Your Henderson Mortgage Broker , Questions to Be Prepared For

You have decided to buy a home!  Congratulations!  Here are some things your mortgage lender will be discussing with you so be prepared!

• Employment and Income – your lender will want to know where you work, for how long and how much you make. They will also want to know what type of work you do and how long you have done the same type of work. They will also be interested in knowing if you have a steady paycheck or get paid contractually or some other way.  They will be looking for about a year or two of income proof.  You will have to provide at least 90 days of check stubs, copies of checks, paid contractor invoices, child support proof or alimony proof.
• Your assets – How much money do you have on hand and available to you? What are the sources?  For example stocks, bonds, or cash.  They want to know that you have an emergency fund if needed.
• Outstanding Debts – What and how much are your debts? Examples would be auto loans, school loans or credit cards.  They will look at your debt to income ratio.  The less debt you have, the better your chance to get the loan and get your home!  On some mortgages, the maximum debt to income ratio can be 43%, but 36% is the usual figure used.
• Down Payment – How much are you paying for your down payment and where is this money coming from? Is it from a gift or from assets that must be sold first or cash on hand?
• What is your credit score? You should pull your credit report and check it so this should be no surprise to you.  Go through your credit report and clean it up before applying.  Make sure there are no discrepancies and try to pay off as much debt as possible.  Of course, do not take on any major debt while in the process of house buying!  Better credit scores will get you lower interest rates which can save you thousands or even hundreds of thousands of dollars over the course of your loan!
• What is the purpose of the loan? Is this a refinance or a new loan?
• How will you use the property? Is it a home you will live in, is it an investment or a rental property?  Is it a condo, duplex or single family home?
• Personal questions – are you involved in a divorce or any pending lawsuits.  These things will affect your financial future which in turn will affect your loan.

This is a basic starting list on what your mortgage lender wants to know about you.  Any preparation you can do or knowledge about the process will work wonders at reducing your stress!  Good luck and don’t forget to call me to assist with all your home buying needs!