reviewing your Loan application the lender will evaluate the risk
of loaning you money, along with your ability to repay the loan.
The main areas the lender will look at are the following.
Assets- Do you have enough money for the down deposit or for
the closing cost.
Collateral- Will you have enough equity to protect the
loan in case you default in payment.
Credit History- Do you have a good history of paying your
debt on time.
Capacity- Do you have enough income coming in to repay
- Your monthly mortgage payments should be no more than 28% of
your gross monthly income.Your monthly mortgage payments should
in turn be no more than 36% of your gross monthly income and your
monthly debts( including your mortgage).
to increase your purchasing power
You have been denied a loan or pre-qualified, but not for the
amount you would like. Below is a list of some common obstacles
to qualify for a home and some possible solutions to each.
Long Term Debt
Consolidate your debt into one loan (many credit card companies
or loan outlets will by up other debt and consolidate into one
Pay off long term debt by using some of your cash and in turn
lowering your down payment.
Sell an asset to help satisfy the debt you have.
Income from alimony, child support, bonuses, overtime or future
raises might be considered in qualifying.
Make a higher down payment.
Find a Co-Mortgagor who is willing to sign the loan with you to
help you qualify.
Consider a financing option that will allow you to stretch your
purchasing power, such as a FHA loan, adjustable rate mortgage
or balloon financing.
Calculators | Prequalification Application