We understand that buying your own home is significant to you. On the other hand, it could be pretty stressful, especially if you obtain Islamic home loans. But that becomes a problem when you don’t talk to the right financial adviser.
Rest assured. We have covered a few points to help you get pre-approved for Islamic home loans.
A loan pre-approval means that the lender has agreed to lend you your loan. But he has not proceeded to give you final approval. However, there are instances during which the lender can cancel your Pre-approved loan.
Here is a guide to help you secure a pre-approval effortlessly.
1. Stable Flow Of Income.
First off, you should have a job or have a steady flow of income to apply for a loan.
A stable source of income boosts your profile. The lender must trust that you are capable of paying back your loans. Therefore, do not leave or switch your job before applying for a loan.
2. A Good Credit Score.
Credit scores play a significant role. But remember, just a credit score will do no good. Instead, you should have a POSITIVE credit score.
You've got to make sure that you have paid off all debts and maintain a low debt figure to get your loan approved.
3. Avoid Debt.
Ensure that you have settled all your debts and credit card bills before applying for a loan.
It is advised that you don't take on new debts before applying for a loan. Your credits don't have to be zero when applying for a loan but keeping them at the lowest would prove to be helpful to you.
4. Conserve Your Cash.
If you walk into the lender's office with zero cash, your loan request gets disapproved.
Nowadays, lenders do not approve zero-down mortgage loans. Instead, they require a down payment. The average amount of down-payment required by each lender differs from one another.
5. Credentials Of Assets.
It is easier to secure your loan if you can prove that you can pay the down payment. Presenting your assets to your lender would prove to them that you'd be capable of repaying your loans.
6. Having A Consignor.
If your income is not high enough for you to obtain a loan, a consignor can help.
Your consignor's income would be included in the affordability calculations and increase your chances of obtaining the loan. A consignor does not necessarily have to live with you however, your consignor should have a good employment history, a stable income, and a good credit score.
You and your consignor must understand the consignment's legal and financial obligations.
1. Saves time.
Being pre-approved means you know your budget and the price range. This way, you have a few months to look for a suitable house for you and find houses within your price level.
Also, you'll be able to save time when the lender already stores the closing process as almost all of your financial information.
2. You are an impressive buyer in the eyes of sellers.
Often, Real estate agents and sellers do not give much importance to buyers who seem mediocre financially.
However, pre-approval means that a lender has assessed your financial background and approved it. This will help you seem like a serious buyer in the eyes of the sellers.
3. Confident at auctions.
If you're planning on buying a house at an auction, having a pre-approval will boost your confidence. You have to stick to your budget and not go overboard.
4. Bargaining and Negotiation Benefits.
Having a pre-approval letter in hand means that you have more negotiating power.
Knowing that you will close a deal on loan appeals to sellers. They know you have already talked to a lender and mean business. You are an authoritative person.
Hopefully, the suggested guidelines and steps will help you secure your pre-approval. If that's not helping, we're right here for you. Talk to Afiya Financial Services, and our experts will take you through the process.
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