Author (gennystutesman). Submitted on Fri, 27 Jan 2012
Obtaining a home loan is not as simple as borrowing money and buying your dream house. Lenders are not really going to let that happen, unless you prove to them that you are deserving of a loan. Home loans are most likely granted by lenders to those who have the essentials. Employment One of the main requirements of obtaining a loan for a house or any other property is employment. Lenders usually require borrowers to submit their latest two-year employment history. Such employment history should be in the same field and there should be no gaps in between. For instance, if the borrower had more than one job in the last two years, the other jobs should be related to the first one indicated in the history. Any changes or gaps in the employment history should be justified to the lenders. Credit Score You may have the employment history, but you may still not get that home loan with a poor credit rating. A borrower’s credit score is another factor to be considered by lenders when it comes to loan approval. Borrowers with credit rating of 580-720 are more likely to be offered favorable interest rates and payment options than borrowers with credit ratings below 499. Down payment Settling a big down payment indicates commitment and determination on the part of the borrowers when it comes to the financial agreement. Some types of Dallas home loans require down payment as much as 20% of the total amount of loan. Others require a smaller down payment, depending on the type of loan and payment terms. Property characteristics Interest rates and payment options may depend on the characteristics or features of the property to be bought through the loan. A manufactured house or condominium usually involves interest rates that are higher than other types of home. Take note that there are types of Dallas home loans that are offered only for certain type of property such as a four-bedroom home or a piece of land. Ask your bank about the properties they offer so you would know what type of loan you should obtain. Loan Type Besides property characteristics, Dallas home loans can also be classified based on the specific segment of population to which it is designed for and offered. Low income and eligible veterans of the US Armed Forces can qualify for FHA (Federal Housing Administration) loans and VA (Veteran Affairs) loans. Some of the requirements for FHA and VA loans approval may include, but are not limited to tax returns, bank statements, paycheck stubs, honorable discharge documents, and others.
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