What Lenders Look For
Being prequalified for a mortgage gives you a fantastic edge when competing with other homebuyers for the house of your dreams. However, applying for a mortgage can be the driest, most intimidating part of the home buying process for many people. The good news here is that the Grand Rapids Home Values team has been navigating the world of real estate financing for more than a decade. We always have a finger on its pulse so we can give our clients the smoothest home buying experience in the world, including the mortgage approval process. Here are a few of the things that mortgage lenders look for when considering any application.
- Your credit activity and score. Mortgage companies will want to know if you make monthly payments on time as well as how much of your available credit you’re using.
- Your amount of debt. While it’s not necessary to have zero debt, the less you have, the better because lenders consider your debt-to-income ratio to make sure a mortgage payment won’t over-stretch you.
- Your income. Lenders need to know you’re making money in the first place, so you’ll have to provide proof of income.
- Your current employment. Lenders look for steady employment over the last two years and may call your current employer to verify that you’re employed and earning what you say you are.
- Your assets. Lenders want to know that the money you claim to have is actually there, so you may be required to provide bank statements going several months back.
- Your down payment. The more down payment you can make, the lighter your mortgage payment will be. That being said, there are programs out there if you can’t make a down payment.
At Grand Rapids Home Values, we’re passionate about working with our clients’ unique situations and creating opportunities for them to buy their dream homes. Learn more about how we can help you today!
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