Home Loans: Most people are on the lookout for 100% home loans, however, people are persuaded to apply through various sources because the information is slightly skewed.
If you are phoning banks and mortgage originators and asking them if they offer 100% home loans you are asking the wrong question.
Everyone will answer yes, because all the banks offer 100% home loans, it really just depends on 3 major factors if you’ll get the full loan or not from any particular bank:
Criteria no. 1
Do you bank with that particular bank? A bank will offer you a loan of UP TO 100% if you bank with them.
Criteria no. 2
Your credit record and payment profile must be spotless. If you are a credit risk the bank will not give you 100%. Often, if you are self employed the bank will also not give you 100% because it’s a riskier type of loan.
Criteria no. 3
The valuation of the property must be in order. If the bank finds a lower value, their will either not finance the property or make you a lower offer which you can accept or decline. You’ll have to come up with the rest in cash if you wish to continue with the transaction.
When applying for home loans ALL 3 bits of criteria must be met to enable you to be approved for a 100% home loan.