Approval Process
Understanding the approval process.
There are several factors involved in the approval process of your mortgage application. Below is information and general guidlines for the approval process.
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Credit history
A satisfactory record of paying your bills on time is an important part of getting a home loan. If you've had credit difficulties within the past two years, a good explanation of any late or missing p...Click here to read more. |
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Employment history
Lenders usually prefer to lend money to people whose incomes have grown steadily over the past several years and who have worked consistently in the same or related occupations. You will need to verif...Click here to read more. |
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Income
When you're qualifying for a loan, lenders usually use your gross income (all the money you earn before taxes) to determine the monthly mortgage payment you can afford. Gross income may also include t...Click here to read more. |
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Monthly mortgage payment as a percentage of your income
In general, lenders require that your total monthly mortgage payment � principal, interest, property taxes, mortgage insurance, hazard insurance and any homeowner association dues � be no more than 28...Click here to read more. |
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Property appraisal
A professional appraisal is done to determine the value of the home. An appraisal is based on the home's condition and selling prices of comparable properties in the area and confirms that the propert...Click here to read more. |
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Your total debt situation.
You may have car loans, student loans, credit cards, child support, alimony or other monthly expenses. In general, lenders require that the total of all your monthly expenses (excluding basics like ut...Click here to read more. |
