subject: Factors Affecting The Mortgage Process [print this page] Mortgage lenders take into consideration various factors before offering mortgage loans to an individual. There factors influence the decision making process for a lender. There are certain major and some minor aspects which are discussed here.
Good Credit Report and Score
This is one of the most important steps while applying for a mortgage loan. A credit report and a credit score are two different things and every mortgage lender checks these details. Credit scores should not contain any discrepancies and if it has, submit a correction request to the concerned company
Down Payment '
Better the down payment, lower the loan and the chances of approval are also better.
Outstanding Credit
It is advised to payoff all your outstanding bills and credit cards payments before applying for a mortgage loan.
Employment Status and Income Source
Better the job and source of your income, better are the chances of getting a good mortgage loan. A steady or increasing income is necessary while getting a mortgage loan, hence do not change jobs or quit jobs just before applying for a mortgage loan.
Interest Rates
As there are many lenders to choose from, the interest rates might be the deciding factor while settling for a lender. Remember, lower interest rates equals to lower monthly payments
Credit Card Accounts:
It is advised not to apply for new credit cards or close current credit cards just before applying for a mortgage loan.
Amount of Funds Available
Extra funds have always helped a person in terms of finance and you would also require funds for closing costs.
Capacity or Range
You need to calculate how much you can afford every month and still have enough funds to live the rest of the month. Check your debt to income ratio in this regard.
Most mortgage lenders have online websites available and it is advised to check the history of your lender rather than just going by word of mouth. For a better mortgage loan, you can also get in touch with home loan agents preferably someone who has local experience. Internet has enhanced the field of home loans, so you can have many options to choose from.
by: kellyprice1225
welcome to Insurances.net (https://www.insurances.net)
