If you’re thinking about getting prequalified to buy a home, maybe you have some issues with your credit history in the past, or maybe you cosigned for someone else’s property. These are the types of things you might think might not matter to a mortgage company granting your home loan, but they do matter. If you have any sort of financial challenge or issue of any sort, here are some things you might want to talk about with your lender to insure success…
Mortgage companies have to look at your complete and total financial picture which involves a thorough examination of your cash, deposits, all bank, accounts, credit, history, credit, score, income, employment how many hours you work, as well as supporting your ability to handle the mortgage payment, including any, and all consumer debts, the mortgage payment in relation to your monthly income, and a whole slew of other things, including the property appraisal report. There’s actually a substantial number of factors that go into a lender’s ability to approve a home loan.
If your financial situation is anything out of the ordinary, maybe you had judgment, tax debt, short sale, bankruptcy, foreclosure, alimony, and child support any of these sorts of things. Make sure you tell your lender upfront. Applying for a loan and then going into contract on a home, then telling them about some piece of additional information like an undisclosed property for example, this is a type of thing that can make your mortgage transaction go from relatively streamlined to problematic and difficult in a matter of minutes. It’s super important no matter how challenging or how difficult your situation is to be upfront and tell the lender everything you’re working with. The lender can make a determination about how they can help you based on your situation so you can decide if that mortgage company is worth your time in going through the unraveling of whatever your financial process and challenge might be. When you’re looking for a home loan to buy a home, you want a mortgage company that will need to do whatever it takes morally and ethically to help you purchase a home.
That means collaborating with you to uncover and piece things together. Maybe its job history, maybe it’s the lender knowing the alimony is an obligation that comes off income and it’s no longer treated as a debt anymore, maybe it’s the fact that your auto loan has a few months of payments left on it, which no longer has to be counted in your debt-to-income ratio. Whatever the situation is be upfront with your lender. A good mortgage company should be able to help you identify what challenges are, and they should ask you about any and all of these things and tell them everything good, bad, ugly different, and everything in between. It’s critical because these are the types of things even if it seems tiny and mundane that could blow up your process and/or cause you to lose your earnest money deposit in a real estate transaction. Communication is the number one thing most important in a real estate transaction. This not only sets you up for success, but it also will create a smooth process and will help the lender help you and your family be successful when buying a home. Looking to buy a home get a no cost quote today.
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