What Lenders Look for in Home Mortgage Applications
Posted January 4, 2008
Special Contribution Article
What Lenders Look for in Home Applications
Once your loan application is filled out and sent to the lender for review, the first thing they will look for is your ability to payback the loan you are requesting. A grand slam loan package is in perfect order and answers all the important questions up front.
Based on our thorough knowledge of multiple loan programs, and an understanding of what lenders look for, my team and I have a stream-lined process that will get you fully prepared for the lenders review.
What does a lender looking for when they review a loan application?
The lender wants to know about your personal financial picture, including savings and credit history and employment stability. The co-borrower’s history is also taken into consideration. The lender will also consider the loan amount and appraised value of the home you desire 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 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 I do on my end to make it easier?
Before taking out a home loan, it helps to establish a consistent record of paying 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. Aim to have enough savings to cover your down payment, closing costs, and two month’s income for emergencies.
My team can help you evaluate your debt-to-income ratio and determine a monthly mortgage payment that is comfortable and affordable for you.
If I started a new job six months ago, can I still apply for a loan?
A stable employment history is important, but lenders will take human factors into consideration. If you’ve recently completed college or vocational training, or were released from the military, you have good cause to have a lack of consistent work history. If your profession is seasonal, and gaps in employment are the norm in your field, there are loan programs that will accommodate your situation. If you are a freelancer or do contract work, the lender will look for consistency in income over the last two years.
Consistency is the key word in the lender’s mind, but know that lenders have developed many different loan structures to meet the needs of the general public.
My team and I remain on top of current mortgage trends and monitor rates on a daily basis. In addition, we have a support network of Realtors®, CPAs, Financial Planners and Credit Repair Consultants to lend you additional assistance.
Affordable Home Funding, Inc. MORTGAGE PLANNING TIPS
From the Desk of Don Draughn, Sales Manager
Website: http://ahfmortgage.elliemae.net/ddraughn
What Lenders Look for in Home Mortgage Applications was written by a mortgage loan professional or mortgage blog site and is included to provide you with more information and opinion about mortgages and how they relate to the local Charlotte real estate market. The views and opinions expressed in this article are not necessarily those of The Ed Nailor Mortgage Team. You may visit the contributing website or rss feed at http://activerain.com/blogs/ddraughn/rss
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Posted in Buying a Home, Mortgages
June 17th, 2008 at 3:12 pm
I would like to join the first time home buyers program. But I did not want to apply for the loan right now. I know that there are other steps that I need to take first before applying for a loan.
June 18th, 2008 at 1:09 pm
Merrissia,
I understand the apprehension to applying for a mortgage, espically if you think you may not yet qualify. I would suggest you request a pre-approval though. A good lender can take a look at your current situation and actually give you good advice on what to do to get there. While your credit may need to be pulled to get a good picture of your situation, it should not harm you. Many people are afraid that pulling credit will hurt their credit scores. However, that holds more true to excessive pulls. At the same time, if you have issues to address, even if a few points are lost from a credit inquiry, the advice given to make real strides will more than make up for it.
Thanks,
Ed Nailor
Feel free to contact me directly at 704-651-8704 or Email me.