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Find the best home loan / mortgage loan for you!
Qualifying for a Mortgage Loan
In attempting to approve home buyers for the type and amount of mortgage they want, mortgage loan companies basically look at two key factors: the borrower's ability and willingness to repay the mortgage loan. Ability to repay the mortgage loan is verified by your current employment and total income. Generally speaking, mortgage companies prefer for you to have been employed at the same place for at least two years, or at least be in the same line of work for a few years.
The borrower's willingness to repay a mortgage loan is determined by examining how the property will be used. For instance, will you be living there or just renting it out? Willingness is also closely related to how you have fulfilled previous financial commitments, thus the emphasis on the credit report or rent and utility bills.
It is important to remember that there are no rules carved in stone. Each mortgage loan applicant is handled on a case-by-case basis. So even if you come up a little short in one area, perhaps one of your stronger points will make up for the weak one. Everyone involved in real estate is in the business of selling homes, in one way or another. Therefore, if the mortgage loan makes sense, mortgage companies and insurers will do their best to see that you qualify.
By its very nature, mortgage loan insurance is an aid to affordability, because it allows families to purchase a home with less cash on hand. The industry plays a central role in helping low and moderate income families become homeowners.
More and more borrowers are taking advantage of low down payment mortgage loans and becoming homeowners with as little as 5 percent down. For more information on how you can take advantage of the benefits of a low down payment home loan with mortgage insurance, contact your local mortgage loan professional or real estate agent.
- contains info from the NAMB
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