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 Bancplus Home Mortgage Center help you get the great
financing you want
and deserve!
