Have you ever seen the house of your dreams and thought about how you can buy it? Investing in your first property is an exciting prospect but can be very daunting too. Just hearing all the mortgage words and phrases is enough to cause your head to spin. If you applying for a loan for the first time, you’ll need all the help you can get.
This help can come from several sources. You can out check the property agencies in your area and ask an agent all the information that you want to know. Because the real estate business is an established industry, their presence is established even in smaller municipalities like Surrey Real Estate. If you don’t have the time to spare to go to a business office in person, you can just log on to the Internet and look for companies such as Sutton Realty to know the basics of acquiring a property.
If you are a first time borrower of the Jamaica Loans, it helps to understand the basic terms that are used in applying for a house mortgage. This is especially important when you are accomplishing a loan application. The evaluation of an application takes several things into consideration.
• Your credit report. There are private agencies that releases credit reports to help banks and lending companies evaluation an applicant’s experience with credit transactions. The accuracy of credit reports is important because it can result in higher interest rates for a loan or worse, a denied application.
• Your current credit standing. Your credit card transactions are likely to be reviewed so make sure that you settle all outstanding balances on time. The length of time that you’ve maintained a credit account is also accounted for. Lenders give a favorable rating to individuals who have successfully managed to keep their accounts active and in good standing. Applying for a new credit account at the time of a loan application is mostly considered a bad sign by most assessors.
• Ability to pay for the down payment. Being able to put up a big amount for down payment increases a borrower’s chances for an approval. It can mean a lower loan amount though unless this is supported by an excellent credit history. In a loan evaluation having a great credit history can greatly swing your chances for approval.
• Amount of your regular income. This determines where you will source your mortgage payments. It takes into account all the regular sources of income. Contractual jobs or earnings are not considered because these amounts cannot be sustained for a long period of time.
• The prevailing interest rates on the market. While this is not a basis for the evaluation, it is a factor in the computation of your monthly payments. Some lenders assume a lock-in fee if they feel that the rates are likely to rise higher in the near future.
These are just some of the aspects that are given weight during the assessment of a loan. It helps a lender determine if you are capable of meeting your monthly payments in case that they decide in your favor. As a borrower, it is your responsibility, to check out the history of the company that you are working with. Knowing the percentage of their approval plus their history can help validate if you are working with a reliable institution.