In today's difficult economy, having trouble getting a home loan has become more difficult more recently than it has been in prior years. It is up to you to take the reins and steer clear of these speed bumps. Paying attention to these five obstacles will make obtaining a mortgage loan a much smoother process.
1.) Getting a Divorce
If you are in the middle of a divorce, banks may frown on your wedded departure. Not because of their views on your harmonious matrimony coming to an end, instead they want to be sure that their payment installments are met. It is vitally important when applying for a mortgage loan to be honest of divorce proceedings A background check is commonly executed and if found that the divorce was left out of the application process, the loan will more than likely be denied.
2.) Job Change
Conservatively, two years is the average time frame a mortgage company deems necesssary for stable employment. A loan company will look at your work history and will evaluate whether you will be making a steady income or not. They will more than likely deny you if you have changed jobs recently, and even if you are making a higher income, but have ventured into a different career path.
3.) Involved in a Lawsuit
During the mortgage process, you will be asked if you are involved in a lawsuit, it is extremely important to answer this honestly. If answered dishonestly, you could be accused of mortgage fraud. To be involved in a lawsuit means that you have legally filed suit against someone or if you have been served as a defendant. Ultimately, loan companies want to be secure that you will not short in payments at month end because of attorney fees.
4.) Making Home Repairs
Lending companies prefer to see a finished product regarding home repairs. Though home repairs may increase a home's value, some home repairs may have an never ending date of completion in sight. This only encourages the lender to not approve a mortgage loan. It is best to have home repairs up to date before going through a process of obtaining a mortgage loan.
5.) Just took on another Debt
According to mortgage loan.com, lenders do not prefer to see a borrower's debt to income ratio at any more than 43 percent of their monthly income. Mortgage Loan companies get uneasy when finding that the borrower has taken on another debt that requires another monthly payment. They want to make sure that you can comfortable make your payments timely and if you have other debt obligations that you have recently acquired, they may not approve you loan.
Obtaining a mortgage loan is not impossible. It is up to you to take responsibility. In doing so, you will dodge these road blocks and coast on the right highway to your mortgage loan destination.
No comments:
Post a Comment