Mortgage Basics
first time home buyer Mortgage Basics Intro
first time home buyer Should I Buy a Home
first time home buyer How Mortgages Work
first time home buyer Factors that Effect Your Payment
first time home buyer Paperwork & Loan Fees
 
Prequalification
Lender questtions and how they affect your loan
Questions you should ask
Paperwork requied for a buyer
Other Lender Paperwork
Good Faith Estimate
In conclusion
first time home buyer Loan Processing, Now What?
first time home buyer Atlas, Closing
Questions Lenders Ask and How They Affect Your Loan
Know how to answer when asked, it can greatly affect your loan
 

 

  
Find The Best Mortgage Rates
Credit Profile
Property State:
Home Type:
Loan Type:

 

Your mortgage lender will want to know a lot about you before approving your loan application, and justifiably so; they and their underwriters want to be assured that you meet their minimum level of creditworthiness before lending you money.

Questions lenders ask

  • Employment and income: Where do you work? How much do you make? How long have you been at your job? How is your income derived -- steady salary or irregular income? If it's the latter, you may need to provide more details to obtain a favorable interest rate.
  • Outstanding debts: What recurring debts do you have? How much do you pay a month for auto loans? Credit cards? How much of your monthly pretax income do these debts consume?
  • Cash reserves and assets: How much money do you have in the bank? How much will be left after you pay your down payment and closing costs?
  • Down payment: How much money are you putting down? Is this your own money? If not, is it a gift from your parents? A nonprofit agency grant?
  • Loan purpose: Is this mortgage for a home buy or refinance? If it's a refinance, do you want to take cash out at closing to pay off other debts? If so, how much?
  • Property use: Do you plan to live in the house? Is it investment property?
  • Property type: Is it a single-family home? A condominium? A duplex?

The following responses tend to work in your favor:

  • Steady employment (two or more years) with the same employer or in same line of work.
  • Low debt: no recent major buys (such as automobiles) and a debt-to-income ratio of 36 percent or less.
  • Loan is for straight home purchase (or rate-and-term refinance).
  • Property is detached single-family home to be used as primary residence.
  • Down payment of at least 5 percent of sales price with your own money.
  • You'll have at least two months' worth of mortgage payments in the bank after closing.

These responses tend to work against you:

  • Self-employed or contract worker.
  • High debt: credit cards "maxed out," total debt-to-income ratio more than 36 percent.
  • Property is a duplex or condominium, to be used as a vacation home or rental.
  • No cash left after home buy and closing costs.
  • Down payment is 3 percent or less of buy price and money is borrowed.
 

<<Part 4a: Prequalification and Preapproval
 
Mortgage Tip: Need Cash to Pay Off Old Bills? Take a Bad Credit Second Mortgage

When you bought your home, your credit rating may have been in better shape than it is now - but maybe now your only way out of the debt hole you are in is by pulling out some home equity. Don't refinance your primary mortgage - preserve that good rate - consider taking out a bad credit second mortgage. A bad credit second mortgage, when taken out for debt consolidation or payoff, can be a great option to help you out. The fees will be relatively low - and many loan companies require proof of payoff so you won't be able to spend that money on anything but what you really need it for.

 
 
 
Mortgage Refinance - Mortgage - Credit Card - Debt Relief - Free Credit Report - Student Loan Consolidation
Sitemap - Privacy Policy - Contact Us
Local Mortgage Refinance - Local Debt Consolidation - Local Home Equity Loan - Local Purchase Loan
sponsors:New Orleans Home For Sale - Apartment For Rent in Odessa - Ca Bay Area Honest East - Aortic Stenosis
Copyright LendGo, Inc., 2007. All Rights Reserved