The home finance loans are the loans availed of by either singly by an individual or jointly by a group of individuals, in order to finance a purchase of a home. Now we all know about the basics of these home finance loans, but when we actually get near to applying fro a home finance loan, the process and the various formalities, through which we are put through becomes highly stressful and difficult too. Due to the down play of the mortgage sector in the past several years, the process of the home loan underwriting has definitely undergone a sea of change.
Previously the need for the home finance loans, used to be Stated Income, which was not a true reflection of one’s income. But now the requirement has changed from Stated Income to Full Documentation. But this long drawn documentation aspect has certainly reduced the number of potential home buyers. But after all no one can afford to be without a home of their own, so home finance loans continue to be applied for and disbursed too.
There are lot of other factors involved too in the entire home finance loan process. Many of the home loan officers are now forced to carry out the role of a sneaky detective too. This is certainly a good thing, because the entire investigative process is aimed at reduction and removal of any possible fraud. But that also means that you will be put through more detailed and minute scrutiny, before you can realize the dream of owning a home. Despite the state of affairs, you can gear up to save your self much trouble, if you can get the subsequent preparations done, so that you are ready to face the scrutiny and dissection of the home finance laws and rules.
* Scrutiny of the Company
Due to the recession and the huge number of down sizing and the going out of business by many companies, not only in America, but also all over the entire world, people, especially the underwriters are cautious now. They want to ensure that the company you work for is in good health and business, before they can disburse a home loan to your credit. This process is surely going to take a long time
* Credit report
* Uninterrupted Job record
* Statements of Bank accounts and deposits
* Buyers Tax Transcripts
* lesser Debt to Income Ratios