No Deposit Home Loans | Bad Credit Home Loans

How To Apply For A Home Loan

Once you’ve found your perfect home, you may need to apply for a home loan. However, you may not know how to apply for one – in fact, you may not even know what a home loan is! Once you know what they are and how to apply, you’ll be even closer to owning your new home.

How to apply apply for a no deposit home loan

When it comes to applying for a home loan, you’ll need to find a lender and complete an application. Simple, right?

Usually, you’ll be able to apply in person, by phone, or online – but this can depend on the lender that you are with. Pretty much every lender will need you to give them some information about yourself and the person who will be put as a co-borrower on the mortgage (this could be a partner, for example).

The requirements

You (and your co-borrower, if you have one) will most likely need to give your lender a document which shows them your employment history, credit score and your financial situation. Before you complete an application, it would be a good idea to make sure that you have these things:

  • Recent pay slips (they should cover the last 30 days or so)
  • Complete bank statements for all of your financial accounts (including your investments for the past 2 months)
  • A signed personal tax and business tax return (all of the pages and also the correct schedules)
  • If you are self employed, then a copy of your most recent year to date profit or loss statement
  • A copy of the signed ‘Purchase and Sales Agreement’

Depending on your lender, you may be required to provide more documents. This could rely on your current situation and also the kind of mortgage that you are applying for (for example when looking for the best fixed home loan rates.

Your lender might ask you about your employment and financial history, as many do. With your permission, your lender can also run a credit check. You should be sure that you take as much time as you need and carefully fill out the application with as much accurate and necessary information as possible.

If you don’t disclose any credit problems up-front or hold back on some of the required documents, then it can only slow down the process – and it can also lessen your chances of getting a mortgage approval, so make sure that you completely disclose everything about your finances.

SheScape providing loan advise for women.

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Author Felicity Heffernan