After you fill out your Mortgage Loan Application, do you wonder what the lender is looking for specifically?
True, there are many items the underwriter is reviewing, but the most important question they ask themselves is - 'what is your ability to pay back the mortgage?'. The ideal file for an Underwriter to review, is one that is well organized and answers all the important questions up front. A mortgage consultant understands what the underwriter is reviewing. They will help you put all your ducks in a row (sort of speak) because they understand the mortgage products, guidelines, and investor requirements.
So, what specifically will the lender be reviewing on your mortgage loan application?
The lender wants to know your personal financial picture, which includes your savings and credit history. Your history also spreads out to your employment history. How long you have been with your current employer, and even more specifically, how long you have been in that line of work? Keep in mind that this review is based on borrower and co-borrower history. These items, as well as the property itself, is evaluated for final approval.
Not every mortgage loan application is approved the first time through the process. If the underwriter has any questions or concerns, they will submit 'conditions', which must be met prior to recieving the final approval of the mortgage. These conditions can be simple, such as 'updated insurance information' or more detailed, such as 'the review and explanation of a previous bankruptcy/foreclosure'. In either case, the mortgage consultant can provide the direction and assistance needed to meet those conditions for final loan approval.
What can you do to make it easier?
The most important item you can work on, is to establish a consistent record of paying your bills on time. Continue to pay your credit card installments on time. If you have bills that are past due, bring them up to date. Not all past due debt is good to pay current. Some older items are best left untouched after a long period of time. This is another example of why you should inquire with a mortgage consultant early on in the process, to help you determine which debt to address.
Aim for having enough savings to cover your down payment, closing costs necessary, and two month's expenses in case of an emergency. The mortgage consultant will help you determine which mortgage product is best for your financial situation.
If you just started a new job within the last six months, can you still apply for a loan?
As I mentioned above, a stable work history is important, but the lender does take human factors into consideration * please note that not all lenders/investors are the same *. If you just completed college or vocational training, or were recently released from the military, you have good cause not to have work history. If your profession is seasonal, and gaps in employment are normal in your field, it does not mean you will not qualify for a mortgage program. The same applies if you are a freelancer or do contract work. In those situations, the lender will review for consistent income over the last two years.
"Consistent" is the key word in the lenders mind.
I'll help you get pre-approved for your Texas home loan and even suggest some very knowledgeable and professional Real Estate Agents in your area of choice. If you are available to talk, I am available to listen. Give me a call or visit my website for more details.
Do you want to know all of your mortgage options? Call me today and let's discuss them further.
Always available for your Texas Mortgage and Home Loan needs!
John R Cannata P#214.728.0449
NMLS # 322646
The views expressed on this site are mine alone and do not reflect the views of my employer.