What Do Lenders Look At When You Apply for a Mortgage?
While this is a bit of a broad question, most banks and mortgage lenders are looking for the same basic thing, your ability to repay the home loan.
After all, as long as you make your mortgage payments on time each month, there isn’t much else for them to worry about. You hold up your end of the bargain and they’ll be more than happy to extend financing.
Pinpoint Potential Red Flags Before the Lender Does
Think of a home loan application like a job interview. You want to put your best foot forward. This means taking a hard look at yourself and determining what your weaknesses and strengths are. This is exactly what a lender will do.
So before your loan application is actually submitted to a bank or mortgage lender, it is imperative to ensure that every possible red flag has been addressed.
Typically, borrowers know what these issues are, but if you don’t, consider shortcomings in asset, income, employment and/or credit departments.
Ultimately, you want your loan application to be as strong as possible and to make sense so approval will be the only option; underwriters tend to love common sense. As long as it makes sense, they can approve it knowing they won’t get any flak for letting a bad loan slip through the cracks.
Don´t forget that one of the biggest things lenders are concerned about is credit. It’s key to know where you stand before looking to purchase or refinance.
Your Loan in the Valley
Posted on November 22, 2016, in AGENT TRAINING, CUSTOMERS and tagged Advice, Evolution, Home Loan, lender, Loan Officer, loans, mortgage, payment, property, Real estate, your Loan in the VAlley. Bookmark the permalink. Leave a comment.