Sky News Gh
What do borrowers use to secure a mortgage loan, Check Now
To be given a mortgage loan, you must provide collaterals /or properties that are immovable with other documents as valid proof before you can secure the loan successfully.
Getting a mortgage loan is very tedious. You are entreated to keep all records of your activities right from proofs about your income, expenses, and ID cards secretly because they are part of getting a mortgage loan easily (valid proofs please).
Several comments on the web are geared toward the “what is the difference between a loan and a mortgage?”
In this response, we will address what is the striking difference between loans and mortgages vividly.
Is a loan the same as a mortgage?
Yes. There is a difference between loans and mortgages. The difference is about how to secure what you are requesting. In the case of a loan, it may be collateral-free /or secured while a mortgage demands collateral to get the loan…or in other words, a mortgage means immovable property(ies)…It’s very simple!
Since a mortgage is about immovable properties, it simply means there must be types of mortgages as in the type of borrowers who need mortgage loans.
What are the types of mortgages?
There are three (3) types of mortgages namely: Conventional loan, Jumbo loan, and Government-insured loan.
LIST OF TYPES OF MORTGAGE
- Conventional loan.
- Jumbo loan.
- Government-insured loan.
What financial documents are needed for a mortgage?
The following 7 financial documents are needed for a mortgage loan:
7 FINANCIAL DOCUMENTS NEEDED FOR MORTGAGE LOAN
- Tax returns
- Pay stubs, W-2s, or other proof of income
- Bank statements and other assets
- Credit history
- Gift letters
- Photo ID
- Renting history
What documents are also needed to get a mortgage loan successfully?
You must provide your Proof of ID, Proof of Income, and Proof of Expenses to get it successfully.
What items entail the proofs?
PROOF ITEMS FOR MORTGAGE
- Proof of ID:
-Your current photo passport /or Driver’s license.
-Recent utility bills.
-Bank statement /or credit card bill.
- Proof of Income:
For PAYE employment, your payslips are needed.
For self-employed persons, your SA302 and tax year overview, and accountant’s certificate are needed.
For other sources or extra sources of income people, provide P60 and or your three (3) months’ payslips, the current HMRC letter, DWP letter, or a letter from the local authority ( you should use it as evidence of income that assisted in fostering the number of children you have), and pension payslip.
- Proof of Expenses
-Your bank statements.
Related Contents;
Sky News Gh