Home Loan & Mortgage Pre-Qualification

Both the real estate market and the mortgage market are buoyant. So much so that good real estate is often the subject of a bidding war, in which, in many cases, cash rivals win over home loan applicants.
What can you do if you don’t have enough cash in your pocket?

The answer or solution here may be the so-called bank pre-qualification. Specifically, this means that the bank examines and determines our creditworthiness. So, for what term, how much of a mortgage loan we are calibrated to, so how long can we stretch for a home loan.

It will issue a certificate for 3-6 months.

What does such a home loan promise know?

The point of pre-qualifying is that the property you want to buy may not yet be available. In this case, the bank only examines and classifies us (debtors) according to its own risk management rules, taking into account factors such as income, existing loans, age, family background, number of dependents, regular monthly expenses, etc. Based on these, you set a limit on us as debtors, which shows how much maximum mortgage we would be entitled to if we wanted to finance our home purchase with a home loan.

What can we do with this pre-mortgage certificate?

A big benefit of a pre-credit assessment is that before you submit your specific loan application, we will have information, and even proof, of the amount of eligible mortgage you are likely to be eligible for.
This way, you can avoid paying a lot of unnecessary nervousness and upfront costs, such as the cost of getting a property bill, the lawyer’s fee, the cost of valuation.

Not to mention the biggest risk, the down payment of up to 10% of the purchase price of the property you look for!

How quickly do I get the result of a pre-mortgage review?


Banks will make a preliminary credit assessment in about 2 weeks. Of course, all necessary documents must be sent to the bank.
Once this is done, the maximum repayable portion of the home loan will be determined based on the loan amount, maturity and interest rate.

What are these required documents?

Practically the same documents are required for a preliminary credit assessment as for a standard loan application. What each bank requires is a completed loan application form, a final 2-3 months bank statement, personal documents, and last but not least, an income certificate completed on the appropriate form.

What Does a Home Loan Promise Include?

If the preliminary review is positive, that is, we are creditworthy, then the bank will give us a valid certificate for 3-6 months, which allows us to look for real estate in our pocket and to compete with competing cash buyers. Because the seller can be sure that we will get a home loan for our property purchase.

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