It is important to note that there are some people who prefer renting homes as opposed to owning homes because it now has some benefits to them. Since the upkeep of the property is made by the owner of the home, some people prefer renting to owning the home. The ability of a person to live in a place of their choice at any time is another gain of renting. Even though owning a home is very difficult in most parts of the world, there are still very many people who would love to own homes as opposed to renting homes.
There are very many ways that a person may use to buy a home. Obtaining a mortgage is one of the means through which one could buy a home.However, a certain criteria is observed in the awarding of mortgages to the people who want to buy homes. Highlighting the criteria that determines if one is to get the mortgage or not is the main objective of this article.
Assessing ones level of income is very criteria that must be processed before giving the mortgages to the people who want to buy homes. It is important for people to note that one’s income is assessed by them providing evidence of the amount of income which they earn. An employer ought to give an employee the pay stubs in the likely hood that the employee who wants the mortgage does not have the paystubs. It is worth noting that the kind of evidence required for the self-employed persons is a copy of their most resent tax returns.However, it is important to note that the provision of using tax returns for the self-employed depends on the type of lender and is not uniform
Another very vital factor that must be looked into in the awarding of mortgages is the credit history of the borrower. Based on other forms of credit that a person had been given, it is important for people to note that they must show that they have the capacity to repay a loan.It is therefore very important for people to investigate on their credit score online before applying here for mortgages.
Another criteria in the awarding of the mortgages is the down payment. The importance of the down payment in these mortgage transaction is that it acts as the security.It is worth noting that people are advised to pay high amounts of down payments as it has many benefits.