Here's the plan
Unlike other mortgages, government entities do not secure conventional mortgages. The interest in this mortgage does not change, it is fixed throughout the loan life. Since the government does not offer these loans, the bank or creditors have rather strict lending requirements. When operating with the bank, you should ensure that you communicate with the bank to avoid seizing your property. Banks dislike seizing properties, as it is expensive.
Before being awarded a loan, the borrower has to undergo some very important verification steps. An official mortgage application should be filled and if there is an application fee, it should be completed. The lender will ask for some documents so that they can perform an extensive background credit history check and the borrower’s credit score.
The required documentation will enable the lender to identify if you match all the required criteria needed to be a successful borrower. The lender checks to see if you can afford the monthly mortgage payments, if you can afford the down payment and other fees. These documents include;
Proof of income
This may include;
Date to year income stubs and also thirty days of income stubs, tax returns for two years, quarterly statements of all asset accounts, that is, any investments or savings accounts and alimony or bonuses proof.
If you have any cash reserves, investment accounts you are required to provide the statements to show that you can afford down payments and closing costs of the residence. If you receive any help, you need to provide gift letters to certify these are not loans and no obligatory repayment is required.
Having a stable work history is very important in securing the mortgage. Your lender can call your employer to verify your work status and you can also be asked for employment stubs. They will use this information to check your salary and verify that you are still employed. If you are self-employed, you will be asked to provide paperwork on your business and the income earned.
To pull your credit report, your signature, driver’s license and a copy of your id card are required.
Under a proper investigation, if you have the following qualifications, you cannot access the mortgage;
• If you have suffered bankruptcy and had a foreclosure within the past seven years,
• Credit score of below 680
• Above 43% DTIs (Debt-to-Income Ratio)
• Down payment of less than 20% of the home’s purchase price
If you have a better credit score and meet all the necessary requirements, it will be easier to acquire a conventional mortgage.
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The information provided on this website does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available on this site are for general informational purposes only.