I am a 19yrs guy from India and currently making around $1000-$1500 a month doing online business.After working a whole year I saved some money and willing to buy a apartment or a small house.But currently I got only stored half of the price of the apartment.So I need home loan for it. I contacted a few banks.But all of them required monthly income proof.But I got only monthly bank account statement. Please suggest me how can I get a monthly income proof or payslip. Thanks.
Your problem is universal I'm afraid. When I worked as a contractor, and despite earning a good income, it was extremely difficult to get any kind of loan from a bank because all of them view that type of work as unreliable, with variable monthly income, and no "proper" payslip. In the UK you used to be able to "self-certify" when it came to things like mortgages. This involved getting a letter from your accountant saying that you could afford to make the monthly payments, a couple of recent bank statements, and the bank would accept you on that basis. The LTV (loan to value) was usually quite low (around 75% i.e you needed to be able to put 25% of the house value down) so the bank's risk was reduced and they gave you the money. It worked out well if your assessment of your income was correct. If it wasn't it could end up being a disaster. The best thing you could do is find a specialist financial adviser in your country. As you have found, major banks lack imagination, don't like to take risks, and only bet on a sure thing when it comes to joe public. With a mortgage being a secured loan they can sometimes be (slightly) more flexible, but you will need a specialist in this field to advise you. I'm sure there will be other avenues open to you but you need specialist help.
Put all your businesses in the bank you want a loan from. Build long term, work 6 months, and put your earnings in the bank, so they see your monthly cash flows. After 6 months, go see them, talk a little business and ask what more they can do for you and your business. Then work 3-6 more months, and then come back and let them know that you want a home loan, based on your history with the bank. Make sure that they know and recognize you.
Thank you all for your reply. I already have about 50% of the home value.So I need the loan of only 50% of the price. Will this be a advantage for me?If yes what should tell the bank manager about I have 50%. Sorry for being a noob. Thanks.
Usually, the more money you have to put down, the more the bank is willing to listen. There are two reasons for that. First, if you put down a large percentage of the purchase price, you have just as much to lose as the bank does and the bank will assume that you will not be very likely to walk away from the investment and lose everything you put in. The second reason is that the bank's loan-to-value ratio will be much lower. That means even if the value of the property goes down 20 or 30 percent, the bank will still be able to foreclose on the property and sell it for more than the loan amount.
that is not always the case.. I went to buy a vehicle about a year ago...it cost $10k and I had just about $10k... the dealers bank would not give me the loan due to credit, and had the nerve to tell me why not just give them the last of my money to get the vehicle..such balls...I even told them that I would give them 50% down, they refused and ended up losing my business altogether, and I am glad I did as I found another vehicle for $2k. my best advice to this person from india is not to take any loans what-so-ever... save up the rest of your money, and pay for it in cash, and save your lost future interest you will be paying on the loan...you will have a good feeling paying for your house in cash, knowing you own it, and you owe nothing on it...in the end, you will be glad you did. Just because you have money does not mean banks will work with you. work just a little harder, and own your house, dont let the bank own it...