I know you have your own fears when it comes to a home loan application and there are things you need to know before even signing an offer to purchases to avoid disappointments.
The very first the thing is to know your credit record.
This is very crucial in a home loan application, slow payments reduces your credit score and affects your credit record.
Your credit score is a number calculated from factors such as the amount of credit outstanding versus how much you owe, your past ability to pay all your bills on time, how long you've had credit, types of credit used and number of inquiries.
Some may argue and say I was late by one day but that will certainly reflect as a late payment and its one thing you must never do as one day it might cost you your dream home and affect your credit record and credit score.
Then comes adverse and judgments, what effect do they have on your home loan application? A judgment against you is the result of you losing a case in court. Usually, a creditor goes to court to get a judgment against you for the amount of the debt you owe.
Well with that, the first impression the creditor gets of you is you are a high risk client and your chances of you not paying back a very high there by reducing your chances of getting a home loan. The consequence of a negative credit rating is typically a reduction in the likelihood that a lender will approve your home loan application for credit under favorable terms, if at all.
Interest rates on home loans are significantly affected by credit score and credit history; the higher the credit rating, lower the interest while the lower the credit rating, the higher the interest. The increased interest is used to offset the higher rate of default within the low credit rating group of individuals.
Then next thing is affordability, know how much you qualify for.
Unfortunately banks no longer do pre qualification on home loans but that does not mean you won’t be able to beforehand. Apply here for an affordability qualification for you. and we will take you through the process of your personal home loan application.
L your mortgage consultants.....
