Qualifying
Different lenders use different criteria to
determine whether or not you qualify for a loan. This is why a
mortgage broker like One Stop Mortgage that deals with many
lenders can often help get a loan for people who may have been
turned down by a bank. Several factors determine if you qualify.
Your credit score. If you have ever
borrowed any money, your history of repayment was probably
reported to the major credit bureaus. They use all the information
they receive about your credit history to compute a single number
called your credit score. The higher it is, the easier it will be
for you to qualify for a low rate mortgage.
Your debt ratio. Lenders will want to know
how much money you make and how much you already owe. If the ratio
of debt to income is too high already, many lenders will hesitate
to give you a loan. Lenders will also want to know how the new
loan payment compares with your income. If the payment to income
ratio is too high, some may hesitate to qualify you.
Your job history. Lenders like to loan
money to people who have been on the same job for a long time. If
you income is from salary, commission, income properties, or tips
makes a difference, and determines which type of program you
qualify for. At One Stop Mortgage, we have programs for recently
self-employed as well as those whose income is mainly from tips.
The property's appraised value. Lenders do
not usually like to loan you more money than the property is
worth. For this reason, they require a written appraisal from a
qualified firm telling them what the property is worth. You may
need to put an additional down payment to qualify for some loans
if the appraised value is too low. At One Stop Mortgage, we have
some programs where you can borrow up to 107% of the appraised
value of your home. Contact us for details.
Even if you think that some of these items may be
a problem for you, we have many programs available from many lenders. Your
mortgage broker can help you find a program that works for your circumstances.
It costs you nothing to visit One Stop Mortgage,
go through a pre-approval including credit score check, and find
out how much you can borrow. Your only cost prior to closing would
be an appraisal if you decide to go ahead and apply for a loan
with a lender that requires it.
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