Before you can select your dream home, you must have a ballpark idea of what you can afford with a mortgage loan. Although this may not seem very complicated, it may take time for you to get their "ducks in a row" to qualify for a mortgage loan and own the home you can afford. So before you can comb the market for a home, there's a few things that must be considered about mortgage loans.
Lenders typically review credit histories through credit bureaus to examine the borrower's credit file. The reason for this is due to the fact that it allows lenders to make informed decisions for loan prequalification. Through these credit reports, the lender can access your credit score (also known as your FICO score) and understand the summary of your credit data. This information includes such things as your outstanding debts, bill payment history, and the borrower's income. The higher your credit score, the easier it will be to obtain a mortgage loan; The lower the score, a high interest rate or large down payment will be required - if the loan request isn't rejected.
If you have your credit in order, the bank will still have questions regarding your background before it plans on lending you money. Some questions lenders will ask will be:
Although mortgage loans may seem like a fairly complicated process, Midland Mortgage is here to help. Feel free to contact us today for more information about mortgage loans so you attain the home of your dreams!