The home mortgage is the type of loan which is given by the bank to an individual for the purpose to purchase a primary or investment residence. In this article, you will find the simple tips to get approved for a home mortgage loan in Pakistan.
Applying for a home mortgage loan is not any easy task and many people are unaware of the foremost basic things of how to apply for the home loan. Most of the people have done the mistake about the report that is the report is dropping down the interest rate and apply for the lower home rates without any hesitation, but the interest rate is considered very sensitive in home mortgage and even in all other loan types from the bank.
Read more “How to Get Home Loan in Pakistan at Lowest Interest Rates” at RightProperty.Pk Blog.
Keep in mind that mortgage loan process is completely different from the car loan and renting an apartment loan etc. If you want to apply for the home mortgage loan in Pakistan, but are stuck at some point from where to start, you will be amazed when come to know that this article is the collection of useful, simple and effective tips to get approved for a home mortgage loan in Pakistan.
Top Tips to Get Approved for a Home Mortgage Loan in Pakistan
The key point is to educate your-self about the home mortgage loan and there are a huge number of methods and ways to avoid this heartache and disappointment when applying for a mortgage loan
1. What is your Credit Scores
The first and foremost tips to get approved for a home mortgage loan in Pakistan is to check the credit score. Often many home buyers forget to check their credit score history and apply for the loan in the misconception that their credit scores are high enough to qualify. Checking a credit score take your few minutes and you can easily pull out all the related information in a couple of minutes. Many of the home mortgage loans are disqualified or dead in its track due to the credit fraud and low credit rates.
You must need to check your credit score as its impact on the approval of home mortgage loan. You need a higher credit score for the approval of home mortgage loan in Pakistan. Some other factors which also affect the approval of home loan are the several missed payments, derogatory credit information and frequent lateness. You can follow these tips for the greater credit score:
- Try to lower your debts
- Pay your bills and other related payments on time
2. Try to Save your Cash before Applying
The easiest way and simple tip to get approved for a home mortgage loan in Pakistan are to save your money as much as possible; otherwise, your application for the home mortgage loan is rejected at the lender’s office. The collected money will be very helpful if you decided to apply for the home loan in the near future. One condition which should be kept in mind is the down payment, some mortgage lenders are cautious and approved the zero down payment without any hesitation. Down payment depends mainly on the factor of loan type and the lender type. Each and every mortgage lender used its own criteria for the down payment but the least amount of down payment in most cases is found to be 3.5%. Other expenses that should keep in mind instead of down payment are the application fees, home appraisals, closing cost (3% to 5% of the mortgage balance), home inspections, title searches and credit reports fees.
3. Don’t Quit from a Job and Stay at your Present Job
Many people have quit their job before the closing of the home mortgage loan, and it does not turn out well for them as a result. I know many people who quit from jobs and as a result, they weren’t able to close on their new home and they lost out on a great deal.
You need to stay at your job as it is one of the key and important points in the home buying process. The mortgage process is the delay or evenly stops due to any changes to your employment or income status. The approval of the home mortgage loan are on the basis of the information provided in your application, but if you switch from your job and when the lenders reevaluate your finances and found the record is mismatched your application will be rejected at that time.
4. Pay Down Debt or Lower your Credit Expenses
One of the major tips to get approved for the home mortgage loan in Pakistan is to pay down all the debt and other credit expenses. The lower the credit expenses the higher the chances to get the home mortgage approval. You don’t need a zero balance on your credit cards to qualify for a mortgage loan. For the approval of home mortgage application the lenders first evaluate debt-to-income ratio, and on the basis of ratio the application is approved or rejected. The lender rejects your application or offers a lower mortgage if the ratio is higher due to carrying a lot of credit card debt (your gross pay is higher than you’re entirely monthly expenses including the mortgage and it should not exceed 36%). But if your debt ratio is lower can help you to acquire for a better home mortgage rates/loan.
You must need to avoid new debt while you are going to the process of the approval home mortgage loan. The mortgage process will be stopped if the lenders recheck your debt reports and find some new expenses and the debt card.
Before the closing of the mortgage loan approval process, you need to keep away from any new purchase such as buy a new car, using your credit card for purchasing the home and other appliances or cosigning someone’s loan.
Try to use the above simple tips to get approved for a home mortgage loan in Pakistan, for the successful and effective home loan process.