Check the eligibility for mortgage loans.

Getting a mortgage loan is the One of the biggest financial task you’ll take in your life. It is better to know few things, before you start looking for a home, your research helps you to know how much a lender will loan you, where mortgage Pre-approval comes in, where you will get better mortgage loans and what is the procedure for getting Pre-approval.

This is a good way to compare mortgage interest rates and terms from different lenders. However, many sellers and real estate agents won’t accept a pre-qualification as proof of what you can afford.

When you are preapproved for a home loan, you must provide documentation of your situation, not just estimates. You may need to pay a fee for a credit check, and you’ll need income documentation and bank statements that show assets and liabilities. With more information about your situation, lenders are more comfortable committing to give you a home loan.

Don’t confuse a mortgage preapproval with a mortgage prequalification. A prequalification can give you a brief idea of what to you can expect.

With a mortgage prequalification, the lender or mortgage broker offers you a ballpark estimate of what you might be able to borrow based on information you provide. You tell them your approximate credit score, your income information, and how much you can offer as a down payment.

To help you get the best home loans,in this task, we share a Pre-qualification Sheet that allows you to calculate the eligibility parameters. This includes a section with two parameters. The first is intended for housing-related expenses. The second must include the sum of the expenses of the property and the debts of the client.

Sources of income:

Interview the client about all the income he receives, since these influences the approval and costs of the mortgage loan. Below, a summary of the sources of income.

job

The income, its origin and the frequency in which they are received are three important aspects to determine if the client could pay the mortgage. Some prospects work on their own or own businesses; others are salaried. In the case of employees, it is easier to validate.

On the other hand, those who work on their own, in addition to the forms, must present evidence of their percentage of participation in the business.

Remember to also inquire about Christmas bonus payments, performance and any other additional compensation. Each bonus must be considered as a monthly payment. For example, if in the last two years the applicant received a Christmas bonus of 64,000, divide that amount by 12 months and add it to the monthly income.

Rentals

Find out if the client declared rental income on the return. Only declared income can be considered for pre-qualification. Remember that there must be continuity in this income and evidence of the payment of the rent.

Pensions

Food: The child custody party can voluntarily use the income for alimony to qualify for their mortgage loan. The client must present certification of the Administration for the Support

Retirement and Retirement: Applicants who do not work but who have retirement income may qualify for a mortgage loan. The continuity of income will be documented, and the applicable withholding or net payment will be calculated.

Disability and others: The Bank will evaluate the benefit to determine if it can be considered as an income.

Bonuses

Dividends of bonds and interest accrued on investments can be included as income. It is important that you look at the continuity and stability of income.

Debts and obligations

The following debts can impact the customer's rating:

1. Credit cards and loans (auto, personal and student)
2. Loans with the Administration of the Retirement Systems

Calculate the possible monthly payment

We share the elements that will help you determine an approximate monthly payment:

• Main and interest- Access the Popular mortgage calculator to determine an approximate.
• Mortgage insurance - Guides the client about the options that may apply, depending on the type of loan.
• Claim insurance - The property insurance policy is included in the mortgage loan process. However, there are other insurances, such as flood insurance, which must be purchased separately. A property located in a flood zone must be insured with a policy for such purposes.

An important aspect for the client is to know the maintenance payment. Although this is done separately from the mortgage, it can affect the ability to pay. Report the amount of payment early in the process, so you avoid setbacks.