What do banks look for in a mortgage application? Let us be your guide!
Once your mortgage application is filled out and sent to the lender for review, the first thing they will look for is your ability to pay back the loan you are requesting. Sarah and I have a streamlined the process to help you get your "ducks in a row" prior to this review. We ensure the loan package is in perfect order and answers all the important questions up front. We know what the lenders are looking for, based on long-term relationships with them and extensive knowledge of guidelines for all the programs that are available today.
What is the lender looking for when they review your application?
The lender wants to know about your personal financial picture, including savings and credit history and your employment stability. The co-borrower's history is also taken into consideration. The lender also considers the loan amount and appraised value of the home you are looking to purchase. Not every applicant is approved the first time through the process. If the underwriter has any questions or concerns, he or she will require certain conditions to be met before they approve the loan. Pre-approval prior to house hunting lets you know exactly how much you are qualified to borrow in advance.
What can you do to make it easier?
Before taking out a mortgage it helps to establish a consistent record of paying your bills on time. If you have utility bills that are overdue, bring these up to date. Make sure you are paying credit card installments in a consistent and timely manner.
We can help you evaluate your debt-to-income ratio to determine what mortgage payment will be comfortable and affordable for you on a monthly basis. You need to have enough savings to cover your down payment and closing costs, and this saving must be on file for at least 3 months.
What is the lender looking for when they review your application?
The lender wants to know about your personal financial picture, including savings and credit history and your employment stability. The co-borrower's history is also taken into consideration. The lender also considers the loan amount and appraised value of the home you are looking to purchase. Not every applicant is approved the first time through the process. If the underwriter has any questions or concerns, he or she will require certain conditions to be met before they approve the loan. Pre-approval prior to house hunting lets you know exactly how much you are qualified to borrow in advance.
What can you do to make it easier?
Before taking out a mortgage it helps to establish a consistent record of paying your bills on time. If you have utility bills that are overdue, bring these up to date. Make sure you are paying credit card installments in a consistent and timely manner.
We can help you evaluate your debt-to-income ratio to determine what mortgage payment will be comfortable and affordable for you on a monthly basis. You need to have enough savings to cover your down payment and closing costs, and this saving must be on file for at least 3 months.
If I just started a new job, can I still apply for a mortgage?
A stable employment history is important, but the lender does take human factors into consideration. If you've recently completed college or university, you have good cause to have a lack of consistent work history. If your profession is seasonal, and gaps in employment are normal in your field, there are mortgage programs that can work with your situation. If you are a freelancer or do contract work, the lender will look for consistency in income over the last two years. If you have moved employers but stayed in the same field, lenders will still consider.
Consistency is the key word in the lender's mind. But know that lenders have developed many different mortgages to meet the needs of the general public. Times keep changing and so do mortgage rules. Sarah and I stay on top of current mortgage trends. We monitor rates daily and have a support network of Realtors, CPAs, Financial Planners and Credit Repair Consultants to lend you additional assistance.
Give us a call today to find your best options!
No comments:
Post a Comment