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What are the factors your loan depends on?

Posted in Real Estate

There are several deciding factors that the lenders consider before entertaining the loan application. First they will look at your annual income. This is the most basic criteria of deciding the loan limit. Next checkpoint in the list is monthly expenses.

These are also important as the monthly expenses will have to cut off by some points to allocate that amount for the monthly installments to repay the loan. The term duration of repayment depends upon the years of employment left with you. Longer the duration of the job left, larger will be the repayment term with smaller installments.

The bank officials will check your financial condition, your salary checks, and the number of people who are directly dependent on you and then proceed with your evaluation. Based on the evaluation result they will sanction you the loan. 

Brokers should pay attention to detail

Having a checklist is always important, especially in case of mortgage broker. This is to ensure that the brokers haven’t missed out anything. Missing out even a single point can prove expensive to the borrower. Good brokers should be careful and should make sure they did everything possible for the borrower. Good brokers don’t have to hunt for borrowers, they always have referrals, because of the good work they did in the past.

Brokers should be good with numbers

Good brokers always work for the benefit if the borrower. They receive various details from lenders and wholesalers. These details are in the form of price-sheets which are complicated. Brokers should be able to compare all the prices and details, and provide the best one to the borrower. They should therefore be comfortable with numbers. Also, they should be able to come up with proper estimates, once they receive more details about a borrower’s requirement.