Getting a home loan is no longer that difficult as it used to be in the past. More and more banks and financial institutions have started offering home loans and even the government now calls for flexible mortgage requirements, which has greatly extended the alternatives available for homebuyers. As a homebuyer, you can get a home loan with little or no income verification. You can even buy a home with little down payment.

How to take the advantage of the expanding loan market
Following are the three most important steps that ensure a seamless home loan approval.

Prequalification- Prequalification is important. No realtors and lender accept offers from buyers unless they are pre-qualified. We pre-qualify our borrower without specific property information. We use your loan information for underwriting and include your employment information, asset information, and credit history. By going through a simple prequalification process prior to signing a purchase contract, all obstacles to borrowing are removed.

We pre-qualify you as a borrower, which is subject to a maximum loan amount, down payment, and interest rate.

Our advice to first time homebuyers:
Make some initial study about your purchase price you would have to pay for the type of house you are looking for, the loan amount, etc. This first hand information would  help you to:

• Complete your application for the maximum tenure and purchase price that you would like to go for. We can always change these for you later.
• Get your loan approved at an interest rate that is somewhat higher than what you expect to get. Again, we can always change it later.

No income verification loans- These loans are aimed for buyers whose sources of income are widely distributed, typically self-employed people and those with very complex income structures. With a no income verification loan, you can simply state your income, and be qualified.

The rate of interest charged for no income verification loans are higher. Typically, the higher rate is to cover the additional risk that lenders are taking by offering loans against no income verification. Before lending a no income verification loan, lenders verify that the borrower has assets that logically match the stated income and an excellent credit record.

80/10/10 financing- Avoid mortgage insurance with 80/10/10 financing. You can purchase a home with a combination of first and second mortgage and avoid paying mortgage insurance. In such cases, the first mortgage would be limited to 80% of the home's appraised value while the second mortgage would provide for the difference between the home's purchase prices, less the 80% first mortgage, less the down payment available.

Try finding lenders offering self-insured home loans. Here also you can avoid incurring mortgage insurance payments. However, you should know that self-insured home loans typically have a higher interest rate in place of the private mortgage insurance premium.

Prior to deciding which type of home loan or mortgage you decide, you should take into account the combined monthly payments of the various options, adjusted for tax benefits of interest deductions.