Submitting a mortgage application can be very stressful, but you can’t let your anxiety make you careless. Many people just want the process over and done with, but that is exactly the wrong attitude to have. Equip yourself with information about the application process to avoid common mistakes that derail mortgage applications.
Consider these three pieces that are essential to the mortgage application puzzle:
This is a major factor in qualifying for your loan. Lenders want to see tax records and bank statements as evidence of reliable income. Credit scores are important, but if you don’t have a convincing income history you will not be considered a good investment and your application may be denied.
Lending standards have followed turbulent trends in the past five years. These changes in the housing market landscape have left many borrowers unaware of new cost considerations that need to be made. When you are budgeting for a new mortgage, make sure you qualify for the mortgage payment. That will include elements such as insurance, property tax, in addition to the more commonly allocated for principal and interest.
You may have the money to cover your mortgage costs, but many lenders also look for a history of financial stability. How long has the money been in your bank account, how long have you held down the employment that qualifies you to make these payments? These factors are indicative of your consistency and borrowing stability.
Click here to contact the experts at Midland Mortgage to get the information and assistance you need to succeed with mortgage applications.