Pre-Qualify for a Loan
There are a number of points you should be aware of before applying for a loan... following are the main factors that a lender will look into when assessing your credit worthiness:
- Steady employment history, at least two years with the same employer, or in the same industry/role.
- Consistent or increasing income over the past two years.
- Steady residential status (not moving house every 6 months, for example)
- Credit report should be in good standing with no defaults, bankruptcies or court judgements (although some second and third tier lenders will consider this scenario)
- Minimum of 5% of the purchase price must be genuinely saved (either held in a savings account over three months or built up in equity in existing proeprty). There are lenders available who do not require any genuine savings as an exception.
- Good repayment history on all existing debts including Mortgages, Personal and Car Loans and Credit Card accounts (this includes no late or missed payments on any account held). If you do have late or missed payments, we may be able to suggest a second or third tier lender to assist consolidate and reduce your monthly payments.
- If you can answer YES to these statements you should have no problem qualifying for a home mortgage loan.
While prequalifying for a loan doesn't necessarily guarantee that you will be able to purchase the home of your dreams, it does help you and potential lenders know your borrowing power and what you can afford in terms of a monthly mortgage payment. Prequalifying for a loan simply means that you have taken an inventory of your income and assets and submitted them to your potential lender. Based on that information you should be able to qualify for a home mortgage loan.