Are you ready to become a homeowner, and trying to figure out what type of financing you may need to help you afford a property? Most people need to get a mortgage to help fund the purchase of a home, and there are a variety of things that mortgage lenders consider when you go to apply for a mortgage. If you are interested in buying a home in Mount Pleasant, South Carolina, and looking for help applying for a mortgage, Lucey Mortgage Corporation can help. Read on to learn more about what mortgage lenders look for when you apply for a loan.
Basic Information When Applying For a Mortgage
When mortgage lenders review a loan application from a possible borrower, they will examine several factors. Lenders are primarily concerned with a borrower’s ability to pay back the loan, and are concerned with minimizing the amount of risk they take on with each borrower. As long as you are capable of paying back your monthly mortgage payments on time, you will more than likely be approved for financing. You will want to ensure that you have prepared any necessary documentation and have addressed any potential issues with your credit history before you apply for a loan. The major factors that will help you secure a loan successfully are being able to afford the monthly payment, being able to put down a significant down payment amount, and having adequate credit.
Mortgage Lending Considerations
- Credit report – Lenders will look at your past credit payments, the length of your credit history, and the amount of credit that you use compared to your available credit limit. The higher your credit score is, your likelihood of getting a loan approval is. Having a lower credit score can demonstrate to lenders that you could possibly pose a risk by not being able to pay back the loan.
- Income and employment – When you apply for a mortgage, you will be required to verify the past two years of employment and tax documentation. Lenders want to ensure that you have stable income and employment and that you have a lower debt-to-income, (DTI), ratio.
- Down payment – If you are able to pay a 20% down payment, you will be more than likely to secure a home loan, however, even if you have a lower down payment amount, you can still qualify for a mortgage.
- Available Assets – Mortgage lenders will ask to evaluate your other available investments such as stocks, bonds, retirement funds, etc.
Get Assistance When Applying For a Mortgage
When you purchase a home and apply for a mortgage, there are many different factors to consider. If you are looking to buy a home in Mount Pleasant, South Carolina, and have questions about your mortgage application, contact Lucey Mortgage Corporation today.