Home - Mortgage Loans | Personal Loans | Bad Debt Loans | Foreclosure Loans
Apply for a Loan | Best Auto Loans | Best Bad Credit Auto Loans | Best Bad Credit Loans | Best Bill Consolidation Loans | Best Cash Advance Loans | Best Credit Cards | Best Credit Repair Tips | Best Debt Consolidation Loans | Best Free Credit Reporting Tips | Best Home Equity Loans | Best Mortgage Loans | Best Pay Day Loans | Best Personal Loans | Best Products on the Internet | Best Unsecured Loans
Great Financial Advice
Apply for a Loan
Latest Financial News
Rate Lock Advisory
Best Products
Join Our Mailing List
Contact Us
Loan Articles Index
Auto Loans
Bad Credit Auto Loans
Bad Credit Loans
Bill Consolidation Loans
Cash Advance Loans
Credit Cards
Credit Repair Tips
Debt Consolidation Loans
Debt Reduction Loans
Foreclosure Loans
Free Credit Reporting Tips
High Risk Loans
Home Equity Loans
Home Loans
Lawsuit Loans
Mortgage Loans
Pay Day Loans
Personal Loans
Products on the Internet
Real Estate Services
UK loans
Unsecured Loans
Loan Article Index
Loan Articles A-G
Loan Articles H-Q
Loan Articles R-Z
Mortgage Calculators
Mortgage Calculator
Mortgage Amortization Calculator
Rent vs. Buy Calculator
How Much Can I Afford Calculator
Auto Payment Calculator
Click here to Sign up for Email and Newsletter


redhotloantips fat loss

Prerequisites While "Qualifying For a Home Loan"

Written by: Lance Williams

When preparing to lend a mortgage the first thing many lenders do is to make sure about your financial condition. It enables lenders to grant loans that would otherwise be considered too risky. Lenders look at a variety of factors, including your ability and willingness to repay the loan. This mainly is done by the complete verification of borrowers application, which involves various factors.

They are as following: (http://www.mortgagefit.com/loan-application.html)
a. Your identity.
b. Your income- The amount of money you earn will determine the amount of money you can borrow to purchase your home. Normally, 33% of your income is the general rule to be spent on your mortgage, but this can vary depending upon the amount of down payment, your credit history, etc.
c. Your debts- The lender will look at the debt paid monthly by the applicant.
d. Your employment history- Lenders see a steady employment in any occupation held by the applicant.
e. Your credit history- Lenders receive a copy of your credit history in the loan application process in order to determine your willingness to pay as a borrower.
f. The value of the property you want to buy or refinance.
g. Your financial assets and liabilities.

Your willingness to repay is closely related to how you have fulfilled previous financial commitments. This is why lenders also place an emphasis on a pair of numbers called the "housing ratio" and the "total-obligation ratio."

Housing ratio- It is the percentage of your gross monthly income that you will need to spend on housing expenses after you buy the new home. It includes-
a. Your mortgage payment
b. Taxes
c. Insurance and maintenance
Lenders generally want to see a ratio of 28% or lower.

The total-obligation ratio- It is the portion of your income that goes to covering both your housing expenses and any other obligations, such as credit cards, car loans and child support. Your lender will want to see a ratio of 36% or lower.

Other qualifying prerequisite is the down payment. Traditionally, lenders have required a down payment of at least 20% of the purchase price of the home. However, lenders now accept less amount if the borrower takes out private mortgage insurance. The larger the down payment, the less your home costs in the long run. Besides there are many other documents requires by mortgage lenders. They are:

1. Federal tax returns from the previous two years.
2. W-2 forms from the previous two years.
3. A recent paycheck stub that shows your name and Social Security number, the name and address of your employer and your year-to-date earnings.
4. Documents to show other sources of income, which could include a second job, overtime, commissions and bonuses, interest and dividend income, Social Security payments, VA and retirement benefits, alimony, child support.
5. A complete list of your creditors, such as credit cards, student loans, car loans, child support payments, along with the minimum monthly payment and the balances.
6. Investment records including mutual fund statements, real estate and automobile titles, stock certificates and any other investments or assets.
7. Canceled checks that show your rent payments, or mortgage payments if you already own a house and are shopping for a new one.

Thus when all these are approved, you get the green signal from the mortgage lender. Mortgage lender then provides you the mortgage financing for buying the home of your dreams.

If you have any other queries related to mortgage, feel free to visit this site http://www.mortgagefit.com.

Copyright Lance Williams - http://www.mortgagefit.com

Other Related Articles:

Small Business Loan
Do you have a great idea? Are you an entrepreneur at heart? Then what are you waiting for, now is the time to start your small business. The best way to get started is to secure the financing you will need to fund your small business....read more

Are You Being Offered A Home Equity Loan That Sounds Too Good To Be True?
Have you received a home equity offer that seems too good to be true. Chances are it probably is. When looking at any type of large loan especially one secured on your home, care needs to be taken. Beware of any loans being offered by mail, phone...read more

Ten Ways Start-ups Use Venture Leases And Loans To Generate Millions
The rise of venture leasing and lending has created an opportunity for sophisticated entrepreneurs to gain a competitive advantage. Savvy entrepreneurs are using venture leases and loans to generate millions of dollars for shareholders by leveraging...read more

Return to Home


Best Auto Loans, Best Bad Credit Auto Loans, Best Bad Credit Loans, Best Bill Consolidation Loans, Best Cash Advance Loans, Best Credit Cards, Best Credit Repair Tips, Best Debt Consolidation Loans, Best Debt Reduction Loans, Best Foreclosure Loans, Best Free Credit Reporting Tips, Best High Risk Loans, Best Home Equity Loans, Best Home Loans, Best Lawsuit Loans, Best Mortgage Loans, Best Pay Day Loans, Best Personal Loans, Best Products on the Internet, Best Real Estate Services, Best UK loans, Best Unsecured Loans
Subscribe to Mailing List | Private Policy | Unsubscribe | Site Map