mortgage updates
Before you apply for a loan, put yourself in the lender’s shoes. You’re about to sign $300,000 over to somebody you’ve never met! What kinds of questions would you ask the candidate before you sign over the money? What evidence would you want to see that they are capable and reliable to pay their debt to you? What is the purpose of the loan? Now think about your own loan request. Before you apply, you should be aware of what lending underwriters look at before they approve your loan request.
Your loan application is evaluated for approval by the underwriters. Their evaluation takes into account the following details:
* Appraisal of property , An appraisal is performed on the home you want to purchase by an independent contractor. The fair market value of the home is estimated based upon the condition of the home, the neighborhood, and other factors. When applying for a loan, you’re borrowing a certain percentage of the total property value.
* Assets and income – Your assets and income are verified and calculated. All available funds you have, including income, equity and bank accounts, are considered against your loan application. Can you pay the loan back is the question.
* Down payment – The more money you are able to put down the lower the monthly payments on the loan itself. Down payment sizes vary with loan type, but the rule of thumb is generally to pay the most you can up front to decrease interest rates or monthly fees.