Understanding the process

Buyers need to fully understand the criteria that banks consider when assessing their home loan applications. PICTURE: TUMISU/PIXABAY

ASPIRING homeowners often do not understand what is required of them to ensure a successful home loan application – or what the banks actually base their decisions on, according to Kevin Mountjoy, director of Bond Gallery.

They might not understand that the most important criteria that the banks look at in assessing a client’s loan application are what they can afford and their credit rating.

“It is important for potential buyers to understand their purchase price parameters based on their affordability.” Getting prequalified is an essential part of the buying process as it helps buyers understand their buying potential, based on affordability.

“Understanding their external credit profile/credit score is also a huge factor in the bank’s approval of a mortgage loan.”