Home Loan Rates 2018 263 views
When it comes to home loan, most of us want to act and play safe. There could be any reason for that but most importantly you need to be well aware about the product or the loan you are going to avail. As a borrower you should not make a decision in hurry or in ignorance. A pre-approved loan has many advantages for a borrower and for lender as well. A pre-approved loan gives you idea to know how much loan amount you can borrow or the maximum limit of loan. You can discuss and negotiate about the terms and condition with the lender and get a better deal. It also gives you an advantage when you search for a home. As you know your upper limit in advance, you can look for a home, which is very much within your budget. You can negotiate well with the builder or property owner as you know your budget in advance. Even negotiation can help you in saving some money as well. You can revise your home loan amount if you are getting a deal lower than your pre-approved amount.
Difference between Pre-Approved and Pre-Qualified loan
A pre-qualified loan is helpful to know the estimated amount you can afford or borrow from a bank. It is a kind of estimate of amount a bank is willing to lend you, but a pre-approved loan is where the bank/lender has checked your credit score and your credit history. Verify all your documents and bank details to approve a specific loan amount. This pre-approved loan is valid for maximum 90 days but the final approval is done once you apply for a loan in regard to a specific property. Here are the five important things you need to consider while applying for a pre-approved home loan.
Salary Slip/Income Proof:
You need to deposit an income proof to the bank to apply for pre-approved loan. As your income proof you need to give a full statement of your bank statement including your salary credit details, incentives, bonus and other salary slabs. Along with this you also need to submit details about any other running loans to show your expenses as well. You are also required to submit your two most recent tax return documents. If you have any other source of income as well as income from rent, some part-time assignments or job from where you are getting monthly income, you should also mention that in your income proof.
Showcase your savings
This is really important at this point. As no bank is going to offer to 100% amount of the property to buy. In the best situation and cases without any issues and drawbacks you will receive maximum 90% the amount and most of the banks offer 80-85% of the amount. Therefore, you need to arrange at least 15%-20% of amount by your own. So showcase your savings and other investments as proof. If you are going to get the amount as gift from your family or friends, deposit that gift letter to bank.
Good credit history
Most of the banks prefer lending amount to those people who have good credit score or history. Those who are having a credit score of 740 or above get a loan easily approved from any bank. But those who have a bad or faulty credit history don’t get a loan of higher amount. Banks are now more conscious while offering the home loan. They follow the guidelines issues by RBI strictly in home loan segment. To receive a good and higher amount approved from the bank try to maintain a good credit history. Don’t default on making payment against your any running loan or don’t make delayed payments against your credit card bills. It will affect your credit score and history in long run.
These banks and financial firms check your job/employment status. They cross check your details whether you are really working with that company or not. Have you mentioned all the details right about your job status, designation, salary and total number of years working with that particular company or not? If you have recently changed your job they will also cross check your details with previous employer as well. This is also a very important part of verification, so you should never quote wrong information in this section.
At the time of applying for pre-approved loan your lender might ask you for some documents such as your address proof, ID proof, age proof or educational qualification? Get ready with all such documents. In case if bank or lender ask for some other documents try to provide all relevant and authentic documents to bank without much delay. The more proactive and cooperative you are the smoother will be your loan process.