How to Apply for a Home Loan

When dealing with a lender for the first time, you will need to be properly identified before even beginning the home loan process. Lenders require identifying, original documents whose total value must be equal or greater than 100-points. A birth certificate earns 70 points, a driver’s license may earn 40 points, and a credit card may earn 25 points.

Preparing the Documents

Many banks ask for different items, but the most common requests include:

At least two recent pay slips and a group certificate, outlining the benefits of the employer under this group.

A letter from employer detailing and explaining income and duration of employment.

Note: If self-employed, the past two years’ tax returns and accountant’s details or the past two years’ financial statements and accountant’s details will suffice. You may be asked to provide a profit/loss statement that has been certified by a registered accountant.

What Lenders Look For

Lenders typically consider the following attributes before making a decision on your home loan application:

• Ability to repay
• Collateral
• Existing Assets
• Time spent at current address
• Personal Insurance
• Existing loans
• Credit Card Information

Borrowed Amount

Most lenders allow a borrower 80% of the home’s purchase price, or 95% if the borrower is willing to pay for mortgage insurance, designed to protect the lender. Fees are dependent on the amount borrowed and property value.

Contact Us

If you need help considering lenders or types of loans, contact the staff at BRC Orlando Custom Homebuilders at 407-612-6998 to discuss your options.