General

The Basics of Getting a Home Loan

Most young couples work & save for years in order to be able to afford the first down payment on their home. This takes a lot of scrimping and saving. When someone first walks into a bank, he has probably already done the preliminary work needed to get the paperwork. They have a home in mind. They know how much they can afford. They may even know that the rule of thumb is two and a half times a person’s yearly income. The process of preparing to purchase a person’s first home is a daunting task. It never gets less complicated, but it does get easier. If someone has a house in mind, their next step is to go to the bank and get a home loan.

The average individual knows that banks are more than willing to take a person’s money. They are less likely to loan out money. They make their money by loaning out money, after all. They have made more of their money from fees in recent years, much to the annoyance of their customers.

The buyer will fill out a wide range of paperwork when he walks into the lending officer’s office. The paperwork itself does not guarantee a person will get the loan. Whether or not a person gets a mortgage depends on a number of factors. The first factor is how much a person makes. The second factor is the amount of the house. A person’s credit rating will determine if a person qualifies for a loan or not. It is an annoying fact of modern life, but there is nothing a person can do about this, other than try for a certain amount of self-sufficiency, but most people will not be able to go out and make the full payment on his home. If he can do this, it means he either has a lot of money or has bought an extremely inexpensive house. If a person has gone for the latter option, he may has bought what is referred to as a fixer-upper’s dream.

The loan officer will fill out the paperwork. He will also determine whether or not a person qualifies. Even if a person pre-qualifies, it does not mean that the borrower has gotten a loan. It only means he is more likely to get the loan. This may be confusing, but it is important for a perspective borrower to understand this before he goes into a bank. There are many other items that determine if buyers can get home loans.