Qualifying For A Home Mortage Has Never Been More Difficult
How Do You Know If You Qualify For A Mortgage Loan?
This is not an easy question to answer. There are many new regulations and requirements to get a home mortgage. This is a very large purchase and lenders are very cautious now.
The good news is that there are hundreds of programs and lenders and while you may not qualify for money from one bank, another may be waiting to help you. My team will walk you through the steps and if there is a loan out there for you then we will find it.
The first step is a loan application.
When we review your loan application, we look at the following factors to determine if you're mortgage-worthy:
- Income
- Debt
- Credit
- Employment
- Property or collateral
- Financial resources used for closing costs
More specifically, qualifying for a mortgage loan will depend on the "Four C's" of Credit:
Capacity to repay the debt depends on earnings, employment history, expenses, number of dependents, and other obligations you have.
Credit history of how much you owe, how often you borrow, if you pay your bills on time, and if you're living within your means.
Capital, or the amount of cash you have for a down payment and settlement costs, as well as cash reserves to deal with repair or replacement expenses that may arise after you're in the home.
Collateral to protect the lender's investment if you can't repay your loan. The home you buy must be worth enough to back up your loan.
Here are some other key points you'll need to know once you're sure you plan to buy a home: You'll have to meet certain financial standards to qualify for a mortgage. Your monthly mortgage payment (including taxes, insurance, and all other fees) should not exceed 33 percent of your gross (before-tax) monthly income. Factoring in your existing debts, it is ideal if the combined mortgage payment and other debts are under 43 percent. You may be able to exceed this guideline if you have an excellent credit history or can make a large down payment.
Ultimately, To Know If You Qualify For A Loan You Need Only Apply.
Apply Online here and we'll get you started in 15 minutes.
