Two Key Factors in
Qualifying for a Home Loan
When a lender makes a decision about a mortgage application,
they consider two basic factors: your ability and willingness
to repay the loan.
Ability to repay the mortgage is determined by
verifying your current employment and analyzing your total income.
Lenders prefer for you to have been employed at the same place
for at least two years, or at least be in the same line of work
for a few years. Your proposed monthly payment will be compared
to your monthly gross income and your monthly credit payments
to see how much you
can afford.
Willingness to repay is influenced by how you
have paid previous loans and by examining how the property will
be used. Willingness can be gauged by your credit report and
previous commitment to rent or utility bills. There is also
a greater tendency to stick with your payments if you live in
a house as opposed to a rental property or vacation home.
It is important to remember that there are no
set rules and each applicant is handled on a case-by-case basis.
Many applicants come up a little short in one area, but make
up for it with other strong points. These compensating factors
may include a large down payment, solid employment, extensive
educational background or overall financial health.
For applicants who need to make a lower
down payment, mortgage insurance is protection for the lender
in case you stop making payments. This allows low and moderate
income families become homeowners with low
down payment programs.
Apply today
to let MortgageYa Home Loan Center help you get the great financing
you want and deserve!
