorithms, lenders are able to assess buyers more meaningfully.
With the help of a mortgage professional, a buyer may be given recommendations to help them with their home loan in spite of low credit scores. For instance, a buyer may be advised to apply for loan from an institution he/she banks with. Mortgage professionals may also help in clearing unpaid bills, recovery of prior defaults, or checking credits.
Buyers may also want to speed up the loan process by preparing beforehand the required supporting documents and documentations which may include rental ledgers, bank statements, credit card and loan statements, and income documentation from employment.