Questions Lenders Ask You
What should you expect to be asked when you try to qualify for a San Diego mortgage loan?
Questions to Expect From Mortgage LendersData Provided By Know what to expect before you apply.
Your mortgage lender will want to know a lot about you before approving your loan application, and justifiably so; they and their underwriters want to be assured that you meet their minimum level of creditworthiness before lending you money.
Areas of questioning.
Here are the general areas of questioning you can expect from a lender:
1. Employment and income
2. Outstanding debts
3. Cash reserves and assets
4. Down payment
5. Loan purpose
6. Property use
7. Property type
Employment and income
Where do you work?
How much do you make?
How long have you been at your job?
How is your income derived — steady salary or irregular income? If it’s the latter, you may need to provide more details to obtain a favorable interest rate.
Outstanding debts
What recurring debts do you have?
How much do you pay a month for auto loans?
Credit cards? How much of your monthly pretax income do these debts consume?
Cash reserves and assets
How much money do you have in the bank?
How much will be left after you pay your down payment and closing costs?
Down payment
How much money are you putting down?
Is this your own money?
If not, is it a gift from your parents?
A nonprofit agency grant?
Loan purpose
Is this San Diego ca mortgage for a home buy or refinance?
If it’s a refinance, do you want to take cash out at closing to pay off other debts? If so, how much?
Property use
Do you plan to live in the house?
Is it investment property?
Property type
A condominium?
A duplex?
The following responses tend to work in your favor:
Steady employment (two or more years) with the same employer or in same line of work.
Low debt: no recent major buys (such as automobiles) and a debt-to-income ratio of 36 percent or less.
Loan is for straight home purchase (or rate-and-term refinance).
Property is detached single-family home to be used as primary residence.
Down payment of at least 5 percent of sales price with your own money.
You’ll have at least two months’ worth of mortgage payments in the bank after closing.
These responses tend to work against you:
Self-employed or contract worker.
High debt: credit cards maxed out, total debt-to-income ratio more than 36 percent.
Property is a duplex or condominium, to be used as a vacation home or rental.
No cash left after home buy and closing costs.
Down payment is 3 percent or less of buy price and money is borrowed.
Source: Move.com
Hi,
This is Justine. Many congratulations for maintaining such wonderful site here.
I am a Mortgage & Finance content writer by profession. Yesterday I visited your website. Indeed, the content of your website is excellent and useful.
As I am into writing, I shall love to contribute you unique, relevant Finance article to publish in your site. (For free, of course)
I have written the article only for publishing at your site (provided you agree)….so, If you wish, I can send it over so that you can take a look.
Please advise whether we both can go ahead. Feel free to contact me.
Awaiting your earliest reply….
Regards,
Justine Anderson
From Finance Care community
Don’t rely on the banks, they aren’t lending! We have private lenders who are ready to provide hard money loans to anyone wishing to purchase real estate property for investment or commercial use.
Hard Money | Real Estate Bailout Loans