There are a lot of things in life that can be scary, especially when you're doing something new for the first time. It might be signing a loan for to buy a car or interviewing for a new job, and it might be applying for a mortgage loan to buy your first home. You'll find out, however, that all homebuyers, even those who have done it several times, can get nervous about whether they will have the right qualifications that the mortgage lenders are looking for when considering giving them a home loan. Knowing exactly what the mortgage lenders in Wisconsin and elsewhere are going to be looking at will make the process much less stressful.
There are four main points that lenders are going to consider: property, income, assets, and credit. These are the four pillars that all home mortgage loans are built on. While lenders are going to expect you to have good ratings in all four of these categories, they aren't going to expect superior scores. You'll be required to supply documents that give proof of your status in these areas. You'll need to give them paycheck stubs, two years worth of W-2s, and three months of statements for your bank accounts. Other documents they will require, if they apply to you, include your divorce papers, bankruptcy information, and self employment documentation.
The following bits of information can also help you avoid some of the reasons why mortgage applications are turned down:
1.Never protest when the lender requests that you provide more documentation. Cheerfully give him everything he asks for.
2.Don't apply for any more credit cards, even if it's just for a balance transfer.
3.Don't go out while the loan is still being considered and charge a whole lot of things for your new house or for any other reason. Running up more debt may cause your loan to be denied.
4.It's not the time to change jobs while your mortgage application is in process. Before the lender will close on your loan, he will make sure you're still holding the same job you had when you applied.
5.Make sure you don't request to borrow more money than you can afford to make the payments on. If your current rent is $800 a month, and you're applying for a mortgage with a payment of $2,000 a month, you'll need to be able to prove you have the money to be able to make these increased payments.
As you can see, when you get down through all of the paperwork and questions, you'll find that applying for a mortgage isn't as difficult as you imagined it was. Just be truthful and provide all of the information the lender requires, and you'll be living in your new home before you know it.
There are four main points that lenders are going to consider: property, income, assets, and credit. These are the four pillars that all home mortgage loans are built on. While lenders are going to expect you to have good ratings in all four of these categories, they aren't going to expect superior scores. You'll be required to supply documents that give proof of your status in these areas. You'll need to give them paycheck stubs, two years worth of W-2s, and three months of statements for your bank accounts. Other documents they will require, if they apply to you, include your divorce papers, bankruptcy information, and self employment documentation.
The following bits of information can also help you avoid some of the reasons why mortgage applications are turned down:
1.Never protest when the lender requests that you provide more documentation. Cheerfully give him everything he asks for.
2.Don't apply for any more credit cards, even if it's just for a balance transfer.
3.Don't go out while the loan is still being considered and charge a whole lot of things for your new house or for any other reason. Running up more debt may cause your loan to be denied.
4.It's not the time to change jobs while your mortgage application is in process. Before the lender will close on your loan, he will make sure you're still holding the same job you had when you applied.
5.Make sure you don't request to borrow more money than you can afford to make the payments on. If your current rent is $800 a month, and you're applying for a mortgage with a payment of $2,000 a month, you'll need to be able to prove you have the money to be able to make these increased payments.
As you can see, when you get down through all of the paperwork and questions, you'll find that applying for a mortgage isn't as difficult as you imagined it was. Just be truthful and provide all of the information the lender requires, and you'll be living in your new home before you know it.
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