Mortgage Factors

104 4

    Consequences of a Bad Credit Score

    • A borrower's credit history provides a good indication as to whether they'll fulfill their mortgage agreement and make on-time payments. Raising a credit score before applying for a mortgage helps applicants acquire a good interest rate and a credit approval. Aim for a score 680 or higher.

    Proof of Income and Employment

    • Mortgage lenders do verify employment and income to ensure applicants are able to realistically afford a home loan. Proof of income may include tax returns (two years of tax returns if self-employed), paycheck stubs, retirement income or disability compensation.

    Lowering Debts

    • Debt ratio also plays a role in qualifying for a mortgage. Ideally, a borrower's monthly debt payments should not exceed 28 percent of their income. Calculate debt ratio by dividing monthly debts by monthly income.

    Downpayment Requirements

    • Borrowers ought to plan for a down payment when applying for a mortgage loan. Large down payments such as the traditional 20 percent down are not required by all lenders. Instead, borrowers can qualify for a home loan with as little as five percent down.

Source...
Subscribe to our newsletter
Sign up here to get the latest news, updates and special offers delivered directly to your inbox.
You can unsubscribe at any time

Leave A Reply

Your email address will not be published.