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Key Elements in Securing A Mortgage

Posted by Brian Tresidder on Monday, March 3rd, 2014 at 3:14pm.

Things to Know About Getting Approved for a Mortgage

One of the biggest investments most Americans ever make is buying a home. For most, this is a lifetime responsibility, so acquiring the perfect mortgage can be a nerve-wracking event. To make matters worse, finding useful tips on how to secure a mortgage can be hard. Below are a few tips and things that you need to know about securing a mortgage.

Status of Employment

One of the first things that your lender will want to know about you is the status of your employment. For the most part, lenders want to know how reliable your job is and if you will be able to afford your monthly mortgage payment. They will want to know how long you have been at your current job, if you have multiple sources of income and if you are self-employed. When you talk to your lender, go in prepared. The best way to do this is to have paperwork that verifies your work history. This includes your last tax return, pay stubs and bank statements.

Credit

Your credit is one of the single most important factors in getting approved for a mortgage. The truth is that your credit report is a complete record of all of the money that you have ever borrowed from credit card companies, lenders and banks. Furthermore, your credit report shows how well you have managed your credit. If you have ever paid your credit card bills late or paid a loan off early, all of this information is present on your credit report. Before trying to get approved for a mortgage, do yourself a favor and check out your own credit report beforehand. This will give you time to go through and spot any kind of issues that may cause a problem in getting you the mortgage you deserve.

Debt-to-income Ratio

The amount of money that you have coming in versus the amount of debt that you have collected over the years is also factored into your ability to get approved for a mortgage from a lender. Even if you pay all of your credit cards on time and have great credit, lenders are not going to take a chance on burdening you with even more debt if you do not have a good debt-to-income ratio. Before applying for a mortgage, work on getting your debt-to-income ratio under control. Work on paying off certain loans that you may already have. Not only will this look good on your credit report, but it will give you extra money every month, which increases your debt-to-income ratio. Also, try your best to avoid applying for any new credit card six months before you talk to a lender about taking out a mortgage.

Off-limit Questions

Your lender will ask you a lot of personal finance questions when you apply for a mortgage. Some of the questions they are allowed to ask you include if you have ever filed for bankruptcy, what your current employment status is, and if you have been involved in any lawsuits. That being said, the Fair House Act makes some questions off-limits. For example, you do not have to disclose any payments that you receive from a spouse unless that money is going to be used to qualify you for the mortgage. Lenders are also not allowed to ask if you get child support. Once again, they may ask if you want to disclose this information because it may help you qualify for a loan. Also, federal laws prevent them from asking you if you are planning to start a family, or if you are pregnant. However, they can ask if you have any dependents and what their ages are.

Available Down Payment

When you go into get a mortgage, you will be expected to put down at least 20% of the home's purchase price. In some cases, this percentage will be even higher. The lower your credit score, the more money down you are going to be expected to put on the loan in order to secure it. The amount required as a down payment differs by the loan type and the lender. On this same note, your lender will also ask if you have enough cash to cover the closing cost of buying a house.


If you have any questions about getting a mortgage for your Sarasota home, please "Ask An Expert." Don't hesitate to contact the team at Key Solutions Real Estate Group for assistance, or call (941) 894-1255.

Brian Tresidder | Siesta Key Real Estate Broker

Key Solutions Real Estate


Brian is a licensed real estate broker serving Siesta Key, FL and beyond. From finding the perfect vacation home to helping investors reach their full potential, Brian takes a professional and personalized approach to every situation. 

Phone: (941) 894-1255
Email: brian@keysolutionsre.com

Learn More About Brian Now!

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