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Getting pre-qualified is the simplest and easiest way to getting your home loan. But what does it mean to get pre-qualified? Suppose you’re a new home buyer and about to seek a loan for the purchase of a property.
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Getting pre-qualified is the simplest and easiest way to getting your home loan. But what does it mean to get pre-qualified? • Suppose you’re a new home buyer and about to seek a loan for the purchase of a property. • Before you seek your housing loan, you can get prequalified. • This means you submit all your financial statements, credit statements, investment and savings statement to a lender. • The lender will simply go over your documents, and see whether you are likely to get a home loan and if yes, for how much and at what interest rate.
Getting pre-qualified for a home loan will make the actual home loan application process smoother. • It will also let you know how far you can spread your wings while you look for a property you like. • Getting pre-qualified is not as difficult as it sounds, read on to know all the crucial things that taken into considering while analysing your eligibility and what you should do to ensure it happens smoothly.
Your Income • This is the first factor that is taken into account while analysing whether you qualify for a loan. • Your income is what will directly indicate whether you’re capable of repaying your home loan and what home loan interest rates are best suited for your income group. • Lenders will take into account both your monthly and annual income into consideration and then decide how much loan you’re eligible for and what interest rates. • When considering your income, your current job, your position at your current job and your appraisals are all taken into consideration to check job stability.
Your Debts • This is the second most crucial factor that is taken into consideration. • Debt doesn’t just mean your loans; it also means your credit card spending. • Your CIBIL score or credit score is affected whenever you’re late on paying your credit card dues and also every time you exceed your spending limit. • A low credit score warrants high home loan interest rates.
Your Savings and Investments • Your assets are also taken into consideration when evaluating your qualification for housing loans. • They show whether you have enough collateral to pay off the loan in case you lose your income. • This important as you need to make a down payment for a property before you get a loan. • Your savings, investments, and assets will tell them how much down payment you can afford.
