Archive for

Documents Needed For Home Loan

As you have made up a mind to take a home to loan buy your dream house. In today’s internet world you start searching on net for best offer. Search engines will take you to the different banks and financial institution websites, which provide home loans. You should also visit websites which offer advices on home loans. From there you get the idea about best interest rates, and other important information related home loan.

After doing all the research about all the factors you apply for a home loan. But most important requirement to get loan is the documentation which is quite tough. In case you miss out any crucial document your home loan approval will get delayed or may be your application will be rejected.

The first thing is the filling of application form and signing it. Then go through the official site of the bank thoroughly to get information about the mandatory documents needed for applicants. The main documents required for home loan are Proof of age Proof of identity – passport, PAN card, ration card, voter ID card etc.

Banks and financial institutions have specified documents according to the applicant’s category, purpose of loan, tenure, amount, etc. From the documentation column you can check the list of documents as per your category.

Salaried applicants

Salaried persons are required to submit salary slip of last three months showing all deductions along with current salary certificate, proof of continuity in job for last two years – either appointment and relieving letters or Form 16 for two years. Bank statement or pass book where salary has been credited for last six months, copy of appointment letter if employed for less than a year in current job, company profile for employees of a private limited company.

Documents related to Property

Khata certificate Latest property tax paid receipt EC for last 13 years, parent documents and all link documents for 13 years, approved plan receipts towards payments already made, in case of an old flat or house you are going to purchase – its sale agreement and title documents in favor of the seller, if you are buying a newly constructed flat then sale agreement or construction agreement with builder, total cost break-up on builder’s letterhead (in case of new flat).

To get refinance

In case of getting refinance you have to submit details of previous loan availed outstanding loan balance letter with foreclosure charges Letter of acknowledgment for deposit of title deeds.

Documents for self – employed

Self employed persons have to submit additional documents to get home loan. These are profile of business on the letterhead of the company, proof of IT returns for last three years, computation of income certified by a chartered accountant along with profit and loss account and balance sheets for three years, business and personal account bank statement for last one year and copy of professional certificate in case of a professional.

One thing to take care of is marginal money since banks calculate percentage according to your income and moreover banks only lend 85 to 90 percent of the loan amount.

Usually the banks ensure that monthly repayments do not cross 40 percent of your take home salary. While scrutinizing the documents bank finds applicant has a poor repayment track record and have sufficient default record on previous debts, then there are very bleak chances of getting home loan.

Chase Bank Home Loan Modification For Chase Customers

Most people trying desperately just to make ends meet are now wondering if they have any other alternatives to foreclosure. Luckily, mortgage loan modification can help stop foreclosure in its tracks and get homeowners back on their feet. Your lender and your loan’s insurer make a difference in how and when you’re able to modify your loan, so look into requirements for Chase Bank home loan modification policies and processes in this article.

The first thing you need to do is find out who insures your loan. Many people have no idea because they have never needed to know before. The easiest way is to call Chase and request the information. If your loan is insured by either Fannie Mae or Freddie Mac, then you are probably eligible to participate in the President’s $75 Homeowner Stability Initiative that works with lenders and borrowers to reduce monthly payments to 31% of gross monthly income.

Of course there are a few stipulations, you must be the owner and occupant of the home, and you loan must have less than $729,750 in unpaid principal and originate before 2009. Your loan must also exceed 31% of your income, and each loan is only eligible for one modification under this plan. It is, however, highly beneficial and if you think you qualify then you should talk to a financial counselor about it. This government plan gives incentive payments both to homeowners and to lenders to facilitate the process, so homeowners get better deals with loan modifications through this government program than by going straight through their bank.

If your loan is not a Fannie Mae or Freddie Mac loan, however, you are not eligible for refinance under this new government program. But don’t despair. Chase bank has its own loan modification process and you should certainly look into it before resigning to foreclosure. Requirements include being the owner-occupant of the home, holding a first mortgage (never before modified or refinanced), and being able to afford monthly payments between 31% and 40% of gross monthly income. Naturally this is higher than the government rates because these types of loan modifications are not funded by the government Homeowner Stability Initiative. If you meet the above requirements, Chase will ask for a hardship package containing your hardship letter, financial statement, pay stubs, bank statements, and tax returns.

No matter what avenue you go through – Chase or the government – modifying your loan is usually a much better option than foreclosure. It preserves your credit score and allows you to stay in your home.

Home Loans – Qualification Or Pre-Qualification?

There are some confusions regarding loan pre-qualification. People usually think that by pre-qualifying you have all you need to start shopping for a property. Actually, pre-qualifying will let you start looking for a property knowing that you have high chances of getting approved for that amount and those terms but that pre-qualification is not based on a thorough analysis of your income and credit and thus, there is no guarantee that you will get approved.

This usually implies that the final loan will have different terms than the ones stated in the pre-qualification letter. This has further implications: You need to be careful to provide true information to the lender so the pre-qualifying is as adequate as possible and you should have some savings in case the amount lent is a bit lower than you thought it would be. A lower amount assigned is a common problem that causes many transactions to fall because the buyer did not take the necessary precautions.

Pre-Qualification Explained

When you contact a mortgage loan lender to obtain a loan quote, the lender will present you an offer for which you will qualify if your financial and credit situations are exactly as you explained and if there are no additional variables that can modify their decision. Therefore, it is possible for you to request the lender to put this in written in order for you to use that information to shop for a suitable property.

You need to understand that legally speaking, there is no obligation for the lender to comply with that offer because they will state that the loan approval is subject to a credit and financial analysis for the actual qualification to take place. Therefore, you need to be extremely sincere with the lender (if there is something, they will find out) and you need to be prepared for unexpected situations that can shrink the amount of money you will actually obtain.

Actual Qualification for A Home Loan

The qualification process is different because once the lender has provided you with the result of the qualification, there is a legal obligation to respect the terms of the resulting document. Therefore, only final qualification guarantees you that you will get the loan you need with the terms agreed. However, in order to go through the qualification process and get approved for the final loan conditions, you will need to meet the requirements set by the lender and also go through a credit verification process.

This implies that you will need to apply with enough time for this process to be completed. If you are rushed, chances are that many problems will arise. The lender has to analyze your credit score and history, your income and financial situation, the documentation and legal stance of the property and the owner too.

Only after all these requirements have been fulfilled, you will be able to obtain approval for the loan and know the exact final terms including how much money you can obtain. You should put aside some extra money in case the resulting amount is not what you expected. Such precaution has solved not few but many real estate purchase’s emergencies.