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Factors a Lender requires of You when Qualifying You for a Home Loan

Sometimes it is okay to be a SAP

October 2007 Newsletter

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If you are just joining my newsletter group...Welcome! This months Newsletter will focus on the Basics to getting you qualified for a mortgage. The following are considered by the lender:

S Stability

How long have you been at the same address? Getting into a rent to own now and working on the 1 to 2 year plan is a great way to show Lenders that you are stable and make your payments on time. How long have you been on the same job? They want you to have 2 years or more in the same career. Better still; the Lenders like to see 2 years at the same job. How much money do you have in savings? Ideally, an Underwriter wants to see at least 6 months of mortgage payments in savings.

A Ability

How much do you make and how much of that is used to pay bills? Your income is important, but maybe not in the way you think it is. Lenders want to so you have a reasonable Debt to Income Ratio, they like a maximum of 45%. For example: If you make $3,000.00 per month, you should not have more that 3000 x .45 = $1,350.00 in bills THAT SHOW ON YOUR CREDIT REPORT per month.

P Probability

How many times have you been late in the past 12 months? How many of these late payments show on your credit report? Lenders look at your credit history, they want to know that recently, you have been paying your bills on time, every time. This reassures them that you intend on paying your mortgage debt back.

And as a little reminder from the previous newsletters, the 5 most important factors that are considered in the credit score formulas are:

Your payment history
The amount of money that you owe
The length of time you have had credit
The type of credit that you have
How many credit Inquires

So be a good S.A.P. and you WILL get qualified!

Dedicated to improving your credit and making you a home owner,

Lori

Swiftcurrent Investment Group, LLC
EZQualDreamHomes.com
719-648-5223

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