by Private Property Reporter
Securing a mortgage loan facility from a Primary Mortgage Institution (PMI) can prove to be a tough task. However, when you apply properly, you will improve your chances of getting approved for a mortgage loan. The following are 5 must haves before you qualify for a mortgage loan facility.
Down Payment (10%-30% Equity)
Depending on the loan amount being sought by you, your PMI will require you to pay between 10-30% of the property value. You need to have this amount ready before applying for a mortgage as your mortgage application might be declined if this criteria is not met.
Tax Clearance Certificate
A tax clearance certificate is a docment that is issued the the Federal Inland Revenue Service, or otherwise, clearing you of tax indebtedness. When applying for a mortgage loan, you need to tender your tax clearance certificate to the lending bank. If you don’t have this presently, you should try and get it so that you can improve your chances of getting approved for a mortgage loan.
Offer Letter from Seller
You need an offer letter from the seller of the property you wish to purchsae. This letter expressly states his intention to sell the property to you and clearly indicating how much he wants to sell the property. After this document is presented to the bank, the bank will carry out a valuation on the property in order to determine if the property is really worth the stated amount on the offer letter.
Property Title Documents
When applying for a mortgage, the title documents of the property you want to purchase must be presented to your PMI. This will enable the bank to determine if the documents are genuine or not.
Evidence Of Employment/Income Inflow
This is one of the most important documents you have to present when applying for a mortgage loan facility as this enables a PMI to determine if you can repay the loan or not. Most PMI’s will typically require evidence of income inflow using your pay slip or bank account statement.
