Not everyone who applies for a housing loan, get the approval they want. There are ways, though, that can bring up your chances to obtain a “yes”. One can relate the process to courtship. One needs to show his best self, but his best self should match and pass the desires and criteria of the coveted one.
What then do lenders look for in a housing loan applicant?
- A sizeable income that can cover monthly amortizations.
- They seek for stability. It is not enough that one has a source of income, it has to flow in steadily. Although no one is certain of the future, past occurrences help predict the forthcoming outcome. Some banks look at, 2 years minimum, of steady employment.
- Trustworthiness and reliability: as in all relationship this is a must and needs to be tested and proven. Have you been diligent in paying you other debts or your utility bills?
- Does the borrower have back-up—a guarantor who can support when the unexpected comes? Guarantors who possess high credit rating can enhance the likelihood of the housing loan approval.
- Be invested on it. Provide enough equity from your savings to reduce the loan amount. It’s advisable to be ready with your own cash, at least equivalent to 20% of the desired home’s selling price.
- Be prompt and available. Complete requirements and respond to queries on time, all the time. Don’t let them wait and doubt. Your actions speak volumes about your character.
Go gain the approval that you have well proven to deserve. There’s no such thing as luck in love, and so is there none in housing loan applications.