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Negotiating The Sale Of Your Home
Negotiating a successful sale of your home requires an environment that sustains the buyer's interest and trust during the process. Many of our clients have been very experienced negotiators, and from them we have learned that the goal is to reach a...
Protection Against People With Evil Intentions Towards You
Imagine having a new colleague who seems so nice that you feel suspicious about her motives. To be on the safe side, you decided to test her by inviting her to your house for tea. She started sneezing the moment she entered your house. Before tea,...
Security gives you that peace of mind
Seeking the latest opinion relating to security.
When you are on the lookout for better information about security, it will be intricate separating value packed information from unprofessional security submissions and support so it is important...
The Right Time To Buy Your First Home
There are many real estate market forecasts and predictions available - however the bottom line is that if you want to buy your first home—there is no wrong time. This is because the motivation to buy is not determined by regional market conditions...
Your Guide to Wireless Security Cameras
The use of wireless security cameras has been gaining in popularity over recent years. This can be for many reasons. Some people use wireless security cameras to make their home secure and to monitor their home. Other people use them to...
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Prerequisites While "Qualifying For a Home Loan"
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
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