To get a loan for home, you must have to fulfill the requirements of the bank. A bank does not gives loan for home to anyone. You have to qualify the requirements so the bank feel secure giving you the loan. For example you must have enough money to pay the down payment for the loan. You must have at least two years of steady employment in the same field or job and have a good credit score. Your monthly income should be two or three times more than your expected monthly loan payment.
Some of the people do not have these criteria matching with their current financial situation. But there are more options available to qualify for the loan. One who is not matching the above criteria must not think that he cannot get a loan from the bank. He must anyway ask the bank manager for the loan. Even if he cannot give you the loan, he can help and guide you with more options of getting the loan or he can refer you to someone who can be helpful in this situation.
There are different kinds of loans. Mainly are regular loans and No Doc loans. Both have different kind of benefits and different kind of draw backs. For example, in the regular loan you have to provide the proof of your income but in No Doc loan situation you do not have to provide any kind of proof or paycheck substitutes. In regular loans a very small down payment is needed but in No Doc loans a big amount of down payment is needed.
A fair credit is acceptable in the regular loan situation but in No Doc loan situation the credit score required should be nearly perfect. No employment history is required in the No Doc loans but you have to submit your employment history for the regular loan for home.
No Doc loans require the proof of assets to be approved but no proof of assets is required in regular loan situation. Proof of income is required in the regular loans but in No Doc loans not proof of income is required. The biggest benefit of the regular loan is the low interest rate. It could be less than two percent. But in No Doc loans the interest rate is three percent or higher.
These are the main requirements to qualify for home loan. One must fulfill all above requirements to qualify for home loan. If you are having some problem in understanding or in qualifying the requirements, a mortgage broker could also be hired for this purpose. The broker have many contacts, guidance skills and a vast knowledge about these kind of affairs. The broker charges a fee but helps to find a better lender for home loan on better rates. Not only this, a mortgage broker can also be very helpful to handle the insurance, taxes and maintenance. A good broker helps you to qualify the bank requirements and also guides you for the better options available for home loan.
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