Often, prospective buyers will come short of the actual price of whatever exclusive real estate they wish to purchase. To help them along, they seek out a mortgage and financing plan ahead of time, ensuring that they can own the Las Vegas luxury homes they’ve always wanted while splitting the full payment over a comfortable period.
Not all people get approved on their mortgage applications, however. To avail of a mortgage, one must be able to maintain a good standing in the items listed below.
A prospective buyer needs to provide a proof of a steady source of income as a prerequisite to a mortgage approval. This often includes copies of the buyer’s paystubs, filed W-2 forms, and tax returns.
The mortgaging agent will also take note of the buyer’s current possessed assets and debts. This will help the lender determine if the prospective buyer already has enough assets stowed away to keep up the mortgage payment in the long run. Bear in mind that assets obtained through questionable methods, like temporarily sourcing assets from a relative’s account, is forbidden and can have a negative effect on any future loan applications.
Viewing a buyer’s credit history is the last step before a mortgage can be approved. The lender can look into the buyer’s debt payment history, the type of credit used, how long the debts were paid and more. Debts with noticeable periods of delayed payments can reduce the chances of a mortgage approval.
The Home Loan Process
The first step of availing of a loan is the application process. This is the phase when the lender will review your income, assets and credit history to determine your eligibility for the loan. The lender can also interview you on your motivations about purchasing the property in the first place.
Choosing the Best Loan
Once you have been cleared to avail of a purchasing loan, the lender will provide you with a number of possible loan options to choose from. Review all loan programs carefully, and choose the one but best suits your long-term needs.
Locking the Loan Rate
A rate lock protects the borrower from having fluctuating interest rates over a pre-determined period that the loan is active. You can choose to have your loan rate locked down at a certain amount between 30 and 60 days, or you can let the loan float for the same duration. Discuss this directly with the lender to ensure that you don’t make any mistakes that can hurt your credit rating in the end.
Loan processing takes place once all initial agreements have been completed and all key forms have been signed. This also involves an independent appraisal and preliminary report, which come as part of your purchasing offer to the home owner.
Not all loans can be approved during the prescribed application period. Some loans can go through a period of underwriting, when another party will determine your validity for the loan through your credit rating, asset capacity, and the collateral you can offer in the event that you fall short. A strong showing on all three factors can easily lead to the underwriter approving your application.
Preparation for Closing
The necessary forms and documents related to the loan are sent to your agent for signing and closing.
The loan forms and documents are signed in the presence of your agent. Once completed, the agent will file the final loan papers that certify the validity of your home loan.