Home-shopping is the exciting part of the chronology in the home-buying process. Many overlook this step either out of excitement or being overwhelmed with the whole process. But a smart owner will always initiate the journey from lender’s office instead of at an open house. Pre-approved loan opens the door to the best shot in owning your perfect dream house. A pre-approved mortgage loan in simple words is a commitment from the lender to the buyer to allow him/her to borrow a specific principal with the discussed interest rates. The approval depends on your creditworthiness, financial position, and income sources. Due to the advancement and digitization, you can even opt for e-approval by filling up an online application form in some lenders’ companies. We have an exciting offer if you are looking for land loan for Provident Plots in Woodfield project which is located in E City, Bangalore.
Elements involved in Pre-Approval Loans:
REQUIREMENTS
A pre-approved loan only gets qualified to you when the lender feels you have the ability to reimburse the loan amount along with interests. The legalities and financial documents require from you are Proof of Income (Financial statements for two years including revealing alimony or bonuses), Proof of Assets (Details of other properties other than your income and specifying gift letter -if any), Credit Score (Minimum requirement starts from 620 or above in FICO score, for best deals, 760 or more), Employment Verification (This stage is for lenders creating transparency and confirming borrower’s income stability), and other documents (including a driver’s license, passport, UIDAI number, etc.) It should be noted that for in-principal approval, the borrower needs to abide by the diligent clauses of properties. In spite of having a pre-approval letter, the disbursal can be stopped by the lender if the titles are inefficient.
LOAN TERMS AND CONDITIONS
The conditions of loans are subject to change with time. For example, the agreed EMI, tenure, and interest rates may change when you’ve finalized your property. The terms are again revised during disbursal time, so prepare for the surprise rates.
VALIDITY
A pre-approved mortgage has a limited life (mostly six months). You’re required to conclude the dealings with properties within the mentioned time. If you fail to comply, you’ve to reappraise the loan application.
How it makes Easier?
YOU KNOW WHERE TO LOOK:
Shopping is fun when it goes according to your budget. The pre-approval helps you to navigate into the accurate ranges of homes. It assists you in understanding your financial standing better than ever. You can prioritize the “necessary” and “luxury” by studying your mortgage amount and own capital investments. It’ll be easy for you to stray away from unreasonable listings and peck into the dream home. It works as a filter to unending pages of houses.
BETTER CHANCE FOR NEGOTIATIONS:
It has been a trend that homebuyers with pre-approval mortgage papers can persuade a better deal than the ones who don’t have the letter in hand. The property seller or real estate developer will take you seriously if you stand with a pre-approval home loan. They’ll think twice before covering any disputes or fraudulent. In some cases, it has been evident that the sellers prefer buyers with pre-approved mortgages. They even go out to the length of offering exciting deals to the customers. As they come with better chances in quick payment of the price.
SPEEDY WRAP UP:
After you crack a deal, the only thing is left for the lender to evaluate your property legalities. Since in the beginning, you’ve already got through the headaches of paperwork, the loan processing times get reduced. Therefore, the faster you receive the disbursal, and happier is the seller.
It is highly recommended before you start with house hunting in provident plotted project; make sure you’re equipped with the pre-approved homes loan.
If you are looking for an investment strictly in plotted development project then we have good news for you. You can invest in Provident woodfield project which is located in Electronic city. For more information about Provident Woodfield Plots visit website.
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