5 FACTORS IN GETTING APPROVED FOR A MORTGAGE

Second Mortgage Loans

Having a house of your own is a dream to a lot of people today. Very few are able to make it a reality due financial struggles. Things have tightened up in the housing market, so lenders are now looking at mortgage applications more closely and with much more care. Many home buyers most of the time are not aware of how a simple decision such as making a credit card purchase or moving money from one bank account to another can risk their pre-qualification for a mortgage.

 

Consider these 5 common factors before applying for a mortgage loan:

 

  • Debt-to-Income Ratio:

Before a lender considers approving you for a loan, they will want to know all about your current debts and your ability to maintain your debt payments. Any type of loan whether it be a student loan, personal loan, credit card or any debt will be considered when reviewing your debt-to-income ratio (the size of your monthly debt vs. your monthly income. Lenders want to make sure you have the full ability to make all their monthly payments without overextending themselves.

It’s best to keep your debt-to-income as low as possible. This will help improve your chances of getting approved for a mortgage in the future. Avoid applying for any kind of new credit and also a good idea to pay off large debts before meeting with a lender.

  • Review Your Credit Report:

The best way to have a good start on your mortgage process is to know what your creditors are saying about you. Your credit score and credit history gives the lender an idea on how you manage money and the probability of your ability to pay back your loan. You should have accurate credit information to avoid any problems in the future. Review your credit  report in advance  and report any inaccurate information that could bring your score down. Your credit score is important crucial information that can impact anything from interest, loan terms and also loan conditions.

  • Large Deposits:

The Lender will be keeping an eye on any large deposits into your asset accounts (savings, money market, checking, etc.). You should be prepared to document the source- such as bonus check, a copy of the paycheck, money from the sale of an asset, etc. All sources of income will be verified.

  • Become a Paper Hound:

Save all bank statements and pay stubs from now until closing of your mortgage. The lender will need these, so make sure you keep them handy.

 

Changing Jobs:

A different career opportunity can be exciting move but it’s best to wait until the mortgage process is complete if possible. A new position could dismay financial information you originally provided and risk loan approval.

Keep in mind every lender is different and have different requirements.  That’s why it is best to do your research and find out what different lenders are looking for so you will be well prepared.

At the end of the day, it is important to be honest and avoid withholding any information from your lender.

To learn more about our Mortgage Loans call us (toll-free) 1(855) 622-8564 or apply online today! Get the instant cash you need to deal with whatever emergency situation you’re facing!

 

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