Obtaining finance from a bank to purchase a house is not easy and if you are not well versed in the terminology and expectations, your chances is slim to none. It is always best to employ the services of a professional Finance NZ who has the knowledge and contacts to make this process easier.
Obtain a pre-qualification from the bank first which will give you some indication of what your limits are. A pre-qualification is not a guarantee that finance will be granted but rather an estimate based on the information you have provided.
There are certain documents that you will have to supply the bank to obtain a pre-approval.
Proof of Income and W-2 statements for the preceding two years. Lastly your tax return for the preceding two years so that they bank can validate that the money shown as income is what was submitted on your returns.
Proof of Assets includes copies of your bank statements showing your funds and investment account statements as investments are an asset and these are needed to show that you have the available funds for payment of the down payment as well as the closing costs.
Good credit scores are always a bonus when applying for finance. The better your credit, the more negotiation allowance you have to negotiate the interest rates. Your credit scores will also affect the size of the down payment you have to make.
The bank institution will want to verify your employment. Even with the presentation of the pay stubs, they will want to call your employer to verify that you work there and the length of time you have been employed with them.
Other documentation required will be your driver’s license, your social security number and your signature to enable them to draw a credit record on you.
Obtaining home finance is no easy feat and it always best to go into such a transaction organized and prepared.