What are the Steps to Narrow Down the Right Home Loan?
The lending market has evolved. In 2022, the market consists of home loans for most financial situations. The conventional mortgage remains the standard. It requires a 20% deposit, three months’ worth of payslips, and bank statements. Plus, it helps to have an excellent credit score. Individuals who cannot fulfill one of these requirements can qualify for a home loan that takes that into account.
We provide three steps to narrow down the right home loan.
Little or No Deposit. Lenders prefer to issue an 80% loan-to-value ratio. It lessens their risk and ensures that the homebuyer has skin in the game. If you cannot provide the full 20% deposit, you might qualify for a Mortgage House low deposit home loan.
Little to No Financial Documentation. Lenders must verify each applicant’s ability to repay the mortgage. They spot patterns in your income and spending habits through your financial documents, especially payslips. If you cannot provide full financial documentation, you might qualify for a Mortgage House low doc loan.
Credit Score. Lenders prefer a credit score that leans toward 700. If your credit score leans closer toward 500, some lenders will issue your mortgage. However, you won’t qualify for the home loan alone. You might qualify for a Mortgage bad credit or guarantor home loan.
Once you become a Mortgage House client, you receive access to our other loan products including our car loan.
Narrow Down the Right Home Loan Conclusion
Now that you have a better idea on how to narrow down the right home loan, contact Mortgage House. Our loan specialists can help dig deeper into your options.