Be clear and transparent with the lending institution. Tell them about your expectations, motivations, your current situation and why you want to buy a home. Try to give as much information as possible without omitting relevant facts as the bank will know all the details when evaluating your process. Opportunities for the quick cash loans are always there.
Gather all the necessary documentation
Make sure you gather all the necessary documents to apply for your home loan. This speeds up the process and even reduces the possibility of seeing your file returned for lack of documentation. To know in detail what you need, check the online websites.
Professional and financial stability
The profile of clients is crucial for the financial institution to make a decision. In this case, it is evaluated if you have an employment relationship and a regular income. The more stable the professional and financial situation of the proposers and the companies they work for, the more likely they are to have a bankable profile. If you have other credits, we advise you to consider settling them before proceeding with the loan application so as not to hurt the effort rate. Consolidated credit may be a good way to do so, thereby reducing your charges.
Low effort rate
The effort rate corresponds to the percentage of income intended for the payment of installments of the claims contracted. This is one of the indicators used by credit institutions to assess the viability and financial standing of customers. For finances to be considered healthy, this rate should not exceed 33% or one third of total household income. However, many banks place a maximum limit of 40% on the borrowers’ effort to approve financing, conditional on the submission of guarantors. You can calculate your effort rate from the following formula: Effort rate is equals to financial charges or Total Net Income of Household multiplied by 100.
Have an amount available for input
We know that this is not always possible, but since July banks conditioned the maximum financing to 90% of the purchase price, except for the properties held by banks. Therefore, giving a good down payment to the property is an asset to get your home loan. For if before the crisis the banks financed 100%, nowadays the average amount waived is around 80%. The higher the LTV percentage, the harder the bank is to lend. The LTV is the proportion between the borrowed amount and the worth of the wealth. For example, if the house you want to buy is worth 100,000 $ and needs 70,000 $ the LTV will be (70,000 or 100,000 equals to70%).
With two holders it may be easier
The motto together we are stronger also applies to the issue of housing credit approval. Because for the financial entity the risk is always lower if there are two people involved in the process. For example, if one of the parties becomes unemployed or has a cut in income, there is always a second person who can ensure the payment of benefits. With these tips, you are very likely to get bank approval. However, never forget that you are taking on a life burden. Having a home may be one of most people’s goals, but unforeseen events can happen.