Aside from Credit Score, What are Financers Looking for to Have My Mortgage Approved?
One of the most important purchases that you will make in a lifetime is buying a house. Now, one of the things that you need to consider for a productive home purchase is acquiring a home equity loan. It will be impractical to buy your house on a cash basis. There are financing options that you can consider, especially since most homeowners are bound to have a tight income due to a down economy. Credit score is mostly considered when applying for loan. Aside from this, there are other equally important things that most banks and lending firm consider. One of these will be your capacity to pay for the home loan. Banks and mortgage providers check your debt-to-income ratio. They compare your housing expenditures with your gross monthly income. The approval of the loan depends on the total of your housing expenditures, as well as your other outstanding debts and instalments divided by your total monthly income. This means that the lower your debt ratio, the greater the chances of loan approval. They also look into your character in reference to your payment records from the previous years. They'll check your bank loans, credit card and even telephone bills. It also includes your monthly payment for basic commodities and expenses. Banks might even look into a single record of tardiness in your payment -which might be a ground for the loan not to be approved. Your collateral and liquid assets play an important role in the approval of your loan as well. Make sure that you have everything indicated in your loan form. This information is necessary for them to be confident that they will not encounter any problems when the mortgage is approved. For your mortgage application to turn out a success, make sure that you are an eligible and a qualified borrower.