The word mortgage means a mortgage loan. A mortgage loan is some kind of loan through the use of mortgage note and mortgage document. Before purchasing a real estate, all buyers should try for a pre-approved mortgage loan. It has many features, these are:
Confirmation of purchase a property
Pre-approval of mortgage loan ensures the confirmation of purchasing a property. It is not easy for everyone to get a mortgage loan. It is a complex procedure. For getting a mortgage loan, we need to proof
Few things, these are:
It is the initial level for any loan. You will have to submit your SSN card, Driving license copy and lending forms with signature. Some lenders ask additional documents for a mortgage loan.
Proof of assets
You will have to show a bank statement for the last 6 months. In your bank account, you must deposit a certain amount of money for a down payment. The down payment amount may vary from country to country. In the third world like Bangladesh, down payment amount is 20 percent for the actual loan. If we look at the USA or Canada, it is about 3 to 4 percent.
Proof of yearly income
It is mandatory for all loans. All borrowers in the USA must submit W-2 statements of the last two years to Lenders like Bank, Financial institutes, or individuals for purchasing a real estate. If you live in developing countries like India or Pakistan, you will have to submit income statements for the last two years to lenders. It includes tax returns, bonuses, etc.
Proof of employment identity
Most of the lenders will verify your employment identity. They will not be satisfied with your papers; they will talk to your immediate supervisor for your present activities and check your ability to pay the loan with interest. They will also expect your stable employment in your service center. If you are a self-employed person, you will have to submit additional documents concerning with your business and income.
Creating a bargaining capacity
If your mortgage loan is pre-approved, you can do bargain with the seller for purchasing a real estate. There is a probability of reducing the price of real estate.
Get the tax holiday
There is a tax holiday facility in many countries if anyone has a mortgage loan. It is only available for the real estate sector. A certain amount of tax reduction is available in western countries.
Provide support to buy a real estate property
Most of the famous mortgage companies have a group of expert people who can give us a good guideline on how to buy a good property. It is a moral responsibility for a mortgage company to provide good support to potential customers. Nowadays, most of the customers are alert in the USA. They like to contact such a company which will give moral support during the period of their needs. Before getting a mortgage, we need to verify the previous activities of a company. It is mandatory for us. Everyone should realize it very quickly.