Affordable Home Loan - Is This A Reality?

By Author: Kirthy Shetty
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Build a home, it is now a reality with affordable loan rates. Property prices have gone down making home construction a possibility to all. But, qualifying for a home loan is not that easy. With recession job market has become unstable and more and more people are losing their job.

You can procure loans to construct a new home or add equity to your old home by renovating it. Many experts have hailed this plan coming into effect at a time when the economy needs a major boost. Many hope that this move will set real estate prices soaring again. No more borrow money from friends or relatives if it is embarrassing to reach out to them. Quick loans will help you revamp your house at a lesser price. Shell out a few dollars in renovating your house and increase the equity of your house.

Reasons that impede you from taking a loan for your house are:

Lack of job stability: You must have a stable job history to be considered a good candidate. Show enough proof of last two years work history to prove how stable you were. Pay slip and a bank statement of past one year will serve enough proof of your job history to the ...
... lender. This assures the lender house loan payment on time and he will approve your loans with out any hesitation. Some banks have denied loans for house and vehicle during recession. They are not sure about the loan payment as people losing their jobs have gone high.

Insufficient income: It's not enough if you prove steady job you should also show enough evidence that your earning is good. As you need to repay the loan amount after meeting your living expenses for the month, you should have enough for your loan payment. Usually, you must have 2 and a half times your monthly debt payments coming in as monthly income.

Inadequate credit score: If a borrower has faced bad financial times in the past, he will definitely have a negative credit score due to his loan defaults, county court judgments, arrears etc. FICO score of 620 is the minimum credit score required by a lender. With a higher FICO score you can win better loan rates.

More over, people in military service get better loans. The loan rates that are available to them are often more beneficial than the rates of other home loan rates. For many veterans, this may be the first home that they have ever purchased. If you are a veteran enroll yourself in a guaranteed home loan program.

Kirthy Shetty, Expert Author. Information on Affordable home loans at: Affordable Home LoanCommercial property loans uk enquiries at: Commercial Property Loan